Harley Drastically slowing production and idling workers - Chicagoland Sportbikes
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post #1 of 71 (permalink) Old 11-27-2007, 12:58 AM Thread Starter
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Harley Drastically slowing production and idling workers

http://www.businessweek.com/ap/finan.../D8T5KDU00.htm

Harley-Davidson idles 5,400 workers
By EMILY FREDRIX
MILWAUKEE

Some 5,400 Harley-Davidson Inc. workers are out of work this week as the motorcycle maker cuts production because of falling sales.

The Milwaukee-based company announced in September it would shut down production at plants in Wisconsin, Kansas City, Mo., and York, Pa., this week as part of a planned cut in production.

A shorter layoff is better than a long one, said Frank Larkin, a spokesman for the International Association of Machinists and Aerospace Workers, which represents workers at Harley-Davidson plants. At least workers were able to prepare for it, he said.

"We were informed early on this was being proposed and we were able to relate to our members they would need to begin planning financially for one week without a paycheck," he said.

Employees will still receive benefits during the week, he said.

Harley-Davidson spokesman Bob Klein said the plant in York, Pa., the company's largest, has 2,800 workers idled this week.

There are about 1,750 workers idled in Wisconsin at power-train operations in Wauwatosa and Menomonee Falls and another in Tomahawk. The Kansas City, Mo., plant has 850 workers idled.

Workers in Pennsylvania weren't phased by the shutdown, said Tom Boger, the business representative for the International Association of Machinists and Aerospace Workers Local 175 union. He said it was short and they had time to prepare.

"People seem to be OK with it," he said. "It seems to be just no problem."

Boger also said the shutdown was well-timed to go with the start of deer hunting season in Pennsylvania, meaning workers wouldn't have to take days off to hunt.

Last month, Harley-Davidson reported its third-quarter profit fell 15.3 percent amid a continued sluggish U.S. market for motorcycles. The company said it expects next year to be difficult, too, as domestic buyers become more cautious about their spending given rising oil prices and slumping home sales.

The company cut bike shipments and earnings expectations in September. Shipments were down 10.8 percent to 86,535 units in the most recent three-month period.

Harley-Davidson expects full-year shipments to be between 328,000 and 332,000 units, down from 349,196 units last year.

Shares of Harley-Davidson fell 8 cents, or 0.17 percent, to $46.45 on Monday.
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post #2 of 71 (permalink) Old 11-27-2007, 05:09 AM
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hmm...here is an idea....how about droping the price of the bikes?...that would make an incentive for others to buy a bike....zero reason for a bike to be over 15 grand...it costs more then a freakin car...specially since alot of the parts are interchanged between the bikes...

...plus my gf was with me saying "omg slow down, slow down" and I was thinking "Lose annoying squalk box in passenger seat, afford more mods and have less weight in the car and on the back of the bike"...so i dumped her and I'm single again as usual...HERE KITTY KITTY!!!
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post #3 of 71 (permalink) Old 11-27-2007, 05:32 AM
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Just keep saying to yourself... "We are not in a resession" and maybe it will not happen....
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post #4 of 71 (permalink) Old 11-27-2007, 06:51 AM
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Just keep saying to yourself... "We are not in a resession" and maybe it will not happen....

+1

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post #5 of 71 (permalink) Old 11-27-2007, 07:57 AM
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I think that HD is a really dead spot of the market. The average cruiser rider will most likely buy Japanese because of price, technology and reliability. The "look at me" crowd will buy pimped out 35k+ real custom bikes that are borderline unforgeable girth and weight due to their way out styling. This really leaves HD with a small niche market with not many to pool from.
may be this is why Buell is really pushing the new bike. The sportbike market has way more possibilities if they can ever get their foot in the door.
Sucks to hear anyone is ever out of a job. Perhaps limiting supply will make them more desirable again.

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post #6 of 71 (permalink) Old 11-27-2007, 07:58 AM
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I'm in manufacturing, we're slowing down. Customers are canceling orders and pushing back ship dates.
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post #7 of 71 (permalink) Old 11-27-2007, 08:20 AM
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I'm in manufacturing, we're slowing down. Customers are canceling orders and pushing back ship dates.
That isn't good

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post #8 of 71 (permalink) Old 11-27-2007, 08:27 AM
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Quote:
Originally Posted by gconsier View Post
http://www.businessweek.com/ap/finan.../D8T5KDU00.htm

Harley-Davidson idles 5,400 workers
By EMILY FREDRIX
MILWAUKEE



Last month, Harley-Davidson reported its third-quarter profit fell 15.3 percent amid a continued sluggish U.S. market for motorcycles. The company said it expects next year to be difficult, too, as domestic buyers become more cautious about their spending given rising oil prices and slumping home sales.
I'm too lazy to search, but I suspect all manufacturers in the US are on the same boat, because of the same reasons. Rising oil prices and slumping home sales, make people nervous...they are saving instead of spending. What is the unsecured debt load per American now That has to play into this too

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post #9 of 71 (permalink) Old 11-27-2007, 08:42 AM
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week long manufacturing shut-downs are not uncommon this time of year

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post #10 of 71 (permalink) Old 11-27-2007, 08:42 AM
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I'm in manufacturing, we're slowing down. Customers are canceling orders and pushing back ship dates.
+1 I am in the distribution business and this black Friday sucked compared to last year. We fill orders for Target, Amazon, Kohls etc......and they were way down this year. Have friends in the manufacturing arena and they are having weeks of shut down.
Hate to cry that the sky is falling.......but the sky IS falling.
Really sad. Wages are roughly what people have been making about 5 yrs ago or more but the cost of every single thing from fuel to food has just kept climbing. Not to mention that the last hope of a financial net everyone had, their home; also has lost value.
We may all have to sneak into China for work soon. Damn illegals


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post #11 of 71 (permalink) Old 11-27-2007, 09:20 AM
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It's no recession. People are now just realizing that Harleys are overpriced crap.

"The man who makes me your enemy, it is he who be the guilty one....Here I abandoned peace and desecrated law; fortune it is you I follow. Farewell to treaties. From now on war is our judge!"
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post #12 of 71 (permalink) Old 11-27-2007, 09:34 AM
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WTF does a premium priced motorcycle manufacturer sales decline have to do with a recession?

Why should HD drop prices just to keep the overpaid union laborers employed?

When half the people on this board are forced to sell their bikes just to make their mortgage payments then let's start talking about a recession.
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post #13 of 71 (permalink) Old 11-27-2007, 09:37 AM Thread Starter
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WTF does a premium priced motorcycle manufacturer sales decline have to do with a recession?

Why should HD drop prices just to keep the overpaid union laborers employed?

When half the people on this board are forced to sell their bikes just to make their mortgage payments then let's start talking about a recession.
When Americans stop buying overpriced crap we call that the beginnings of a recession.
If we all had to sell our bikes I think they call that the great depression
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post #14 of 71 (permalink) Old 11-27-2007, 09:42 AM
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When Americans stop buying overpriced crap we call that the beginnings of a recession.
If we all had to sell our bikes I think they call that the great depression
We have no Great War. No Great Depression. Our Great War's a spiritual war... our Great Depression is our lives. We've all been raised on television to believe that one day we'd all be millionaires, and movie gods, and rock stars. But we won't. And we're slowly learning that fact. And we're very, very pissed off.

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post #15 of 71 (permalink) Old 11-27-2007, 09:43 AM
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The real sign is Starbucks is showing a decline in it's customer base. For the first time it is doing TV ads to get people back. The CEO of GE said it best though. When times are good, people buy light bulbs by the mega pack. When times are lean, people buy one/two bulbs as needed.

That is a real sign of a recession. Luxury items come and go as fads come and go.

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post #16 of 71 (permalink) Old 11-27-2007, 09:49 AM
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My gut says the HD decline is because it was a fad. The "in" thing to do was buy a HD if you were a middle-aged, middle-class guy. It almost seems HD saturated the market too much and lost some of it's "bad boy" image. I'm sure sales will pick back up in a couple of years.

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post #17 of 71 (permalink) Old 11-27-2007, 09:54 AM
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Quote:
Originally Posted by Kruz View Post
WTF does a premium priced motorcycle manufacturer sales decline have to do with a recession?

Why should HD drop prices just to keep the overpaid union laborers employed?

When half the people on this board are forced to sell their bikes just to make their mortgage payments then let's start talking about a recession.
+1. I'm not saying we aren't heading into a recession, but I fail to see the correlation between HD losing business and a recession.

I do think we are borderline going into a depression though. At the current state, I think this country will bounce back without a problem, but if something big were to happen to the economy, where in the past we could absorb it, might have bad results.

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post #18 of 71 (permalink) Old 11-27-2007, 09:58 AM
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This is more a function of harley screwing up a few years ago and upping production. for years they had a waiting list and it kept used values up sometimes even higher than new values. so their bikes were an investment as they held thier value and even climbed in value. this afforded the blue collar guy an opportunity to own the bike of his dreams and even make a few bucks on it. now that they are a depreciable asset it's much harder to justify that purchase.




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post #19 of 71 (permalink) Old 11-27-2007, 09:59 AM
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I guess we'll leave the fact that WallStreet is paying out over 38 billion in bonuses for this year despite piss poor performance off the table for now...
( http://www.nwanews.com/adg/Business/208776/ )

When people's disposable income goes BYEBYE, decadent items are the first to feel the missing income. Let's call it simple reverse re-distribution of wealth.. take from the many and give to the few.

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Last edited by Arch; 11-27-2007 at 10:30 AM.
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post #20 of 71 (permalink) Old 11-27-2007, 09:59 AM
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Quote:
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+1. I'm not saying we aren't heading into a recession, but I fail to see the correlation between HD losing business and a recession.

I do think we are borderline going into a depression though. At the current state, I think this country will bounce back without a problem, but if something big were to happen to the economy, where in the past we could absorb it, might have bad results.
Motorcycles are for the most part a luxury item, you do not need them. HD is a real luxury item since they cost more than their peers.
During a recession the middle class stops buying luxury items because they must allocate their money on the necessities. When living cost rise and your wage does not you must start reorganizing what you need and what you want. You must have shelter, heat and food. The rest are extras. A HD is an extra.

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post #21 of 71 (permalink) Old 11-27-2007, 10:11 AM
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Motorcycles are for the most part a luxury item, you do not need them. HD is a real luxury item since they cost more than their peers.
During a recession the middle class stops buying luxury items because they must allocate their money on the necessities. When living cost rise and your wage does not you must start reorganizing what you need and what you want. You must have shelter, heat and food. The rest are extras. A HD is an extra.

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I don't understand why, but it seems to me like every time someone loses a job or a company reports a loss, everybody jumps on the recession claim. I'm not denying a recession, but I like how HDTony put it. They fucked up and are paying the price. It has nothing to do with the economy. Sure, they might be losing a few sales due to it, but losing that much, it seems like a company problem, not a recession.

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post #22 of 71 (permalink) Old 11-27-2007, 10:12 AM
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Man you fuckers are depressing today, i'm gonna go find that picture of the bunny with a pancake on his head and cheer myself up before i drive my truck into an embankment




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post #23 of 71 (permalink) Old 11-27-2007, 10:16 AM
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Man you fuckers are depressing today, i'm gonna go find that picture of the bunny with a pancake on his head and cheer myself up before i drive my truck into an embankment


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post #24 of 71 (permalink) Old 11-27-2007, 10:17 AM
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Man you fuckers are depressing today, i'm gonna go find that picture of the bunny with a pancake on his head and cheer myself up before i drive my truck into an embankment

Never a bad time to climb... unless the weather is really horrible, and then you climb inside!

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post #25 of 71 (permalink) Old 11-27-2007, 10:17 AM
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The U.S. still manufactures stuff right here in the United States? Wow, I had no idea....I thought everything we own is now made by 10 year olds in third world countries.

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post #26 of 71 (permalink) Old 11-27-2007, 10:19 AM
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The U.S. still manufactures stuff right here in the United States? Wow, I had no idea....I thought everything we own is now made by 10 year olds in third world countries.
There's a difference between 'manufacturing' and 'assembling'.

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post #27 of 71 (permalink) Old 11-27-2007, 10:21 AM
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There's a difference between 'manufacturing' and 'assembling'.
My company still manufactures all our products in house My group has some of our parts tooled in China, but the majority of our company still goes domestic. Plus with ITARS, you almost don't have a choice but to tool in USA.

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post #28 of 71 (permalink) Old 11-27-2007, 10:22 AM
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Man you fuckers are depressing today, i'm gonna go find that picture of the bunny with a pancake on his head and cheer myself up before i drive my truck into an embankment
searching for said bunny while driving will cause you to drive into the embankment

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post #29 of 71 (permalink) Old 11-27-2007, 10:28 AM
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+1. I'm not saying we aren't heading into a recession, but I fail to see the correlation between HD losing business and a recession.

I do think we are borderline going into a depression though. At the current state, I think this country will bounce back without a problem, but if something big were to happen to the economy, where in the past we could absorb it, might have bad results.
A loooong period of recession precedes a depression.
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post #30 of 71 (permalink) Old 11-27-2007, 10:35 AM
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A loooong period of recession precedes a depression.
When it comes to financial matters I defer to Kruz, the guy knows his shit, hands down!

Of course if its radar detectors or chatterbox's he's full of it.




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