In an economy where every large corporation seems to be in financial straits, will Harley-Davidson be the next to stand in front of the bail-out table?
Let's look at some of the red flags:
1. Slumping sales in all sectors of the U.S. market for the past few years;
2. Declining stock price;
3. Dealerships closing;
4. Very favorable credit terms from Harley because they can't get rid of the bikes fast enough;
5. Harley made unprecedented layoffs at their York, PA plant earlier this year.
And now...
Yesterday, the news came out that President and CEO, James Ziemer, will be retiring next year. That's the "official" word anyway. The word I've gathered from my sources say that he was "asked to resign" by the board of directors. Rumor has it that things are about to get shaken up in Milwaukee. Just how much remains to be seen.
I'll keep you posted as I dig up more info.
Wednesday, December 17, 2008
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16 comments:
H.D. has been in tough times before, and managed to pull through one way or another.
I sure hope they do O.K.
All I can say Bro is is Harley died, a piece of my soul would die with it.
Well...all we can do is wait to see what happens. This is going to take awhile to sort out and there is no easy fix for what is going on currently. Hope they stay around...even if they have to downsize.
Harley has learned to be one of the most savvy bussiness's around.
They might be in for a tough haul.
But they will make it somehow.
As for the stock....
I have never bought stock before but I'd love a few shares and at 16 and change right now all the finacial wizzes say it's way undervalued.
Harley go away? Doubtful. Downsize,cut backs in personnel and production. Probably. Regardless of the economy, if there is money to be made someone will make it. Harley is afterall a "American Icon". Remember AMF? I still have one. The up side is that your bike will retain it's value better.
As for the CEO - he has worked there since 1969. After 40 years with on company I might want out also.
Let's hope 'asking him to resign' is the right thing to do. I would hate to see HD fade away.
So far they are doing far better than just not only the Big 3 but most other manufacturing. They will make it. We just must do what Dr.W said and buy American when at all possible.
I can see how they may have gotten a little bloated after selling every bike they made for so many years. I remember when Monty's (one of my local dlrs) used to have a lottery just for the opportunity to buy a new bike.
This downturn is a necessary correction time for H-D to "trim the fat" so to speak. I'm sure they will do what they have to in order to make it through until the next upswing.
I'd feel a little better if they still used Harley's in the military, which would give them a boost, but those days are gone.
$16 and change? Hmmmmmm......
"Just when you think your out... They pull you back in!"
I have faith that Harley will be around for a long time. As said by Mr. M, they've been down before. They've filed bankruptcy and came back stronger than they were.
It would be a very dark day indeed if Harley closes their doors for good. :(
The times sure are freaky right now. I have to hope that we all get out good. I hope everyone can sit patiently. Buy the stocks now... I really think they will have another surge upwards...just wait the year out if all possible.
as hard as it may be for a lot of folks - it appears they are doing the correct things to weather the downturn in the economy. Now would be a great time to buy a dealership when prices are low and ride it back up to glory. Figure I need about $1.6 million. Can I count on about 1.4 fellow bloggers?
One Harley Rider... I hear that Wilwert's Harley Davidson in Dubuque, IA is for sale. I'm in! Let me know when you have the other 1.3 1/2 million bloggers! LOL!
Our dealer called on Friday and said that they had started a new program and give us for trade in to the penny what we paid for our bikes last year. I told him he wasn't very nice. He just laughed and said he thought the call might help the old man make up his mind about the trike.
One solution would be for all you Harley riders to go out and buy a new one. Ben Stein says the folks that have the cash should spend it, not stash it. By the way I will take a black road king! :)
Rick is right. Now is the time to also take advantage of the discounts they have to offer too. I needed to put risers on my handlebars and low and behold, Harley sent out a discount service offer...so I took advantage of it and the free shuttle service in the rain. On the downside, San Juan Capistrano Harley is not in business anymore. They combined with Orange County HD. The wait is on.
I assume that by now, Harley can make a bike that will idle, so I'm confused as to why every guy on a Harley must constantly rev his bike at a stop light. Then I realized....they're trying to tell the rest of the world that they're cool, and the rest of us are'nt. But all they're really telling anyone is .."I'm a fat midddle-aged white guy who BOUGHT into cool with a subprime loan from HD credit. Except "cool" isnt cool anymore where HD is concerned, because everybody (over 50) has one. HD sold out to the yuppies 20 years ago, and now the chickens (more like old buzzards) have come home to roost. Oh, and by the way....Orange County Choppers uses little (if any) HD parts. Bikes along that style are something HD should think about.
Hey Steve, thanks for stopping by.
I agree that HD sold out to the yuppies some years ago but to start producing OCC type bikes? Haven't you heard Steve? That fad was over a few years ago. The OCC clowns are just as bad as the yuppies and, quite frankly, I'm glad that the fad is over so they can all just go away.
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