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Bridgepoint Sells 39% of Dorna to Canadian Pension Group

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Bridgepoint Capital, the private equity firm which owns Dorna and Infront Sports and Media, has sold a 39% stake in Dorna to a Canadian pension fund, Canadian media are reporting. According to a report from Reuters, Canada Pension Plan Investment Board reportedly paid €400 million for the 39% stake in Dorna, and will join Bridgepoint and Dorna’s management – in the figure of Carmelo Ezpeleta – in running the company.

The sum paid for the 39% stake gives Bridgepoint a healthy profit. The UK-based private equity firm purchased Dorna from CVC back in 2006, when CVC purchased the rights to Formula One and were forced by the European Competition Commission to sell the rights to the MotoGP series first. Bridgepoint is said to have paid some £400 million (about €550 million) for the 71% stake held by CVC when they took over the company.

The Canada Pension Plan Investment Board is buying into more than just MotoGP, however. With the consolidation of Infront Motor Sports under Dorna, CPPIB now has a stake in both MotoGP and World Superbikes. This sale also provides the rationale for Bridgepoint’s decision to bring both series under a single umbrella: not only does it add value to the package on offer to CPPIB, but it also eliminates competition between the two series, allowing both to grow without cannibalizing each others audience and potential sponsors.

This, rather than any power struggle between Dorna CEO Carmelo Ezpeleta and Infront bosses Paolo and Maurizio Flammini, is the more important reason for combining the two series. Ezpeleta may have come out on top in that internal power struggle, but it was as a by-product of the proposed sale, rather than as a direct intent.

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Ducati North America Q3 2012 Sales up 24%

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Ducati North America has some impressive Q3 2012 sales numbers, as the Italian brand is up 24% over the same time period from last year. Its ninth-straight quarter of retail sales growth, Ducati North America owes a great deal of its success surprisingly to the Ducati Diavel, which was Bologna’s strongest model for growth in September. Ducati North America’s sales were up 40% in September.

Ducati hopes that 2012 will be a record year for the company, with sales from the Ducati 1199 Panigale helping fuel that enthusiasm. While Ducati remains bullish about the Panigale’s sales, our Bothan Spies have hinted that the new superbike hasn’t exactly met the initially high-sales expectations.

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News

Ducati Forms a Brazilian Subsidiary

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Ducati has announced today that is has created a wholly-owned subsidiary for the Brazilian market, following the news that its current importer, the Izzo Group, has shutdown its business due to current economic situation. Part of a larger issue in Brazil with the Izzo Group, which was the country’s largest motorcycle importer, Ducati‘s move ensures the Italian brand’s ability to sell in the growing South American economy.

Headquartered in São Paulo, Ducati Brazil will be the Bologna brand’s base in Brazil, which has extremely high tariffs on foreign goods. Importing complete knock-down (CKD) kits to Ducati Brazil, Ducati will have a minimal manufacturing presence in the South American country, and will be essentially assembling its motorcycles within Brazilian borders in order to side-step loopholes in the Brazil import regulations.

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Opinion/Editorial

The Larger Issue Behind the Maverick Viñales Affair

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It was a strange day in Malaysia. Part of the strangeness was down to the weather. The familiar pattern of disrupted sessions as the rain fell, but not hard enough to allow the MotoGP riders, in particular, to spend much time on the track in the afternoon.

There was a twist, however, a particularly Malaysian one at Sepang: the heavy shower which passed over the track at the start of the afternoon session for MotoGP left part of the circuit soaking, with water a couple of centimeters deep at turns 1 and 2, while the rest of the circuit quickly dried out almost completely. It at least added a little novelty to the disruption, along with the frustration of another wasted practice.

The real strangeness came at the start of the day, however. It took about 10 minutes for observers to notice that Maverick Viñales had not gone out on track and there was suspiciously little activity in the Avintia Blusens garage. Once they noticed, low-level pandemonium broke out: within seconds, a throng of Spanish journalists crowded out of the media center and hastened on their way into the paddock, to find anyone and everyone and learn what they could.

As they drifted back in, and as TV pictures started to appear showing an empty Blusens garage, Viñales walking through the paddock accompanied by his father and the Dorna media officer, and team managers Raul Romero and Ricard Jové gathered in discussions, it was clear that there was something very wrong.

When it was revealed what that was – that Viñales had decided to quit the team with immediate effect – it sent a shockwave through the paddock. Riders quitting teams with races left in the championship is unusual; to do it while that rider is second in the title chase and still in with a shot at the championship is unheard of in motorsport.

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Racing

MotoGP: Motegi to Host MotoGP thru 2018

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The Twin Ring Motegi circuit is to be home to the Japanese round of MotoGP until at least 2018. Dorna today announced that a contract had been signed with the circuit for it to host the Japanese Grand Prix from 2014 to 2018. Motegi has been on the calendar since 1999, first running the Pacific Grand Prix before taking over the Japanese Grand Prix when Suzuka was axed from the calendar following Daijiro Kato’s death.

There had been some doubt about the future of the circuit in the aftermath of the 2011 earthquake and tsunami. Motegi is just over 120km away from the Fukushima Daiichi nuclear plant which was badly damaged by the tsunami, and caused a massive leak of radiation.

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Racing

Carmelo Ezpeleta Speaks On WSBK And MotoGP Merger

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The repercussions of Bridgepoint’s decision to hand control of the World Superbike series to Dorna are just starting to become clear, as each of the protagonists get to explain their side of the story. After Paolo Flammini spoke to the media at the final World Superbike round of the year at Magny-Cours, at Motegi, it was the turn of Dorna CEO Carmelo Ezpeleta to face the press.

He did so an hour before the traditional pre-event press conference, giving a statement and answering questions from assembled journalists on the implications of the move (a full transcript of the press conference is available on the official MotoGP.com website). Ezpeleta did his best to first of all quell any fears among the legions of World Superbike fans that Dorna intended implementing any major changes for the coming season, ensuring the assembled media that all would go ahead for 2013 as planned.

“For next year things will continue as they are, and both MotoGP and WSBK will continue the same way, with exactly the same system of organization and with the same technical rules,” Ezpeleta told the press. “For 2013 the regulations will be the ones that have been approved between the FIM and Infront Motor Sports,” he said in response to questions, “In 2013 it will be exactly as proposed by the different parties involved, there will not be any changes for 2013.”

Beyond 2013 is a different matter, however. Ezpeleta made it clear that his goal was to harmonize the regulations between the MotoGP and World Superbike series, each maintaining their separate identities, but cutting costs and increasing the spectacle in both. “From now, together with the FIM, the manufacturers, the circuits and with the teams, we will try to accommodate these difficult economic times to set up two championships that are able to continue and to grow together,” Ezpeleta said. “This is the main aim of both championships – reducing costs and increasing the show.”

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News

Layoffs Reported at Mission Motors

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Asphalt & Rubber has gotten word that Mission Motors has let go of a significant portion of its staff, both on the engineering and non-engineering sides of the San Francisco based startup. With the layoffs presumably the result of a lack of funding, the news comes interestingly just a few months after the departure of Mission’s Chief Financial Officer, Chris Moe, who made his return back to Vectrix in July of this year.

The bulk loss of its workforce is certain to be a blow to Mission Motors, which according to our sources, still has a core team in place to continue basic business operations. Making the switch from being an electric motorcycle company to supplying electric drive components to OEMs in Q1 2010, it wouldn’t surprise us if some of the now former Mission Motors employees found their way into other electric motorcycle manufacturers, and today’s news paints an interesting picture for the future of the Mission R electric superbike.

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Racing

Flammini Talks about the Future of World Superbike

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After the bombshell announcement that Bridgepoint was putting Dorna in charge of both the MotoGP and World Superbike series, the media were keen to get a reaction from either of the Flammini brothers, the two men who had helped to grow the series into the success it is today, and who currently run WSBK. After an initial deafening silence, Paolo Flammini finally made an appearance at Magny-Cours on Sunday morning, to explain his, and Infront’s, point of view. Our friends at the Italian website InfoMotoGP.com were present to record the press conference on video.

Flammini did not say much – indeed, he started his speech with the words “I don’t have much to add to what is written in the press release,” – but what he did say helped clarify the situation a little. Starting off with an understatement – “This step represents a very big moment in the history of World Superbikes”, Flammini told the assembled media – the Italian was at pains to make clear that World Superbikes would face few changes for 2013. “Many people are worried for the 2013 season, but nothing special will happen,” he said, emphasizing that his aim was to keep stability in the series.

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Infront, Dorna, & Bridgepoint: Where The Coup Came From, And What Next For World Superbikes?

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Sunday was a big day for World Superbikes at Magny-Cours. Not just because the 2012 title was settled in what was a fascinating showdown, helped in no small part by the weather, but perhaps most of all because on Sunday morning at 9am local time, Infront Motor Sports CEO spoke to the media for the first time since the announcement that Bridgepoint, the private equity firm which owns both Infront and MotoGP rights owners Dorna, has decided to bring both series under a single umbrella, and that umbrella is to be Dorna.

That news has sent a shockwave through the motorcycle racing world. The World Superbike paddock is hardest hit of all: the mood there is somber, with everyone from Infront staff to team mechanics fearing the outcome of what amounts to a coup by Dorna CEO Carmelo Ezpeleta. Optimists are few, especially as Ezpeleta is one of the most reviled characters among denizens of the WSBK paddock, because of what he represents: the perceived arrogance of the Grand Prix paddock, and a culture which is anathema to everything which World Superbikes stand for. MotoGP is truly the Beatles to WSBK’s Rolling Stones.

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Opinion/Editorial

How 3D Printing Is Going To Change Motorcycling

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For the past few weeks or so, I have been conversing back-and-forth with my cousin-in-law about 3D printing. Apparently, some sort of hobbyist 3D printing shop has opened in his home town of Pasadena, and my geekier-than-me relative has been chomping at the bit to see what the consumer-level 3D printers can build.

Since my special brand of geekiness has already assured that the bloodline stops at my branch of the family tree, you can imagine the uber-nerd fest we both have been having, trading links on Facebook about the different things that rapid-prototype machines and 3D printers can achieve.

For those who are not familiar with the technology, the name really does give away about 90% of the special sauce. Using a plastic in lieu of ink, 3D printer can actually build three-dimensional objects in a process not that dissimilar to your home ink jet printer (Jay Leno has been using 3D printing to replace impossible-to-find parts for his classic car collection).

The more robust and industrial units use lasers to shape and heat the plastic ink, and are able to achieve a high-degree of object resolution. We can think of more than a few electric motorcycle startups that are currently using this rapid-prototyping process to develop their street and race bikes. It’s very fascinating, but also very expensive stuff.

This is where the consumer side of the equation comes in, as the post-industrial form of 3D printing has not only rapidly increased in its ability to flawlessly create a high-resolution object, but the cost of both the 3D printer and its “ink” have dramatically dropped. Hobbyist models are now in the $400-$2,000 range, and could soon be as ubiquitous as the printer sitting next to the computer you are using to read this article.

As the price-point drops and resolution increases further, the consumer end of this technology could rival the industrial side of 3D printing, and that is where things get real interesting for the motorcycle industry, and manufacturing in general.

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Pitching the BMW R1200GS – OEMs, Take Note

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Making effective market communications in the motorcycle industry should be a relatively straight-forward and easy task. After all, motorcycles in North America and Europe have a strong personal component that revolves around self-expression and a rider personal identity. Making things easier, the motorcycle industry is littered with enthusiasts who themselves ride on a daily basis, and should understand this concept first-hand.

The idea that an ad or campaign should reach out and grab the intended consumer is not a novel concept, and motorcycle marketing professionals have their job simplified since they need only to develop and publish creative that would speak to them personally, in order to be successful. For whatever reason though, motorcycle industry marketers, by-in-large, were absent the day they taught marketing in business school…and it shows.

It is a subject I rail on about far too often, probably because it just simply baffles me how it occurs in the first place. How a motorcycle enthusiast fails to connect with people just like himself or herself boggles my mind, and yet it routinely happens in the motorcycle industry. However, every now and then, an OEM puts together something that renews my faith in the establishment, and for a split-second I have a vision that this whole two-wheeled thing isn’t going to hell in a hand basket. Such is the case with this promo video done by BMW TV.

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