Yeah!!!! I will have a 883 Iron in my garage next to my Vrod by this time next month!!!! I apparently am a Moron. Odd Wilie what happen to "Screw it Lets Ride" Man, Dude Willie what happened?
http://milwaukee.bizjournals.com/milwaukee/stories/2009/07/27/story3.html?b=1248667200^1866438
Wrong turn
Harley thought sales would pick up for Sportster, V-Rod
The Business Journal of Milwaukee - by Rich Rovito
Harley-Davidson Inc. management made a mistake when it concluded consumers would buy less expensive motorcycles during a recession, the company’s top executive acknowledged recently.
Keith Wandell, Harley-Davidson president and chief executive officer, said in an interview with The Business Journal that the company mistakenly thought the recession would push consumers toward Harley’s Sportster and other less expensive motorcycles.
The company increased production of those types of bikes, but retail sales “didn’t materialize,” he said.
Harley dealers currently have a glut of the mid-priced V-Rod models.
Instead, many consumers who have been buying Harley-Davidson motorcycles have been buying more expensive custom and touring bikes, Wandell said.
“It left us with a bigger imbalance,” he said. “We have a lot of inventory.”
As a result, Harley-Davidson will shut down final assembly operations of the Sportster and V-Rod motorcycles and V-Rod motorcycle powertrain production in Kansas City, and production of Sportster motorcycle powertrains in Wauwatosa, for 14 weeks this year, including all of the fourth quarter.
“The primary thrust of what we are doing is realigning inventory with demand,” Wandell said.
In a July 16 conference call with analysts, Harley-Davidson interim chief financial officer John Olin said the company expected a “more robust demand” for lower-priced motorcycles to “meet the needs of what we expected to be a more value-minded customer in this tough economy.”
Pulling back production of certain models protects the value of the Harley-Davidson brand, Wandell said.
A July 17 research note from Robert W. Baird & Co. Inc., Milwaukee, said as much.
“Harley-Davidson is among the most valuable brands on the planet, but excess inventory causes discounting that diminishes the brand,” wrote Baird analyst Craig Kennison.
According to Kennison, dealers indicate more motorcycles are selling below manufacturer’s suggested retail price.
“With this in mind, we like the decision to cut production and reduce dealer inventory to protect the scarcity value of the brand,” he said, adding that management made difficult decisions to put Harley-Davidson on a “path to better returns.”
“We like the commitment to protect the brand, including the production cut, and endorse the mandate to address costs,” Kennison’s note said.
Kennison said he expects Harley-Davidson’s profit per motorcycle to drop to less than $1,000 this year from nearly $3,000 during a recent stretch, which underscores the need for changes such as a major work-force reduction and potential consolidation of the plant in York, Pa. A labor contract for hourly production workers in York expires in February 2010.
Management has determined that the York operations are not competitive or sustainable. The company is studying whether additional restructuring can make the plant more efficient and viable, or whether the company should move those operations to another U.S. location. The company anticipates a decision on the York operations later this year.
Quarter results plummet
Harley-Davidson announced July 16 that second-quarter earnings plummeted 91 percent to $19.8 million, or 8 cents per share, from $222.8 million, or 95 cents per share, for the same period in 2008.
Revenue fell 27 percent to $1.15 billion.
As a result of lower shipment volume, Harley-Davidson also announced that it plans to implement additional layoffs throughout this year, including about 700 hourly production jobs. Harley-Davidson also will reduce nonproduction work force by about 300, including at its Harley-Davidson Financial Services subsidiary.
http://milwaukee.bizjournals.com/milwaukee/stories/2009/07/27/story3.html?b=1248667200^1866438
Wrong turn
Harley thought sales would pick up for Sportster, V-Rod
The Business Journal of Milwaukee - by Rich Rovito
Harley-Davidson Inc. management made a mistake when it concluded consumers would buy less expensive motorcycles during a recession, the company’s top executive acknowledged recently.
Keith Wandell, Harley-Davidson president and chief executive officer, said in an interview with The Business Journal that the company mistakenly thought the recession would push consumers toward Harley’s Sportster and other less expensive motorcycles.
The company increased production of those types of bikes, but retail sales “didn’t materialize,” he said.
Harley dealers currently have a glut of the mid-priced V-Rod models.
Instead, many consumers who have been buying Harley-Davidson motorcycles have been buying more expensive custom and touring bikes, Wandell said.
“It left us with a bigger imbalance,” he said. “We have a lot of inventory.”
As a result, Harley-Davidson will shut down final assembly operations of the Sportster and V-Rod motorcycles and V-Rod motorcycle powertrain production in Kansas City, and production of Sportster motorcycle powertrains in Wauwatosa, for 14 weeks this year, including all of the fourth quarter.
“The primary thrust of what we are doing is realigning inventory with demand,” Wandell said.
In a July 16 conference call with analysts, Harley-Davidson interim chief financial officer John Olin said the company expected a “more robust demand” for lower-priced motorcycles to “meet the needs of what we expected to be a more value-minded customer in this tough economy.”
Pulling back production of certain models protects the value of the Harley-Davidson brand, Wandell said.
A July 17 research note from Robert W. Baird & Co. Inc., Milwaukee, said as much.
“Harley-Davidson is among the most valuable brands on the planet, but excess inventory causes discounting that diminishes the brand,” wrote Baird analyst Craig Kennison.
According to Kennison, dealers indicate more motorcycles are selling below manufacturer’s suggested retail price.
“With this in mind, we like the decision to cut production and reduce dealer inventory to protect the scarcity value of the brand,” he said, adding that management made difficult decisions to put Harley-Davidson on a “path to better returns.”
“We like the commitment to protect the brand, including the production cut, and endorse the mandate to address costs,” Kennison’s note said.
Kennison said he expects Harley-Davidson’s profit per motorcycle to drop to less than $1,000 this year from nearly $3,000 during a recent stretch, which underscores the need for changes such as a major work-force reduction and potential consolidation of the plant in York, Pa. A labor contract for hourly production workers in York expires in February 2010.
Management has determined that the York operations are not competitive or sustainable. The company is studying whether additional restructuring can make the plant more efficient and viable, or whether the company should move those operations to another U.S. location. The company anticipates a decision on the York operations later this year.
Quarter results plummet
Harley-Davidson announced July 16 that second-quarter earnings plummeted 91 percent to $19.8 million, or 8 cents per share, from $222.8 million, or 95 cents per share, for the same period in 2008.
Revenue fell 27 percent to $1.15 billion.
As a result of lower shipment volume, Harley-Davidson also announced that it plans to implement additional layoffs throughout this year, including about 700 hourly production jobs. Harley-Davidson also will reduce nonproduction work force by about 300, including at its Harley-Davidson Financial Services subsidiary.
