Tyre Prices Are Enough To Send You Into Orbit
Sydney Morning Herald
Friday June 7, 1991
Last week I was shocked when it came to my attention that a rear tyre being fitted to a motorcycle I was riding retails for almost $250. Presuming a front tyre would cost less because it is smaller - let's say it retails for$200 - that makes a tyre change for a big sports bike a $450 proposition.
What is even more worrying is the frequency these tyres need to be replaced. In the case of the test bike, that is every 5,000km.
Just for comparison, a high- performance, low-profile Bridgestone tyre to suit a V8 Commodore costs about $150. This is for an imported, Japanese, high-tech radial tyre rated at speeds up to 240km/h.
It begs the question ... who is having a lend of whom?
Why are the motorcycle tyres so expensive, especially when compared with car tyres.
They contain less than half the materials, have similar levels of technology but cost heaps more.
Certainly, an import duty would be applicable even though there is no local industry to protect, but I would suggest this would account for only a small percentage of the purchase price.
The wholesaler/importer obviously has a margin and the retailer also has a bite of the cherry, so to speak, which all adds up to a hefty impost on the biker's wallet.
According to one retailer, he works on a margin of about 20 per cent, out of which he usually has to cough up for fitting and balancing expenses. This would make motorcycle tyres a marginal proposition for retailers.
It would explain why bike shops carry small tyre inventories and usually order stock overnight from wholesalers on an as-needed basis.
What I, and just about every other motorcycle rider, would like to know is the landed cost of a tyre, how much duty is paid and the wholesale and retail mark-ups.
NEW BMW TOURER
BMW is to increase the engine capacity of its top-of-the-range K100LT model, from one litre to 1100cc. According to inside information, the company will increase the engine's stroke to achieve the increased capacity.
This would make the K100 engine heavily under-square with a bore of 67mm and a stroke of 78mm. Tough benefits in pulling power might be forthcoming from such a design, although piston speed might be a cause for concern in the upper reaches of engine speeds.
Apparently, the engine has been designed as a lugger rather than a revver and it delivers strong low- to mid-range power. A 75kW power limit has been applied to BMW motorcycles for some time but their method of measuring power seems at odds with other manufacturers.
HONDA SPLIT
Honda Australia is about to create a separate Motorcycle and Power Equipment division at Campbellfield in Melbourne.
The move to break from the car operation is aimed at streamlining the company's overall operations. According to information issued last week, the two divisions will enable Honda Australia to concentrate on its specific markets and to use specialists in areas where they will be most effective.
The move is seen as perplexing in a number of quarters as NSW accounts for the bulk of Honda business in most areas of its automotive aspirations.
Honda Australia has been operating a warehouse at Rydalmere for a number of years, carrying parts and stock for a wide range of its products. This will be closed soon and a smaller facility set up.
A number of staff will lose their jobs following the closure.
No indication of the nature of the new Sydney facility was available this week.
© 1991 Sydney Morning Herald
