Copyright 2003, Roadracing World Publishing, Inc.

By David Swarts with files from Bob Dragich

Ducati Austin Racing’s Anthony Gobert was the fastest rider Tuesday during AMA team testing at Laguna Seca Raceway in Monterey, California with a best time of 1:26.595 on his Dunlop-sponsored Ducati 998RS Superbike, while Yamaha’s Jamie Hacking led all Supersport times with a 1:29.793 on his factory YZF-R6.

Anthony Gobert; Kawasaki Road Racing Team’s Eric Bostrom, Tommy Hayden and Tony Meiring; American Honda’s Ben Bostrom and Miguel Duhamel; Parts Unlimited PJ1 Erion Honda’s Kurtis Roberts, Jake Zemke, Roger Lee Hayden and Alex Gobert; Yamaha’s Hacking, Damon Buckmaster, Aaron Gobert and Jason DiSalvo and Dream Team Ducati’s Larry Pegram arrived at Laguna Seca Tuesday morning to find the track damp from recent rains. After waiting for the track to dry, the first riders went out on track at approximately 10:30 a.m. and ran until 5:00 p.m. local time. Temperatures were in the mid-60s Fahrenheit.

Pegram’s team arrived in the HMC Ducati race transporter, which it will use all season, and Pegram rode 2003-model Ducati 998RS “customer” Superbikes (the same as those ridden by Anthony Gobert) on Michelin slicks.

Eric Bostrom’s Kawasaki Superbike was equipped with a new 770cc engine, but the team had to work to stop the bike from “cutting out” on the bottom and top of the rev range. The new bike’s problem seemed to be fixed by the end of the day, and Eric Bostrom set his fastest time with the 770cc engine.

Tommy Hayden was the only rider to crash at Laguna Seca Tuesday. At approximately 3:30 p.m., the eldest Hayden brother highsided his Kawasaki ZX-6RR in turn three, directly in front of teammate Meiring and Anthony Gobert. Hayden told Roadracingworld.com’s Dragich that he didn’t know what happened before sitting out the rest of the afternoon with a bump on his head.

The Yamaha factory Supersport team was not accompanied by the Graves Motorsports Yamaha Formula Xtreme team, which is aiming to make its first testing appearance of 2003 at California Speedway in early February, according to a source within the team.

Jake Zemke split his track time between his CBR600RR Supersport and his CBR954RR Formula Xtreme bikes. Zemke’s teammate Roger Lee Hayden concentrated on his Supersport machine Tuesday.

Kurtis Roberts arrived at Laguna Seca black and blue from a recent motocross crash at his father’s ranch. Roberts did only a handful of slow laps before leaving the track before the end of the day. Roberts team members did not know if Roberts would return to ride for the final two days of the test.



Fastest Lap Times From AMA Pro Racing Timing & Scoring:

1. Anthony Gobert, Ducati 998RS, 1:26.595
2. Eric Bostrom, Kawasaki ZX-7RR (770cc), 1:26.680
3. Larry Pegram, Ducati 998RS, 1:27.868
4. Ben Bostrom, Honda RC51, 1:28.194
5. Jamie Hacking, Yamaha YZF-R6, 1:29.793
6. Miguel Duhamel, Honda CBR600RR, 1:29.990
7. Aaron Gobert, Yamaha YZF-R6, 1:30.407
8. Damon Buckmaster, Yamaha YZF-R6, 1:30.494
9. Jake Zemke, Honda CBR600RR, 1:30.564
10. Tommy Hayden, Kawasaki ZX-6RR, 1:30.927
11. Jake Zemke, Honda CBR954RR, 1:30.949
12. Alex Gobert, Honda CBR600RR, 1:31.291
13. Jason DiSalvo, Yamaha YZF-R6, 1:31.612
14. Tony Meiring, Kawasaki ZX-6RR, 1:31.882
15. Roger Lee Hayden, Honda CBR600RR, 1:32.374

Copyright 2003, Roadracing World Publishing, Inc.

By Michael Hannas

AMA Pro Racing is now offering free guest passes to riders who only pre-enter selected events, instead of requiring riders to pre-enter the entire season to get the pass, which was the case in the past.

An AMA Pro Racing memo addressed to “License Applicants” dated October 15, 2002 but postmarked January 3, 2003, states “Riders who pre-enter selected events will be eligible to receive a free guest pass to those events that he/she is pre-entered for. To obtain the pass, the rider must accompany his/her guest to registration to have the pass issued.”

A call to AMA Pro Racing offices to find out what type of passes would be issued to the guest was made, with the answer being that the passes would probably be equivalent to spectator passes with paddock access, but no hot pit access. No one at the office was able to confirm this, so we called AMA Road Race Manager Ron Barrick to find out the scoop.

According to Barrick, the guest passes issued to riders who pre-enter selected-events-only will not grant the guest hot pit access. They will indeed be like spectator passes, meaning that a rider will still have to buy a $55 mechanic pass for the weekend (which requires an AMA membership as well, another $39) if he wants his significant other to be able to bring him his helmet on hot pit or hold his umbrella on the grid.

Barrick also noted that while the hard-card guest credential for riders who pre-enter the entire season was available in the past but the policy wasn’t made public, the guest pass for selected events is an entirely new procedure. Barrick said this type of guest pass may possibly have been available for riders many years ago, but not since he has been working for AMA Pro Racing.

While a free guest pass should be generally accepted as a good thing by the riders, it remains unclear if this option was secretly available to a select few in the past as well. One rider who wishes to remain nameless told roadracingworld.com he has been asked if he needed any free guest passes for the weekend by an AMA Pro Racing official upon arriving at the track in the recent past, even though he was post-entering for the race.

From a press release issued by Harley-Davidson:

HARLEY-DAVIDSON REPORTS RECORD FOURTH QUARTER AND 17th CONSECUTIVE RECORD YEAR

Net Income of $580 million on Revenue of $4.1 billion

Milwaukee, Wis., January 21, 2003 — Harley-Davidson, Inc. (NYSE: HDI) today announced record revenue and earnings for its fourth quarter and year ended December 31, 2002. Revenue for the quarter was $1.03 billion compared with $905.9 million in the year-ago quarter, a 13.3 percent increase. Net income for the quarter was $150.9 million, an increase of 27.5 percent over the year ago quarter. Fourth quarter diluted earnings per share (EPS) were 49 cents, a 25.6 percent increase compared with last year’s 39 cents. Revenue for the full year was $4.1 billion, compared with $3.4 billion in 2001, a 20.1 percent increase. Net income for the year was $580.2 million, a 32.5 percent increase versus last year’s $437.7 million, while diluted EPS for the full year were $1.90, a 32.9 percent increase compared with $1.43 in 2001.

“The year 2002 was our 17th consecutive year of record revenue and net income,” said Jeffrey L. Bleustein, chairman and chief executive officer of Harley-Davidson, Inc. “Worldwide retail sales of Harley-Davidson® motorcycles were strong in 2002 with 15.9 percent unit growth over the prior year. Strong demand for our products gives us confidence in maintaining our production goal of 289,000 Harley-Davidson motorcycles for 2003.

“We believe that the excitement surrounding our 100th Anniversary celebration combined with the strength of the underlying fundamentals of our motorcycle business are helping us continue to grow – even in the face of a weak global economy. We are fulfilling the dreams of many new customers as we welcome them into the Harley-Davidson family,” said Bleustein.

Motorcycles and Related Products Segment – Fourth Quarter Results

Revenue from Harley-Davidson motorcycles was $820.3 million, an increase of $86.1 million or 11.7 percent over the same period last year. Fourth quarter shipments of Harley-Davidson motorcycles totaled 65,970 units. The Company had four fewer workdays in the fourth quarter of 2002 compared with 2001, yet shipped 2,435 more units, or 3.8 percent more than the same period last year.

Revenue from Parts and Accessories (P&A), which consists of Genuine Motor Parts and Genuine Motor Accessories, totaled $129.9 million, an increase of $18.5 million, or 16.6 percent over the year-ago quarter. Revenue from General Merchandise, which consists of MotorClothesä apparel and collectibles, totaled $54.8 million, an increase of $7.3 million or 15.4 percent. Revenue from 100th Anniversary P&A products was $12.7 million and revenue from General Merchandise associated with the 100th Anniversary was $12.5 million. “We are very pleased with sales of our 100th Anniversary products, but we realize that not all of these were incremental because some substitution from standard offerings to commemorative anniversary products did occur,” said Bleustein.

Fourth quarter gross margin was 36.1 percent of revenue, up from 34.5 percent last year. Gross margin improved primarily due to wholesale motorcycle price increases, favorable product mix and foreign exchange effects.

Fourth quarter operating margin for the Motorcycles and Related Products Segment was 20.7 percent of revenue, which was better than last year’s fourth quarter operating margin of 18.6 percent. The increase in operating margin was driven primarily by the increase in gross margin.

Retail Sales Data

Harley-Davidson retail motorcycle sales for the year grew in the U.S. (18.3 percent), Europe (7.6 percent) and Japan (5.9 percent) compared to the same period last year.


Financial Services Segment – Fourth Quarter Results

Harley-Davidson Financial Services, Inc. (HDFS), a subsidiary of Harley-Davidson, Inc., reported fourth quarter operating income of $25.4 million, up $8.4 million or 49 percent compared to the year-ago quarter.

“Harley-Davidson Financial Services had a fantastic quarter and year, both in financial performance and in helping to make the dream of owning a Harley-Davidson motorcycle a reality,” said Bleustein. The subsidiary benefited from the increase in Harley-Davidson’s U.S. motorcycle sales, growing acceptance of its consumer financing program and decreased cost of funds due to lower market interest rates.

Pension Plan Activities

During the quarter, the Company contributed $100 million to its various pension plans, which brought the total year contribution to $154 million, compared with a contribution of $19 million in 2001. The Company also responded to current market conditions by lowering its pension plan discount rate from 8.0 to 7.25 percent.

Cash Flow

Operations generated cash of more than $779 million in 2002, providing the Company the ability to invest $324 million in capital expenditures, repurchase 1.1 million shares of company stock for $57 million, pay $41 million in dividends and contribute $154 million to the Company’s pension plans, even as the Company increased cash and marketable securities by $160 million.

Twelve Month Results

For the fiscal year ended 2002, total Harley-Davidson motorcycle shipments were 263,653 units compared with 234,461 units in 2001, a 12.5 percent increase. Harley-Davidson motorcycle revenue was $3.16 billion, an increase of $489.7 million or 18.3 percent.

P&A revenue totaled $629.2 million, a 23.5 percent increase, while General Merchandise revenue totaled $231.5 million, a 41.2 percent increase compared with 2001.

On a longer-term basis, the Company expects the growth rate for P&A revenues to be slightly higher than the Harley-Davidson motorcycle unit growth rate. The General Merchandise growth rate is expected to be lower than the motorcycle unit growth rate over the long term.

Full year operating income for HDFS was $104.2 million, an increase of $43.0 million or 70.1 percent compared to 2001. The Company expects 2003 HDFS operating income to grow approximately 20 percent over 2002 performance.

Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services, Inc. Harley-Davidson Motor Company, the only major U.S.-based motorcycle manufacturer, produces heavyweight motorcycles and offers a complete line of motorcycle parts, accessories, apparel, and general merchandise. Buell Motorcycle Company produces sport and sport-touring motorcycles. Harley-Davidson Financial Services, Inc. provides wholesale and retail financing and insurance programs to Harley-Davidson dealers and customers.

Forward-Looking Statements

The Company intends that certain matters discussed in this release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company “believes,” “anticipates,” “expects” or “estimates” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

The Company’s ability to meet the targets and expectations noted depends upon, among other factors, the Company’s ability to (i) continue to realize production efficiencies at its production facilities through the implementation of innovative manufacturing techniques and other means, (ii) successfully implement production capacity increases in its facilities, (iii) successfully introduce new products and services, (iv) avoid unexpected P&A /general merchandise supplier backorders, (v) sell all of the motorcycles it has the capacity to produce, (vi) continue to develop the capacity of its distributor and dealer network, (vii) avoid unexpected changes in the regulatory environment for its products, (viii) successfully adjust to foreign currency exchange rate fluctuations, (ix) successfully adjust to interest rate fluctuations, and (x) successfully manage changes in the credit quality of HDFS’s loan portfolio.

In addition, the Company could experience delays in the operation of manufacturing facilities as a result of work stoppages, difficulty with suppliers, natural causes or other factors. Risk factors are also disclosed in documents previously filed by the Company with the Securities and Exchange Commission.

From a press release issued by Michelin North America:

RACING VETERAN JIM RHODES JOINS MICHELIN AS ROAD RACING MANAGER

Jim Rhodes, a veteran race tire technician who’s spent 25-plus years around the paddocks of U.S. and world championship road racing, has joined Michelin North America as its motorcycle road racing manager.

Rhodes, 41, has been actively involved with racing and Michelin since the late 1970s, when he began traveling to races to help mount tires for longtime Michelin trackside distributor Walt Schaefer of Altoona, Alabama. Over the ensuing decades, Rhodes has become a familiar face in paddocks both in the U.S. and overseas, fitting his weekend work at race tracks around his career in engineering in the U.S. Air Force, from which he recently retired after more than 23 years on active duty.

“Jim brings an incredible level of commitment and expertise to our growing road racing program in the U.S.,” said Bernard Jarrousse, product manager for the Two Wheel division of Michelin North America. “He’s worked with Michelin and our race distributors at every level of the sport, from local club races to MotoGP and World Superbike. Now that he’s working full-time for Michelin, he’ll be an even greater asset both to our organization and our teams.”

During his military service, Rhodes worked with some of the world’s most technologically advanced aircraft, such as the B-1 Bomber, B-2 Stealth Bomber, Airborne Laser and “other things I can’t talk about,” he added. So he’s no stranger to the demands of advanced research and development programs. “Racing is the ultimate R&D proving ground, where feedback and results are immediate”, he said.

As road racing manager, Rhodes will oversee domestic testing and development of Michelin Pilot racing tires, as well as supplying tires to Michelin partner teams in AMA Superbike, Supersport, Superstock and Formula Xtreme. Michelin-supported teams for 2003 include Team Valvoline Emgo Suzuki, with riders Steve Rapp and Chris Ulrich; Annandale Honda with Ty Howard and Craig Connell; and No Limits Honda with Doug Chandler and Jason Curtis.

These riders will enjoy the same advantages as the Michelin-equipped teams that have won the past nine World Superbike Championships, the last ten 500cc Grand Prix championships, and the inaugural MotoGP crown in 2002.

Reader Jason D. Fellingham of Seattle, Washington forwarded us a copy of this letter, which he sent to local news outlets in his area:

I am writing this letter to voice my concerns about an upcoming movie and the likely negative media it may generate towards an activity that I deeply enjoy.

The movie is “Biker Boyz”, due for release on January 31st, and the activity is motorcycling, sport riding in particular. I have only seen the trailer for this movie but, from that and knowing Hollywood’s tendency to glorify absurd and reckless behavior, I am sure that this movie will portray sport riders in a very negative fashion. This movie will likely show illegal street racing, wheelies, burn-outs and general hooliganism in a “cool” and rebellious way. I am also sure that it will have some sort of media impact, much like that of the movie “The Fast and The Furious”.

I have been riding for a number of years, and racing for the past three. I know hundreds of riders and racers up and down the west coast, mature, responsible riders who have spent a good deal of time and effort trying to shed the “Bad-Boy” image and animosity towards motorcyclists that comes with it. Most of the riders I know are productive members of our community, some are parents and many are involved in local charities, but it’s hard to see that thru a helmet and riding gear.

My chief concern over this movie is that it will influence younger, less experienced riders to engage in extremely dangerous and illegal actions with no true understanding or concern for the inevitable repercussions, but I am also very concerned about how you in the media will deal with this. I bring to point an article printed in the LA Times on June 5th, 2002 entitled “Filling the need for speed” which painted a picture of sport riders as reckless daredevils, based on interviews with two absolute morons and a number of incorrect and exaggerated statistics. The writer of this story carried a bias through the entire article, neglected to contact any local clubs, magazines or manufacturers for information nor did she provide any sort of positive information about motorcyclists or motorcycling. Needless to say, the LA Times received thousands of letters in response to this pointed story, mine included, one of which, written by a local man, made it to the pages of Cycle World magazine.

I am not asking you to cover this matter nor do I presume that you would do so in the unprofessional manner displayed by the writer of the article I noted. I only ask that if it does happen that you do a story regarding this movie, the actions in it or sport riding in the region that you do so responsibly, keeping in mind the influence you have over the views of the general public. I assure you that any negativity carried by motorists is and will be seen on the road, where we are already in a vulnerable and potentially dangerous position. I would also ask that you provide some information about local clubs and organizations and help to show our younger riders that there is in fact a safe and appropriate place for racing i.e. the race track.

I thank you for taking the time to read this and humbly offer myself as a resource for any contacts or information you may need regarding local clubs and racing organizations.

Regards,

Jason D Fellingham
Seattle, Washington

Copyright 2003, Roadracing World Publishing, Inc.

Monday Sepang test times compiled from press releases, which, let’s face it, for all we know could be sort of like horsepower ratings at the brochure:

1. Daijiro Kato, Honda, 2:05.02

2. Loris Capirossi, Ducati, 2:05.3

3. Valentino Rossi, Honda, 2:05.76

4. Tohru Ukawa, Honda, 2:06.0

5. Max Biaggi, Honda, 2:06.0

6. Troy Bayliss, Ducati, 2:06.5

7. Sete Gibernau, Honda, 2:06.6

8. Shinichi Itoh, Honda, 2:07.5

9. Nicky Hayden, Honda, 2:07.76

10. Makoto Tamada, Honda, 2:09.2

Copyright 2003, Roadracing World Publishing, Inc.

By David Swarts

Japan’s famed Suzuka Circuit is undergoing two major course revisions, according to the track’s official website, www.suzukacircuit.co.jp.

The “130R” corner, the high-speed sweeper at the end of the back straightaway named for its 130-meter radius, will now have two-radii, an 85-meter initial radius and a 340-meter exit radius. Judging from diagrams on the website, the sweeper will begin sooner and should be faster due to the more open radius.

Another effect of the alteration is increased run-off room, which will include a new, paved recovery area at the exit of the turn.

The “130R” sweeper leads into the “Casio Triangle,” or the tight chicane before the start/finish straightaway. The new chicane’s entrance, a right-left transition, will be more open and closer to the exit of “130R.” After a short chute similar to the one in the old Daytona chicane, motorcycle racers will be funneled through a tighter, left-right transition, which exits into the sweeping entrance to start-finish straight.

Theoretically, the changes to the chicane will result in lower speeds into the following sweeper and a straighter shot onto the start/finish straight.

Automobiles racing at Suzuka will only use the first portion of the new chicane.

Both changes, which are scheduled to be completed in February, will result in about 10 feet being added to the overall length of the motorcycle course, which now measures 3.619 miles (5.824 km).

From a press release issued by Fortuna Yamaha:

FORTUNA YAMAHA TEAM TESTS
Jerez, Spain
20/21/22 January, 2003

STEADY RETURN TO ACTION FOR CHECA AND MELANDRI IN COLD AND WINDY JEREZ

The new Fortuna Yamaha Team pairing of Carlos Checa and Marco Melandri made a discreet start to their first tests of 2003 today in Jerez. In cold and blustery conditions the track temperature did not rise above 19ºC during the first of three days of testing.

Spaniard Checa completed 55 laps and recorded a best time of 1:44.3, which is over a second slower than his qualifying time at last year’s Spanish Grand Prix. Having worked on dialling-in the new fuel injection system and suspension settings on his YZR-M1 he was prevented from having his usual run of fast laps towards the end of the day by a problem with one bike.

New-boy Marco Melandri has again made good progress as he familiarizes himself with the powerful Yamaha YZR-M1 four-stroke. The 20-year-old Italian has joined the Fortuna Yamaha Team in the premier MotoGP class having become the youngest ever winner of the 250cc World Championship in 2002. He completed a total of 50 laps today with a best time of 1:43.8.

The team is testing with black fairings and neutral leathers ahead of the 20th February launch of its new Fortuna Yamaha livery.

Commenting on the day, team director Davide Brivio said: “Both riders needed today just to get back into riding after the long Christmas break. We were doing some work on the fuel injection with Carlos but Marco was just concentrating on riding and suspension settings. The weather forecast is not great for our three days here but I hope the rain stays away.”

LAP TIMES

Carlos Checa, Fortuna Yamaha Team 1:44.3
Marco Melandri, Fortuna Yamaha Team 1:43.8

Alex Barros, Gauloises Yamaha Team 1:42.9
Olivier Jacque, Gauloises Yamaha Team 1:47.8

Shinya Nakano, D’Antin Yamaha 1:45.2

From a press release issued by HM Plant Ducati:

Monday 20 January 2003

Walker’s successful test

HM Plant Ducati’s Chris Walker completed a successful two-day test at Valencia in Spain on Saturday as the countdown to the start of the 2003 Superbike World Championship continues. However, James Toseland was unable to complete the team’s second pre-season test at the Spanish circuit after injuring a hand in a crash on Friday morning.

Walker is making good progress from the injuries he sustained after breaking an ankle in a Supermoto crash in Belgium three months ago. After undergoing a series of operations, the Nottingham rider is returning to full fitness and getting to grips with the power and handling characteristics of the factory HM Plant Ducati.

“I’m really happy with the progress I’ve made since we were here in December,” said Walker. “I’ve been working hard on all aspects of my fitness and it appears to be paying off. At last I feel that I can ride the bike in anger and I was delighted with my best time of 1:35.3 set on Friday afternoon. The conditions proved to be more difficult on Saturday but we were still able to do a lot of tyre testing with Dunlop.”

Toseland was frustrated after his crash: “It was my own fault, as I was coming into the pits and on a slowing down lap when it happened. I high-sided on the exit of the fast left-right chicane on the approach to turn 15. My hand smashed quite heavily onto the tarmac and I also banged an elbow. Fortunately, the local hospital gave me the all clear, but it was too swollen [the hand] to take any further part in the test. I’m resting it over the next few days and hope I’ll be back to normal for the Almeria test at the weekend.”

HM Plant Ducati Team Manager Colin Wright reflected on the two Valencia tests: “Overall, I’m really happy with the outcome of our pre-season testing to date. Chris worked hard over the past two days and is already on the pace. James was unlucky but he had already put in a lot of good testing before Christmas.

“James and Chris have completed 250 and 200 laps of Valencia respectively on the new HM Plant Ducatis. Both riders are pleased with their settings and have found the work they have done with Dunlop to be extremely productive. It was much windier on Saturday and the track temperature was around 10*C, so the conditions weren’t as good as they were in December. HM Plant Ducati and Dunlop are in good shape for Almeria this weekend – and for our return to Valencia next month.”