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The Motorcycle Industry
| The motorcycle business in the UK has taken a slight downturn, according to an article in the Wall Street Journal, dated March 9, 2009. The article came from reporter Katie Bristow, over the Dow Jones Newswires and was reported in the WSJ. The industry is looking for government help after new registrations in the field are suffering a considerable reduction and in February they were falling at a significantly faster rate. As a way to support the market, the industry is asking the government to suspend the vehicle excise duty (VED), and the first-registration fee on all new mopeds, scooters, and motorcycles for a minimum of one year. From a business perspective, this might be a good idea. However, it should be noted that with the lowering of Bank rates, happening now all over the world, there might be some good news in store for the motorcycle industry, as well as the auto industry. With pro-active actions taken by the G-20, more liquidity is making its way into markets worldwide, which will wind up lowering lending rates, generating demand. Coupled with government incentives, such as lowering the VED, the motorcycle market could see a turnaround, providing prices stay stable. Although the motorcycle market has held up well in the recession, it needs a bit of a boost in order to keep afloat in these critical economic times, particularly when the cost of maintaining a bike is significantly lower than that of maintaining a car. Along with all the necessary kit, bike insurance is considerably lower than car insurance. The new bikes, the Euro 3 models, have lower emissions. They are also more fuel efficient, and it makes sense to encourage their purchase. The Motorcycle Industry itself has a great spokesman in Double World Superbike Champion James Toseland, who has called on the Government to recognise the benefits of motorcycle sport for young people in Britain today. Toseland, the Moto GP legend, has voiced his support for the Motorcycle Sport Political Strategy Group who are keen to combat the pressure on motorcycle sport in the UK which originates from political and social sources. From both a standpoint of sport and street-riders, motorcycling is a growing, important segment of the UK population. The government should regard it as an economic employer and supply-side resource as well as a demand-based indicator. Helping the industry out now would be a strategically good move in light of world events. |
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