‘H-D Forums’ Asks: Is it Time for Another Bailout?
No doom and gloom here — just ideas from our members on how to move forward.
Back in the early 1980s, Harley-Davidson freed itself from the corporate shackles of AMF and found itself severely outclassed by Japanese imports.
A federal tariff on large-displacement import bikes gave Harley-Davidson some much-needed breathing room while the brand got back on its feet. It was a controversial move, but it ultimately saved the company.
With the current economic uncertainty facing Harley-Davidson, our members weighed in to discuss possible solutions. In a thread titled “Worst Case Scenario for Harley,” Brudford wondered if Harley-Davidson would ship production offshore to cut costs.
As he pointed out, this may have the effect of raising demand for the original, American-made bikes in the used market. Others soon responded. Everyone had a different idea, and each one made sense in its own way.
Norty Flatz thinks that ending bike production for a few years would help to stabilize the market. It might save the brand in the long run, but he doubts that stockholders would go for it.
Member Rothmans had a solution somewhere in the middle. “In the end HD probably becomes a MUCH smaller boutique company pushing out 50K bikes a year. If that.”
Cobra1 had a controversial thought that started to make a bit of sense as we thought about it. “Polaris could buy the company and then sell Harleys and Indians in the same store. This has been rumored for years……I don’t really know if that would be bad or good….”
We don’t love the idea, but we can’t dismiss it as a completely bad one, either. Maybe it could work under the right circumstances, but hopefully, it won’t get to that. We don’t think it will.
A few members pointed out that the federal government has bailed out several big American industries before. Car companies, airlines, banks — all have had help from Uncle Sam. Could Harley be next?
We like Grouser62‘s outlook best of all. “I don’t think this is likely, but what about a scenario where a supply of new Harleys is down because production is curtailed due to corona…and post-corona demand is up because more than ever people realize life is precious and decide to get out and enjoy it?”
Let’s hope that happens instead. One thing is for sure — we don’t plan on wasting any more sunny days here at H-D Forums. If it seems like we aren’t posting as often, it’s because we’re out riding!
Photos: Harley-Davidson
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