Harleys new leadership
#41
06-12-2011 | 09:05 AM
Grand HDF Member
Joined: Aug 2009
Posts: 4,209
Likes: 1,762
From: USA
That is kind of the point. If I said a company that is likely to go out of business "will go out of business before Harley" that wouldn't really mean anything except "maybe Harley will go out of business." So by saying that the number 2 motorcycle selling company in the country will go out of business first, most people understand that to mean, "Harley is not likely to go out of business."
If you want, I can find jokes people have posted in the humor forum and explain the punch lines, or anything else you don't get.
If you want, I can find jokes people have posted in the humor forum and explain the punch lines, or anything else you don't get.
Go ahead and do that chief. About 6 examples will suffice. I never laugh at money.
HD has a P/E that has skyrocketed to 68 lately. Why wouldn't investors sell? People want to bash the OP for indicating he will be selling off his stock. So what.
Core model has become moto clothes and financing. How much of HD credit profits are actually bad paper? We dont know, but the housing/job markets are holding down consumer spending. New unit sales year to year are weak, a telling factor of growth.
I'd rather invest in a company making $ on their principle products. Thats just me.
#42
06-12-2011 | 09:17 AM
Road Master
Joined: Jul 2008
Posts: 1,169
Likes: 0
From: New Orleans
Has everyone heard about harleys new leadership and what he's doing? 1) closing 40% of dealerships just like GM did. Just got back from a ride to chicago and my dealer in chicago i grew up with was closed along with one more plus two more may be on chopping block. another area (cannnot say) is currently on edge because they make be cut (they have not found out yet) York plant was forced to cut 700 Union jobs and Union was told to accept it or we will move company to kentucky. PARTS- all going up right now a HD battery is $170.00 last time I paid $96.00 and i thought that was high. another thing ,if you use after market parts on your HD to enhance perf HD will VOID warranty. The power programer was used as demonstration. I am glad I sold my Harley stock. Thats all for now, check with your dealer to make sure they ain,t on chopping block. right now I have to travel 100 or 200 miles to nearest dealer and if they close these then I guess I'll be sht out of luck and have to go aftermarket with everything or buy a differant brand
#43
06-12-2011 | 10:43 AM
Road Warrior
Joined: Feb 2008
Posts: 1,301
Likes: 6
Moving Harley Davidson is old news, however Harley is up to some tricks, there cutting production back and closing some dealers making it harder to get a bike ....there M O is to drive the prices back up like it used to be when you pay list. I know some of you guys remember back when AMC owend Harley and building crap and Davidson bought them back and drove up the price to list or above and you had to pre order and wait months to get a bike. The dealer here ownes three stores and they already have about half the bike's on floor plan and prices up.... even on used bikes.
They told me there having a hard time getting bike's now....BS...go by Daytona or Orlando and they have bike's coming out of the ***.
They told me there having a hard time getting bike's now....BS...go by Daytona or Orlando and they have bike's coming out of the ***.
The owners of the dealships are not making a profit and are closing. HD has nothing to do with this. Its the economy.
#45
06-12-2011 | 11:26 AM
Seasoned HDF Member
Joined: Mar 2009
Posts: 23,516
Likes: 7,183
From: Snow Hill, NC
All raw materials that are petroleum based are going up, Latex is going up, Cotton is going up...I sell medical supplies and most of it disposable and plastic, latex and linens and all are going up , some 20%.... All except salaries....Latex gloves i was selling for $2.50 a box last year are not $6-50 a box...Freakin CHINA... they are starting to drive cars and scooters like crazy and buying Tires and inflating the cost of natural rubber....
#46
06-12-2011 | 11:39 AM
Even if sales of bikes are down, (they are substantially from the '05 boom) I'm betting sales of parts is steady of even up. More people keeping their bikes vs. buy new ones and adding parts etc. The model of a company generating it's revenue from financing is not new. GM made far more from GMAC than their vehicles. That is the case for most all high ticket items. Who has the cash to buy a 10-30K toy? Very few, so rather then let the buyers go to their local bank for a loan, why not offer financing in house. It is smart business. Period.
#48
06-12-2011 | 11:45 AM
Ultimate HDF Member
Joined: Aug 2008
Posts: 6,235
Likes: 60
From: Joliet, Illinois
When you have dealers that have a $300,000+ nut to crack each month, it's probably a good idea to let some of them close. The market just isn't there for these mega-locations to survive in this economy.
#49
06-12-2011 | 12:12 PM
Cruiser
Joined: Mar 2011
Posts: 181
Likes: 0
From: 29°16′49″N 082°07′29″W
I certainly don't want this to turn into a political argument, but the OP mentioned a facility in KY, so the door is already open.
A big part of GM's and Chrysler's problem is their union pension obligations, some say to the tune of several thousand dollars per vehicle. HD, being a union shop under Taft-Hartley, and WI not being a Right to Work state, would probably carry some of those same burdens on their motorcycle line, but not on their finance or soft goods lines. We see which lines are profitable.
In my opinion, HD is probably charging what the market will bear for just about everything. $30k motorcycles at 10% with good credit and $500 jackets will only capture so much of the motorcycle market, so if they went up to become profitable they'd probably lose some of their market share to Victory and the rice burners.
A big part of GM's and Chrysler's problem is their union pension obligations, some say to the tune of several thousand dollars per vehicle. HD, being a union shop under Taft-Hartley, and WI not being a Right to Work state, would probably carry some of those same burdens on their motorcycle line, but not on their finance or soft goods lines. We see which lines are profitable.
In my opinion, HD is probably charging what the market will bear for just about everything. $30k motorcycles at 10% with good credit and $500 jackets will only capture so much of the motorcycle market, so if they went up to become profitable they'd probably lose some of their market share to Victory and the rice burners.
#50
06-12-2011 | 12:41 PM
Outstanding HDF Member
Joined: Aug 2007
Posts: 2,874
Likes: 8
From: Earth
Has everyone heard about harleys new leadership and what he's doing? 1) closing 40% of dealerships just like GM did. Just got back from a ride to chicago and my dealer in chicago i grew up with was closed along with one more plus two more may be on chopping block. another area (cannnot say) is currently on edge because they make be cut (they have not found out yet) York plant was forced to cut 700 Union jobs and Union was told to accept it or we will move company to kentucky. PARTS- all going up right now a HD battery is $170.00 last time I paid $96.00 and i thought that was high. another thing ,if you use after market parts on your HD to enhance perf HD will VOID warranty. The power programer was used as demonstration. I am glad I sold my Harley stock. Thats all for now, check with your dealer to make sure they ain,t on chopping block. right now I have to travel 100 or 200 miles to nearest dealer and if they close these then I guess I'll be sht out of luck and have to go aftermarket with everything or buy a differant brand