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COMMENT: OEMs – get on your bike!

BY MARTIN KAHL. As electrification increases, so too does the need for cars to have smaller combustion engines. Could motorcycles provide the answer?

It’s becoming increasingly clear that to cut through the traffic and succeed as car a company means selling more than just cars – it means selling mobility solutions.

Mobility comes in many shapes and forms, from basic personal mobility (i.e. a car) to alternative transportation via route and traffic planning, parking services and electronic billing. Getting from A to B is often more like getting from A to Z, with various stages en route, and the car is just one aspect of that journey. If a single brand can ‘own’ much, or all, of that journey, by being actively involved in as many stages as possible, then it can truly claim to provide mobility services, and reap the associated rewards.

It’s becoming increasingly clear that to cut through the traffic and succeed as car a company means selling more than just cars – it means selling mobility solutions

One area of mobility yet to be fully exploited by the major OEMs is the world of two-wheelers. From traditional bicycles to fold-up commuter bikes, mini scooters, e-bikes and mainstream motorcycles, ownership of a two-wheel brand can help a car company to reach parts that others cannot. Yet it’s been largely overlooked.

BMW – arguably the leader of the pack when it comes to mobility services – has its own well-established motorcycle division. PSA has long had its feet planted either side of a two-wheel business selling Peugeot bicycles and scooters. Other marques have launched their own branded bikes, and in 2012, Volkswagen acquired Ducati.

To date, however, no passenger car OEM has successfully integrated two-wheelers into a wider mobility strategy. They may share a showroom and the blue and white propeller logo, but there’s been little convergence so far of BMW’s car and motorcycle divisions, despite the potential of its earlier C1 city scooter. Peugeot is well-positioned with its scooter operation, yet few customers associate its lion-badged cars with Peugeot-branded scooters.

But things could be changing. Those who accused Piech of making a vanity purchase when he acquired Ducati looked on as VW unveiled the XL Sport at the 2014 Paris motor show. The rear-wheel-drive concept car is powered by an engine lifted and modified from a Ducati 1199 Superleggera motorcycle. VW has a history of manufacturing concepts, but there are no stated production plans for the XL Sport.

And now, if reports in the German media are to be believed, Daimler is considering entering the two-wheeled world.

To date, however, no passenger car OEM has successfully integrated two-wheelers into a wider mobility strategy

Rumours which first began circulating earlier this year about Daimler’s two-wheeled interest resurfaced at the start of the week, shortly before it sold its 4% stake in Tesla for US$780m. Reports citing Germany’s dpa say Daimler could take an initial 20-25% stake in MV Agusta, worth around €20m-€30m (US$25m-US$38m).

Just as VW acquired Ducati through Audi, so Daimler will associate its AMG division with MV Agusta, say the reports. And this is not a new idea – Daimler has previously shown a special edition motorcycle with AMG insignia. Ironically, that was a Ducati, shown at the 2011 Frankfurt motor show just months before just before VW’s acquisition.

Whether or not Daimler plans to acquire a stake in MV Agusta – and Daimler has declined to comment – it raises the interesting prospect of car manufacturers turning to motorcycle manufacturers for engine technology. Motorcycles have small, high-powered engines; as electrification increases, so too does the need for cars to have smaller combustion engines. And integrated journeys need a portfolio of vehicle options. You want to cut through the traffic? Get on your bike.


Martin Kahl is Editor, Automotive World.

The AutomotiveWorld.com Comment column is open to automotive industry decision makers and influencers. If you would like to contribute a Comment article, please contact editorial@automotiveworld.com.

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