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Visionary
Posts: 1484
LaPorte,Tx. | From HD more job loss! I remember back in the '80s when Eric Buell started out making bikes and selling accesories. Buell bikes are really nice sport bikes, this is really too bad.
MILWAUKEE, WI - October 15, 2009 - (Motor Sports Newswire) - The Company will discontinue production of Buell motorcycles. Remaining inventories of Buell motorcycles, accessories and apparel, while they last, will continue to be sold through authorized dealerships. Warranty coverage will continue as normal for Buell motorcycles and the Company will provide replacement parts and service through dealerships.
The decision will result in a reduction over time of about 80 hourly production positions and about 100 salaried positions at Buell. Employment will end for a majority of Buell employees Dec. 18, 2009.
Harley-Davidson, Inc. expects to incur approximately $125 million in one-time costs related to the discontinuation of the Buell product line. The Company expects to incur approximately $115 million of that amount this year.
Relative to MV Agusta, the Company will immediately commence efforts to sell the business, which is based in Varese, Italy.
In the third quarter, Harley-Davidson, Inc. recorded a one-time fixed-asset impairment charge of $14.2 million related to Buell and a goodwill impairment charge of $18.9 million related to MV Agusta.
"Buell and MV Agusta are great companies, with proud brands, high-quality exciting products and passionate enthusiasm for the motorcycle business. Buell has introduced many innovative advancements in motorcycle design and technology over the years and MV Agusta is known in Europe for its premium, high-performance sport motorcycles. However, our strategy to focus on the Harley-Davidson brand reflects the fact that we believe our investments in that brand are a better utilization of overall company resources," said Wandell.
SOURCE: Harley-Davidson
From Victory, ruff going, 56% drop, I sure hope they keep making their bikes.
Sales of the On-road division, which today primarily consists of Victory motorcycles, decreased 56 percent during the third quarter of 2009 when compared to the same period in 2008. The decrease reflects the continuing planned reduction in shipments of Victory motorcycles to dealers in North America and increased promotional activities during the third quarter to assist dealers' efforts in further reducing their inventory levels. The overall motorcycle industry retail sales environment continued to be weak during the third quarter 2009, with industry wide North American retail sales of heavyweight cruiser and touring motorcycles over 1400cc decreasing in the high twenty percent range compared to the same period last year. Victory retail sales to consumers declined more than the industry wide sales during the 2009 third quarter. Although dealer inventory levels of Victory motorcycles are 22 percent lower at the end of the 2009 third quarter compared to the third quarter last year, further reductions are needed. The Company has taken a number of proactive measures to reinvigorate retail sales including, adding personnel and resources, streamlining the product line-up, increasing promotions and expanding its international market presence. To remain competitive in the market and further expand its product offerings, the Company introduced two new touring motorcycles for model year 2010, the Cross Country and Cross Roads models, both targeted at the large touring motorcycle market segment. Additionally, several value oriented models were added to the Victory line for model year 2010.
It is my hope these two companies can get through this period with no more job loss and keep building these American made motorcycles so I can enjoy my passion for riding them!
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Tourer
Posts: 363
Goldsboro, NC | Hey, it's all change we can believe in.. right? | |
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Tourer
Posts: 562
SC, Bluffton | trailbarge - 2009-10-16 10:58 AM
Hey, it's all change we can believe in.. right?
Really? That is why? Can't say I believe that, but if you have the faith that is what caused the lay offs at Buell, go for it.
Herb | |
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Iron Butt
Posts: 742
North Orange County CA | Another not so good day for the guys who sell "EASY CREDIT" .
Harley-Davidson Financial Services -
Harley-Davidson Financial Services recorded an operating loss of $31.5 million
for the third quarter of 2009 compared to an operating profit of $35.6 million
in the third quarter of 2008. This decrease of $67.2 million was due to a
higher provision for credit losses in both the retail and wholesale portfolios
as well as increased interest expense. Year to date through the third
quarter, HDFS reported an operating loss of $110.8 million, compared to
operating income of $107.7 million for the prior year period. The nine-month
operating loss includes two non-cash charges recorded in the second quarter of
2009: a $72.7 million credit loss provision for a one-time reclassification of
motorcycle loan receivables; and a one-time $28.4 million charge to write off
goodwill associated with HDFS.
excepted from the following link - http://www.reuters.com/article/pressRelease/idUS110897+15-Oct-2...
This reflects an overall reduction in YTD profit from "financial services" of $218.5 million when compared to 2008. Including a single quarter $72.7M write-off of bad loans.
I want to know where all those repo-ed motorcycles are being sent, because if they were being sold in this country used bike prices would have crashed as badly as housing prices.
I was at Glendale Harley with my buddy two weeks ago, he bought a used 2009 SE Ultra (with 250 miles on the ODO) that was getting ready to be put in a container with about 50 other machines and sent to Hong Kong.
BTW : A Harley spokesman on NPR this morning stated that HD's target demographic (boomers) were now more likely to buy a motor-home than a motorcycle; and that they (HD) would have to look to emerging markets in China and India to replace lost American sales. | |
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It is a tough business these days