I particularly liked this comment:
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.
Harley Davidson is being accused of violating the Securities and Exchange act of 1934. It seems the management of HD, having enjoyed a 4 year run of artificially inflated motorcycle prices, resorted to inside information and sold off large portions of their stock while still telling the public that they were making money. Actually, Harley was bloated and continues to be bloated with inventory that just isn't moving.Who couldn't see this coming? If you don't want to pay the 20% markup to buy a Harley that people in the past 3 years have paid, then buy now. Or better yet, wait a little longer and the floundering HD will most likely begin slashing prices. During the second quarter, HD slashed production by a whopping 10,000 motorcycles. Dealer inventories are packed and people aren't buying.
HD continued to tell the public that their projected earnings were on the rise while HDs officers and directors sold $92 million of their own shares. The chief executive and chairman sold $50 million of their own stock during this period as well.
Basically, it is alleged that Harley knew business was on declining and yet they continued to tell shareholders that business was on the rise. HD execs sold their stock during this period because they didn't want to lose their investment. Harley Davidson screwed over their shareholders. Many of the same people who bought their beloved Harleys.
In retrospect, it was only a matter of time before the market was absolutely flooded with Harleys. People kept buying them at greatly inflated prices claiming they would hold their resale value. Harleys weren't only a fun toy, they were an investment. That's exactly how HD wanted it to play out. From a marketing standpoint, it was brilliant. Keep supply just short of demand and you can charge a premium. It creates an atmosphere of exclusivity, even when no exclusivity truly exists. People scramble to obtain the elusive and try harder and pay more because it appears to be elusive. Get it while you can, before the price goes up.
My tone may sound like I'm against Harley Davidson. In a way, I am. I hate their marketing model. Motorcycle enthusiasts should be infurated that they were being abused and raked over the coals by HD. But, people can do as they wish with their money. And if they wish to buy a Harley, pay 20% over HDs established retail prices, which are about 100% over their real market value in my opinion, then more power to them. No really. Good for you for buying what you want and having the means to do it. I buy things that don't make sense too. Take Vodka for instance. Stoli's Gold is the stuff. Are there other cheaper vodkas out there that will do the job, sure, but I want what I want. What I am mad about is HD screwing everybody over just to turn a larger profit. It's not about the motorcycle to them. It's not about the passion of riding. It's about cash. Greed makes things ugly. People that are willing to screw other people over to make that extra dollar are substandard units in my book.
I honestly hope you like your Harely, because I honestly don't think it's value is going to hold. But then, it's not about the money or the investment, it's about the ride... right?
Read about the lawsuit here. http://www.lerachlaw.com/lcsr-cgi-bin/mil?case=harleydavidson&templ=case-pr.html
“Traditionally, Harley-Davidson had a very loyal consumer,” says Anthony Gikas, senior research analyst at Piper Jaffray. “But those riders lost interest in the brand because everyone has a Harley bike. It’s not a club anymore.”
That's what I been saying for years, what's so cool about havin the same bike as every Tom, Dick and Harry on the block? Check out Cycle Trader Magazine, page after page after page of folks tryin to unload Harley's. I think the Harley epic was just a sad sideshow to the bubble era and cheap zero down financing. Those days are gone for good and so is Harley. Good riddance!
Kruz
* Last updated by: Kruz on 6/19/2009 @ 8:31 AM *