Harley-Davidson President resigns | Page 5 | GTAMotorcycle.com

Harley-Davidson President resigns

johnsazzr

Well-known member
Guaranteed HD will be done /history in less than 6 months. They entered this worldwide financial and medical crises with very poor sales and a sinking demographic to begin with...I predict they are toast by Sept 1....
 

oioioi

Well-known member
Site Supporter
I have not been following this turmoil at all.

However, I think they are part of the whole "Americana " culture way too much and will get financial help one way or another.
I think the Americans are too proud to let such a company go down the drain like that.

They will find a way to make the books look good.
 
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Lightcycle

Motorcycle Nomad
Site Supporter
Guaranteed HD will be done /history in less than 6 months. They entered this worldwide financial and medical crises with very poor sales and a sinking demographic to begin with...I predict they are toast by Sept 1....
I'm not a Harley fan, but as of Dec 2019, the company had close to a billion $ of cash in its reserves.

Even if it sold 0 motorcycles from now on, it will still be around 6 months from now.
 

PrivatePilot

Ironus Butticus
Site Supporter
I'm not a Harley fan, but as of Dec 2019, the company had close to a billion $ of cash in its reserves.
And 8.72B in liabilities, 5.1B of that being in long term debt.

It's not a particularly healthy company right now. And there's a very real argument to be made that with a big segment of their market being effected by things right now (job loss, clamping down on their expenses because of uncertainty, or worse yet, hospital bills) that their sales will be negatively effected for this, and perhaps years to come.

Heck, ALL toy companies are likely to suffer through this. The difference being, some will be better able to survive it than others.
 

Mad Mike

Well-known member
HOG will be fine, they have a nice cash reserve and plenty of equity. They will suffer, but they wont end up on a ventilator or dead.

Remember manufacturers can cut production like a knife switch, substantially cutting the cash drain.

Recovery will be slow but it will happen. Also remember HD has gigantic product margins -- putting HOGs on sale is something that only happens when they have no options. You wanna see the market pickup? Sportsters for $9500, Road Kings for $19995 -- that sh*+ will move like toiletpaper in a pandemic.
 

PrivatePilot

Ironus Butticus
Site Supporter
You wanna see the market pickup? Sportsters for $9500, Road Kings for $19995 -- that sh*+ will move like toiletpaper in a pandemic.
That only happens when the people actually have the money to buy them.

A massive markdown on any toy is great and all, but if a huge percentage of that toys target audience are out of work or swamped in debt as a result of all this, well...they'll just be staring through the glass at the showroom at the end of the day, not actually bringing it home no matter how great of a deal it is, or how much they want it.
 

GreyGhost

Well-known member
Site Supporter
That only happens when the people actually have the money to buy them.

A massive markdown on any toy is great and all, but if a huge percentage of that toys target audience are out of work or swamped in debt as a result of all this, well...they'll just be staring through the glass at the showroom at the end of the day, not actually bringing it home no matter how great of a deal it is, or how much they want it.
Just go for the 20 year financing. Almost anyone can come up with $100 a month for a sportster or $200 a month for a road king.
 

PrivatePilot

Ironus Butticus
Site Supporter
Just go for the 20 year financing. Almost anyone can come up with $100 a month for a sportster or $200 a month for a road king.
Sad, but true. For the next few years I'm going to guess that "blemishes" on credit histories as a result of this will be overlooked.

Somewhere, someone is still making payments on an RV that my (now deceased) FIL bought 10 years ago...because he bought it brand new, got upside down on it by about 40% immediately, and then couldn't sell it in the aftermath of the 2008 crash. He sold it to my FIL and still owed something like $18K on a personal loan that was necessary to clear the lien after it was all said and done.

Bad financial decisions know no bounds.
 

Mad Mike

Well-known member
Sad, but true. For the next few years I'm going to guess that "blemishes" on credit histories as a result of this will be overlooked.

Somewhere, someone is still making payments on an RV that my (now deceased) FIL bought 10 years ago...because he bought it brand new, got upside down on it by about 40% immediately, and then couldn't sell it in the aftermath of the 2008 crash. He sold it to my FIL and still owed something like $18K on a personal loan that was necessary to clear the lien after it was all said and done.

Bad financial decisions know no bounds.
Your just grumpy because you bought your new cruiser right before the Big Harley Sale!

If HOG plays their cards right they'll stock showrooms now and set the sale date for Easter Sunday when the world is back to normal.
 

GreyGhost

Well-known member
Site Supporter
There will be some great estate sale deals on low (or no) mileage Harleys in about 6 months. ;)
True that, especially if the new ones are available with a big price cut. The people that see the bottom falling out of the used market will price accordingly to get money for their mortgage before it drops any further.
 

PrivatePilot

Ironus Butticus
Site Supporter

MacDoc

Well-known member
Site Supporter
And 2.5B in accounts receivables, if we're going to delve into it.
I think that's called stuffing the channel. Unsold machines sitting in dealer showrooms instead of corporate storage.....it's magnified by the extra margin added. Could also be forever financing to owners that could easily turn toxic.
Let's see...US hog owners...pay the Harley finance or the healthcare? :unsure: :rolleyes:

That said I think they'll be around in Sept....their brand recognition for clothing etc is worth a lot. It still ranks in the top one hundred for brands.

Bit optimistic but goes to the heart of the brand value....

 
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crankcall

Well-known member
Site Supporter
if they didnt disappear in 2008 when everything went upside down, then this to they shall survive.
It may be a very different company, but 1929 didnt kill them, 1970's , 2008, and now this.... it to shall pass.
 

blackcamaro

Well-known member
Although I think it's probably unlikely, the mighty have fallen before. Look only at all the billion dollar corporations already putting their hands out asking the US government for money screaming that they'll be bankrupt inside months if they don't get their cut of the pie.

I’m not sure what that article really has to do with Harley. Of course any business can fail. Let’s see the article that shows Harley is on the edge of failure or even one that shows them doing significantly worse then the entire motorcycle industry. I don’t think your going to find one though.
 

sburns

Well-known member
Do we really want them to fail, yeah some of you do. But if they did, wouldn't that impact the motorcycle industry as a whole in a negative way?
 

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