Category: International

China limits exports, tries to repair image

Also via The Scooterscoop, via the Kneeslider: Autoweek reports on China’s drive to limit exports and improve quality. Here’s consultant Paul Gao preaching to the choir:

“The motorcycle industry provides the clearest example of the danger of taking a laissez-faire approach to auto exports. Uncontrolled exports of low-quality, low-price motorcycles led to anti-dumping charges in many markets and damaged the reputation of China-made products,”.

Maybe this is an important step in China’s eventual domination of the motor vehicle industry. They have a long way to go (see Phil’s story above), but it’ll happen.

Two Stella/LML rumors:

An unregistered user “Dr. Sparks” claimed yesterday on the ScooterBBS that he’d heard that a british concern was trying to buy the Star/Stella tooling from LML, not with the intention of producing the bikes, but simply to prevent its destruction. Today a rumor is circulating that LML distributors have been contacted by LML and notified that the Star would no longer be produced. Both these rumors are thirdhand and unsubstantiated, and it’s unclear whether LML’s recent financial shuffling signals a plan to reorganize or a final cash-in to pay creditors. 2SB rarely posts rumors, but it sounds like we can expect big news about LML soon.

LML does something involving money

From HindustanTimes:

Two-wheeler manufacturer LML Ltd said on Thursday that it has allotted about 27 lakh equity shares to Merrill Lynch Capital Markets Espana upon conversion of Foreign Currency Convertible Bonds (FCCBs). At the meeting held today the Financial Restructuring Committee of Directors allotted shares of Rs 10 each at a premium of Rs 21.10 per share upon FCCB conversion, the company informed the Bombay Stock Exchange.The shares were allotted upon conversion of 2000 FCCBs Series B of 1,000 dollars each aggregating to $2 million, LML added.

So make of that what you will.

Italy repeals 50cc 2-up ban

Friday, Italy will overturn a recent law prohibiting passengers on 50cc scooters. The new law allows passengers over 18 (sorry Brooke!) to ride on 50cc scooters if the vehicle is authorized to carry a passenger and a new €50 license plate is obtained. 50cc owners can keep their old plates if they are not able to, or do not wish to, carry a guest, but if they do meet a nice girl down at the Piazza and give her a lift home, they may be fined up to €275. (via Urbannerd

Scooter reality in Cambodia

In one of those wire stories that’s too vague to seem real, yet too mundane to be made up, Cambodian Television Network is now casting CTN Coffee Shop, Cambodia’s first reality TV show. The participant best able to cope with the stupidity of existence on a reality show for three months wins a brand new scooter. Somewhere, the PR director of a Cambodian factory that makes knockoffs of Vietnamese knockoffs of Chinese knockoffs of Indian knockoffs of Honda Super Cubs is complaining that the one wire service that picked up his story didn’t include the make or model of the scooter.

Business Standard interviews Rajiv Bajaj

Rajiv Bajaj, managing director of Bajaj Auto, talks to the Business Standard about his plans for the company, which include a big push in Mexico, cooperation with Kawasaki, and breaking the 200cc barrier. Rajiv practices yoga, runs the company “holistically,” and drools over new technology, yet we sort of miss his Harvard-Business-School, sentimental, right-wing dad Rahul Bajaj (and the Bajaj Chetak).

Lambretta outsourcing?

The Indian Financial Express reports on the woeful state of vocational education in Punjab:

The curriculum, for instance, has not been updated since it was introduced. In the motor mechanic’s course, students are still being taught about the components of the Lambretta scooter, whose production was stopped over a decade ago.

There are few skills more useful in life than Lambretta repair, send some of those guys over to the United States.

LML to remain shuttered through 2006

LML employees continued their protests last week, going to the district magistrate’s office to chastize the government for their lack of involvement. The Indian government has been publicly supportive of the workers, but has done little to end the lockout or secure promised payments. Monday, at a meeting between Indian labor officials, LML managment, and the union, an LML official aanounced that there was no chance the factory would resume production within the next six months. No agreement was reached as workers continued to demand payments (few workers have been paid since January 2006) and more effective government intervention. It’s now very safe to say 2006 Stellas are out of the question.

Scootering Magazine turns 21

step away from the airbrushBritish magazine Scootering is celebrating its 21st birthday with a extra-large July issue. Their website and magazine have improved recently, yet they remain an acquired taste for American scooterists who don’t really see the point of engraving and murals. Even if you’re not a fan of the British custom scene, this anniversary issue looks worth tracking down as it includes a “Where are they now” article checking in on many of the hundreds of custom bikes they’ve featured over the years (a sample).

Citicorp Finance invests in Kinetic

India’s TV18 reports Citicorp Finance is buying a 10% stake in Kinetic Motors. The interview with Kinetic Managing Director Sulajja Motwani doesn’t reveal much about their plans, but she says Citicorp’s investment covers their needs for the development of Italjet and SYM models over the next couple years. The hopes of Italjet Dragster fans everywhere are in your hands, Ms. Motwani.

“LML failed to get any number”

The Islamic Republic News Agency confirmed today what we’ve suspected all spring: Neither LML nor Bajaj exported a single motorscooter in the first quarter of 2006. Bajaj, of course, has been focusing on motorcycles and three-wheelers, and doing rather well on those fronts, but LML’s labor issues have brought their production to a total standstill. While some compromises and investments have been made in recent weeks, there is no indication that LML is, or will soon be, back on line.