bad times at Yamaha USA

[dragonchef]

they layed off over 600 last March...just heard from a guy who helped me with some "issues" a while back, and things are not well at the American HQ...

 

[TriggerT]

I hadn't heard that either. That is not good news for all kinds of reasons.

 

[madmike2]

Yep!

When the numbers (of motorcycles sold) are down, the need for "support staff" dimishes as does the income to pay them.

 

[HeUeR]

I know Suzuki is really hurting but hard to believe Yamaha is too with all the motorcycles seen on the roads now as compared to years ago.

 

[jesse]

I think all the manufacturers are hurting big time. I went to a bike shop the other day and they became a "used bike" only shop. They could not afford to have the new bikes sitting on the floor and returned them all from all the manufacturers and not just Yamaha. Tough times require tough measures. We can only hope that the economy improves and this thing gets turned around. But don't hold your breath. We are still doing so much wrong.

 

[ionbeam]

A couple of weeks a go I spent some time talking with my preferred Yamaha dealer, including some discussion about the state of motorcycle business here in New England. He said that he was fearful about sales during '09 when we had rain, rain, rain, and more rain. In the end the sales volume was at the high end of normal. He went into '10 with some optimism but it didn't last long. This year wasn't a disaster, but it was at the very lower end of normal making some floor plan adjustments necessary. Evidently the last 2-3 months have shown improvements. His show room floor was fully loaded with snow machines and while I was there several potential buyers came through. A couple of weeks ago there was some expectation that '11 will be a better year. There was also some oblique assessment into what kind of motorcycle he should put on his floor for me to purchase in '11 Right now he has NO plans to stock either a FJR or C-14 unless he smells a solid sales lead.

 

[FJRBluesman]

It's the economy. Some day it'll be better.

Kwak was offering a $2K discount on the Connie, putting retail at about $13.6K, not bad. Will Yammer offer the FJR for a discount or get it some major changes???

 

[huchieglide]

The Yamaha dealer here in Medford closed the doors a few months ago. The Suzuki dealer no longer sells new bikes, just used. Tough times for dealers here in Southern Oregon. Motorcycle Superstore is based here in Medford and has a storefront. Folks buy their bike at the dealer then head down the road for helmets, jackets, etc.

 

[El Toro]

We've lost a lot of dealers in this neck of the woods. Triumph dealer in Chattanooga, Honda dealer in Crossville, Suzuki dealer at Silver Point, and others. Some have been bought up by other dealers, but none are strong right now.

Rumor mill says that local Honda dealer will fold up tent and merge with a nearby Yamaha dealer after the first of the year.

These are tough times to be a dealer. As most probably remember, Suzuki had it so bad, they skipped an entire model year of inventory.

Kawasaki quit MotoGP. Ducati have quit WSBK. Suzuki might as well quit MotoGP, but they've cut back to a single bike.

The money is going to be in selling small transportation oriented bikes in Asia and the Asian subcontinent.

 

[oldryder]

things should look up next year. there is pent up demand from folks that didn't get laid off or otherwise stressed financially and the economy in general should be better.

I own a granite countertop shop and business since July has been 50% or more better than last year. countertops are similar to bikes in that the expenditure is entirely discretionaly with considerably cheaper options available.

 

[El Toro]

I'm really torn on the idea of how to orchestrate a sustainable recovery.

The powers that be would have consumers get confident enough to take on lots of debt. Credit is cheap right now. They want us to borrow money and buy consumables at rates beyond our unfinanced means.

Meanwhile, I know from life experience that you're a heck of a lot more recession proof if you never borrow any money for anything. Borrowing money makes you beholden to another. If you don't borrow, you are your own boss.

Its not terribly hard to avoid borrowing if you're willing to be patient and only purchase stuff when you can pay cash. If you can afford something using the payments method, you will be able to afford it in a year or two by the saving and paying cash method. We have always followed this approach, and we've tried to instill these ideas in our kids as well. No loan is a good loan, except possibly a house loan. In the last decade, we've even shunned those kinds of loans.

So .... while I would like to see folks wait and pay cash when they can, the economy will get moving more quickly if everyone gets out and starts borrowing as soon as the banks will take them on.

In any event, the Yamaha layoffs cited by the OP are sad. I wish it were different.

 

[FJRBluesman]

<<snipI own a granite countertop shop and business since July has been 50% or more better than last year. countertops are similar to bikes in that the expenditure is entirely discretionaly with considerably cheaper options available.

Hmmm... Lets see. One might need a new counter top regardless. Granite top is more pricey than other cheaper options; however, a motorcycle for 99.9% (my SAWG) of the folks is just a fun toy, not needed at all.
Also poeple fixing up homes, etc., are more than likely to be the ones still with jobs and taking advantage of cheaper items and low interest rates.

I guess my point is, I wouldn't take two totally different industries, construction and motorcyles, and put them on equal playing fields for an economic indicator.

This economy or any economic state we’re in has advantages and disadvantages.

The negative side of our current economic state is: Job loss, home and other losses, and low interest rates, no savings is encouraged. Most industries are affected.

Some positive sides to this economy are: Many prices are extremely low (and drive fierce competition) on many products, cars, bikes, computers, construction labor, materials, etc., and with low interest rates people can refi and save a bundle or fix up the home etc.

When the economy recovers, get ready to pay much higher prices, and who knows if we’ll ever see interest rates for financing this low again. Just sayin’.

 

[charismaticmegafauna]

I think all the manufacturers are hurting big time. I went to a bike shop the other day and they became a "used bike" only shop. They could not afford to have the new bikes sitting on the floor and returned them all from all the manufacturers and not just Yamaha. Tough times require tough measures. We can only hope that the economy improves and this thing gets turned around. But don't hold your breath. We are still doing so much wrong.

A while back I stopped at a dealer about 100 miles away (I usually get there once or twice a year when I pass by that way...) and they had NO new bikes -- probably no franchise either? They only had product on the floor that they owned. They said the floor-plan was costing them several thousand dollars a month (IIRC?, the figure was $7K).

Most of the small-ish towns in my riding area (@ 10,000 population ~ or so) have lost their (franchised) m/c dealers. Only a few independents left. The dealerships in the major cities don't seem to be as seriously affected?

 

[ScottyUSN]

In locations that support close to year round riding saw a bike sales spike in the commuter realm.

Bank loans of all kinds suffered due to the economy, and a stiffer qualification process (those who qualify didn't need the credit), due to a previously weak qualifying process.

Personally.. I'll take the low interest loan and gamble I can grow my money at a higher rate of return over the course of the loan period.

Locally I've seen a few dealers fail due to their lack of flexibility with mark up, while other dealers lower prices making up, increase sales volume and survive.

 

[highcountry]

I just saw where H-D is adding several new models and raising the prices on their CVO models. I guess H-D is banking on '11 being a better year. Hopefully this is true for all manufacturers.

 

[dcarver]

If you don't borrow, you are your own boss.

Amen, brother. I bought the FJR with cash. Will never buy another 'toy' on terms again. Ever. I can do without until I can cash it out. And by then, many of my 'needed' toys aren't.

..and, being frugal allows you to own the employer's front gate, if you get my drift.

 

[Big Sky]

Diversification is key to motorsports businesses. I talked with the local HD, Honda and Suzuki businesses last week, plus an independent repairs/accessories shop. No surprises, new bikes aren't selling well at all. However, we've had more snow already this winter than last year so sleds are hot sellers right now (HD dealer has Arctic Cat sleds and Kawasaki off-road bikes, Honda has Polaris, KTM off-road etc.), and ATVs move well all year 'round. Off road bikes are moving moderately. I'm told repairs, service, tires and other accessories are selling well as riders continue to use the bikes they bought last year, or year before, or five years ago, or ... Our Suzuki shop is the number one Suzuki ATV dealer in the nation in terms of new sales. In this area, outdoor playing and hunting is major, and local ranchers have pretty much replaced horses with ATVs for transport when checking cattle and during calving, and for irrigation work and all farm/ranch chores. The Honda dealer told me one rancher customer puts 80 miles a day on his ATVs. Diversify!

 

[na1g]

I don't have hard numbers on BMW but visits to three of the dealers in the eastern MA area indicate they are doing OK. The 2010 R1200RTs were sold out early. The K1300GT is discontinued anyway but I think they are gone, too. The 1000S sportbike reportedly sold very well but it's not the latest/greatest anymore so sales may get soft for 2011. And the K1600GT will undoubtedly be sold out early to the fortunate few who can afford one.

When I look at the relatively good sales of Beemers, top-end prices and all, I wonder why the Japanese companies have chosen to lay low. Surely Yamaha and Honda could have new sport-tourers in the marketplace in very short order. Carrying-over the FJR and ST1300 for another year certainly doesn't incur any development costs but it also doesn't generate many new sales. Or interest and enthusiasm for the brand. Dealers are stuck trying to sell the same old stuff while they would love to have an exciting new model or two on the floor. The K1600GT will bring a lot of foot traffic into BMW showrooms. What's going to get me into the Honda or Yamaha shop?

It's also sad to see dealers giving up their franchises and sell used bikes only. Somebody will pick up some of that lost new bike business, but some of it will simply evaporate if the closest dealer is now 200 miles away.

I'm no marketing genius but Honda and Yamaha presumably have a few on staff. We all know that big motorcycle sales in Europe and NA are not a big part of their corporate profit structure. When you sell as many Accords as Honda does, ST1300 sales aren't real important. Yamaha probably makes more selling pianos that it does on all motorcycles. But if you are going to be in the bike business, you'd want to boost your market share. I don't see much effort in that direction. Which leaves Big Bob's Hondaha shop on the short end of the stick.

Just my $.02

pete

(I have seen the future and I'm going back to bed.)

 

[Robert Ford]

We have a local "Mega-Dealer" if you will, who sells all Japanese brands, including 4 wheelers, farkels, and all sorts of gear, parts and clothing as well as used bikes.

His prices on new bikes are set at list...end of discussion. Last summer when I was shopping for an FJR, he had one 2010 on the floor and wouldn't budge on the price. He was at list, $15,599 if memory serves and wouldn't give me anything over NADA on my trade. He still has 09 KLR's on the floor for $5499 and wont budge. <_<

So....... I guess bikes are still moving around here anyway. :huh: