While the motorcycle manufacturing industries troubles in the United States are have been the topic of two-wheeled headlines, Europe is feeling strains caused by the world's financial slowdown.

Last week, advocates for the motorcycle industry in Britain appealed to their government for a two-wheeled version of the British 'Cash for Clunkers' program.

Noting the current program has helped Britain's automotive sector return to growth, advocates hope the suggested program could do the same for new motorcycle sales which have recorded their 12th successive monthly fall. Registrations for October 2009 were 27.0 per cent down on the same month in 2008, according to the latest figures issued by the Motor Cycle Industry Association (MCI).
 
A further economic indicator of the state of motorcycle affairs on the other side of the Atlantic came late last week when it was reported Honda will stop production of its motorcycles in Spain at the end of March. The company's Spain factory, with capacity of producing 50,000 units a year, currently puts out midsize and large bikes and related parts, but the plant will continue parts output after March, the report said.
 
It's not just Honda feeling the two-wheeled pinch. According to the Japan Automobile Manufacturers Association (JAMA) motorcycle production for Japanese companies in the first half of fiscal 2009 stood at 272,632 units. Compared with the 520,886 units total recorded for the same period of the previous year, Japanese motorcycle manufacturers saw a fall of 248,254 units or 47.7%, and production decrease on the same period of the previous year for a total of three consecutive years.

Motorcycles 250 cc's or higher led the numbers for the biggest fall in sales over the same period of the previous year, down 55%. Honda leads the Japanese motorcycle manufacturers, with Suzuki running a close second, Yamaha and Kawasaki riding together for third and fourth in sales.

Honda projected its European sales in the current business year ending next March to fall to 205,000 units.

The move by Honda will leave its Italian plant, which makes midsize and large bikes with annual capacity of 170,000 units, as the sole manufacturing base in Europe.