Crowds jam the Harley-Davidson exhibit at EICMA last week during the show, part of more than 500,000 people to visit the show in Milan.

MILAN— The worlds largest motorcycle show and an important barometer of motorcycle business posted record attendance during its six-day show ended Sunday.

According numbers provided by show management, consumer traffic on Thursday was up 5% over the same day last year, 18% on Friday, 24% on Saturday, and 13% on a cold and rainy Sunday. That means attendance topped 500,000 visitors compared to about 450,000 at last year’s show.

Part of the reason for the gains, said EICMA Director Constantino Ruggiero, was the return of exhibitors Honda and Yamaha. Honda played a leading role, holding a huge press conference in the number one spot on the schedule Tuesday to kick off the show.

The show also drew 45,708 trade visitors,  including 12,853 foreigners, and  2,104 accredited journalists. Meanwhile, EICMA’s website also recorded strong gains, climbing from  271,438 visitors  to 340,664 visitors. JD

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MILAN (Wednesday, Nov. 3, 2010)— Constantino Ruggiero, 72, arguably is one of the most influential leaders in the Italian motorcycle industry. He is considered by many to be the grand old man of Italy’s two-wheel industry, everything from bicycles to mopeds and motorcycles. He’s headed the national association of bicycle and motorcycle manufacturers (ANCMA) for 25 years and built its annual equipment show, EICMA, to be the largest of its kind on earth.

Constantino Ruggiero

But now, Ruggiero is moving on; he retires on Jan. 1, 2011. I caught up with this soft-spoken Italian gentleman during one of his hectic days here at EICMA.  Here’s a summary of our conversation, edited for brevity and clarity.

Joe Delmont: Your retirement was a surprise to many. When is your last day in office?
Constantino Ruggiero: My retirement is effective Jan. 1, 2011.

JD: What will you do after you leave office?
CR: Anything I can find. I have to earn money in some way and not get bored. Now we are working in order to live to 120 years of age, so 72 is a very young guy.

JD: How long have you been in the industry?
CR: 25 years at ANCMA and 23 years before that at Pirelli.

JD: What accomplishment are you most proud of during your time at ANCMA?
CR: Perhaps the biggest accomplishment was the EICMA show in Italy and its expansion to Singapore and in China. 1987 was my first show. At that time, the show was 30,000 sq, m, and it housed both bicycles and motorbikes. We had about the same attendance that we have today and today it’s only for motorbikes.

JD: Let’s talk about EICMA-China. What’s the potential for that show?
CR: We still have the opportunity of two big EICMAs, one in Italy and one in China.  But it’s very hard; we are hoping in this opportunity and possibility.

JD: What is the potential for Italian companies in the China market and also for companies from other countries in Europe and America?
CR: The challenges are quite high because we are starting from beginning and because there are no exports from our country to China.

JD: What are the problems, other than the typical problems for a new venture in a new market?
CR: There are two big problems blocking success for motorcycles in China.  First, it is not possible to ride motorcycles in big cities; at the moment, in 18 of the bigger Chinese cities, motorbikes are not allowed. The law must be changed to allow that possibility, riding in cities.

JD: What is ANCMA doing about this problem?
CR: Last year, during EICMA-China, had a big discussion, a very important conference. In the conference were groups of motorcyclists, who tried to push the government to permit riding in big cities.

JD: What is the second problem?
CR: The laws for anti-pollution must be much more strict than they are at the moment.  Then, we could become more competitive (in the Chinese market) with our motorcycles because we have very high standards in this sense.  Once they have high environmental standards, we can compete with our products because they can meet high environmental standards, otherwise we are too expensive for Chinese consumers.  And then, also, we would be able to use bikes in cities.

JD: So, basically, you have to get two legal blocks changed. You have to have the ban on bikes in cities lifted, and you have to have environmental standards added which Italian OEMs could meet, but which would be difficult for Chinese manufacturers to meet.
CR: Yes. But the Chinese are trying to do something.

JD: Do you see the MIC (Motorcycle Industry Council) being involved in future in EICMA-China shows?
CR: It’s possible that we can invite them in the future for some kind of forum, but we don’t have plans to do that at this time.

JD: What’s happening in Italian motorcycle industry this year? How are your members doing?
CR: In first 10 months of the year, sales have declined 24%. Scooters lost much more than motorbikes. High-speed motorbikes have gained instead of losing.  Compared to last year, unit sales declined by 100,000 vehicles.

JD: What is the breakdown by segment?
CR: Scooters were down 28% and motorbikes, down 13.7%.

JD: How many units are we talking about?
CR: There were 480,000 two-wheel vehicles produced; 360,000 were exported and 340,000 were imported.

JD: Do you have a breakdown by displacement?
CR: Yes. The 800-1000 cc segment gained 2.2%, and the large bikes over 1000cc gained 10.7%. 600cc bikes were down 41.4%, the 650-750cc segment lost 29.8% percent, and 125cc lost 17.5%.

JD: So customers like big bikes?
CR: Yes. The richest still continue to spend money on this kind of goods.

JD: Any legal reason for this?
CR: No. That’s the way market works

JD: Do you see this trend continuing next year?
CR: It’s impossible to know. We think that the buyers of small and medium displacement bikes will come back.

JD: I understand that there is a new law in Italy designed to stimulate bike sales. Can you tell me about it?
CR: Yes, today, we have new law.  You receive an incentive of 10% up to maximum of 750 Euros to buy a new qualifying motorbike.

JD: How does the law work? What qualifies?
CR: In order to get rebate, you have to throw away your old motorbike. It’s a question of pollution. You get more money if you get rid of an older bike or one that pollutes more.

JD: It sounds like Obama’s Cash for Clunkers program where the government paid consumers to dump their old cars and buy new ones. Was ANCMA involved in getting Italy’s bike rebate program implemented?
CR: Yes, we had a great part in lobbying for this program because it pushes sales.

JD: How do you see the U.S. market for Italian companies?
CR: The crisis in the American market has given us problems because it’s more difficult to get components. Many American component companies that we used to buy from have closed down.

JD: What about selling Italian products into U.S. market?
CR: We had a decrease.   I don’t know how much, but it was a decrease for sure in both machines and accessories.

JD: Will this change next year?
CR: Who knows? You should be telling us about that.  And now your elections… more changes with the Democrats. JD

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MILAN (Wednesday, Nov. 3, 2010)— The second annual EICMA-China motorcycle show has been scheduled for July 2-4,2011, at the China National Convention Center in Beijing, show organizers said here today.

Plans for the show were announced at a press conference conducted by the event’s planners: CIME (China Italy Motorcycle Exhibition), a joint venture of EICMA, the China Chamber of Commerce for Motorcycles (CCCMA) and the Genertec International Advertising & Exhibition Company.

Constantino Ruggiero

This year’s show was held last July in Beijing and drew 130 exhibitors and about 45,000 attendees. More than 200 exhibitors are expected to participate in next year’s show, said CCCM’s Bingnan Chen.

“The success of this first event was somewhat unexpected,” said Constantino Ruggiero, “since it was put together so quickly. Ruggiero is the executive director of ANCMA (Italian Manufacturers Association of Bicycles, Motorcycles and Accessories) and its EICMA show and was the driving force behind the creation of EICMA-China.Organizers have high hopes for the 2011 show, pointing out that the this year’s successful venture was put together in only seven months.

The 2011 edition will cover more space, have more exhibitors who will have access to more attendees, Chen said. For example, all leading Chinese manufacturers of motorcycles are expected to exhibit, he said.

New trading and marketing opportunities now are available to foreign sellers, due to changes in the China market place, according to Chen, but he didn’t provide any details.

“EICMA-China will supply the platform for foreign exhibitors to reach the Chinese market,” Chen said. “The objective is to create a platform for exchange at the global level,” he said.

Changes In Chinese Motorcycle Industry

While EICMA-China could provide an opportunity for  U.S. and European companies to reach Chinese consumers, it also could provide a boost to the Chinese motorcycle industry which is undergoing substantial changes.

Annual production of motorcycles in China dropped last year for the first time since 1993, dipping to 25.24 million units from 27.5 million units in 2008. The decline was due in part to the softness of the U.S. market, increased U.S. federal regulation, and a clamp-down on motorcycle use in many China cities.

Annual sales of Chinese motorcycles also declined last year, dropping to 25.27 million units, from 27.5 million units in 2008. Interestingly, according to the Chinese reports, manufacturers sold more than they produced last year, possibly reducing inventories, as well.

Meanwhile, China’s State III Emission Standard was implanted nationwide July 1, 2010, severely restricting use of gasoline powered vehicles, especially in major cities and driving change in the motorcycle industry. CIME: “At present, (the) Chinese motorcycle industry is coming into a key period of re-integration, transition and upgrading…”

First EICMA-China Show

“The first show was really a success,” Ruggiero told me. “It was a miracle to organize the show in such a short time and have the most important Chinese manufacturers as well as prestigious brands such as Yamaha, Suzuki, Peugeot, and Italian companies such as Ducati, MV, Malaguti and so on. Generally, the Italian companies were satisfied, so we hope they will be exhibiting in future shows.”

Ruggiero said the MotoLive program of freestyle riding and acrobatics was an especially big hit with Chinese consumers and seems to be a strong tool for building riding interest.

During the first EICMA-China show, the MIC played a major role, helping host the ATV Symposium to discuss consumer issues such as safety and market trends, technical and regulatory issues, and testing, certification and mandatory standards. Experts from Australia, Canada, Europe and the United States participated. The MIC’s Tim Buche and Paul Vitrano participated. Vitrano represents the Specialty Vehicle Institute of America (SVIA),

“It was enlightening for me and other panelists and attendees to hear from our colleagues around the world,”  Vitrano told me in a conversation following the first show. “Clearly, the companies that I encountered at the seminars are struggling to understand and comply with regulations.”

A key point for discussion was China’s restriction of motorcycle use and how this could be changes. “Obviously, this ban is an impediment to market development,’ says Vitrano. “Unfortunately, they (motorcycle companies) don’t get the government’s attention because the revenue from motorcycle sales is dwarfed by revenue from auto sales.”

No word at this time on MIC participation in the 2011 EICMA-China show.  JD

Contact me with news tips and story ideas
at joe@powersportsupdate.com or 612/845-8091.

MILAN — It’s been seven years since I walked this world’s largest motorcycle show,but it seems as though I was never gone.

Prime Minister Silvio Berlusconi (left) with the director of EICMA Costantino Ruggiero during opening day ceremonies. It's a memorable show for Ruggiero, who is retiring this year after 25 years as executive director of ANCMA, the Italian motorcycle and bicycle trade association, and head of the group's EICMA show.

While much has changed at EICMA, much is the same— the almost overwhelming size, the jammed press conference schedule on the first two days (Tuesday and Wednesday have 21 press conferences) devoted to trade and press representatives. The doors open to the general public on Thursday. By the time this 68th edition of EICMA wraps up on Sunday, Nov. 7, close to 500,000 people will have walked these aisles.

The highlight of the first day, for Italians certainly if not for foreign visitors, was the opening ceremony featuring Italian Prime Minister Silvio Berlusconi.

Security seemed especially tight for Berlusconi’s visit this year and made it almost impossible to move through the presentation area in the main administration building that houses EICMA offices and the media room where we do a lot of our work. The media center is set up with computer facilities, and it hosts the drop off area where exhibitors distribute information to the media.

Unlike in past sessions when Italy’s top politicians opened the show with comments related to motorcycles, often discussing transportation issues and plans for boosting Italy’s important motorcycle and bicycle industries, Berlusconi used Tuesday’s event as an opportunity to poke barbs at his political opponents and to talk about general political issues. Recycling,  garbage issues in Naples and proposed wire tap legislation didn’t hold much interest for international guests looking for news about motorcycles.

Berlusconi, who has a reputation for dating young women, also took a shot at a political opponent, who is gay. Not surprisingly, Italian newspapers played up the gay comments this morning. Show organizers also started receiving emails from gays who are working the show complaining about the comments. Nobody ever said Italian events are dull.

One plus of the session was that we were provided with head sets so we could here instant translations. In the past, we had to rush about looking for English language transcripts that were only modestly useful. The press conference also was an opportunity to announce the retirement of Costantino Ruggiero, who this year is leaving his posts as executive director of EICMA and ANCMA, Italy’s national motorcycle and bicycle trade association. ANCMA is comparable to the Motorcycle Industry Council (MIC) in the U.S., and owns and operates the EICMA show. In these twin positions, Ruggiero arguably has been one of the most important figures in Italy’s motorcycle industry for more than two decades. The 73-year-old Ruggiero hasn’t announced retirement plans, and it will be interesting to watch the changes under new leadership for these two important organizations.

The show floor is huge, of course. It has to be to house the world’s largest motorcycle show. The show covers 2.7 million sq. ft, and includes 532,800 sq. ft. of booth space in six separate halls. The net booth space alone covers almost 10 football fields. There are more than 1,100 brands from 39 countries represented. After grabbing a  show directory from the press office, I made a quick (actually it took about two hours) run through of all six halls to get a feel for the show and to identify areas that I want to cover in more detail later.

Here are several first impressions:

• Representation of companies from China and Taiwan seems to have been reduced. In the past, there were separate large pavilions for each country. This year, there are smaller collections. It’s tough to quantify, but the EICMA folks are running a report for me from their exhibitor database that will make it easier to see what’s happening here. Show management told me that companies from China, Taiwan and Pakistan rotate their presence between German and Italian shows. Germany had its Intermot Show in Cologne this year.
• Green Planet is a separate pavilion set up to promote electric vehicles. The indoor area includes a popular test drive area where attendees can ride electric bicycles and scooters.
• The U.S. pavilion has some interesting companies, including Saxon Motorcycles which is building a European dealer network, and Go Go Gear, the Los Angeles apparel maker of stylish riding armor. The MIC also has a booth in this pavilion to promote its programs and to demonstrate its cooperation with the Italian motorcycle industry. Tim Buche, MIC president, is participating here as a further indication of MIC’s significant involvement.
• The Japanese majors, as well as OEMs such as Harley-Davidson, Ducati and BMW have huge displays, but Arctic Cat and Polaris aren’t here. BRP does have a presence, showing its Spyder and Commander UTV.
• The two most dramatic new product introductions were made by Ducati and Honda. Ducati rented a theater off-site, away from the convention center Monday afternoon to introduce its Diavel 1200 before hundreds of people at Teatro Carcano. Honda introduced its CrossTourer 1200 a shot at Ducati’s Multistrada 1200 in the first press conference of the day. Whether intentional or not, it was conducted in the same area and at the same time as the opening ceremonies with Prime MinisterBerlusconi. I didn’t attend the Honda event, but another journalist noted that Honda really pumped up the importance of Europe to its business. He noted that one Honda slide read, “Europe is our most important market.” Hmmmm

The first day concluded with a dinner and press conference hosted by Pirelli to introduce its Diablo Rosso II tire. The event was held at the elegant Villa San Carlo Borromeo di Senago in the countryside outside Milan. The Villa houses a five-star, luxury hotel, converted from a former private residence built in the fifteenth century. The event also featured a panel discussion by industry leaders about a new program to promote the heritage of motorcycling in Italy. Manufacturers have been requested to develop the motorcycle heritage them in their marketing campaigns.

Dinner wrapped up after 11 am, and we were back at the hotel by midnight. The end of a long first day. JD

Contact me with news tips and story ideas at
joe@powersportsupdate.com or 612/845-8091.

Joe Delmont

It’s Saturday afternoon, and in a few hours I’ll be boarding Delta flight 258 in Minneapolis headed for Milan Italy and EICMA, the world’s largest motorcycle show.

The show opens Tuesday and runs through Sunday, Nov. 7. I’ll be on the floor most days preparing reports that you can read here.

If you’ve not had an opportunity to visit EICMA, here are some numbers to consider: EICMA, which is open to consumers from Thursday to Sunday, drew 450,000 visitors last year, compared to the Dealer Expo which draws less than 20,000 industry only attendees. This year at EICMA, there will be  about 1,100 exhibitors from 35 countries set up in six show halls that cover 505,000 sq. ft.

It’s a busy schedule. Tuesday and Wednesday are so-called trade days. That’s when much of the work gets done because there are no consumers jamming the aisles and clogging the booths.

These are the days when companies announce their new products to the industry and the news media. At this moment, there are 23 press conferences scheduled during the two days, roughly one every 30 minutes from the 10 am opening Tuesday to closing at 4 pm Wednesday.

Interestingly, some of the more savvy and aggressive companies have leaked unofficial information on their products prior to the official introduction in order to maximize coverage in magazines and blogs.

I’ll be working the show with Dealernews Editor-in-Chief Dennis Johnson, who has posted his own summary of the show here so I won’t go into all of those items. But here are some of the items on my To Do list, in no particular order:

• Participate in selected press conferences, including EICMA’s state of the industry session, and sessions by several of the major OEMs.
• Check out the Chinese and Taiwanese pavilions. I want see what new companies and products might be coming to the U.S.
• Visit the U.S. Pavilion to discuss exhibitor plans for selling into the European markets.
• Identify EICMA’s plans for it’s second motorcycle show in China next year.
• Talk with Italian motorcycle officials such as Constantino Ruggiero, director of EICMA, who is retiring this year. I want to get his view on the 2011  EICMA-China show and his views on the Italian motorcycle industry.
• Walk the floor to look for new products and new companies and pick up as many news tidbits as I can. 

Okay, I’ll be busy at the show, but I’m also planning to sample some of the great dining and shopping in this buzzing fashion center. After all, I do have to provide  a bit of perspective for the Big Show, don’t I?  JD

Contact me with news tips and story ideas at
joe@powersportsupdate.com or 612/845-8091