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http://www.msnbc.msn.com/id/7487543/

This article explains how HD is taking down their production due to market sales being sluggish. One of the excuses used by the new CEO doesn't make sense to me.

The question for you MBA's is: with HD sales being sluggish will this translate into a 'general MC market slowdown'?
 

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It's strange, but I have heard more advertisments from our local dealer than I remember hearing in the past. They can get you on a new HD for around $6300!!!!! They have "50 in stock" right now, according to the ad.

I don't know what this means.........................................................
 
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Or is it the "Tipping Point" where customers start to buy metric bikes instead of a HD which is priced consistently higher. We will know soon when the rest of the metric manufacturers report their sales. The last release from Honda said their sales had increased again over last year.
 

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I really don't see how anybodys sales could be down. I must have seen 50 bikes this weekend with 30 day tags on them, all new or atleast looked new and they were all differant brands.
 

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I think with the rising cost of fuel you are going to see more bikes. The insurance is cheaper as are the operating costs. I don't understand why anyone would pay more for an air cooled obsolete piece of machinery. My wife has an 04 Dyna, that is totally tricked out. PCIII, Rhineharts, KN the works. I can pull away so easy it's not funny. I personally think HD is in financial trouble. Their t-shirt sales have been carrying the company for too long.
 

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Hal @ Honda Direct Line said:
Or is it the "Tipping Point" where customers start to buy metric bikes instead of a HD which is priced consistently higher. We will know soon when the rest of the metric manufacturers report their sales. The last release from Honda said their sales had increased again over last year.
Or, could it be that everyone that wants one, has one?
 

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The last riding I did before my fiftieth birthday was when I was nineteen.
For my fiftieth birthday my wife was gonna surprise me with an H-D.
At the last minute she thought that she better ask. I said no. Motorcycles are dangerous. Only fools ride motorcycles.

A year and a half went by and the idea of owning a bike again kinda worked on me and then got pushed over the top when a friend of mine threw his Shadow keys at me and said "go ahead"

So I decided to buy a bike, knowing nothing about them after 30 years and never owned a cruiser.

I did my homework and it came down to Honda vs Harley for me. Then I compared performance characterisitics, dependability ratings and found that people were standing in line to pay 20-40% more for a Harley than a Honda. I asked why. The Harley was slower, cornered worse and is generally considered less dependable.

My personal conclusion was that Harley owners pay a premium for chrome add ons and more importantly, an emotionally based romantic notion that provides them an identity, a sense of belonging, and a feeling of superiority, even though their cruisers are slower and don't corner as well as their Sushi competitors or "Hardly Davidson's" such as the VTX that I decided on.

Forget all that, "It's a Harley"

That 20-40% is a non tangible bubble that has to burst someday. Maybe now. I think that Harley has committed too much to their expansion schemes and personally don't belive that manipulating production by 2 and 1/2 to five percent will help. (If I am right about any of this.)

My opinion, It's worth what you paid for it.


Martin (VT) X
 

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Their sales are down, but thats in comparison to the last few years where they had monster sales.
The "bubble" on the mc sales will burst, but i'm thinking it still has some legs on it. All the makers will probably kick their 2006 model productions back a good amount.
 

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Discussion Starter #11
SicTexVTX said:
Their sales are down, but thats in comparison to the last few years where they had monster sales.
The "bubble" on the mc sales will burst, but i'm thinking it still has some legs on it. All the makers will probably kick their 2006 model productions back a good amount.
I'm tending to think along these lines. Primary reason is fuel prices. While some will migrate to the MC for better efficiency, most won't. MC spending is very discretionary spending and with the cost of fuel and anything related to it, like groceries, most will tighten their discretionary spending till either things get back to a more normal perspective or wages equalize the cost gains. I would guess the mopeds and scooters would see a sales gain during this era of rising fuel costs and potential contraction of the economy.
 

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Hal @ Honda Direct Line said:
Or is it the "Tipping Point" where customers start to buy metric bikes instead of a HD which is priced consistently higher. We will know soon when the rest of the metric manufacturers report their sales. The last release from Honda said their sales had increased again over last year.
A friend of mine just bought a new Road King. He paid $22k. Got Rinehart pipes, some nice bags, nice seat, and I think air adjustable rear suspension (had little plastic tubes coming out the top of the rear shocks.) I'm not sure what else. Nice black bike with whiewalls, very sharp. But for that money???? wow.
 

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We seem to forget that Honda recently overestimated sales potential as well... case in point the Honda 2003 VTX fire sale.
 

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i agree it had to peak for harley at some point and the other builders like big dog iron horse and many others are taking a big chunk from hd.alot of my freinds with hd have all switched to the other companies (not metric)hd is falling way behind on what people want even the metric companies are making nicer looking bikes than hd i am not bashing hd i love anything with 2 wheels just stateing what i see happening 68 horse power plain lines boring paint small tires etc for 16 to 35,000 no way. other companies are offering much more for the money.i hope hd can get there act together change is tuff.but people lossing there jobs because lack of sales sucks.
 

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I think a lot of this has to do with HD not wanting to have a surplus of bikes & having to discount them when they get stuck with too many!(got to keep them prices high boys!) Boy things sure have changed from 10-12 years ago when you had to put up a deposit & wait 6 months to get a stab at buying one of their OVER PRICED machines! All the local dealers are stocked & offering 0 down & dealing on new bikes. I’ve never seen that around here before. Also I have never seen so many GREAT looking, sounding, running Metric V twin bikes with a TON of bolt on goodies either.......... :D Rod
 
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Remember guys? Last year I said the H-D peak is arrived, the prices going down. After the 2003 “limited edition”, the used bike market is flooded.

The TV shows were NOT helpful at all – people get tired of this very fast. HD here HD there – even Ford can’t sell their HD truck to MSRP.

Speaking of MSRP, now you get most of the models below of MSRP.

HD took a cut in Germany of 25% in the same time Honda increased 30% of the sales. Suzuki lost In the US and in the EU.

With this management of HD, only plan for the next year – this company is in serious trouble. People (new buyers) want to see new stuff.

Over the Hill…remember my words.
 

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New something was up when I went into the highest priced Harley dealership around here to look at an Electra Glide and was immediately told by the sales staff that I could buy any bike on the floor for MSRP. This was without my even asking about price. I was still talking options.....
 
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