PSB Industry Leaders

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May 27, 2013t7PMVNF6/VNCFS7t

www.powersportsbusiness .com

NEWS:Q&A with Jim Betlach . . . . . . . . . . . . . . . . . PAGE 3

FINANCE:MotoLease offers financing option. . . . . . . PAGE 12

FOCUS:Pirelli tests tires on aircraft carrier . . . . . . PAGE 18

PWC:Yamaha adds rental financing . . . . . . . . . . PAGE 30

New Suzuki shows68% wholesalegrowth in AprilAfter one month in operation, the newSuzuki Motor of America, Inc. (SMAI)

has reported strong wholesale and retail

sales data to Powersports Business.Combined motorcycle, ATV and

scooter sales to Suzuki dealers are up68 percent for April compared to lastyears sales (reported byAmericanSuzuki Motor Corp.).

Retail sales have been solid also,

with the RM-Z motocross bikes sold

out and dealer inventory movingquickly. Zero percent retail financ-ing and aYoshimura exhaust salespromotion have driven record salesof the bikes. Suzuki is also seeingimpressive demand for the DR650SE

INSPIRING SUCCESS THROUGH MARKET INTELLIGENCE

See Hot News on Page 3

See Industry Leaders on Page 8

/FXMPPLPower 15 dealership Thunderbird Harley-Davidson

undergoes a $1 million remodel.

SEE PAGE 38

HOTNEWS

0WFSTFBTMFTTPOPSB Editor in Chief Dave McMahon travels to the

Taiwan International Motorcycle show.SEE PAGE 10

.PWJOHGPSXBSERox Speed FX grows as president overcomes the

death of the companys founder.SEE PAGE 37

Harley leader driveschange from outsiders

point of view

BY LIZ HOCHSTEDLER

MANAGING EDITOR

When Keith Wandell stepped in asCEO of Harley-Davidson, Inc., onMay 1, 2009, he was put in a uniqueposition. Wandell was the first CEOhired from outside the companysince 1981.

But it didnt take long for the21-year veteran of MilwaukeesJohnson Controls to make a markon his new company. In the pastfour years, Wandell has led Har-ley-Davidson to focus more on its

brand, restructure its manufac-turing and production and makeheadwinds into reaching a non-tra-ditional demographic. His effortshave led the company to increaseits income in each of the past threeyears and grow retail sales andmotorcycle revenues in 2011 and

2012. Those accomplishments ledto Wandell being named the 2013Powersports Business Executive ofthe Year.

FOCUSING ON THE BRAND

Wandell joined Harley-Davidsonin the midst of the recession, justeight months after the collapse ofLehman Brothers. Shortly afterhis tenure began, Wandell sortedthrough all the businesses and

SeeWandell on Page 6

PSB: FOCUSTire & WheelSEE PAGE 18

ROY OLIVIER SAM YOURD

SAM DANTZLERCRISTIANO SILEI

KEITH WANDELL

HARLEY-DAVIDSON CEO

KEITH WANDELL2013Powersports BusinessExecutive of the Year

Industry LeadersWandells strengthsflourish with H-D


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8 tMay 27, 2013 t1PXFSTQPSUT#VTJOFTT NEWS www.PowersportsBusiness.com

As Sam Dantzler likes to describe it, his first tastef stage life came after his tenure at Florida State

University, when he joined the circus (literally).Yes, really. I love being on stage. My girl-

riend asked if Id be wearing tights the restf my life, Dantzler said. So I kicked her tohe curb, got a new girlfriend, and parlayed

my stage experience into an industry Ive beenbsessed with my entire life.

From selling bikes in college, to run-ning management training programs for EdLemco, to delivering the keynote at OEMhows, Dantzlers passion for motorcycles is

hard to overlook. Hes now the owner of his8th motorcycle.

My love for motorcycles pours out of men everything that I do. I eat, sleep, and breathehem ask the wife (who now is the only one

wearing tights), he said.Dantzlers launch of online training website

ams Powersports Garage offers a range ofraining outlets to all aspects of a dealership.

When Triumph Motorcycles (America) optedo reinstall 20-groups for its dealers, Dantzler

was chosen to moderate. When Dantzlerseminars are on the lineup at industry events,

dealers know to arrive early unless they feel like

leaning against a wall for an hour, as he drawsa crowd thats always anxious to learn moreabout how to get butts on seats.

I know what owning a motorcycle can do for

a persons soul, and I have a quest to put as manypeople in the country on a bike as I possibly can,Dantzler said. Last years creation of my onlinetraining website, Sams Powersports Garage, wasthe career manifestation of that quest.

With Dantzler exhibiting a passion thatliterally drives dealers into action, his contribu-tions to the industry combine to make him a2013 Powersports Business Industry Leader.

What is the biggest opportunity for the industry, and

how can the industry take advantage of it?

It would be easy to fire off the biggest opportu-nity as more financing options, less-expensiveunits, or some new vehicle that we dont evenknow about yet. But I believe the real oppor-tunity is conversion. Dealers dont need morepeople coming through the door; they need toconvert more of the ones who are already there.Be it upselling from a $99 jacket to a $499jacket, adding on some gloves or a GoPro tothe transaction, or simply converting one moreperson onto a major unit today, most dealer-ships struggle with the tools and training to beable to pull off the conversion.

The major tools needed for conversion areattitude and systems (sales process, traffic logs,repair order summaries, etc). Hire on attitude,

and train the systems.Sales is a transfer of enthusiasm, and an

employees passion will allow for a sale withoutprocess occasionally. But when you couplepassionate employees, who adhere to bestpractices through a system, you now offer greatexperiences while delivering good margins. I

believe conversion starts with acquiring con-tact information and utilizing events to drivecustomers back into the store, yet so manydealers dont see the importance of a traffic log(electronic or otherwise). The invitation makesthe customer feel special. The loyalty to thedealership and the employee begin. Good peo-ple complimenting good systems = conversion.

What has been the biggest challenge in your

current position and how have you dealt with it?

Two words: Dealer Ego. Many dealers let theiregos get in the way of the reality that theremight be a better way to do things than the waythey came up with. When dealers are receptiveto ideas generated in 20-Club formats, onlinetraining programs and in-dealership consult-

ing, they reap the rewards of an incredibleupside. The 20-Club experience is so great, asa dealer can live through all of the successesand failures of others who have tried it already.It cuts the learning curve exponentially, butof the current 4,700 franchised dealers outthere, less than 10 percent of them participatein a group. Brands like Triumph and Harley-Davidson run OEM sponsored 20-Clubs in anattempt to strengthen their own knowledge ofthe retail game, which is exactly what the deal-ers need. Unfortunately some dealers see thisonly as the manufacturers attempt to see thefinancials of the dealers so they know where topush more product into their stores.

Secondly, few take advantage of mediumsavailable to actually train their employees.Instead, they say things like, Just shadow Mattfor a few days and youll be fine. What is that?Can you imagine being an architect-in-trainingand someone saying that to you? Just shadowCindy over there, and youll be designing build-ings yourself in no time. Many dealers perceivethat they alone must train their employees andclearly there isnt enough time in the day for that.Therefore, that lack of training causes low salesnumbers and constant turnover of staff. Theability to complete training programs throughan online portal has never been easier for staff

and dealership personnel. Sites like the Garageare set up to deliver the necessary best practicesinto the hands of employees who can actuallyexecute the change. As well, the trainings gottabe fun to keep the interest, which allows manag-ers to mandate compliance from the staff.

Lastly, in-dealership consulting can get

dealers on the right track, and fast. Provided theconsultant is in alignment with how the dealerwants to run his business, this form of educa-tion can reap huge rewards.

We had roughly 7,500 franchised dealers inthis country in 2007, and were now down to atotal of 4,700. I believe if more dealers could letgo of their egos and be receptive to the varietyof solutions offered, the answers to runningsuccessful dealerships are out there.

What is the best advice that you can give others in

the industry?

Understand what you sell. Its not motorcycles,UTVs, sleds, or watercraft. Its escape. I believethe repetitiveness of retail has caused manyto forget the reason that we love this industry

so much. Sure, the vehicle is the commoditythe customer is swapping money for, but theescape is whats really being sold. If a CoorsLight costs $2 at a dive bar, and $8 at a martinibar, whats actually being sold? The beer is thecommodity, but the quality of the escape com-mands the premium and high margins.

The reason for the exponential growth ofDucati during Michael Locks tenure was thatLock was exceptional at creating a brand every-one wanted a to be a part of. Harley-Davidsonis masterful at it, and Triumph has been on firelately. People are buying the idea of what theproduct can do for their lives, not the productitself. The dealers and OEMs who have commit-ted to the escape, and are selling an attitude andnot a product, do very well. Motocorsa in Port-land brings everyone in for the MotoGP races.The Transportation Revolution in New Orleanshas a dedicated Speed Shop at the NOLA Motor-sports Park. Go AZ has military grade, virtualsimulators adjacent to their Rider Educationcourse. Create the environment, sell the atti-tude, and people will pay for the commodity at your price. People are escaping somethingwhen they walk into a powersports store. Fuelthat passion, complete with attitude and ideas asto where the product could take the customer,and help them realize their escape.

Ducatis 21 percent growth in the U.S. in 2012ompared to 2011 was a gift of sorts to newwner Audi AG, which acquired Ducati Motor

Holding S.p.A. in April 2012. In fact, recordNorth American sales of nearly 11,000 units in012 helped Ducati post increased sales for the0th consecutive quarter in Q4 2012.

With Cristiano Silei guiding the NorthAmerican division as CEO, Ducati continues tomake impressive inroads in its largest market.Ducati North Americas 21 percent growth in012 came after a 2011 performance that saw3 percent growth compared to 2010. Withilei at the helm of North American operationsince 2011, Ducati continues to gain markethare thanks to the Italian companys produc-

ion of groundbreaking bikes like the 1199Panigale and the Diavel. In addition to U.S.rowth in 2012, Canada (25 percent) and Mex-co (7 percent) also gained Ducatisti en masse.To top it off, Ducati apparel and accessory salesose 42 percent in North America in 2012.

Add it all up, and it points to Silei securing

a spot among the 2013 Powersports BusinessIndustry Leaders.



Motorcycles are now perceived by the gen-eral public as something cool and trendy.They have finally become an option foreverybody, not just for a selected few. Bikesare easily seen in the hands of trendset-ters such as movie stars, TV celebrities,singers and musicians. In movies they areused by heroes of all ages, especially byyounger generations. With the right prod-ucts and brands, the industry can attract amuch broader and younger audience andfuel future growth.



Making our brand and products more acces-sible to our customers, within a reasonableproximity range from where they live, is ourmain challenge. In these past few years wehave invested greatly in supporting our dealerpartners to create the right environment for ourcustomers to experience what the Ducati brand

is all about. The development of our dealer net-

work will remain our focus in the future.


the industry?

At Ducati we believe that it is all about passion,the magnet that attracts lifetime customers,

top-notch team members and dedicated deal-

ers, and binds them together in tough timesand in times of phenomenal success. My adviceis to remember that we are not in the trans-portation industry. We are creating dreams onwheels and our dealers are an integral part ofmaking the excitement and the passion real andaccessible to our customers.

INDUSTRY LEADERS

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%VDBUJT/PSUI"NFSJDBOTBMFTIBWFCFFOSFDPSECSFBLJOHTJODFUIFBQQPJOUNFOUPG$SJTUJBOP4JMFJJO

SAM DANTZLER

PRESIDENTSAMS POWERSPORTS GARAGE

SAM DANTZLER CONSULTING

CRISTIANO SILEI

CEODUCATI NORTH AMERICA


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www.PowersportsBusiness.com NEWS 1PXFSTQPSUT#VTJOFTTtMay 27, 2013 t9

From new manufacturers and dealerships

ust entering the industry, to those that haveeen building and selling bikes for 30 yearsr more, Sam Yourd has had a front-row seatn helping the powersports industry take itshape in the U.S.

But Yourd, vice president of marketing forhe Motorsports Division of GE Capitals Com-

mercial Distribution Finance division, doesntmerely watch from the sidelines. He maintains

connection with his industry partners byhaving ridden just about everything, when itomes to motorcycles and scooters. Its fun.n addition, he conducts market analysis andracks trends in order to bring financing solu-ions to GE Capitals partners in the industry.

As the industry continues to work its wayut of a phase of slow growth, Yourd has sup-orted GE Capital products that allow whole-

alers and retailers to become more successfult their craft. Rather than being simply a finan-ial lender, GE Capital has become a sourcef intelligence for the powersports industry as

dealers build their new and pre-owned inven-ory through some trying years.

Its a fantastic place for me here, Yourdaid. I love my job, the industry that I workor and the people that I work with, both insidef GE and outside of GE. Its very stimulating,onstantly evolving. Im touching on relation-hips that have been with us for 30 years as

well as new OEMs that are just emerging withnew technology. Thats the exciting part, to seeverybody constantly growing, reinventinghemselves and moving the industry forward.

Lately, Yourd has been moving forward afootather than by motorcycle. In fact, hes riding

non-motorized vehicles as a triathlete in additionto completing marathons. In addition to the fourhalf-Ironman Triathlon competitions that hescompleted, Yourd has his sights set on competingin the World Championships in Kona, Hawaii. InJanuary, Yourd ran on the GE team that won the

marathon at the U.S. Corporate Athletic Associa-tion national championship. (Running is whereIm strongest, but I love the bike.)

For his support of the industry as it contin-ues to work its way into a more hospitable busi-ness climate, Yourd has been selected as a 2013Powersports Business Industry Leader.



In an industry where change is a constant,there are opportunities around every corner.Its just a matter of deciding where to focus ourenergies to make sure we deliver on our cus-tomers needs. In order to do this confidently,we pulse customers with calls, surveys andof course personal visits. The power of GE is

not only in listening, but engaging our domainand technology expertise to connect the dotsto provide actionable data to help OEMs anddealers better manage their inventory. Withthat in mind, we developed business intelli-gence tools that can be customized by the user

and incorporated into the operating rhythmof the management team. Known as COMS(Customer Online Management System), itprovides information like aging, inventory turnand unit carrying cost (accumulated interest,curtailments) for the dealer, and credit lineavailability and inventory mix for the OEM.Looking ahead, we are continuing to focus ongrowing our analytics capabilities by utilizingstatistics to interpret trends and ultimately todevelop forecasting tools.



Serving a broad spectrum of dealer needs canbe a challenge. Were motivated to innovate,and were driven to deliver new products and

programs to meet those challenges. OEMsand dealers wanted financing for parts, gar-ments and accessories, so we built a pro-cess to accommodate their needs. Dealerswanted to finance their trade-ins and theirused inventory, so we created a program thatwould allow them to do that. In addition, wehave created alternative financing programsto help dealers with their auction purchases,

so they can conserve their working capital.We even built a Transfer Locator function soa dealer can find the unit his retail customerwants, now. The bottom line is that we havea broad and deep pool of resources to drawupon to meet the needs of the customer.Through feedback and collaboration, wework with our customers to meet their needsand help the industry grow.


the industry?

On a professional level, there are two significantchanges Ive seen. In the consumer channel,demographics are changing so OEMs and deal-ers have to appeal to a younger audience thatstechnology savvy so theres a need for websites,

Facebook pages and Twitter feeds. Behind thescenes, its all about big data. What are thehot trends and the top sellers? What are yourinventory turns and aging metrics? What areyour F&I income and profit margins? Today itwould be almost impossible for a dealership tothrive if it didnt have access to key performanceindicators. We are keenly aware of these needsand are responding with new business intelli-gence tools for a data-driven customer.

On a personal level, Ive been in the industryfor 32 years, and I love it. I make new industryfriends every day through my business dealingsand personal contacts with other enthusiasts.I think every one of us got into this industrybecause we love it. My best advice is to keepthe passion alive by sharing the fun throughthe products you sell and the people you meet.

Roy Olivier doesnt hesitate when asked todescribe his favorite Saturday. An admittedearhead, Olivier, who once restored carss a hobby, thrives in an environment thatncludes plenty of tools and time. So its nourprise to learn that a day spent taking apartar and motorcycle parts and putting themack together is time well spent. In fact, it was

uch tinkering that led to the initial foray intoarts lookup systems by Olivier, the currentresident and CEO of ARI Network Solutions.

I was working with a parts and servicemanual on an old Lotus, and I was thinkingTheres got to be a better way to do this.

I ended up starting a company in 1993,

and we produced technical documentation forLotus cars, as well as a lot of companies in theconstruction, mining and material handlingverticals, he said.

ARI at one time had shown an interest inpurchasing that company, which he later soldto the company that would become Snap-On.We used to compete with ARI in a few seg-ments, Olivier said.

After joining ARI in 2006 and becomingthe Wisconsin-based companys CEO in 2008,Olivier has guided the business to being namedone of Wisconsins top 25 fastest-growing pub-

lic companies for four of the past five years byThe Business Journal in Milwaukee. In addition,ARI in November was granted the purchase ofwebsite provider 50 Belows retail assets in U.S.Bankruptcy Court. That decision was prescient,as Olivier said ARI had been eyeing 50 Below asan acquisition for some time. The addition of

50 Below to the companys lineup more thandoubled the size of ARIs website business andhas made websites ARIs largest source of rev-enue, which led to a 36 percent increase in rev-enue in the fiscal quarter-ended Jan. 31, 2013.

Those transactions under Oliviers leader-ship led to him being named a 2013 Powers-

ports Business Industry Leader.



For me, the biggest opportunity is attract-ing new potential riders to the industry. My22-year-old daughter called me last spring and

announced that she wanted a motorcycle. Ather age, she obviously doesnt need my permis-sion, but I did strongly encourage her to attenda riding school and purchase the importantsafety gear. She is very technologically liter-ate and researched bikes, helmets, gloves andjackets online or on her phone and iPad beforepurchasing one at a local dealership.

To attract younger potential riders whoare very tech savvy, dealerships must have astrong presence on social media, in local searchresults, and on mobile devices (SoLoMo). Shepicked up a great starter bike, and I suspectshe will be a rider and a great customer for theindustry, for many, many years.



The biggest challenge for me has been manag-ing change. Weve made great progress at ARImoving our culture to one that is focused onPeople, Rapid Innovation, Initiative, Deliveryand Embracing our Customers, or P.R.I.D.E.Moving the company toward that new cul-

ture, while integrating new acquisitions like50 Below and Ready2Ride at the same time,has been a huge challenge. Growing fromapproximately 100 employees to almost 270 ina short time, with many team members work-ing from remote offices, makes that challengeeven tougher. We have tackled the challengeby repeatedly communicating our values andobjectives to all members of our team and byrecognizing members who exemplify thesevalues. It helps that we have a great team ofmanagers who live those values every day.


the industry?

The best advice I can give to the industry relatesto the fantastic emerging bestofbreed technolo-gies that can help dealers run their dealershipsmore efficiently, more profitably, and that helpthem sell more stuff. There are a lot of offersright now from software companies that are pro-moting packages or bundles of technologythat are supposed to help dealers be more effi-cient. That actually goes against the way technol-ogy and innovation work today. Our world hasevolved to a best-ofbreed approach where soft-ware developed to do one or two things excep-tionally well and only those things simplyworks better. Many of us have experienced theunderwhelming results of these bundles at home.You might get an ok TV service, maybe a greatInternet connection and a so-so phone connec-

tion. If you want to grow your business, then youshould focus on buying best-of-breed solutionsthat are integrated with other best-of-breedsolutions. In the long run, it will help you driveup your employees adoption of the solutions,help you sell more stuff and improve yourdealerships efficiency and profitability. PSB

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ROY OLIVIER

PRESIDENT AND CEOARI NETWORK SERVICES, INC.

SAM YOURD

VICE PRESIDENT OF MARKETING,MOTORSPORTS DIVISIONGE CAPITAL, COMMERCIALDISTRIBUTION FINANCE

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PSB Industry Leaders