Harley-Davidson plunges on U.S. bike slump; job cuts planned

[workinclasszero]

Harley-Davidson plunges on U.S. bike slump; job cuts planned
by Jamie Butters Bloomberg 7-18-17

Harley-Davidson Inc., the motorcycle maker President Donald Trump has praised for its U.S. manufacturing presence, is cutting workers as younger American consumers buy fewer bikes than baby boomers.

Chief Executive Officer Matt Levatich told analysts Tuesday the company planned to make hourly employment reductions and would share details with workers later. Harley's shares plunged the most in more than a year after the company forecast annual motorcycle shipments may decline as much as 8 percent.

The moves run counter to Trump's claims he would drive U.S. economic growth by spurring more factories and hiring.

http://www.chicagotribune.com/business/ct-harley-davidson-layoffs-20170718-story.html

[TheBlackAdder]

1. The effects of Amazon and Wal*Mart are slowly and visibly reeking havoc on the economy.

[workinclasszero]

2. And republicanism

Lets see...buy a Harley for 25 or 30 grand or so or...

Pay the rent/house payment...buy food...have medical insurance...

Sorry HD

[TheBlackAdder]

13. Yep. As more money is pulled from the middle class, priorities must be met first.

[tonyt53]

3. People tend to forget, or too young to remember, but Harley-Davidson was "bailed out" by Reagan.

Reagan imposed huge tariffs on Japanese-built motorcycles to slow their import, which in essence, bailed out Harley-Davidson.

In 2008 Harley-Davidson, as well as many other US companies, was given a loan of over $2 billion dollars as part of the Wall Street bailout. It wasn't only the banks getting money by any means.

An article I read about ten years ago, was actually spot on about Harley-Davidson. The article stated that the owners of Harley-Davidson motorcycles were generally older. Many were to the point in their lives that they could no longer handle such a heavy motorcycle, much less buy a new one or buy the very high priced Harley-Davidson accessories that they sold. Younger people did not want something as heavy as a Harley. That was his reasoning for thinking that Harley-Davidson would begin a decline in sales before long.

[taught_me_patience]

4. Younger people are not riding motorcycles

because we understand the death traps that they are.

[snooper2]

5. I thought it was because millennials haven't figured out a way to text and ride yet

80% of the time somebody is staring at their fucking phone while driving and I get beside them, yep...fits the profile again.

[smirkymonkey]

12. A doctor once told me that the ER staff calls them "Donor Cycles", because they

get so many organ donations from motorcycle accident victims.

[WinkyDink]

6. I don't care; you know why? Because H-D got favored treatment by Reagan over Kawasaki, etc.:

http://www.nytimes.com/1983/04/02/business/us-raises-tariff-for-motorcycles.html

"In an unusually strong protectionist action, President Reagan today ordered a tenfold increase in tariffs for imported heavyweight motorcycles.

The impact of Mr. Reagan's action, which followed the unanimous recommendation of his trade advisers, is effectively limited to Japanese manufacturers, which dominate every sector of the American motorcycle market.

The action was exceptional for protecting a single American company, the Harley-Davidson Motor Company of Milwaukee, the sole surviving American maker of motorcycles.

The only comparable trade action by this Administration, the President's decision last May to impose quotas on sugar imports for the first time since 1974, was aimed at an entire industry."

[MineralMan]

7. One of the reasons that Harley Davidson is having trouble is

that there are thousands and thousands of low-mileage used HD bikes for sale. A large portion of HD sales are made to Baby Boomers looking for some way to regain their lost youth. Very often, after riding for a year or two, they decide that their Harley is not really doing the job of being a fountain of youth and they discover that riding isn't all that enjoyable. So on the market the nice, almost-new Harley goes. A look at Craigslist in any major market area will turn up really nice, clean Harleys in the hundreds at least.

So, a guy wanting a motorcycle-driven testosterone boost doesn't have to buy a brand new one.

Anyhow, that's one of the main reason Harley sales are down.

[EX500rider]

8. Maybe because they are heavy, slow and too expensive?

Would you buy a car that was overpriced, overweight, under powered and tried to look like a model-T and was designed so it shook and vibrated excessively and had tons of chrome?

My 2014 Honda was $6,500 new and weights around 400lbs and does high 12 second Qtr miles and gets around 60mpg....and is smooth as silk, doesn't shake at a light.

(bikes wars, Jap Vs Harley are a lot like PC vs Mac wars...lol)

[hatrack]

9. Well, it doesn't get much more "discretionary" than a motorcycle . . ..

In much of the country, you can't use it (realistically) for 1/3 to 1/2 of the year, and it'll hold (at most) two people.

Low-end HDs start new at, what, $7,000? $7,500? Of course if you want to spend $30,000 or more, that's certainly an option.

[Codeine]

10. Big, loud, slow, clumsy, unreliable old-people bikes

don't have that much cache for younger buyers. Harleys are the Facebook of bikes.

[JCMach1]

14. Don't forget bad roads

And infrastructure

[Achilleaze]

11. Trump Slump

Thanks republicans