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Powersports Business • December 2024 • 11

FROM THE EDITOR INSTA TIPS

KTM CEO Stefan Pierer ( right ) and Co-CEO Gottfried Neumeister addressed the company ’ s more than 5,000 employees to unviel their plan to navigate KTM ’ s current financial crisis .

Is your dealership capitalizing on the top-of-mind marketing ease that Instagram offers ? Did you come up with an ideal way to showcase your customers in an effort to help spread the word about your shop and its employees ? If so , let us know . Powersports Business will highlight Instagram posts from a variety of dealerships in upcoming editions of the magazine .

Dealerships featured all follow the Powersports Business Instagram at @ powersportsbusiness . All posts featured will be photo or video in nature , with content from Instagram Stories not considered for this piece .

Got an Instagram tip that works at your dealership or one with which you do business ? Feel like raising the collective industry tide ? Let us know at mhubbard @ epgacceleration . com .

Typically , in December , we cover the year we are wrapping up . We will mostly stay with that plan . However , there are some new items to discuss as well . First of all , the presidential election is over . That was a significant factor , or more of an unknown , that markets and consumers were

BRENDAN BAKER waiting on before making big decisions like a new powersports unit . At least , that ’ s our theory , and we are sticking to it .

Less taxes and regulations are generally good for business , but will it also help with inflation and high interest rates ? After five years of this Covid−19 fallout , let ’ s hope and pray the industry returns to some sort of normalcy in 2025 .

OEMs have struggled mightily this year , and KTM , a storied brand from PIERER Mobility and Stephan Pierer , looks to be the poster child for an over-leveraged company that has been severely affected by high taxes and rising labor costs , along with the perfect storm of high interest rates and inflation . Those are hard to overcome , and we understand that KTM AG needs at least a $ 100 million lifeline to keep things going .

In a YouTube video , Stefan Pierer , CEO of KTM AG , comments : “ Over the past three decades , we have grown to become Europe ’ s largest motorcycle manufacturer . We inspire millions of motorcycle riders around the world with our products . Now , we are taking a pit stop for the future . The KTM brand is my life ’ s work , and I will fight for it .”

KTM has grown from 160 employees and a production volume of 6,000 units in 1992 to a capacity of up to 1,000 motorcycles per day , as it now faces significant hurdles . The company has already started the legal restructuring process under self-administration , whatever that means . Mr . Pierer has many connections to high-income individuals and companies such as Red Bull . But I bet the banks will float KTM a lifeline with a lot of collateral to back it up . The company says it will conclude the “ self-administration ” period in 90 days . We ’ ll see if things are better after that . Perhaps their Chinese partners will come to the rescue and take a bigger slice of the pie ( er , PIERER ).

Dealers have been left holding the bag in all of this . And it ’ s not just KTM / PIERER . BRP , Polaris , Harley-Davidson , and others are also tanking because of the soft retail environment . You can ’ t really blame it on a bad economy , either . It ’ s just the effects of inflation and high interest rates . And it is slowing the demand and door traffic at many dealerships these days .

While some OEMs have been working with their dealers to reduce inventory levels , it is essential to remember that it ’ s not a sprint . It ’ s a marathon . Those who are in it for the long haul can plan accordingly . However , as we have seen in the past few years , more dealers are getting out of the industry and selling their stores to bigger dealer groups , with several coming from the automotive side . And some dealers are even returning to the market since the valuations are starting to come down .

According to the Motorcycle Industry Council ( MIC ), motorcycle and scooter sales slid 6.2 percent through September 2024 . MIC says that general categories – on-highway , off-highway , dual , and scooter – are down year-to-date , but there is good news within specific segments . Sportbike sales have spiked through Q3 and are at their highest since 2009 . Touring bikes have shown some resilience , with a slight increase this year . On-highway vehicles have experienced the smallest decline , essentially flat through Q3 . But offroad and scooters have seen the largest drop . Another thing to note about MIC ’ s numbers is that new unit sales are still well ahead of pandemic levels – when consumers flocked to dealerships to buy whatever you had in stock .

This industry is resilient , but we also need to see the light at the end of the tunnel and hope to make a profit . With the election over and many betting the new administration will bring the economy back to its former glory , we must see how things play out . I am optimistic that we will get through this slump sooner than later , but 2025 will be crucial to the industry and show how we can bounce back . I think dealers will start embracing all things A . I . Get ready for an overload of buzzwords , but let ’ s all hope it also brings a big sack of dollars to each of your dealerships . We will be exploring this topic at our Accelerate Conference in January . Are you registered yet ? Reach out to me if you want to know more . I may just have an early Christmas present for you in the form of a discount code if you contact me at bbaker @ epgacceleration . com .

FAMILY POWERSPORTS ALAMO @ familypowersportsalamo

Followers 2,501 After announcing its new name on Instagram , Family Powersports Alamo shared a video tour of its showroom and reinforced that its core values remain unchanged . The caption reads , “ At Family Powersports Alamo , adventure isn ’ t just a hobby , it ’ s a way of life . Our team of experts are passionate about powersports . Don ’ t let budget hold you back . At Family Powersports Alamo , we ’ re more than just a dealership .” This post reassures customers that despite its name change , commitment to quality , adventure and accessibility remains at the heart of the business .

VELOCITY POWERSPORTS CHARLESTON

@ velocitypowersportscharleston Followers 3,145 Velocity Powersports Charleston regularly posts unit walkaround videos , featuring the same salesperson in each one . This consistency builds familiarity and likely boosts customers ’ confidence when they visit the dealership . By frequently posting these walkarounds , the dealership showcases a wide range of products , increasing the chance that viewers spot something they ’ re interested in . A recent video reads , “ Unleash the beast with the all-new 2025 Kawasaki Brute Force 300 , now available at Velocity Powersports ! Whether it ’ s work or play , this ATV is ready for any challenge . Stop by and check it out today !”

TOBACCO ROAD HARLEY-DAVIDSON

@ tobaccoroadhd Followers 4,082 Keep your apparel section top of mind for customers by showcasing what ’ s in stock each season . Remind them that it ’ s the perfect time to pick up a gift or grab the gear they need for colder rides . With every new season comes new essentials — like warm-weather apparel . Tobacco Road Harley-Davidson ’ s recently posted , “ Stay comfortable and ride in style with our latest cold-weather collection ! From cozy jackets to insulated gloves , this line is all about keeping you warm when temperatures drop , without sacrificing style or performance . Whether you ’ re cruising on the open road or hitting the trails , we have the layers you need .”