American Motorcycle Dealer AMD 213 April 2017 | Page 22

“ a lot of people found that their worlds changed”

Mustang Motorcycle Products: Founded in 1980 by Al Simmons, Mustang was bought by MAG in 2004. Seen here on duty for the Three Rivers, Massachusetts based seat manufacturer at the Biker’ s Choice Dealer Expo in Texas in February are Matt Kulman, General Manager, left, and Sales Manager Jesse Sargent; www. mustangseats. com
Performance Machine: Founded by Nancy and Perry Sands in 1970, PM was among the pioneers of the parts industry as the 1970s chopper revolution took hold. Though originally best known for their market-leading brake calipers, it was the wheel programs that saw PM become a bellwether for the design trends and business cycle of the market. Bought by MAG 15 years ago, PM had been a design leader when“ fat rear ends” were‘ de rigueur’ in the days of the tire wars, and more recently was part of the entire custom wheels industry subculture as Harley transitioned the majority of its production into tourers – ultimately triggering the so-called“ Bagger Boom”, which saw custom trends morph once more; www. performancemachine. com
attrition, as a channel tier was absorbed by a factory-to-e-commerce capable operation; and that with the primary competitor having previously been the primary customer for most of the MAG brands, there has been a lot of concern about the direction of travel that this apparent consolidation and realignment of product lines was taking, or could be about to take. Especially in the context of a market way softer than the one that Lacy must have been banking on.“ Given our size and the pre-eminence of our brands, inevitably we get a lot of attention. We are a group of leading players in the market. But a lot of the fears have been misplaced. Overall, what we have done will be seen as having been good for the industry.“ We have added a major dynamic to the market. Dealers and their customers will see the benefit of that. We believe that the distribution skills and services we bring both to the MAG brands and to our thirdparty partners will benefit everyone – riders, dealers and vendors. We have created additional critical mass that results in a higher quality product, service and value to consumers. Riders have very special characteristics that they share in common with other enthusiast groups, but they also have basic requirements that they share with all of us as consumers – they want ever better products, prices, and an improved buying experience.” I discussed with Graves how those initial concerns had moved. Now it is the massive level of debt being carried by the merged entity that has a lot of people worried. Surely the debt that has been incurred, combined with a market in which sales are soft, has reduced the net value of the combined business? One that some say Lacy’ s overpaid for in the first place? From the outside, it has looked very much like, in effect, LDI mortgaged Tucker Rocky in order to make the deal happen. In that regard, wasn’ t it more of an acquisition than a genuine merger, and isn’ t that debt going
to be a burden that affects progress and hands the initiative to competitors?“ The deal as structured was a merger. Both businesses went into a new holding company as partners.“ Strategically it has been handled as a merger of equals. As to the debt, well debt
Maxima Racing Oils: V-twin oils specialist Garret Andrews:“ Our oil change kit options are proving very popular as they give dealers the flexibility of service solution options they need. We offer two options – a‘ Quick Change’ kit with oil and choice of chrome or black K & N‘ Wrench Off’ oil filters, and our complete‘ Oil Change in a box’ – 20W-50 engine oil, oil filter choice, plus transmission and primary oils. We are the only oil company offering the choice of chrome or black oil filter from K & N”; www. maximausa. com
Arnott Air Suspension: Glenn Nash is the V-twin suspension specialist for the Florida based ISO 9001-2008 accredited manufacturer:“ There is so much confusion and misinformation about air suspension in the V-twin market. Arnott makes the only true onboard adjustable air suspension kits for motorcycles. Our TruAir technology uses genuine gas pressure, height adjustable FOX shock absorbers in our top-of-the-line“ Ultimate Ride” kit, and the core of our patent pending design is a separate Goodyear air spring – a rugged air spring bladder, not an air cylinder or air-assisted unit – and we back all our systems with a Limited Lifetime Warranty”; www. arnottcycles. com
S & S Cycle: On home ground for once, S & S’ Texas based Southern Sales Manager and V-twin Tech Sage-in-Chief Scott Hakins – 2017 will be a big year for the Viola, Wisconsin based manufacturer with more than 20 new performance products slated for release; www. sscycle. com
22 AMERICAN MOTORCYCLE DEALER- APRIL 2017 www. AMDchampionship. com