HD cancels orders, lays off workers...shutdowns coming
Extreme HDF Member
Joined: Sep 2005
Posts: 11,615
Likes: 50
From: Baton Rouge, LA
RE: HD cancels orders, lays off workers...shutdowns coming
ORIGINAL: Shoe
I would think the opposite. Less supply+same demand = higher prices, not lower
Worst case scenario is that demand goes down and supply matches it. That equates to no change at all in price.
ORIGINAL: JonnyD
HOORAY! Let the price slashing begin!
HOORAY! Let the price slashing begin!
Worst case scenario is that demand goes down and supply matches it. That equates to no change at all in price.
If sales are down 13%, demand is down accordingly. If they cut supply by laying off 8% of the workforce it may balance out, theoretically anyway. I wouldn't expect much in the way of price slashing, and if my dealer is typical it is going the other way. Since I bought mine in Nov. '06 they started adding crap to the bikes before the sale and charging exorbitant labor fees to install them. For example, chrome lower legs for $750. I see SG's and RK's on the showroom that've been there for weeks or even months, so I'm not sure how long that will last.
Tourer
Joined: Jun 2007
Posts: 367
Likes: 0
From:
RE: HD cancels orders, lays off workers...shutdowns coming
ORIGINAL: JonnyD
HOORAY! Let the price slashing begin!
HOORAY! Let the price slashing begin!
However, in the long run HD is cutting production in order to maintain the current price structure. Reduce the supply, hopefully increase the demand. Pricing 101, High Demand = Higher Prices.
Road Master
Joined: Mar 2006
Posts: 1,143
Likes: 0
From: Snowflake, Arizona
RE: HD cancels orders, lays off workers...shutdowns coming
In a post I ran in January, 87 of you said your first reason forHDills was due to a fact that a Harley was a low priority in the current economy. 64 of you said the ills are due to a saturated market. Close behind 62 of you said it was due to Harleys being overpriced. 45 of you said those who wanted a
Harley already have one....27 others had various other reasons.
Withthe dollar week, I am somewhat suprised that the overseas market is not hot for HD, as if they wanted a Harley now would be the time.... So if the market is flat overseas, it may not be all US economy woes...it may be more towards the "overpriced" products and "already have one" opinions.... Interesting...thanks for the post and for the rest of your thoughts also...
Later
Hogback
Harley already have one....27 others had various other reasons.
Withthe dollar week, I am somewhat suprised that the overseas market is not hot for HD, as if they wanted a Harley now would be the time.... So if the market is flat overseas, it may not be all US economy woes...it may be more towards the "overpriced" products and "already have one" opinions.... Interesting...thanks for the post and for the rest of your thoughts also...
Later
Hogback
Outstanding HDF Member
Joined: Jul 2006
Posts: 2,876
Likes: 3
From: Washington State
RE: HD cancels orders, lays off workers...shutdowns coming
It's all wishful thinking..... Harley is not stupid and knows we are willing to part with every stray Washington we can find! Funny thing is, we do [&:]They've finally flooded the market and now they'll pull in the reigns and watch the sideliners scramble. It's like watching an ebay auction in the last few minutes. People bid on **** and pay more than they can buy it for at a retailer, just for the sake of winning and owning something. Now everyone will scramble to purchase bikes because harley announces they will cut production. Smart business practice. Bet they also start having more and more accessories made in taiwan, and call their stores Har-Mart.......
Cruiser
Joined: Jan 2008
Posts: 237
Likes: 0
From: Newport Beach, CA
RE: HD cancels orders, lays off workers...shutdowns coming
I do not believe the HD sales slow down has much to do with theeconomy or gas prices. Employment numbers are good and I would think higher gas prices would promote HD sales, not hurt. I have seen the slow down of the Biking industry coming for the last two years. Just look at the drop in Bike TV shows. Whatever happen to Two wheel Tuesday? I personally feel there was a "Fad" thing going on in the motorcycle industry the past few years and lots of people were getting into it because it was "cool". After they brought their bikes and only rode them a few hundred miles they decided to sell (after putting in new batteries). Factory sales rose exponentially during this time and now that the "fad" is slowing so too must the factories output. Supply must equal demand.
Ultimate HDF Member
Joined: Aug 2007
Posts: 9,486
Likes: 4
From: Hico, TX (once home to Billy the Kid)
RE: HD cancels orders, lays off workers...shutdowns coming
ORIGINAL: StrongIslander
...Gas costs us $3.50 a gal., It's closer to $6 in Europe. ...
...Gas costs us $3.50 a gal., It's closer to $6 in Europe. ...
ALOT of taxes here.
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Road Master
Joined: Sep 2007
Posts: 1,049
Likes: 1
From: Brookfield,Il.
RE: HD cancels orders, lays off workers...shutdowns coming
How about it AZ.....lines for gas going around the block.You hit the nail on the head. Were not even close to the tip of this iceberg.
ORIGINAL: AZ Rider
Serious recession? LOL. Unemployment is 5.1% InAZ it is 4%. Gas is high but adjusted for inflation it is about 1981 when gas spiked.
Back in 1979-81 we were in a serious recession. 10-15% mortgages, 18% car loans, gas limited to 8 gallons and pumps closed by noon. Unemployment was twice as high, factory layoffs by the tens of thousands.
This isn't even close to a SERIOUS recession.
I too have stated here that we are in a serious recession and many here responded that all was cool andI was full of crap.
Back in 1979-81 we were in a serious recession. 10-15% mortgages, 18% car loans, gas limited to 8 gallons and pumps closed by noon. Unemployment was twice as high, factory layoffs by the tens of thousands.
This isn't even close to a SERIOUS recession.
Cruiser
Joined: Feb 2008
Posts: 166
Likes: 0
From: California Desert
RE: HD cancels orders, lays off workers...shutdowns coming
I heard that the MOCO is going to shutdown for six months while contemplating a move to China while we in the USA work through the pending depression. The MOCO will also add many smaller motorcycles to fit people of smaller stature increasing their product line to 48 different models. [sm=icon_stickpoke.gif]
Seriously, though, the economy is not that bad. The mortagage situation and oil prices aren't helping but I haven't passed any soup lines on my way to work lately. When inflation and unemployment double from current levels I will show some concern.I do feel bad for anyone that is out of a job when they are trying to work. For now, though, everyone should quit listening to the naysayers (democrats running for president) and look at the facts. Has the Fed evensaid we are in a recession?
Everyone should take a basic economics class in high school to keep some of these politicians from blowing smoke up our azz. Look at the facts and not the emotion.
Seriously, though, the economy is not that bad. The mortagage situation and oil prices aren't helping but I haven't passed any soup lines on my way to work lately. When inflation and unemployment double from current levels I will show some concern.I do feel bad for anyone that is out of a job when they are trying to work. For now, though, everyone should quit listening to the naysayers (democrats running for president) and look at the facts. Has the Fed evensaid we are in a recession?
Everyone should take a basic economics class in high school to keep some of these politicians from blowing smoke up our azz. Look at the facts and not the emotion.