Harley-Davidson is reducing bike shipments to dealers and financial
forecasts - and sacking some of its workers - in the face of sales
and profit declines.
In the first three months of 2008, Harley’s net profit was down 2.5
per cent to £95m and the brand’s global retail bike sales shrank by
5.6 per cent - with a big 12.8 per cent fall in its massive US
market more than eliminating 16.8 per cent growth in international
markets.
The company now says it will reduce full-year bike shipments by
23,000 to 27,000 compared to 2007, to a total of between 303,500 and
307,500 units. This will be achieved through temporary plant shut-
downs and reduced production rates. Harley chief executive Jim Zeimer
also says that he will be sacking 730 workers to save money.
‘With growing weakness in the economy, we believe these actions will
better position us for a business environment that we expect to
continue to be challenging,’ says Zeimer.
Harley-Davidson Financial Services, the company’s US point-of sale
funding operation, saw a 40.8 per cent collapse in its operating
profit to £17.6m in the quarter, as its personal share of the sub-
prime consumer lending crisis bit home. HDFS has a lot of bad debts
from red-neck trailer trash who can’t keep up the payments on their
Hogs.
