Feeds:
Posts
Comments

Posts Tagged ‘Cash for Clunkers’

C4CNavajo, or Dine -they call themselves, is the largest tribe of North American Indians.  They used sheep for its wool to make clothes, blankets, and rugs.  They also used the sheep for food.  They traveled by horse back on long distances to trade.  Then Navajo began making items to trade in towns.  There were also trading posts built on reservations to sell their handmade crafts, such as pottery and blankets which continues to this day.

But, I’m talking about the Indian Motorcycle “trading post”.

The “trading” started with the “It Pays to Ride” promotion where you could purchase a 2009 Indian motorcycle and the company would pay the first 6 months of your payments up to $500/month. Basically it’s a $3000 discount (at the $500/month maximum) off the purchase of a new Indian motorcycle.  Now they’ve taken a page from the “Cash-for-Clunker” (C4C) program and in the process Indian out markets Harley-Davidson!  Bring in any motorcycle** and get $3000 trade on the 2009 Indian Chief model.  **The trade in must be street legal, 100 cc or larger and in running and ride able condition.  No mopeds, scooters or dirt bikes and must have a clear title.

The good news here is that taxpayer money will NOT be used to enable the dealers to offer discounts off sticker prices to extract higher profit margins.  I think this is smart marketing on Indian’s part and will likely boost the number of consumers visiting Indian motorcycle dealers.  I’m very doubtful that consumers will buy comparable quantities to the automotive program, but some new motorcycles will be sold to consumers who thought they had a motorcycle clunker to trade in.

Photo courtesy of Indian Motorcycle.

All Rights Reserved © Northwest Harley Blog
Advertisements

Read Full Post »

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.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

%d bloggers like this: