motorcyclebloggers.com

Yeah, its from last week but…

Harley-Davidson Stock Takes Another Hit

“They may be macho but they’re not immune,” reports Forbes in an AP-sourced story. “Harley-Davidson riders, like other consumers, are curbing their spending amid the credit crisis and economic uncertainty.”

The Financial Times and Dow Jones are also reporting a chink in Harley-Davidson’s armor, as HOG stocks dipped 9.2% today on the heels of an announcement that less motorcycles than expected will be shipped during the third quarter of this year. Third quarter production numbers– between 86,000 to 88,000 bikes– are below an earlier estimate of 91,000 to 95,000, which will put this year’s estimated total production at 5.5% lower than 2006’s numbers.

Financial analysts can toss around as many numbers as they like, but I’m curious to hear the thoughts of Harley enthusiasts (and likewise, Harley skeptics) about plans for future bike purchases. Do you think Harley sales will continue to dip in the face of the current economic climate, or will the all-American manufacturer bounce back faster than you can say potato-potato-potato?

I wonder how long an old dinosaur pricing strategy can survive.  I don’t really know if this is the beginning of hard times for HS, but it could be.  Aside from the RUB’s (Rich Urban Bikers) that buy the HD because of some midlife crisis, a lot of the bikers that HD relies on are the largest wage earners.  Couple that with a hit to the sub-prime mortgages, especially those who overextended themselves with ARM’s, etc.  And lets not forget the housing market dip.  This kind of stuff usually leads to people wisening up (a little) with regard to discretionary spending…especially a $20,000 motorcycle and $40 t-shirts.

I like the looks of HD’s, I really do.  But that’s it.  I’ve got a family to feed and my priorities do not include  motorcycle payment no matter how much chrome.  In a time where people may be forced to look for value, HD is not at the top of the list.