Will the Motor Company survive?
Harley In The NewsDiscuss Will the Motor Company survive? in the Other Topics forums; I've been hearing a lot of noise in the news and on the Web about the "uncertain" future of Harley-Davidson as a result of the current economic crisis. What do ...
I've been hearing a lot of noise in the news and on the Web about the "uncertain" future of Harley-Davidson as a result of the current economic crisis. What do you think?
Let me get the ball rolling . . .
While nothing is certain, I have to say that my confidence in H-D remains strong. They've seen it all, been there, done that, for more than a century (including weathering the Great Depression!). I'm sure they'll survive 2009! What WILL sink the Motor Company is OUR uncertainty, our fear of the market. Well I say, fight the fear. Heck, I bought some HOG stock for the first time--just to help out! (Imagine what would happen if every Harley owner bought just 1 little $19 share? Whew!)
Like you said, they survived the Great Depression so I'm sure they'll survive this. I do think that right now the consumer has somewhat of the upper hand in going in and getting a good deal on a bike. They obviously need to move them . The local dealer has a new monster showroom and a dam* steer named "WillieG" in a pen right next to the showroom. I want a fair deal on the bike, I am not going to pay to feed the cow!!
Can you really compare the MoCo of the 1930's with the MoCo of today?! Wow, that's a pretty far stretch.
I think the MoCo will survive, and the reason is NOT the large group of middle-aged baby-boomers that bought up all the Harleys and caused demand to soar in the past decade. All those guys figured out there's more to being a biker than having a bike, so the market is saturated with used Tweenkies, and the showroom floors are overflowing with new bikes at a decent price.
No, the reason the MoCo will survive is because of the old-timers (OK, I'm an old-timer) that stuck with the brand through thick and thin, us guys that were riding choppers before it was cool, and needed each other to get by. That's right, we stuck with the MoCo through the late Shovelhead years, the AMF years, and we're still here though the yuppie RUB wannabe poser whatever-ya-wanna-call-it years.
Some things will never change--- me, and the brand Harley-Davidson. But I do look for things to be 'different' in the next few years.....
Okay, I've said my piece, let the flaming begin.
I believe the Motor Company will survive. I guess you could say I'm the next generation of riders (28 years old). I think brand recognition still remains strong. Yes, I could have purchased a foreign cycle for less dollars,but the Harley brand still makes a statement. The looks are still some what traditional that makes them in their own league, along with the distinct sound you can't get with any other bikes. Yes, some companies come close to the noise, but still can't match it. So all in all, Harley will push forward through these troubled times.
I think it's a good bet that Harley will survive. That does not mean the stock is a good or bad deal.
Harley's survival is not a lock, but the company has dealt with and been supported through a lot worse than this. The chance of HD going down is very slim, but, on the other hand, that doesn't mean Harley will not be a very different creature in ten years than it is today.
I suspect a number of dealerships will not make it, and who knows what models or volume of new bikes HD will be selling in the future?
__________________ Buzz Kanter
Editor-in-Chief, American Iron Magazine
I think H-D will survive. It won't be easy and it may not be pretty at times but the Company will come through. How well depends on what they design and produce that will bring in new H-D riders. As the crotch rocket gang gets some age on them cruisers may look more attractive but H-D has to produce models that appeal to the younger crowd. To me, the H-D line up reflects the best of the past in looks..simply classic and the technology of the future. They just need to package and sell it to another generation of riders. It wouldn't hurt if the MSRP was a little lower. In time I guess we'll see what shakes out. Clif
I read somewhere that HD was financing about 50% of the bikes they sell and they got caught in the same subprime lending issues affecting the housing market. Reposessed bikes and late payments or defaults were hurting their financial arm; the CFO is the guy the board goes after when this kind of a problem pops up. This just sounds like corporate America to me.