Harley-Davidson to cut 1,100 jobs
Harley-Davidson is a company that has seen plenty of ups and downs over its 106-year history, having survived the Great Depression after being the largest motorcycle manufacturer in the world through the 1920s. We may not quite be in another depression, but our current recession has caused sales, profits and share prices to fall fast and Harley is digging in for the long haul, announcing a plan to cut 1,100 jobs over the next two years. That figure that represents 10% of the company's entire workforce. More than half of those losses will be seen in the company's home state of Wisconsin, with the remainder coming from facilities in York, Pennsylvania, and Kansas City, Missouri. During the course of this restructuring, the Motor Company will also be replacing Jim Ziemer, the company's current chief executive. Sounds like a tough road ahead.[Source: AP via Google]
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Reader Comments (Page 1 of 2)
jimmy glick 6:07PM (1/25/2009)
I wonder if HD's cutbacks are linked directly to the current recession or the fact that the motorcycle cruiser and chopper craze from a few years back has faded away.
True, people are buying less motorcycles due to economic woes but it was a declining trend even before the downturn.
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firstplace 6:39PM (1/25/2009)
I think you hit the nail on the head. Not everyone wants 800lbs of bloated underpowered poor handling retro cruisers.
Joel 7:13PM (1/25/2009)
Harley makes almost half of its money from merchandise sales ( I learned this in business school from business case study). They sell an entire lifestyle experience. I am betting bike sales being down are only part of the equation. When gasoline prices rise, bike sales go up, so sales from last year cannot be that bad.
suicycle.com 7:35PM (1/26/2009)
Either way, it's tough to see a biker brand take a hit. Any Suicyclist would have sympathy on that.
TyWright 6:19PM (1/25/2009)
It's actually cuz all the H.A. are migrating over to electric scooters
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Driver X 6:31PM (1/25/2009)
The combination of the economy and the arrogance of their dealers is enough to kill any business.
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Hugh G 7:21PM (1/25/2009)
How do you know their dealers are arrogant oh wise one?
firstplace 7:27PM (1/25/2009)
presumably he talked to a few. that would be my guess.
MajorGeek 7:01PM (1/25/2009)
Thanks Jimmyglick and DriverX, a few well informed comments mixed in among the other silly, uniformed comments that a Harley thread will bring out. I prefer the styling and history of the Harley personally and just sold my Deuce for a V-Rod Muscle last summer. If your going to knock Harley for making a heavy V-Twin cruiser, you need to remember that every other brand of motorcycles is also trying to capture that SAME look and feel to make sales themselves including Yamaha, Suzuki, Honda and Polaris, to name a few. That said, there ARE some very valid reasons why the sales have dropped, which again, a couple of you deserve credit for accurately pointing out.
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swimstarguy 7:05PM (1/25/2009)
Baby boomers, the bread and butter of HD sales, are being whammed by this economy. Also, most new bike buyers are already owners of other bikes, they're just trading up. Putting off the third bike purchase is an easy way to save money.
I'm surprised they didn't make these cuts earlier.
Oh well, they were still profitable this last quarter anyway.
~Zar4
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Hugh G 7:20PM (1/25/2009)
You guys are all clueless morons.
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David 7:44PM (1/25/2009)
It's not a Solara, it's a Chrysler Sebring Convertible! Someone had recycled the Chrysler design from the Daimler archives to save money!
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EU_reader 1:30PM (9/18/2009)
Actually, there are a few things i'd like to point out from a European (mainland) perspective.
First of all, i've always been totally crazy about HD. I grew up with the brilliant books and pictures, the history of old HD's at rally's, etc... Even though i'm pretty young (25) i've always wanted a HD. And you all know what the average European biker likes to ride. ;) (hint: it's not a HD)
I know the V-Twin cruiser market pretty well (hey, it's a way of life), and 5 years ago, there wouldn't have been a single doubt in my mind: HD was miles above all the rest in my opinion. Even victory made ugly-ass bikes back then, not to mention the copy-cat Asians...
But, the last few years I've seen some good looking bikes rolling out of the victory/Japanese factories. They shook off that 'wannabee' image, and created a (visual) style of their own, with good engines, great perfomance, modern design cues, great durability at a price 2/3rd of what a HD costs!
In that respect, HD bikes in contrast begin to look really old and outdated!! There's too much going on, visually, and they just don't look that refined and 'clean' in their appearance. And that's really sad, considering the longtime HD enthousiast i've been! :'( Now, i know that the old looks are part of the reason people buy them, and that's what HD is all about. That's the reason i liked them in the first place, but like stated above, the baby-boomer age is starting to thin out a bit, and young potential byers like myself have to start looking elsewhere for a decent cruiser with a good reputation.
It is possible to combine a classic V-twin cruiser look with a sleek and modern profile, and that's exactly what for example Victory is doing.
In short: 5 years ago: HD without a doubt. Now? Not so sure. The only HD i would consider is a modern, stylisch looking V-Rod.
Furthermore, as a kid i've always been impressed with the 100+ year heritage and pedigree. But the older i get, the less that means anything to me. Why would that be important? Why do you need 100 years of existance to build a great motorcycle? You don't! It's all about emotion and brand identity, but i've become too 'rational' to take that into consideration. These days, I'm all about good engineering, durability and (modern) contemporary style, true identity if you will.
Besides, HD dealers where i live are arrogant, and it's putting me of! They're almost like porsche dealers, it's really annoying. There's no love, there's just a 'superior feeling'. HD riders share the same attitude. That alone is enough for me not to buy one.
The main reason though would be the price, check this!!
Rocker C: .......US: 19499 dollar, EU: 21295 euro = 27616 dollar
Fat Boy............US: 15999 dollar, EU: 20195 euro = 26190 dollar
X-Bones..........US: 16995 dollar, EU: 19195 euro = 24893 dollar
V-Rod..............US: 14999 dollar, EU: 18295 euro = 23726 dollar
V-Rod Muscle..US: 17199 dollar, EU: 18695 euro = 24245 dollar
Fat Bob............US: 14999 dollar, EU: 15495 euro = 20095 dollar
No matter how much i like HD, there's no way i'm going to pay that amount of money !! And you guys (USA) even have cheap labour!!
HD, MAKE YOUR BIKES CHEAPER IN DE EU, maybe you wouldn't have to fire 1000 employees. You could have had a nice piece of the pie and a thriving HD ownership over here, with a bit of management and marketing!
For all the above reasons, i'm going to import a victory vegas from the UK later this year. It's a fresh company, with fresh and good ideas, reliable engines and bikes, great design, superior ride, superior power, and lots of character. I know victory gets a lot of flack in the US, for not having the heritage that HD has, but that's not the hillbilly-way we reason in this part of the world. Here you have to prove yourself not only by how long your company has been making bikes, but by the product you deliver....
PS: apologies for mistakes i made, englisch is not my native language!
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JROBINS 9:56PM (1/25/2009)
You won't be disappointed with the Vegas. Victory bikes are bullet proof. I have a Hammer and wouldn't trade it for anything else, except another Victory.
HD obviously has a great heritage but they really need to produce better engineered products. I doesn't seem like HD is appealing to the younger generation with the outdated styling and technology. I am 28 and there is not a single HD that appeals to me. Many of my friends share the same opinion.
It seems they have lost focus and have spent too much time and money selling the HD image. You don't need multi-million dollar dealerships with more clothing and accessories than motorcycles to sell bikes.
Patrick 8:59PM (1/25/2009)
You mean there should be fewer Harleys on the road, blaring out obnoxious 120 dB fart sounds from their tailpipes? AWESOME!!
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Nightcrawler 10:35PM (1/25/2009)
This all makes sense because a Harley is the definition of a luxury item. No one needs a new Harley. Lots of people would love to buy one at a time when they are feeling cash-flush, but that's not the current state of the economy.
When the economy is good they'll sell like gangbusters again. When it's bad, all they can do is wait it out.
By the way, I'm far from a Harley expert, but the criticism about their products being outdated seems misguided to me. Their customers want that kind of bike. If they made some more modern tech marvel, they the Harley fans would say they had sold out and become just like the Japanese bikes.
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bobfranks 12:34AM (1/26/2009)
Well...I guess the recession hit the baby boomers so Harley is out of business then.
Really..who else buys them?
Why is this article on a auto site? Why autoblog..why?....I have been noticing for the awhile.
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steve lumley 12:59AM (1/26/2009)
good...the whole harley thing, from the sullen idiots who don't wave to the people who bought them as a lifestyle accessory, is a joke and based only on image. Chapter 11....yes
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Chris 1:05AM (1/26/2009)
HD bikes suck.... they might look OK but they run like total crap. I remember my neighbor had 3 of them while I was growing up....never did he have more than one running at a time.....constantly having carb problems, starter problems and I always noticed how the damn headlights would vibrate and shake as if they were ready to fall off.
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Avinash machado 2:27AM (1/26/2009)
Harley owners are a loyal bunch. They love the retro agricultural feel of the bikes, and would be devastated if HD decided to go for a more modern or mainstream feel.
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