[Hardway]

More negative news resulting from the economy

http://money.cnn.com/2009/01/23/news/companies/harley_davidson.reut/index.htm?postversion=2009012308

 

[storm]

Now how can a company that charges $26,000+ for a ($5000) motorcycle be loosing money. Sounds like poor business planning on their part.

 

[cycledude]

Now how can a company that charges $26,000+ for a ($5000) motorcycle be loosing money. Sounds like poor business planning on their part.

more like $23,000 for a $5,500 motorcycle and don't forget the CB and vibrator is included !

 

[Joe Ewing]

CVO Ultra Classic is priced in the mid 30's...

:22yikes:

 

[FredGarvin]

Now how can a company that charges $26,000+ for a ($5000) motorcycle be loosing money. Sounds like poor business planning on their part.

"poor business planning"? You're kidding right? Apparently you've missed some of the major economic developments of the last year. FYI -- the entire fricken' planet is in a recession. Virtually no one is making money.

Next...apparently you haven't checked prices on new Goldwings lately - and don't forget to add the upcoming 7.8% increase (per Hal). With the exception of the Ultra CVO, HD touring bikes are comparably priced to GWs - in fact most are cheaper.

And, your $26k price point is high, even for an Ultra.

 

[Snoopy]

Dont worry congress is about to pass a 850B dollar stem package to create 3 to 4 million jobs that is at a cost of $240,000 per job where the average American income is $50,000. So $240,000 to create a $50,000 job thats our congress at work.

 

[LDimick]

Now how can a company that charges $26,000+ for a ($5000) motorcycle be loosing money. Sounds like poor business planning on their part.

I was thinking just the opposite. They have actually done, IMHO, an above average job of planning. The idea in business is to sell a product at a fair price. A fair price is a price at which people will be willing to pay and to manage that price point by matching supply and demand. Arrogance is often a by-product of that. But if they were arrogant to everyone then no one would buy their product.

The fact that they are doing a layoff over a period of time and consolidating operations shows that they have a grasp (or hope they do) on their future. If the layoff had been all 1,100 employees al at once (today) then I would be concerned that this is a knee-jerk reaction. I understand that in some states it is a law that lay-offs above a % of total work force are required to be pre-announced.

 

[Towerhog]

The new HD musuem probably soaked more than a few million from their pockets.

 

[BACKDRAFT]

Hey Guys, read it again, it isn't about the economy, it's about the credit folks not lending money for their products. And Harley has their own finance company which isn't doing any better than any one else.

If I had $77 million in my company, I wouldn't be at a loss either.

Harley is totalling the market not only here in the USA but in Europe as well. I guess they thought that sales overseas was going to be a feather in their cap, NOT!

They must be FAT in a couple of areas and is just downsizing.

It happens everywhere except for the politicans. The politicians that make $200,000 + will be leveled back to only making $100,000 a year, OH! Darn. I could live on a lot less than that, and I am.

 

[storm]

We all need to go into farming - then get baled out :shock:

 

[KYBLUE]

http://208.43.95.107/forums/showthread.php?t=202001

 

[storm]

Well unfortunately good business or bad the workers are the only ones that don't get bailed out. HD has made obscene amounts of money during the last few fashion years along with so many other big companies including Honda.
No matter what happens you know it's going to cost all the ones still making money.
I know when they lower taxes it just costs me more

 

[scattergunjake]

That's right, it's time for all the Harley bashers to come out and rag on HD. I guess everything is just rosey for Honda.....no problems there!

 

[loren]

That's right, it's time for all the Harley bashers to come out and rag on HD. I guess everything is just rosey for Honda.....no problems there!

the difference is

we will not need to bail out a foreign company, honda

its japans problem

we have already bailed hd out years ago

and could very well do it again

hence our tax money and our problem

 

[Tony]

Unfortunately the economy is in much worse shape than the bought and paid for main stream media reports.

 

[Jersey Ralph]

honda did not lay off they just moved back home cheap labor an still get$20,000 + for a $5,000 bike:nojoke:

 

[dkwinger]

Regardless of the company, this kind of news is not good for anyone.

BTW... it wasn't that long ago when this board regularly had threads
complaining about HD riders badmouthing GW's. Too bad that we
can't take a higher road and just appreciate folks for whatever they
ride. I know if I had Jay Leno's money, I'd own a ton of different bikes
too and HD's would certainly be among them. Two of my riding buddies
have HD's and they're flat gorgeous bikes.

 

[Crucible-Trike]

Bikes and the recession

In this economy I believe almost anyone selling and/or building Motorcycles, snowmoblies, or any other kind of so called Toys are going to see there business slow down. Any time there is a slow down like this the toys are usually the first thing to go or if someone is thinking of a purchase it is usually shifted to the back burner.
The Harleys are beautiful Motorcycles, but for what I wanted one for the goldwing has worked much better for me. My younger brother has a few Harley's and likes then real well. I see people talking about the price difference & I believe the Harley's are more pricey. I know my brother bought a new road Glide screaming eagle in October for well over $30,000 and I've yet to see Honda that expensive.

:wrong:

 

[LDimick]

honda did not lay off they just moved back home cheap labor an still get$20,000 + for a $5,000 bike:nojoke:

Boy, that one sure bent the needle on the BS-O-METER :congrats:

COPYRIGHT 2001 Business News Publishing Co.
Japan's employers pay higher hourly labor costs than their counterparts in the US or the European Union, according to figures released in March by the EU statistics agency Eurostat.

The average worker in Japan earns more than $3,000 US monthly. I don't think the average worker in the US makes that much. Now, the above quote does not seem to take into account the retirement costs which the UAW, and others, have driven through the roof.

The Japanese labor force is facing a larger problem in the next decade than we are. Their labor force has a much larger segment of boomers retiring than we do so the jobs will be come scarcer and wages will go up. Part of that will be offset by the retirees coming back part-time for less money.

 

[soggybottom]

Even though certain models of jap bikes and HD may be similar list price the jap bike can be negotiated down to list price out the door or less, just like any other vehical. At HD it is always list + shipping + prep + tax so an Elec glide will be several K more than a wing. Not to mention the $2500 for a 7HP gain, tattoos, pirate outfits, tiawan chrome, those big shoes. That is another 2K.