Harley-Davidson Shuts Down

Why do you think this happened? Is it a sign of economic times and might we expect the Japanese and Italian manufactures to do the same or has Harley finally getting a little backlash over their inflated prices?


Associated Press
Article Launched: 11/26/2007 09:41:59 AM EST

Harley-Davidson shuts down some production for one week


Nov 26, 2007 — Layoffs are under way at the Harley-Davidson plant in Springettsbury Township.
Harley is temporarily shutting down production this week because of a drop in motorcycle shipments.

Workers are receiving health care benefits during the one-week layoff, but they aren't getting a paycheck.

The Milwaukee-based motorcycle maker told workers in September that it would shut down its assembly plants in Springettsbury Township and Kansas City, Mo., for the week of Nov. 26. Also being shut down for the week are three operations in Wisconsin.

 

WHY????

Because the US economy is showing stress cracks!!

Because folks are worried about their jobs and futures in an economically doomed era with federal spending out of control and are no longer spending on highend lifestyle accessories like HDs.

Because people have no hope because they know that our potitical system is fatally flawed.

Because despair is the only rational feeling considering present circumstances!

............where are my pills???????......

 

Because they bought a $100,000 house for $250,000 and an ARM and are now upside down on a payment they can't afford and are selling their toys and not buying new ones? (How's that for a run on sentence?)

 

Maybe from over saturation of the market, not to mention a cyclical slowdown in sales. The motorcycle biz isn't going to be great all the time, so some cuts are going to be necessary.

 

According to MCN, Harley is down 4.41% from 2006-2007 but Honda is down 10.75% for the same period.

 

If you look at cost of living increases in addition to the skyrocketing costs of oil, health care, etc. you will see that these costs are far outpacing the increases that most people see in their yearly salary. I don't think that it is that people don't want to buy a Harley (or some other brand), they just can't afford it.

 

Much of Harley business is in accessories in addition to bikes. Times get tough....Should I buy those chaps, vest, ball cap, freeway pegs, chrome bits? For the newb....Do I really need a motorcycle in my vehicle stable? Lower disposable income certainly puts this stuff on the chopping block.
The accessory, high margin, products do not require high dollar labor to retail. The biggest cost cutting to boost their bottom line has got to be labor at their production facilities.
It will be interesting to see if the situation gets any better. My bet, in the short term, is no. I bet the next generation of aging bikers is going to be more sports oriented. The "wild ones" and "easy riders" are going to give way to the "top gun" crowd and fans of 80s GP when the US dominated.

BTW Squirrlman's commnets... I'm historically not too pesamistic and cynical, but the comments are ringing with me. I'm moving toward that camp. If there was something that impacted the middle class harder and more personally (the draft did it in the 60s) people would be in the streets. IMHO Some aspects ot the economy aren't really bad at all right now, but it's delicate. Could you imagine if waves of unemployment spread, federal taxes jump, etc.?

Okay, back to topic ----> I'm still not considering a Harley. I have all the bike I need in my '95 VFR!

 

Maybe the prices will go dirt cheap and we can ALL afford new harleys.
BBBBBBAAAAAAAAGHHHH HHHHAAAAA HHAAAAA HHAAAAAAAA. OHhh. Whew.
I needed that.

 

Not gonna happen. They have a reputation to live up to.

(i've had several H-D's, the only good one was my ULH-80. You didn't expect it to be better.)

 

JUST WAIT...........



until Harley builds its first factory in China "to serve the emerging market in Asia", then starts bringing them back into US......built by 50cent an hour exploited slave labor....bye-bye US union jobs....it could happen, just look at the trends!!

few of the elite Harley crowd complained when their must-have "Custom Chrome" bits were imported from Taiwan.........

 

Oddly enough was just thinking with rising housing interesting rates here and falling rates in the US causing the rapid drop of the US Dollar if wanted might be able to afford a Harley Davidson next year, still wouldn't spend stupid money on the accessories like HD stamped leather mudflaps I observed on one a while back. ???

 

Hear hear.

 

I think Harley shot themselves in the foot;years back you got on a waiting list to get a Harley. That kept demand strong because people felt they were really getting something extraordinary,you know getting on a list added excitment to the whole purchase. It also kept prices high for used Harleys,I had two Harleys during the good era and I sold both for more than I paid for them. So Harley builds a couple new manufacturing facilities and slowly begins to flood the market,Showrooms are now full of bikes but during the
good times,it was rare to see a bike on the floor. So now there are more than enough bikes,some dealers even put on little sales, in addition used bikes
are not bringing anywhere near the dollars they used to. So anyway thats about the way I see it.Harley had a good thing going but got greedy,and now they are seeing the negative effects of it.

 

I bet all the Japanese makers are thinking how to be productive if economic times are tuff in the US or worldwide.

I doubt Harley is even thinking the same way, except when it come to their merchandise, which is where they make most of their money.

BZ

 

AAWWWWAH, SHIT....now i gotta admit i have black Harley shirt somewhere..........(it was a gift)

 

You guys also need to remember that the big 4 jap bike makers can absorb a downturn in bike sales as none of them have motorcycles as their main manufacturing item. Kawasaki are HUGE in shipping for instance, Honda make cars amongst other things and so on.

What do Harley do? Make expensive bikes that are nice to look at but are at best an average bike. Only decent one they make imo is the Buell, least that has some innovative technology in it. So if there's a downturn in the economy then yes, it will suffer as it has nothing to fall back on. Realistically, if they lowered their prices to a more affordable level, they'd actually sell more bikes but i can't see that happening due to the greed factor.

 

That will happen naturally in International markets as the USDollar drops further against other currencies while at the same time Importers to the US eg Honda, BMW, Ducati etc will need to raise prices domestically in the US to remain profitable or just enough to break even.

You never know it could herald the rebirth of US manufacturing with Harley Davidson, Ford & General Motors being the beneficiaries, surprisingly in Oz both Chrysler and Hummer have recently grown in model types and showrooms due to cost verses perceived value.

 

Hey Man, this is a VFR forum. Screw Hardley. I don't give a rat's butt what happens to them. In Fact, my kidney's still hurt from my hardtail days. If they made a decent bike then they wouldn't be in the fix they're in now. besides there will always be those Hardcore guys who will rebuild em and ride em. Anyway the rice burner guys, we still need some one to laugh at and make fun of. Can't heap it all on the squids on gixers.

LOL
*The preceding statement is only my opinion and meant to invoke laughter and/or anger in the reader (which one, is your choice.) No offense meant or intended*