The HOG is slipping, Polaris gaining

Found this in todays business briefs:

Harley Davidson (HOG): Peter Fonda's favorite motorcycle maker experiencing some not-so Easy Riding today as the shares drop 5%. The Wisconsin motorcycle concern beat earnings but slashed guidance saying it's now expecting its shipments to grow between 3.5% and 5.5% this year, down from an earlier forecast of 7% to 9%. Harley blamed 'startup issues' in production but it's worth noting that rival Polaris (PII) reported a 107% increase in sales in its motorcycle division. Polaris shares are up 10%.

Harley realizes the American market is drying up for them. The pool of typical Harley riders (white middle aged men) is shrinking and getting older. HD is now expanding into the global market in India and China. They now have a full manufacturing plant in India making the new 500 and 750 Street models. The American icon that Harley use to be will be no more.

Here's a recent quote from the President of Harley Davidson showing the direction they are heading.

Quote:

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“We need to change people’s perception of what Harley-Davidson is all about. We used to make motorcycles for Americans, which we happened to sell all over the world. Now we make global motorcycles for everyone.”

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The world is constantly changing,,, Ya can't ride an old horse forever,,,

I believe HD figured that out a long time ago, but Willy G was still 'living in his own world',,,

Granted, Project Rushmore was started under Willy's reign, but HD, with it's worldwide presence, is in a great position to 'diversify', now that the next generation is at the wheel,,,

(JMHO. I'd still probably buy an HD before I bought a Vindian! :shock: :crackup: )

Re: “We need to change people’s perception of what Harley-Davidson is all about. We used to make motorcycles for Americans, which we happened to sell all over the world. Now we make global motorcycles for everyone.”

Yeah, OK, but, tell me what the difference is between a "motorcycle" and a "global motorcycle."
Then what kind of quality control can be maintained offshore? Is the move to India for labor costs or to appear "Global"?
You gotta wonder where BMW would be today if they stuck ONLY with their air-cooled twin? And at the same where Harley would be today if they had introduced a 21st century power plant when they should have?

Quote:

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Originally Posted by Scotrod

I'd still probably buy an HD before I bought a Vindian! :shock: :crackup:

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:nono: That's not nice :spank: Hardley DavidSingh owners have feelings too :icon_mrgreen:

Quote:

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Originally Posted by Phantom

:nono: That's not nice :spank: Hardley DavidSingh owners have feelings too :icon_mrgreen:

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LOL!

I thought owning a HD automagically made you rough and tough!!! :shrug: I musta missed the "Kumbaya memo!!!" :crackup:

Ok,,, Ok,,

How about this,,,,,

I'd still probably buy a HD before I bought an Ick-tory,,, :shock:

(Well, probably not, but,,, you know,,, :icon_mrgreen:)

Quote:

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Originally Posted by F6B1911

Re: “We need to change people’s perception of what Harley-Davidson is all about. We used to make motorcycles for Americans, which we happened to sell all over the world. Now we make global motorcycles for everyone.”

Yeah, OK, but, tell me what the difference is between a "motorcycle" and a "global motorcycle."
Then what kind of quality control can be maintained offshore? Is the move to India for labor costs or to appear "Global"?
You gotta wonder where BMW would be today if they stuck ONLY with their air-cooled twin? And at the same where Harley would be today if they had introduced a 21st century power plant when they should have?

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In Harley Davidsons case a global motorcycle means a smaller displacement bike (500 and 750 Street model) that's liquid cooled and made in India. I imagine quality control will go down the tubes and more and more Harley parts will be made in India and China even for the American market. Cheap parts and cheap labor save money and increase profits. This is about expanding market share overseas and not about maintaining quality or heritage.

Quote:

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Originally Posted by Scotrod

LOL!

I thought owning a HD automagically made you rough and tough!!! :shrug: I musta missed the "Kumbaya memo!!!" :crackup:

Ok,,, Ok,,

How about this,,,,,

I'd still probably buy a HD before I bought an Ick-tory,,, :shock:

(Well, probably not, but,,, you know,,, :icon_mrgreen:)

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HAHAHAH, thats some good stuff scotrod- we can look forward to a kinder, gentler bunch of pirates perhaps