HD downgraded to SELL by the street…is it time to put a new dress on the pig??? A smattering of comments on the street regarding America’s iron icon of the motorcycle industry…
“…HDI does not introduce enough new product that are materially different from previous offerings. Indeed, at this year’s annual dealer meeting, the company’s most often highlighted feature was… a new radio.”
…HDI could benefit from updated features and new bike designs (even a new family) but we do not believe that a new radio will capture many new customers…”
“…demand for Harley’s has slowed due to industry maturation and saturation of Harley’s target customer group.”
“…purchase of a Harley is a nostalgia purchase, and HDI has enjoyed less success generating new, younger customers.”
“…median age of the Harley buyer is 49 years old…number of baby boomers experiencing a mid-life crisis is peaking...”
“HDI not successful expanding internationally. The percentage of bikes sold abroad fell from 31.5% in 1991 to 18%...”
“Is HDI more concerned with its shareholders than with its customers?’
“…new bikes currently sell for MSRP at most… Worse yet are the now more frequent promotions, such as recent $1,000-2,000 discounts on 2005 models in several dealerships across the U.S. in order to make room for the 2006 bikes…”
“…while used bike prices are declining.”
I hope it isn’t catchy across the industry…could mean less innovation from the other manufacturers as they all sit tight through a possible downswing in the industry. But Harley’s segment appears to be significantly different from the other manufacturers. But who knows, all the manufacturers could catch an economic cold.
:fool:
“…HDI does not introduce enough new product that are materially different from previous offerings. Indeed, at this year’s annual dealer meeting, the company’s most often highlighted feature was… a new radio.”
…HDI could benefit from updated features and new bike designs (even a new family) but we do not believe that a new radio will capture many new customers…”
“…demand for Harley’s has slowed due to industry maturation and saturation of Harley’s target customer group.”
“…purchase of a Harley is a nostalgia purchase, and HDI has enjoyed less success generating new, younger customers.”
“…median age of the Harley buyer is 49 years old…number of baby boomers experiencing a mid-life crisis is peaking...”
“HDI not successful expanding internationally. The percentage of bikes sold abroad fell from 31.5% in 1991 to 18%...”
“Is HDI more concerned with its shareholders than with its customers?’
“…new bikes currently sell for MSRP at most… Worse yet are the now more frequent promotions, such as recent $1,000-2,000 discounts on 2005 models in several dealerships across the U.S. in order to make room for the 2006 bikes…”
“…while used bike prices are declining.”
I hope it isn’t catchy across the industry…could mean less innovation from the other manufacturers as they all sit tight through a possible downswing in the industry. But Harley’s segment appears to be significantly different from the other manufacturers. But who knows, all the manufacturers could catch an economic cold.
:fool:
