Harley-Davidson slashes 1,000 jobs as profits skid

[OhioChick]

Source: Economic Times India

16 Jul 2009, 2046 hrs IST, AGENCIES


WASHINGTON: US motorcycle maker Harley-Davidson said Thursday it would cut 1,000 more jobs this year after a devastating second quarter as the global recession slashed sales.

The Milwaukee, Wisconsin-based company announced the new job cuts along with a 91 percent plunge in second quarter net profit from a year earlier.

Earlier this year the company had said it planned between 1,400 and 1,500 job cuts over the next two years and would close two factories to realign production with softer demand.

"While the underlying fundamentals of the Harley-Davidson brand remain strong and our dealers' retail motorcycle sales declined less than our competitors, it is obviously a very tough environment for us right now, given the continued weak consumer spending in the overall economy for discretionary purchases," said Harley-Davidson president and chief executive Keith Wandell.

Harley-Davidson reported net profit fell to 19.8 million dollars in the second quarter. Worldwide retail sales of its iconic motorcycles plummeted 30.1 percent from a year ago.


Read more: http://economictimes.indiatimes.com/International-Business/Harley-Davidson-slashes-1000-jobs/articleshow/4786396.cms

[sarcasmo]

1. Cycles were expendable income toys and now there is no income let alone expendable income.

[cabluedem]

2. Wanna-be bikers toy. Give me a Honda that doesnt need work everytime you ride. nt

[Dr.Phool]

5. With training wheels?

If I have to explain, you wouldn't understand.

[Enthusiast]

17. I love this

"If I have to explain, you wouldn't understand."

:rofl:

[cabluedem]

30. Dont need too. My Honda will smoke your P-O-S HD at any speed. nt

[Born Free]

41. Interesting attitude

Many of my coworkers ride Honda and although I never say anything bad about their rides, they constantly make comments about our older Harley - it's a 1990 FLHTCU (Ultra) with a little over 113,000 miles on it. I even agree that if I were serious about riding I would consider a Honda Goldwing but we only ride on weekends - about 10 thousand miles a year. I don't really care if their bikes are newer, bigger,faster, better, just glad they enjoy them. It's just my wife and me out there, mostly on 2 lane highways, with no particular place to go, and no great stories or achievements to talk about. And yes, I am one of those fat, bald old guys, you Honda riders complain about. Our old Harley may shake,vibrate, spit out the carb and may even piss on the floor at times when it feels like it but we still love it and cherish the time we spend together on it. I feel sorry for individuals that buy bikes all the time and never really become attached to one. I do spend some time working on the old Harley, last fall my wife and I put in another engine, now it develops over 100 ft pounds of torque from 2900 rpms to red line - I like the extra torque to haul our fat butts up the hills. I am sorry to see Harley lose money and forced to cut back, just as I was sorry to see other USA workers lose out.

On edit: I tell a coworker I may not be able to change much in this world but I do have some control over our old Harley, and spending a lot of time with it is what I call "Harley Therapy" These days,nothing pleases me more than cruising down a 2 lane road, just me and my wife of 33+ years on our old Harley.

[AptosDem]

7. Reliability and Quality

That's the reason I switched to HD 10 Years ago. The only times my HD's have been in the shop has been for tires, brakes and scheduled maintenance.

I put an average of 15k miles per year on my bikes over the past 40 years. Your statement seems to be wrong compared to my experience.

[Lithos]

28. Depends on your experience

The AMC era HD bikes had a lot of problems. One of the biggest things which happened when HD became independent again was a resurgence in quality.

L-

[cabluedem]

29. HD quaility was piss poor BEFORE AMC came around. Ride 1 hr, work on it for 2 hrs. nt

[DainBramaged]

34. Another Anti-American makes my ignore list.

[PassingFair]

3. There are single people that desire cheap, reliable transportation...

but I assume that they are buying barely
used motorcycles from those that had them
and hardly used them.

So long, weekend warriors...

[OneBlueSky]

4. been wondering how those guys at Orange County Choppers . . .

are doing in this economy . . . they just invested heavily in a new "world headquarters" in Newburgh NY (a huge facility), and have undoubtedly taken on a mountain of debt to do so . . . can't see them selling a whole lot of choppers these days, though . . . not wishing them ill or anything, but they seem to have timed their major expansion at the worst possible time . . .

[Brother Buzz]

6. Maybe they should re-hire the son and can the father to boost the TV ratings

for that silly weekly infomercial

[jmowreader]

40. They might be doing better than you think

OCC's new world headquarters is designed to make production-line bikes. I assume you can still get their $40,000-plus customs, but now they have a line of $25,000 production bikes. But this is the thing: the people who were going to spend that much on a motorcycle can still afford one. The average Harley customer's a different story: those guys generally take out car-loan-size notes to buy those, and credit's a little hard to come by. OCC, OTOH, works with people who can afford to write them a check.

[The Wizard]

8. The era of mid-life crisis baby boomers ended

and with it the demand for expensive toys that metaphorically deny aging. I stopped riding last year after 39 years. The reflexes ain't what they used to be.

[Dappleganger]

9. HD did this to themselves.

As soon as the retail stores began selling all that crap from China with HD splattered across it, that was the sign that they had sold themselves out.

No, I don't have a HD but an old Yamaha and it takes me anywhere I want w/out spending an arm and a leg replacing random nuts and bolts spread over the interstate.

[Locrian]

10. partly true

partly true re the china crap.

Also, the article talks about heavy losses in the financing part. Another mfg company getting into finance vs actually making product.

[Alcibiades]

11. They keep sayn that HD has a market valuation higher than GM

As if that proved anything about the relative importance of GM and HD. Likely, it shows that HD is vastly overvalued compared to GM: the former is a brand that sells luxury toys to dentists, whereas the latter sells essential products to families of all sorts.

[scarface2004]

12. too many bikes...too few riders.

at least there won't be waiting lists for a long time.

[sofa king]

13. Hey Harley riders, a word with you please.

I know this is off topic, but I figure a few of them will come by here.

Would you gentlemen please stop flipping me off when I'm coming the other way down the road? I ride a 50cc scooter because I'm dirt poor, not because I'm an asshole who doesn't want to shift gears. Your Sportster, for which you are secretly embarrassed because it's the bottom of the line, costs more than I've made in the past two years. Seriously, snobbery looks downright clownish when it's clad in a Thriller jacket.

When you see me coming, you don't know what kind of ride I'd have if I could afford it. But if you keep flipping me off I might decide to get a Ford F-250 with curb feelers, barking dogs in the back, extended side-view mirrors, and the front bumper reversed. And I won't use my rear-view mirror, either.

[Amos Moses]

15. "Why would they do that"?

http://www.youtube.com/watch?v=whVXD3ex9DA

[yellowcanine]

16. I doubt the HD riders (if that is what they were) who flipped you off are here to read this.

I don't ride a HD, I ride a Honda Shadow 1100 and I have never flipped off anyone, including the car driver who passed me on a single lane entrance ramp. That said, there are jerks everywhere, riding motorcycles, driving cars, trucks, bicycles, mopeds, scooters or just plain walking. Not really useful to single out one class.

[IDemo]

21. I've ridden numerous motorcycles and bicycles over 30 years

and I have never been flipped off by another rider. The nearest thing to anything resembling disrespect I get is the occasional motorcyclist failing to return the wave.

[Dappleganger]

25. Yeah, they're known for ignoring non-HD'ers

Although most of them around here will wave, when we get out of town it's a different story. Neither of us have a HD but it doesn't bother us.
You have to toughen up a bit and wave--not a nerdy wave, I do the one finger pointed to the ground wave.

Anyone on two wheels out on the open road has my respect.

[sofa king]

31. I can't explain it, either.

But it happens, all the time. The preferred method of is to drop the left hand down to the left thigh in a fist, with only the bird sticking out. Once in a while, though, someone will pass me and hold one up after they pass. I swear I almost never leave the one-meter zone in the far right of any lane I'm riding, so I don't think it's because I've done something stupid like weave in front of them or block them. It's always Harleys. The rice rocket guys never pay me much mind at all.

My understanding of the biker greeting, the nice one, is that us lowly scooter guys are only permitted to return it, not initiate it. I always do. But I'm still quite new to all of this, so I'm probably wrong. Maybe I should start waving at them?

When my girlfriend is on the back of the scoot, though, everyone smiles and waves, and she treats her duty to wave back seriously. So I got that goin' for me. Unless they're actually beckoning her over to their much nicer rides.

[cabluedem]

33. You mean Harley-Davidson riders can acctually read? nt

[cabluedem]

32. Dont forget to us an HD placarded Ford pickup. What a joke! n/t

[Born Free]

42. Would you gentlemen please stop flipping me off when I'm coming the other way down the road?

I have never seen this happen, there are a few unusual waves, especially if it's during a shift etc. However, one time we were out behind a couple on one of those big Yamaha touring bikes and they initiated a wave to an approaching Harley and he stuck his nose it the air - I laughed at his ignorance. I return waves when I can see them, many times I don't even know the individual is waving - and some times I am looking other places or in the middle of a shift. I tend to wave more in the colder weather because there are fewer bikes and I notice them quicker...we have lowers and wind shields, so ours may look look a bit like a newer style scooter approaching from a distance.

[LeftHander]

14. too bad they don't make more affordable transportation models...

I think Harley could of made a very cool retro scooter or small one popper like they use to:



or



During the fat years of the late 90's they had a opportunity to look ahead and prepare. I thought they did with the Buell Blast...but that bike did not appeal to riders that dig retro rides...

They could of put the same level of care and culture into small funky high milage streeters...

huge market for clean 4 strokers...

[Born Free]

45. Buell Blast

"During the fat years of the late 90's they had a opportunity to look ahead and prepare. I thought they did with the Buell Blast...but that bike did not appeal to riders that dig retro rides.."

Actually, the entire Buell line is not appealing to many Harley riders, many HD dealers no longer even want to be associated with the Buell brand.

The 500cc Buell Blast ( we have one) is small, but gets about 60 mpg. It handles well, but lacks the power of other bikes in it's class. It vibrates a lot being a single cylinder, but as the engine is rubber mounted, once you get moving at cruising speed it is not bad. Most people that are interested in a "Blast " type bike will buy a metric. The interesting thing about the Blast is the seating position and tranny feel much like our old Harley, just smaller. It does have a grabby clutch, takes a little time to get the feel of it, not the easiest to use for an absolute beginner. . Unlike most sport bikes, the Blast is designed to be ridden sitting upright much like a touring bike. For me, the biggest problem is it's size, my old knees just can't take being bent up for long periods and because of it's design you really can't install forward controls to get a little more leg room.


On edit: I also agree Harley should bring back the scooter......

[Enthusiast]

18. Anyone that wants a Harley Davidson

has already bought one, for the mostpart. Nearly every motorcycle I see is a Harley Davidson. In the 1970s HD was kind of an exclusive brand, no more. And prices of used HDs are way down. Even though the prices are down they are hard to sell. It is demographics. Baby boomers are the main market for HDs. Younger riders are more interested in Asian and Italian sport bikes.

[Amos Moses]

19. They tried to attract younger riders by buying Buell.

Some pretty cool bikes, but not in the same league with a Yamaha R1 or Ducati 1098.

I remember looking around some of their palatial dealerships, just out of curiosity, in the late 1990's.

All the bikes looked the same and essentially they were. Some had saddlebags and some didn't. That was about the only difference.

No way that was going to last. No matter how many chrome trinkets they bolt on there, those bikes still aren't worth $15,000 - $20,000. Not even in the best of economic times.

[Born Free]

48. RE: Anyone that wants a Harley Davidson

"has already bought one, for the mostpart. Nearly every motorcycle I see is a Harley Davidson. In the 1970s HD was kind of an exclusive brand, no more. And prices of used HDs are way down. Even though the prices are down they are hard to sell. It is demographics. Baby boomers are the main market for HDs. Younger riders are more interested in Asian and Italian sport bikes."

More woman are buying Harleys these days than before. Yes the used bike prices have been affected recently when Harley
upgraded to the 96" engine and 6 speed transmission. The values of later model Harleys were affected some because they have
the 88" engine with the 5 speed transmission. The older evo powered bikes were not hurt as much, perhaps because there are so many
big inch "USA made evo engines" available as well as 6 speed transmissions made by smaller "American" builders..

[tularetom]

20. Wait a year - you'll be able to buy one for pennies on the dollar

A lot of boomers staring retirement in the face have now discovered that their lifestyle is unsustainable and something has to go. For many it will be (or already has been) expensive toys like Harleys, boats and RV's.

The future may not be rosy for the H-D company but a large parts and after market accessories market will continue for many years.

After the birth of my second child in 1966 I sold my '52 Indian Blackhawk Chief in a vain attempt to become an adult. Biggest mistake I ever made. It didn't work I never became an adult and my bile is worth ten times what I sold it for.

[Haole Girl]

22. I'm sorry to hear this. (nt)

[rocktivity]

23. Sad...Are Harley Davidson restaurants still around?

:headbang:
rocktivity

[Fire1]

24. I read this today in our local paper! It's strange, though b/c

I think I see more people riding motor cycles now than in the last 10-15 years. Maybe not Harley's but somebody's doing well in that market. Are Harley's more expensive than the avg. motor cycle? Maybe that's why.

[Dappleganger]

26. Not only more expensive

but parts and service are required to be paid in blood.

[JVS]

47. prices of 250cc bikes are skyrocketing

http://powersports.honda.com/2008/rebel.aspx

Click 2009 and watch the price go up $800

http://www.suzukicycles.com/Product%20Lines/Cycles/Products/GZ250/2008/GZ250.aspx

similar effect here if you click on the 2009

They've also introduced a new 250 line at the same price, and I don't know how they think this won't cannibalize sales unless they see a booming market

http://www.suzukicycles.com/Product%20Lines/Cycles/Products/TU250X/2009/TU250X.aspx

Even the cheapest scooters are up $500 from 2008 to 2009

http://powersports.honda.com/2008/metropolitan.aspx

[BadGimp]

27. I'm doin my part damit

I just dropped off my 2 Harleys today for service work and ordered a new set of exhaust for one of them.

I know how trivial my comment is but I live to ride, and I ride to live.

[DainBramaged]

35. Unlike so many rice poseurs, your comment is not trivial.

My hard core friends ride their bikes in the winter. The ricers won't even think about riding unless the bulbs have popped.

[snooper2]

44. I ride my bike year round...03' 650 VStar

As does one of my co-workers with his BMW 1200 GS...now, the guy with the HD cruiser and one skinny dude on the sportster- I only see those bikes in the designated motorcycle parking area if it's betwen 65-80 with no clouds :)

Oh, my ricer has only needed new tires and a battery in 5 years thank you very much :)

A 6th gear would be nice on it though :rofl: I'll get the new 950 Star someday soon hopefully

[IDemo]

49. I've commuted when it was 20°, also on a 650cc V-twin

Just not a Star:



The only other two-wheeler around belonged to a diehard with a reclining bike! :)
As long as there isn't any snow or ice on the road, I ride year round.

[foginthemorn]

46. Milwaukee is changing. I was back for visit recently. I

grew up in the area and Harley was King.

[smalll]

36. Not particularly broken up about this, as for a decade or two now, HDs have been the favored bike of

your average middle-aged, over-paid, overweight upper-latte-class boomer.

Sometimes, I long for the guillotine.

[DainBramaged]

37. Sometime I long for the ignore x OOPS I found it

You long for the guillotine, you really need to think about threatening people because they chose to live differently than you.

[natrat]

39. unfriendly scowls instead of waves---i hope that company goes under

[mountainvue]

38. They were supposed to be in town for some

sort of huge meeting at the hotel and convention center. They cancelled as did Mercedes.

[guitar man]

43. I hope it turns around for them

They did a fantastic job building my '99 Sportster, most reliable bike I have ever owned. :thumbsup: