2007 Dealer Expo: POCphil’s review

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Since a week has passed and I still haven’t been able to collect my thoughts on the ginormous mindblowing extravaganza in Indianapolis, here’s POCphil‘s writeup. I’ll add my comments in italics where appropriate. -2SB

We were so excited to get to the Indianapolis Dealer Expo this year, we were running about 2 hours early. We took that time to go visit Speed City Cycles in Indianapolis, only a few minutes from the Show. Mike and Marybeth Tockey have created a fantastic shop with an ingenious use of space and rural/industrial feel that leaves room for a snack bar, lounge and a ton of scooters and accessories. Mike also builds award winning metric cruisers. Just hanging around his IWL Berliner is a treat. After a great tour and some bench racing we were back on our mission to deliver two scooters to the Scoot! Magazine/ Corazzo booth and still arrive early enough at the hotel for some hottubbing before showing up in time for the open bar at 4PM, whew!
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Colaninno: “We will make a new Vespa for India”

Roberto Colaninno and Ravi ChopraDave McCabe sent me the following article on New Year’s Eve and, sadly, I’m just getting around to posting it, even though it’s probably the most interesting Piaggio news since EICMA. The story, written by Adil Jal Darukhanawala, appeared in the December, 2006 issue of Bike India. I generally don’t swipe entire magazine stories, but it’s not on the web and most of us don’t have a subscription to Bike India, so here goes: (emphasis is ours, click the thumbnail to enlarge it)

Piaggio Plans new age Indian Vespa along with a slew of other two-wheelers as it prepares to re-enter the Indian bike sphere.

The Vespa, replete with classic style but new age mechanicals could be back in India as parent Piaggio gets ready to increase its presence in India’s booming automotive sphere, according to no less an authority than Roberto Colaninno himself. Speaking exclusively to BIKE INDIA at EICMA in Milan, Colaninno told us that India was too large to ignore and also too vibrant to be tackled with existing models. Having been absent in two-wheelers since its deal with Kanpur-based LML Limited expired a few years ago, Piaggio has concentrated on a range of utility three-wheelers and has done pretty well in that area to date.

At the Milan Show BIKE INDIA caugt up with both Roberto Colaninno and also Ravi Chopra, CEO of Piaggio Vehicles in India and they both confirmed that it was only a matter of time before the company went on to add both two as well as four wheeled vehicles in its portfolio. “We will make a new Vespa for India, classic shape yes but totally new engine and technology to compete with others,� were the actual works of the Piaggio bossman.

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Piaggio targets 1 million units, more foreign production

Allow me to dissect some quotes from this Forbes story:

Piaggio SpA plans to open production sites in Brazil and Vietnam to reach its production target of 1 mln vehicles by 2010, chairman and CEO Roberto Colaninno said…

That means every Farm and Fleet will get a weekly shipment of 48 Piaggio Flys, an LX50, and one top-end Moto Guzzi.

The producer of motorcycles and light commercial vehicles manufactured 650,000 vehicles in 2006,…an additional 200,000 units were produced by Piaggio’s joint venture in China but are not consolidated in the group’s sales…

They’ll be counting Chinese production as part of that one million, I bet.

Colaninno said that Piaggio has superceded its restructuring phase and will now focus on growth.

Scooterists don’t need Forbes to tell us Piaggio is focused on growth, to the detriment of any other attribute.

Colaninno added that the group will have three business areas — Europe, the Americas and Asia/Africa — which will have their own production sites and distribution networks.

HOLD THE PHONE– are they saying that Piaggio products for the Americas will be produced IN THE AMERICAS? (i.e. Brazil?) Very interesting.

The group’s brands — Piaggio, Vespa, Gilera, Guzzi and Aprilia — will be maintained but have similar distribution channels, he said.

How has Derbi stayed out of this mess? And will high-end motorcycle buyers stand for Brazillian product?

The story also reports that production in India is up, with a new diesel engine plant in the works. It’s hard to say these days what’s built where, and where the components come from, but if the Pontedera factory is not already an anachronism for tourists, it looks like it may be within the next decade. We look forward to more corporate chest-banging at Piaggio’s Berlin Conference tomorrow.

MP3 faces a growing scooter-car market

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The Kneeslider (and the motorcycling press in general) are paying a lot of attention to commuter-friendly three- and four-wheeled motorcycles and microcars such as the VentureOne Tilting 3 Wheeler, KTM’s X-Bow, and the Bombardier Can-Am Spyder (more on the Spyder). As more car-like motorcycles appear, smaller cars (Mini, Smart, etc.) are also growing in popularity, and the line between cars and motorcycles was further blurred at Dealer Expo with a surprising number of trikes, oversized ATVs, dunebuggies, motorcycle training wheels, enclosed scooters, utility cars, and the like. Piaggio must ensure that their MP3 will remain the focus of, rather than becoming consumed by, this trend.

Word at the Expo was that the MP3’s greatest competition may come from within. PiaggioUSA recently spread the word that the 400cc model will come to America later this year. Dealers, who are still waiting for the 250cc version, found the 400cc announcement poorly-timed (and the shipping date optimistic). Piaggio, obviously, would be happy to sell customers either model, but if 250cc sales are disappointing, the 400cc might arrive too late to keep the public’s interest. The Vespa LXS faces a similar situation: again, dealers say U.S. shipping estimates are too optimistic, and the announcement will hurt sales of the “regular” LX in the meantime.

The MP3: A revelation

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Seeing the Piaggio MP3 in person, and a short demonstration from a Piaggio representative, answered a lot of questions about the scooter, and warranted a separate post.

Since the first leaked footage of the MP3, I’ve been pointing out that the machine does not, in fact, balance on three wheels like a tricycle, eliminating the need to put your feet down at lights. If the dual front wheels tilt, I assumed, then (unless the parking brake was activated), the machine could easily fall over on its side. Technically, I was right, and the Piaggio representative pointed out a few marks where it had been dropped a couple times at the Minneapolis show.

But what I did not know, nor had I ever seen explained, is that the MP3 is actually designed to lock the wheel-tilting mechanism at low speeds and stops. You actually, in most cases, can leave your feet on the floorboards! As you accelerate, the tilt mechanism unlocks, so that once you hit about 15-20mph, the wheels are free to tilt. As you come to a stop, they once again lock into place. A manual override button (photo above) will lock or unlock the wheels when necessary, for instance when parking on a hill, the wheels can be tilted for stability. The centerstand, the representative said, is nearly unnecessary other than for long-term storage.

This was a real revelation, many times I’ve questioned the hype that the MP3 would be a good choice for beginners, because I had no idea the wheel tilt was tied to the speed. I was wrong, it probably would make a beginner feel quite at ease.

That said, under the right conditions, it can still be dropped, at speed or at rest, and it is one giant, heavy machine. The thought of even more electric sensors and gizmos in what already seemed like a ridiculously complicated suspension make me shudder when I think of the expensive repairs for a very minor front-end collision. Electrical failure or a dead battery would seemingly pose some interesting new problems. Looking at the MP3 really drove it home that modern scooters have very little in common with the simple two-stroke Vespas I’m used to, and home maintenance is a thing of the past. The MP3 is just as complicated as a modern car, though–unlike a car–there will be a very small pool of qualified technicians capable of maintaining and repairing it.

On the other hand, it is attractive, well-designed and -built, and it felt amazingly comfortable, so even with its high price tag, it might be a big seller. I am still entirely unqualified to comment on its handling and agility, having never ridden it, but I suspect that will be another revelation. Hopefully, that revelation will come soon.

Chicago International Motorcycle Show 2007

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You’ll hopefully forgive 2strokebuzz if coverage of the 2007 Cycle World International Motorcycle show is a little scaled back this year. The truth is, very little has changed from year to year. Each year there are fewer surprises, less swag, and fewer perks (the bus service to the CTA parking lot was cancelled this year, brrr.), while parking, concessions, and admission (at least seem to) get more expensive. Probably that’s why Triumph didn’t appear for the second year in a row, and why Kymco, CMSI, and Genuine rarely bother with these shows.

On top of that, we had a head start on new 2007 models, thanks to the Milan EIMCA show, and next weekend I’m attending the Indianapolis Dealer Expo (my first trip), which promises to be a bit more exciting. But out of a sense of duty, and because Ryan was driving, I decided to once again trek through the Donald E. Stephens Convention Center in Rosemont, IL, to see what there was to see. Which wasn’t much, really.
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News chunks: February 7, 2007

Here’s what Vina–and R. Kelly–missed while having their appendices removed:

Welcome home, Vina! Now if I could just remember where I put our daughter…

Piaggio MP3 on YouTube

POCPhil found the Piaggio MP3 promo film on YouTube. It’s pretty low quality (possibly re-filmed off a TV screen), so I hunted down another, clearer version with different (better) music,including David Bowie’s “Cat People” and Joey Ramone’s version of “What a Wonderful World.” Whether this was an official Piaggio trade-show edit, or something some maniac on the web put together is unclear. In any case, it’s cheesy, but the fact that Piaggio could be arsed to promote one of their vehicles is hope for the future. There’s a lot more MP3 video on YouTube, including a funny MP3 clip from British TV show Fifth Gear featuring some difficult lane-splitting and an MP3 time trial versus a Vespa P200. If that’s not boring you yet, check out this MP3-400 footage from EIMCA, a MP3 test ride in Cy’s hometown, and more.

MP3 marketing, and good news

Just as I was about to post a contest to unofficially name the Piaggio MP3 for the American market, POC Phil posted a comment to the last post that shed some light on the MP3 marketing story:

We received our packet on the MP3 yesterday.
UP – They include a 2 minute DVD
Down – They visually compare the MP3 to several wild animals, Guh-hay.
UP – They actually show it doing a respectable stoppie.
Down – They are OFFICIALLY calling it the MP3.
Up – They’re putting a lot of energy into this launch.
Down – They won’t be available at your local dealership until mid/late March.
Up – They originally told us $7299 – They’ve dropped it to $6999
Down – The few MP3’s already here are being loaned around to press gigs, motorcycle shows etc. Not scooter rallies…yet.
Up – I am personally buying one and I will be riding it to everything.
Down – 3 times the chance of picking up a nail.
Up – Givi already makes a windshield for it…can the saddlebags and trailer be far behind?

So it will be called the MP3, a sorta-cruddy name, but at least consistent worldwide. The news that it will be less expensive than originally thought is certainly good, and perhaps the marketing campaign will be substantial and impressive. Good news, Phil, thanks. Phil (in another thread) also reiterates our argument that the extra wheel is there for better handling, not for balance:

Regarding the Mp3 article….�the scooter that won’t topple over�… I LOVE IT… it’s exactly these type of ads that will keep me in the clover fixing damaged MP3s. Yes, it will topple over, quite easily in fact. Just forget to press the yellow button and your ass is going down, and it’s a lot harder/heavier to deal with.

Exactly. It’s less likely to fishtail or flip at speed, but that extra wheel isn’t going to help you balance the bike or stop at a light without putting your feet down. I guess parking would be easier (locking the wheels while it’s upright, rather than pushing it onto a centerstand), but it’s not a tricycle. Which is a good thing.

MP3 marketing plan, or lack thereof

Marketing trade magazine MediaPost writes about Piaggio’s marketing plan for the MP3 in the U.S.:

Paolo Timoni, president and CEO of Piaggio Group Americas, … said the bike/trike targets urban and suburban commuters worried about global warming, gasoline prices and gridlock.
The approach isn’t new to Piaggio sibling Vespa, which has for the past two years been trumpeting its scooters as green machines in urban centers through mass transit poster ads promoting the iconic two-wheelers as gasoline and time savers in U.S. cities.
Timoni said that the company ran a study prior to launching MP3, based on a hypothetical situation in which 20% of car volume in New York City was replaced by scooters. “We learned that each of those drivers would save ten days a year,” he said.
Marketing for the vehicle will launch this spring when Piaggio runs a national road show taking the three-wheeled vehicle to cities, and a national open house at dealerships, talking up the environmental friendliness, savings and practicality of the vehicle. “We will run a traditional print push later in the year,” Timoni said.

So basically nothing new, he’s rehashing the Vespanomics/Vespetition screed. It’s a reasonable tactic on one hand, but there are very good arguments both for and against scooters in those regards. In any case, gas prices appear to be coming down, and the fickle American public will (sadly) soon hop off the environmental bandwagon, so their economy-based message may turn out to be just as futile as their luxury-based attempt. (Remember a few years ago when Vespa scooters were luxurious?)

Timoni also glosses over the fact that, publicly anyway, the MP3 doesn’t even have a name in America. Pre-launch marketing seems a waste of time when they can’t even connect it to the actual branding of the product. There’s a good buzz going on the MP3 now, but will that translate to brand recognition when it finally appears? (Wasn’t that supposed to be in December?) “MP3” was a horrible naming choice in the first place by the Italians, but does it make sense to leave it nameless until a week before it hits showroom floors? If so, why hype it at all, until then? And has anyone seen the cited Vespa “mass transit poster ads” in the U.S., let alone print advertising outside scooter publications? Sure, there’s been local, dealer-driven print advertising, but not much else.

I hope the MP3 (I feel dumb even calling it that, maybe I should go back to “X3“?) is the second coming of scooters in America. I hope Piaggio has a great name and a big, impressive, national media blast ready to go, and that bikes and spares flood into (and out of) dealer showrooms without a hitch. I hope Piaggio makes me regret my lack of faith in their marketing department. The MP3 is a truly original and exciting scooter, with merits well beyond the economic, environmental, and newbie-friendliness, and I hope Piaggio makes the most of this opportunity.

In the News, January 22, 2007

VespaUSA, the internets, and missed opportunities

Ex-Vespa-blogger Crystal Waters points out at Girlbike that even the marketing community has picked up on Piaggio’s failure to support the official Vespa blogs. ClickZ’s headline, (“Two Years After Launching Brand Blogs, Vespa Forgets Them,”) is misleading, they were forgotten about ten minutes after CooperKatz patted themselves on the back for inventing the idea. Still, even though both blogs were frozen in time with a depressing lead post about Vespa’s lack of enthusiasm, the VespaUSA site linked to them until yesterday (presumably the links were removed as a result of the ClickZ story).

Another punchline comes from a VespaUSA visitor who requested a catalog online and waited three months for it to arrive. As of today (January 3, 2007), the VespaUSA site launches a pre-Christmas promotion popup page. The front page features four “news” stories, two dating from June 2006 and at least one (possibly two, it’s unclear) featuring an expired promotion. Neither PiaggioUSA nor VespaUSA’s site mention a 2007 lineup, or the most-anticipated scooter of 2007, the MP3 (which amazingly remains without a name for the American market). One has to imagine that the majority of hits to a motorcycle manufacturer website in January are going to be people looking for new model info.

Canadian Scooter Corp. announced their 2007 Vespa/Piaggio lineup in mid-December (featuring the MP3, but no Vespa S!), but their site is also woefully out of date, featuring “news” from May 2006 and nothing about the new models.

If Piaggio as a corporation doesn’t have the reaction time or resources to keep their own sites up to date, (simply a fact of life for some bureaucratic corporations), the two Vespa blogs were a perfect way to spread information –on their terms–in a more timely manner. That’s why it’s even more depressing to see that they couldn’t muster the little effort required to communicate with their own (volunteer!) bloggers. With so many scooter bloggers, “official” and otherwise, doing their work for them, you’d think PiaggioUSA would be able to capitalize on their own hype, rather than abandoning every initiative they start. Once again, I ask, what the hell do Vespa’s marketing people (in-house and at CooperKatz) do all day? There’s very little evidence of marketing at the national level, in the past year they mustered nothing but an occasional PR-fluff newspaper story, the “Open Letter to Mayors,” the Vespetition (their master opus, maybe a week’s worth of work) and a handful of ads in national scooter magazines. Meanwhile, they’re awarding dealerships to anyone who asks, so they can say their “sales” are up. Perhaps their “marketing” is all at the dealer level?