H-D takes third-quarter hit

[Administrator]

Original Article:
http://www.motorcycle.com//news/hd-t...nts-68373.html

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[acecycleins]

The sky is falling, the sky is falling. Tell me no one is suprised. It's been telegraphed for over a year.

[Kenneth_Moore]

A fellow made an interesting point on another thread about the dealerships needing a super strong sales rate to meet their expenses. In Broward County Rossmeyer went from one "modern" large dealership to three. The original store in the center of the county did great. Then he opened a huge downtown store, which took a lot of business from the first place. There was enough growth though that both did ok. Recently they opened a third, huge store way out West, which according to my friends are totally dead. I was by the original store two weekends ago talking to my Finance Manager friend, and he said it's just as dead as a doornail sales-wise.

[vermicious]

You guys should do something about that link issue.

[BrowningBAR]

The Mods try to fix them as we see them. Not sure why it posts like that.

[seruzawa]

Originally Posted by Kenneth_Moore

A fellow made an interesting point on another thread about the dealerships needing a super strong sales rate to meet their expenses. In Broward County Rossmeyer went from one "modern" large dealership to three. The original store in the center of the county did great. Then he opened a huge downtown store, which took a lot of business from the first place. There was enough growth though that both did ok. Recently they opened a third, huge store way out West, which according to my friends are totally dead. I was by the original store two weekends ago talking to my Finance Manager friend, and he said it's just as dead as a doornail sales-wise.

Lots of foolish business decisions all around. HD (and BMW) got onto this kick where they demanded that their dealers become snob-appeal stores. Now with the credit crunch and plummeting sales of the overpriced lines from the USA and Germany a lot of these dealers with huge operating costs are going to be suc*ing hind tit. More than a few are going to go under. What do the HD and BMW corporate boys care? They've got their golden parachutes.

I bet that the dollar problems are going to hammer BMW and KTM something fierce. Who will be willing to pay $17k for a basic R1200R? Hardly anyone.

[sarnali2]

It's an industry wide down turn. HD and BMW, Ducati etc are going to be hurt more because they try to cater to an "exclusive" market. The Japanese probably won't fall as far because they have a much more diversified product line in Watercraft, ATV's, Generators, Dirt Bikes as well as cruisers and sport bikes with more low dollar offerings in each catagory.

No doubt the whole recreational vehicle industry will take a hit from high end bikes to RV's to boats and everything else. When the economy cools discretionary spending is the first to stop. Harley has set themselves up for a double shot because their target demographic is aging as well. I don't know how many younger people are going to pony up for whats percieved as dads bike in the first place when the Asian manufacturers are offering more performance and better percieved quality at a lower price, specially for used bikes.

[The_AirHawk]

THE GMP PREDICTS, AND IT COMES TO PASS...... Oh, wait - he's not here anymore.......

Somewhere in the Pacific Northwest, a Kook is smashing his keyboard to splinters with his face right about now.

If you predict enough things, in enough directions, eventually one or two of them will "come true". I liken this to the saying; if you stand on a street-corner long enough, eventually, everyone you know will pass by.

I PREDICT that someday, Harley will peak again. If not, they will be bought-out by Honda and will be turned-into another Indian Motorcycles.......

[longride]

Even a broken clock is right twice a day. I'm sure your buddy is just fine and making lots of new friends over at Cycle World.

[seruzawa]

Originally Posted by sarnali2

It's an industry wide down turn. HD and BMW, Ducati etc are going to be hurt more because they try to cater to an "exclusive" market. The Japanese probably won't fall as far because they have a much more diversified product line in Watercraft, ATV's, Generators, Dirt Bikes as well as cruisers and sport bikes with more low dollar offerings in each catagory.

No doubt the whole recreational vehicle industry will take a hit from high end bikes to RV's to boats and everything else. When the economy cools discretionary spending is the first to stop. Harley has set themselves up for a double shot because their target demographic is aging as well. I don't know how many younger people are going to pony up for whats percieved as dads bike in the first place when the Asian manufacturers are offering more performance and better percieved quality at a lower price, specially for used bikes.

The local RV/5thwheel dealerships are already crying and moaning.

I find it very difficult to have a lot of sympathy. Everyone of these guys charged top dollar and soaked the buyers for over MSRP premiums when things were fat. Now they'll want us to feel sorry for them. Not a chance.

$2k for Evo basket cases sometime soon!

BTW, you misspelled "perceived". Don't let it happen again.