Comments on: Harley Davidson Takeover Rumors

By: Mr M.

Mr M. — Fri, 26 Mar 2010 15:15:18 +0000

As far as the ATK thing goes, it is funny how during all of ATK’s history, they bragged about how they were made in America, and at the first sniff of green, they start re-selling Korean stuff. They are not “integrating” Korean parts with the Cannondales. The Cannondale stuff is too obsolete and ATK does not even have any tooling. They are just a self-promoting, (B.S.’ing) company that will do anything for a buck.

By: Motostrada

Motostrada — Sat, 20 Mar 2010 04:19:34 +0000

Returning to the original topic, Private Equity firms submit their victims (acquired businesses) to a high debt, cost cutting diet for 3-6 years. In the meantime, they pocket hundreds of millions of dollars in dividends, stock options and management oversight fees. They achieve this by trimming personnel and wages (Mervyn’s), outsourcing (C&A), reducing R&D investment (Dade Behring/General Instrument), selling assets (Warner Music), degrading customer service and product quality (Kinkos/HCA/Hertz), and rising prices (Masonite/Sealy/Simmons). Before principal payments on the stratospheric loans are due, they flip the company, refinance the debt or let it declare bankruptcy.

Ironically, KKR is the second largest employer in America, with roughly 855K employees (Wal-Mart is number one). PE owned companies account for 10% of the US private work force, close to 8 million people.

The future of HD under PE command looks bleak.

By: coho

coho — Fri, 19 Mar 2010 05:35:59 +0000

Nobody will ever know if Buell was, or could have been, a profitable entity since HD just dumped the Buell money in the big pot with all the chrome & bandanna money.

Their unwillingness or inability to separate Buell from the MoCo on paper may have contributed to their decision to shut down Buell instead of selling it. How much do you charge for your sportbike division if you have no idea how much it costs/makes?

By: James Bowman

James Bowman — Fri, 19 Mar 2010 00:10:23 +0000

Scott interesting articles, as much as I despised the HD treatment of Buell and arogancy they demonstrated when they were on top of the word, it saddens me yet another American company is in trouble post NAFTA/GAIT. I hope that they can be salvaged and some how Buell rises out of the ashes as well. Maybe they didn’t wan’t to sell Buell because if another company managed and marketed the Buell line at a profit it wouldn’t bode well for the HD suits would it? Sad thing is the execs walk out of yet another company with multi million dollar bonuses for failing? This is the new American way no performance clause just pilfer the company, destroy the lives of its employee’s and walk away with a big fat piggy bank for it.

I hope if HD survives they get another brand going with appeal to a broader market than the typical loud cruisers and fringe leather clothing group, they must never forget that group though they already buy the product, but with all the descent paying manufacturing jobs going to the far east middle age men with income are going the way of T-rex and they need to be be prepaired to do better than treat that market other than as an unwanted step child as Buell was. Maybe the next CEO only gets out with a nice nest egg if he turns a profit? Another sad note in America at this time Sigh.

By: Woodman West

Woodman West — Thu, 18 Mar 2010 12:43:32 +0000

Scott, I see your point also. But let me say this. HD makes the ElectraGlile the standard in big, chromed out V twin “dressers” as we used to call them. Lots of metal and chrome. Thick ABS “bodywork” used to be fiberglass, but still quality stuff. Sell for around $20k. It sells very well.

Go look at, and touch, a Kawaski Vulcan Voyager. A metric copy of the Electra. Most of the chrome is thin cheap plastic, the panels are flimsy and flexy. Saddlebag lids feel like they will break off in your hands. This bike reails for $17-19k, depending on year and ABS options. They are on ebay new for $12-13K. I was planning on buying one, I walked out after seeing the quality.

Folks will pay for quality. We buy the bike we want and can afford. Especailly the big chrome cruiser market. Us old guys with good jobs buy these machines.

I do think HD is forgeting this, hiring a CEO who did not ride was a big mistake in my book. To him Buell was a number. This whole Ann Julian/Oprah market push is pathetic. Lets market to folks who watch daytime TV!!