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Economic Pain Of The Motorcycle Industry
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lonestarrider
Posted 2009-10-16 10:19 PM (#46089)
Subject: Economic Pain Of The Motorcycle Industry


Cruiser

Posts: 104
Victory continues to feel the economic pain of the motorcycle industry, parent company Polaris reports Victory Motorcycle sales dropped over 50% compared to last year.

http://tinyurl.com/yf9szv2
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Smitty
Posted 2009-10-16 10:27 PM (#46091 - in reply to #46089)
Subject: I was at my dealer's this week and they've got several


Cruiser

Posts: 273
of the new models pre-ordered and are waiting on shipments from Victory.

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Jedi Jeff
Posted 2009-10-17 6:34 AM (#46097 - in reply to #46089)
Subject: Re: Economic Pain Of The Motorcycle Industry


Fountain Inn, SC United States
So, we can then figure the annual production of bikes from that article.
38,081 bikes = 53% (the amount of production drop)
So 53/100 = 1.886
1.886 x 38081 = 71,851 bikes/yr for 2008
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Minnow
Posted 2009-10-17 10:07 AM (#46099 - in reply to #46089)
Subject: RE: Economic Pain Of The Motorcycle Industry


Cruiser

Posts: 143
Sparta, WI
The banking industry seems to be O.K. Go figure.
Our local city government officials just got a 6% raise.
The prison industry is kicking butt.
The military is handing out sign up bonuses like few other companies can.
Real estate taxes are out of the roof here in Sparta Wi. We are being taxed to death.
Homes are selling around here, mostly short sales. The majority of the building going on is rental properties to house all of the people that cannot qualify for a loan.
Few people have any equity left in their homes to be able to get a home equity loan to buy that new motorcycle.
Times are tough.
Health insurance if you have any, is more important than a new motorcycle.
I just picked up a Garmin for my Vision. I didn't even think of buying new zumo 550, Found one on Craigs list, a 2720 for 150.00.
If I would have waited for a year I could have bought a relatively new Vision for about 10,000 less than I paid for my 08.
Polaris is feeling the pain just like the rest of us and we tax payers are not going to bail them out.
I read all these posts about how Victory is not kissing ass and the service sucks but these are signs of something bigger than simply poor mangagement.
It is impossible to keep your mistress in diamonds when your cash flow just took a dump. You will end up going back to your wife, if she will have your sorry ass.



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varyder
Posted 2009-10-17 11:04 AM (#46103 - in reply to #46099)
Subject: RE: Economic Pain Of The Motorcycle Industry


Visionary

Posts: 8144
New Bohemia, VA

I'm not sure where all your facts and figures are coming from, but the necessary evils of society are having a tough time as well. People are not paying their taxes and Virginia has opened up a GetSquare program just to get SOME of the money they are not getting. This runs government and our institutions of arrest. The prisons are getting more populated, but they are NOT kicking butt. They are short staffed because of the lower wages and LACK of skilled workers. (that's another problem of our society today). The institutions are going to a pay as you go system by the inmates, at least some to offset the cost. So while there is preceptions that these things are doing well in our government, local, state, federal, they just don't have the dollars to exist.

But that is not my point, the Motorcycle instrustry seems to be doing a dramatic change due to a demographics shift. The mighty boomers moved the pace for a lot of the "have fun" industries in the past decade, like motorcycles, but that is starting to change. I read an article not long ago where most of my peers, the tailend boomers, 50+ group is foregoing the less practical motorcycle craze and going with the camper RV's instead. That is taking away from the bigger touring bikes that seem to be the hot item for RUB's in the past decade or so. And with the "down turn" of the economy, this is also causing that problem for the motorcycle makers. My personal assessment is there has been a shift in disposal money use and it is no longer toward these items but more investment type thing, or less hard on my, more practical items, like RV's.

I still see money out there as I travel the roads and the traffic has not died down much, just more smaller, fuel effiecent cars instead of big red neck trucks. The problem with the shift in the economy is that what used to bring home the bacon is no longer the trend, and workers not skilled enough to shift over, is raising unemployment. Now a word to the skilled market; we are extermly lacking due to many factors. To speak on the jail and prison industry, there is plenty of jobs to be had, but a lack of workers. The folks that would qualify do not want the wages paid, and the folks that would find that to be a good wage cannot get the job or keep the job because of infractions that disqualify them or terminate them. This is just a single example, but it is prevalent across the board because people are not skilled or interested in the available jobs. Many may disagree with me, but we are having problems in my area in central VA directly related to those issues.

Back to the motorcycle industry, it is far from dead, maybe a reduction in the larger new production bikes, but customs still sell, the local rider bikes still sell, like crouch rockets and smaller cc's. Harley announced it no longer can support Buell and they will support but no longer make. I see a reduction in production in the more expensive bikes and refocus to a plan jane bike, leaving the accessories to those who can afford them. This will also keep the cheaper aftermarketers in business. Those who look beyond motorcycles as another toy in the garage will keep someone making bikes, and hopefully there is enough of those guys and girls to keep things going.

Our economy is in need of refocusing and government is not the answer. it is time to emphasize to our kids you have to have education and skills to make a difference. Girls are pursuing the higher education arena's and the boys are just looking for the girls who have jobs to support them. Government will not fix these problems ever, never have, never will.

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Lojak
Posted 2009-10-17 11:43 AM (#46104 - in reply to #46089)
Subject: RE: Economic Pain Of The Motorcycle Industry


Cruiser

Posts: 255
New Brunswick , Canada
lonestarrider - 2009-10-16 10:19 PM

Victory continues to feel the economic pain of the motorcycle industry, parent company Polaris reports Victory Motorcycle sales dropped over 50% compared to last year.

http://tinyurl.com/yf9szv2



Harley Davidson is not doing any better...


Harley-Davidson Inc., which yesterday reported an 84% skid in third-quarter profit, expects the economy to remain weak through the end of next year as consumers shy away from costly purchases and tight credit makes it tough for those who want to buy.

"We think we'll bump along the bottom through 2010,"
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Lojak
Posted 2009-10-17 11:46 AM (#46105 - in reply to #46089)
Subject: Re: Economic Pain Of The Motorcycle Industry


Cruiser

Posts: 255
New Brunswick , Canada
Harley-Davidson Inc., the Milwaukee company with an iconic made-in-America brand, may someday build motorcycles overseas.

By 2014, more than 40% of the company's sales will be outside the United States, Harley executives said Thursday.

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wroman
Posted 2009-10-18 4:33 AM (#46137 - in reply to #46089)
Subject: Re: Economic Pain Of The Motorcycle Industry


Tourer

Posts: 432
Gettysburg, 2008 Tour Premium
It's nice that we have a President that realizes how the world views us is important on many fronts rather than making American brands something distastfull. As the world recovers faster than us it and our dollar worth less ans less American goods are a real bargain.
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lowtone9
Posted 2009-10-18 9:14 AM (#46144 - in reply to #46137)
Subject: Re: Economic Pain Of The Motorcycle Industry


Cruiser

Posts: 140
Harley closed down Buell, a shame I think. Investors like it though.
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Mudge
Posted 2009-10-18 11:31 AM (#46151 - in reply to #46089)
Subject: Re: Economic Pain Of The Motorcycle Industry


Tourer

Posts: 354
20 miles west of Chicago.
The industries which depend on middle class working people are the ones which are hurting. The ones producing "luxury" items are the hardest hit, but certainly not the only ones. The cradle-to-grave, fifth generation chronicly poor are taken care of by the government with money forcibly (Try not paying, if you're not in congress, and see what happens...) from those same middle class working people. What do you think the misleadingly named "health care reform" crap is really all about? Working people paying for free health care for the parasites. plain and simple. The redistribution of the wealth you work for, to those who never have or will. The wealthy, amoral, unethical and corrupt "upper management" types can screw up six ways from Sunday, and get "baled out" using more money scammed from the working stiff. For what, so they can send more jobs out of the country to improve their profits and bonuses? Anybody know that the upper management of Goldman-Sachs just voted themselves a 46% raise? This is where all the management of the Federal Reserve Bank always comes from; a regular "Old Boys" thing. You'll have to go to the "London Times" to read about it, the useless American papers had nary a word about it. The stimulus package should consist of big tax refunds to middle class tax payers. If we have money to spend, eventually the rest will get straightened out, and we middle class sheep can get back to being herded and sheared as usual, but at least we'll get to keep a little of what we've earned. Sorry for the rant, but when I keep seeing stuff like motorcycle companies teetering on the brink and people being laid off, while the rich get richer and the always, never-a-job poor get ADC, public aid, free health care, food stamps, public housing, section 8 housing, WIC, free education (Upon which most place absolutly no value.) and free, government provided cell phones, for whom having more fatherless, illegitimate children means more free money, I get a little fed up.

Edited by Mudge 2009-10-18 11:35 AM
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RedRider
Posted 2009-10-18 2:59 PM (#46162 - in reply to #46089)
Subject: Re: Economic Pain Of The Motorcycle Industry


Visionary

Posts: 1350
A thread about Polaris sales are down like any other company and it turns into a political soapbox? How many of the whiners don't even vote?
I hate to see any company do poorly, it means layoffs and other bad things for all people. Most people feel good about bringing home the bacon. The economy like the weather goes up and down. Smart people use an umbrella when it rains and make sure they are not buried in debt.
I feel Polaris will weather the storm and hopefully many other companies will too.
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Mudge
Posted 2009-10-18 7:41 PM (#46175 - in reply to #46089)
Subject: Re: Economic Pain Of The Motorcycle Industry


Tourer

Posts: 354
20 miles west of Chicago.
It didn't turn political, it is political. The weather isn't controlled by human beings; the economy is. I wonder how many thousands of votes it takes to counteract one senator's or congressman's vote, or a President's veto, who has been bought and paid for by a lobby or PAC, or who counts on campaign contributions, above and under the table, by people who expect, and get, something in return. Don't whine or complain, just sit on your hands, keep your mouth shut, and open your umbrella while hoping they have your best interests at heart and they will make everything better if you just wait long enough, while they piss on your leg and tell you it's raining. But, keep one eye open at least; there are people who are trying to take your umbrella away and give it to someone who never bought an umbrella and those people will vote, in their best interest, not yours. Regarding voting, I vote in every election in which I'm legally allowed, and I cannot remember the last time I actually voted for a candidate I thought was good for the job instead of for one I thought would do the least harm of the possible choices. Try not to overestimate the value of voting though; America has the least politically informed and aware population of any industrialized nation, which makes them the most easily conned by the highly trained professionals who make a living from leading voters down the garden path. If you think Polaris' and Harley' and many other companies troubles aren't directly related to politics and to things like Goldman-Sachs' 46% executive pay raise you should do yourself a favor and start reading.
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lonestarrider
Posted 2009-10-19 2:32 AM (#46189 - in reply to #46089)
Subject: Re: Economic Pain Of The Motorcycle Industry


Cruiser

Posts: 104
Wow! When I started this post I thought I was sharing good news about Victory doing better than most of the competition out there and that they will weather this down economy. The news I posted is good news, not bad news!
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phoenix9
Posted 2009-10-21 8:42 AM (#46317 - in reply to #46097)
Subject: Re: Economic Pain Of The Motorcycle Industry


Cruiser

Posts: 152
Litchfield Park, AZ
Jeff (was JAM) - 2009-10-17 6:34 AM

So, we can then figure the annual production of bikes from that article.
38,081 bikes = 53% (the amount of production drop)
So 53/100 = 1.886
1.886 x 38081 = 71,851 bikes/yr for 2008


The numbers in that article are clearly off. Victory has talked about shipping their 50,000th motorcycle in '09, yet that article alludes to shipping over 71,000+ in '08 alone. Those numbers are a mistake. The author could have possibly added an extra digit which would be a more reasonable mistake, but the numbers posted are absolutely incorrect.
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jimtom
Posted 2009-10-21 5:14 PM (#46351 - in reply to #46151)
Subject: Re: Economic Pain Of The Motorcycle Industry


Visionary

Posts: 1308
Sand Rock, AL United States
Mudge - 2009-10-18 10:31 AM

The industries which depend on middle class working people are the ones which are hurting. The ones producing "luxury" items are the hardest hit, but certainly not the only ones. The cradle-to-grave, fifth generation chronicly poor are taken care of by the government with money forcibly (Try not paying, if you're not in congress, and see what happens...) from those same middle class working people. What do you think the misleadingly named "health care reform" crap is really all about? Working people paying for free health care for the parasites. plain and simple. The redistribution of the wealth you work for, to those who never have or will. The wealthy, amoral, unethical and corrupt "upper management" types can screw up six ways from Sunday, and get "baled out" using more money scammed from the working stiff. For what, so they can send more jobs out of the country to improve their profits and bonuses? Anybody know that the upper management of Goldman-Sachs just voted themselves a 46% raise? This is where all the management of the Federal Reserve Bank always comes from; a regular "Old Boys" thing. You'll have to go to the "London Times" to read about it, the useless American papers had nary a word about it. The stimulus package should consist of big tax refunds to middle class tax payers. If we have money to spend, eventually the rest will get straightened out, and we middle class sheep can get back to being herded and sheared as usual, but at least we'll get to keep a little of what we've earned. Sorry for the rant, but when I keep seeing stuff like motorcycle companies teetering on the brink and people being laid off, while the rich get richer and the always, never-a-job poor get ADC, public aid, free health care, food stamps, public housing, section 8 housing, WIC, free education (Upon which most place absolutly no value.) and free, government provided cell phones, for whom having more fatherless, illegitimate children means more free money, I get a little fed up.


AMEN!!!
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dsjr70
Posted 2009-10-23 11:28 AM (#46461 - in reply to #46317)
Subject: Re: Economic Pain Of The Motorcycle Industry


Puddle Jumper

Posts: 19
phoenix9 - 2009-10-21 9:42 AM

Jeff (was JAM) - 2009-10-17 6:34 AM

So, we can then figure the annual production of bikes from that article.
38,081 bikes = 53% (the amount of production drop)
So 53/100 = 1.886
1.886 x 38081 = 71,851 bikes/yr for 2008


The numbers in that article are clearly off. Victory has talked about shipping their 50,000th motorcycle in '09, yet that article alludes to shipping over 71,000+ in '08 alone. Those numbers are a mistake. The author could have possibly added an extra digit which would be a more reasonable mistake, but the numbers posted are absolutely incorrect.


Phoenix is correct, Mr. Blackwell stated that 2009 would be the year the 50,000 Victory would roll off the line. I have not heard a press release stating that they hit this number, the year was tough for all manufacturers.
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IndyVision
Posted 2009-10-23 2:26 PM (#46464 - in reply to #46089)
Subject: Re: Economic Pain Of The Motorcycle Industry


Tourer

Posts: 400
I heard the 50,000 bike was made and shipped before anyone realized it. Victory was researching to see where it went.
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