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Archive for June 22nd, 2009

BarometerMy how things change.

A year ago with gas prices jacked to the $4.00 a gallon level scooter sales exploded.  Especially the 51 cc-to-155cc category as it was a break out year.  Dealers over ordered and now inventories are high.  2009 predictions seem to indicated the scooter party is over.

And speaking of party over… That “hissing sound” from UBS analyst, Robin M. Farley was the air deflating the motorcycle maker’s tires… i.e. earnings and stock price when she stated that Harley-Davidson’s spring sales have hit a wall.  Sales plummeted 35% in April/May compared to a year ago in this critical time of the year.  UBS isn’t without its own set of issues though.  Late last year Sr. Executive Raoul Weil, head of wealth management division was indicted for helping 20,000 clients conceal assets and avoid paying taxes so, one has to keep a wary eye on these so-called banking/finance veterans!

I’m sure the skillful press and public relation folks at H-D are digesting all of this and taking some of Robert S. McNamara (Secretary of Defense during Vietnam War) advice… “Never answer the question they ask; only answer the question you want to talk about.” It’s the language of sales and selling on message.  It feels like we’ve been mugged and drugged by marketing to the point we should question any manufactures trustworthiness.  But, that’s me.

Adding insult to injury, Harley along with other motorcycle manufactures can’t catch a break by the feds and were excluded from the ‘Cash for Clunkers’ bill.  The bill looks to favor owners of pickups and SUVs…just what Detroit needs to unload those overstuffed lots.  Of course the new vehicle needs to be more fuel-efficient (2 MPG) than their old guzzler to receive the $3500 credit/coupon and if you can find something that is 5 MPG higher you’ll get $4500 credit.

Now about McNamara…

Photo courtesy Wikispaces.  Full Disclosure: Editor has no investment in H-D stock.

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