Is this good or bad for HD?

[Mark Milanowski]

http://www.jsonline.com/business/87811297.html

If HD is a victim of a leveraged buyout does it get chopped? Does a private company know how to keep the moco pure?

[Roadscum]

Perhaps it's a bit too 'PURE' for its own good. It need to wake up and shake up if it wants to survive.

[chornbe]

Yeah, 'cause AMF did such a bang-up job of running the company.

It's "purity" is an asset. It's horrible financing scheme for the last decade is a liability.

[Geoff]

This is not something that I'd think the Harley faithful would hope for.

Any outside buyer would do one thing: isolate the core brand and market the hell out of it. No new ownership group would invest in R&D, market expansion, dealer franchising, etc. They'd promote brand valuation through a simplified marketing message and sell everything around it--eg, AMF.

[chornbe]

Awesome… Harley-Davidson will now be peers with Toys R Us and Dollar General!

[Hunter]

This is not something that I'd think the Harley faithful would hope for.

Any outside buyer would do one thing: isolate the core brand and market the hell out of it. No new ownership group would invest in R&D, market expansion, dealer franchising, etc. They'd promote brand valuation through a simplified marketing message and sell everything around it--eg, AMF.

Honestly, I'm not trying to be an ass but how is this different than what H-D has been doing for decades?

[st ryder]

Honestly, I'm not trying to be an ass but how is this different than what H-D has been doing for decades?

HD has introduced several new engines, frames, and bikes in the last 10 years. There has been continual product improvement making a new HD the best ever HD, and among if not the best in its class, ie American style, narrow V-twin cruisers/tourers. Dropping all r&d will save money. I don't think HD could do any better job at marketing it's brand in its traditional markets. I think their next step lies in the emerging economies of India and China. They may decide to make bikes in China for those markets. Worked for Marlboro when US saled declined.

[chornbe]

And with American labor and the higher quality and materials, I don't see the prices of the bikes dropping any time soon. And before anyone starts ragging about the quality comment, I'm talking about things like metal headlight buckets and other places where competing products use plastic, the mile-deep paint, the mostly great chrome (some of the bolt-ons are definitely shit plating), etc.

They build a seriously good product, personal likes and dislikes aside. For the class of bike, it really is king of the hill.

[Rincewind]

The Motley Fool blog says no, it won't happen, and that it's just rumors meant to pump the stock.

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=354515&t=01000150446928997767

Meanwhile, it was just reported that Harley CEO got a $6.4 million dollar pay package for 09.  
(Maybe now he'll be able to get his first bike.   )

[st ryder]

...Meanwhile, it was just reported that Harley CEO got a $6.4 million dollar pay package for 09.  
(Maybe now he'll be able to get his first bike.   )

Wait 'til the Buell boys get a hold of that juicy tid-bit.

[bomber]

I'll not get involved in the "purity" conversation (it's driven by emotion far more than data), but I guaranty you that HDI being leveraged like that would be bad for Milwaukee . . . the Motor Company could maybe soldier on with it's products more or less in tact for a while, but more and more of it's operations would be moved elsewhere . . . .

[Zixxerpilot]

Something needs to happen at the MoCo. The current managing staff is apparently about as business-smart as an ugly $200 call girl.

The biggest problem, as someone else stated, was their loans. They would loan to anyone! A guy I worked with at Toro filed bankruptcy, and financed a brand new Harley not even a month after it was discharged! Oh, bike got repo'd less than a year later.


I mean, seriously, they might as well have been just handing keys and titles to anyone who walked through their door!

Oh, wait....

[HipGnosis]

Can't help wondering how that is related to this:
Harley says it must cut $54 million in local manufacturing costs

[greywolf]

Rumors are just that.  HD had a horrible experience with AMF , and has worked hard to restore its credibility.

While they are certainly overpriced, they have a very loyal following and they know better than to screw with it.
Having dumped Buell and MV Agusta and trimmed thier model line , I think they'll weather the storm .  They've been around 107 years , they'll survive .

[Roadscum]

Rumors are just that.  HD had a horrible experience with AMF , and has worked hard to restore its credibility.

While they are certainly overpriced, they have a very loyal following and they know better than to screw with it.
Having dumped Buell and MV Agusta and trimmed thier model line , I think they'll weather the storm .  They've been around 107 years , they'll survive .

The average age of HD riders goes up 1 every 12 months. The number of riders is going down as per the obits... sous like an out of business strategy to me. I give them 3-5 years unless they make some seriouhanges to their business model. It's a shame,,,,,

[birdrunner]

Yeah, 'cause AMF did such a bang-up job of running the company.

It's "purity" is an asset. It's horrible financing scheme for the last decade is a liability.

Most of the Post AMF improvements were a result of AMF R&D.   You don't buy a company and "Suddenly, the product works,"

[highside]

The average age of HD riders goes up 1 every 12 months. The number of riders is going down as per the obits... sous like an out of business strategy to me. I give them 3-5 years unless they make some seriouhanges to their business model. It's a shame,,,,,

Cite your source, cause I'm calling bullshit on everything you said.

[chornbe]

I actually know a lot of younger riders looking at things like Nighsters and SuperGlides as an accompanying bike to their RR/SS bikes.

Plus, a surprising number of Busa owners also have Harleys. (and yes, I'm well aware of the jokes that are about to come from that...)

[st ryder]

I actually know a lot of younger riders looking at things like Nighsters and SuperGlides as an accompanying bike to their RR/SS bikes.

Plus, a surprising number of Busa owners also have Harleys. (and yes, I'm well aware of the jokes that are about to come from that...)

When "bang for buck" bikes leave you flat, there's only so many ways you can go when you start looking for "something more", and HD's one of the best choices. They deliver on what's "missing" as good as any other brand associated with soul and character more so than lap times, and "dependability."

[Rabidsnipe]

When "bang for buck" bikes leave you flat, there's only so many ways you can go when you start looking for "something more", and HD's one of the best choices. They deliver on what's "missing" as good as any other brand associated with soul and character more so than lap times, and "dependability."

Well put.  So does that make them the polar opposite of Honda?