Yamaha Posts Half-Year Net Loss

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It will be very interesting to see what happens next month. I know we're all guessing at this point but everyone has valid concerns. It could be Gen 3 or none at all.
I think since cruisers sell 20:1 over anything like the FJR this may not bode-well for our model. You have to know that the FJR is not a big part of their profit picture. The FJR filled a small nitch when times were good. Now, I don't know. If Yamaha thinks they will sell very few of a new Gen 3 they may scrap it even though they poured $$$ into the R&D.

We are in a time when all bets are off. No one can predict what companies are going to do financially.
Don't forget the International Market. In Europe, cruisers are the low sellers and ST bikes are very popular - including the FJR.
I haven't forgotten the Euro market. They're the ones that get different color choices. :winksmiley02:

GP

 
@Howie - You missed a double entendre (sp) there friend. :unsure: Yamaha sadly will never send Howie a letter. Too bad they don't step up more on the 'yes, I screwed it up, but it shouldn't have been bad in the first place' problems.
Just read your post again. Shit, I'm an idiot for not getting it the first time.

But the only time she really complains is after asparagus. :devil:

 
@Howie, I'm just stirring it up, mang. I am truly sorry about your situation.Anyone know of a nice, gently used engine for Howie?
Keerist if some of you bastards ain' t gettin' all sensitive on me.

Yer man card is in jeopardy. :fuck:
I wanted to make sure you were still reading along.

YEP!!!

 
The Dealer could be taken out of the equation, too. With all the complaints one reads here -- it seems there wouldn't be much lost.. (many here don't want to visit a dealer, anyway -- from the many comments made)?Some Yamaha dealers are already selling new FJRs on ebay -- GM's in the news for selling cars/trucks on ebay.

Yamaha may need to crate the bikes fully-assembled (they're now about 95+%) -- should be possible?

Dispensing with the middleman (dealers) allows Yamaha/Cypress to make more profit and eliminates a bunch of cry-baby dealers.... :rolleyes:

Of course, something may need to be done about the cry-baby end-users.... :eek: :unsure: :smilingsmiley:
Your statement is not true. I work for a wholesale distributor. The issue of customers wanting to buy direct comes up frequenlty. What you are missing is that the customer is not paying a markup. The manufacturer is allowing the distributor (dealer) to make a margin for the services that they provide. If the distributor (dealer) where not providing that service, the manufacture would have to invest in the infrastructure to provide the same service. Not only would they incur the same costs that would have to be passed along to the customer, but it would probably be even more more expensive because a dealer can spread their fixed costs above several product lines.

As much as some folks may dislike dealers, there would be a whole new set of problems if the manufacturers sold direct. No free lunch.

 
Absolutely not. PDP was dumb and I would not likely buy another FJR under the PDP program. When I want it, I want it, I've made my decision and don't need to wait.

I found my 06 from a dealer who pre-Paid the PDP to have one on the floor. I'd likely do that again, if I had to wait to order one, I'd likely buy something else (or a good gently used one) which doesn't help them either.

 
For those that peruse this board ... Yamaha will focus its efforts on only its highest volume - and thus more profitable, bikes. ...
Article: Yamaha Posts Half-Year Net Loss
Not so sure I agree with all that's in this statement. It's all about margin and price point. In hard economic times, it is a safe general rule that high end items don't suffer the same as more pedestrian commodities. The FJR commands a premium. I don't know how Mammie Yammie decides where to set the FJR retail price, but this machine is seen as a high end ride. I suspect their margin is pretty good. They will probably keep the low rate production going...it's already tooled for. What we probably WON'T see are alot of whole new designs for anything. That takes R&D money and capital for new production assets. Commercial companies in tight times really throttle those expenditures back unless they see a solid opportunity to enhance market share.

Let's watch and see what happens.

W2

 
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It may be pointless, but it's interesting (to me) to see the various points of view.

FWIW, from a dealers perspective...

The biggest challenge the industry faces as we speak is quite simply getting people financed. 10 years ago we were working on about a 5:1 ratio of applicants to approved loans, 5 years ago it was about 10:1, right now as we speak the dealership I'm at is at 22/23:1. We get a tremendous amount of floor traffic, but not many people are in a position to buy.

Up until 2005 we (the industry) were on a rocket ship ride as far as sales go. About all you had to do to make money was show up and turn on the lights, not so anymore. For the majority of that time cruisers and ATV's fed us. Period. The sales numbers for those two categories dwarfed every other category and many of them combined. Cruiser sales are still fairly brisk by todays standards, but ATV sales have tanked horribly. Again, this is due to financing and IMHO the impact of the Korean, Taiwanese, etc imports that the MIC isn't even tracking sales of. Another sales killer in the utility ATV market is the SXS. Many customers who might have otherwise bought a large displacement goon buggy are now gravitating toward the SXS, most of the people that are interested in those units aren't struggling for credit either. However, the sales of SXS have not made up for the loss in sales in the utility ATV segment. Not even close.

The general scuttlebutt is that no models are in jeopardy that weren't already, and those are only that way because they are being phased out with something new and better. I.E. Yamaha would love to drop the the V-Star 1100 and has introduced two models (the 1300 and 950) that are supposed to be replacements, but sales of those units have been a little flat for several reasons. What is widely known is that there will be less units built over the next 2 years, maybe three, which translates into less units on the floor at the dealer level, which ultimately could also mean less profits for dealers.

I said in another post that I believe after the first of the year we will see fewer and fewer dealerships in business. I still do. In fact, I'd say the number will be about 20% less. Expect smaller market and lower volume stores to go first. After this adjustment happens combined with the overall lower number of units produced I think things will start to even out.

But the face of the average motorcycle dealership is going to change in the next 5 years or so anyway as they are forced to become more like the modern automotive dealership is today as opposed to the old school mom and pop stores of earlier times.

Bruce

 
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It may be pointless, but it's interesting (to me) to see the various points of view.
FWIW, from a dealers perspective...

The biggest challenge the industry faces as we speak is quite simply getting people financed. 10 years ago we were working on about a 5:1 ratio of applicants to approved loans, 5 years ago it was about 10:1, right now as we speak the dealership I'm at is at 22/23:1. We get a tremendous amount of floor traffic, but not many people are in a position to buy.

Up until 2005 we (the industry) was on a rocket ship ride as far as sales go. About all you had to do to make money was show up and turn on the lights, not so anymore. for the majority of that time cruisers and ATV's fed us. Period. The sales numbers for those two categories dwarfed everything other category and many of them combined. Cruiser sales are still fairly brisk by todays standards, but ATV sales have tanked horribly. Again, financing and IMHO the impact of the Korean, Taiwanese, etc imports that the MIC isn't even tracking sales of. Another sales killer in the utility ATV market is the SXS. Many customers who might have otherwise bought a large displacement goon buggy are now gravitating toward the SXS, most of the people that are interested in those units aren't struggling for credit either. However, the sales of SXS have not made up for the loss in sales in the utility ATV segment. Not even close.

The general scuttlebutt is that no models are in jeopardy that weren't already and those are only that way because they are being phased out with something new and better. I.E. Yamaha would love to drop the the V-Star 1100 and has introduced two models (the 1300 and 950) that are supposed to be replacements, but sales of those units have been a little flat for several reasons. What is widely known is that there will be less units built over the next 2 years, maybe three, which translates into less units on the floor at the dealer level, which ultimately could also mean less profits for dealers.

I said in another post that I believe after the first of the year we will see fewer and fewer dealerships in business. I still do. In fact, I'd say the number will be about 20% less. Expect smaller market and lower volume stores to go first. After this adjustment happens combined with the overall lower number of units produced I think things will start to even out.

But the face of the average motorcycle dealership is going to change in the next 5 years or so anyway as they are forced to become more like the modern automotive dealership is today as opposed to the old school mom and pop stores of earlier times.

Brice
Excellent perspective. Thanks!

 
I've never witnessed a more pointless thread.
Really????

Howzabout THIS one...

Or THIS one...

Maybe THIS one...

Perhaps THIS award winner.

:yahoo: :yahoo: :yahoo:

Howie, a little harsh on the pale rider? The first post had some redeeming merit and died a noble death after just 17 posts -- I'm just sayin. The rest were brain drain material.... This thread is getting tattered.

EDIT: ;) for the humorous challenged

 
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I've never witnessed a more pointless thread.
Really????

Howzabout THIS one...

Or THIS one...

Maybe THIS one...

Perhaps THIS award winner.

:yahoo: :yahoo: :yahoo:

Howie, a little harsh on the pale rider? The first post had some redeeming merit and died a noble death after just 17 posts -- I'm just sayin. The rest were brain drain material.... This thread is getting tattered.

EDIT: ;) for the humorous challenged
He really needs to get his bike fixed and go riding. He actually had the time to look those up? Or, even weirder, are they saved in his Favorites for future reference??? :D

 
I've never witnessed a more pointless thread.
Really????

Howzabout THIS one...

Or THIS one...

Maybe THIS one...

Perhaps THIS award winner.

:yahoo: :yahoo: :yahoo:

Howie, a little harsh on the pale rider? The first post had some redeeming merit and died a noble death after just 17 posts -- I'm just sayin. The rest were brain drain material.... This thread is getting tattered.

EDIT: ;) for the humorous challenged
He really needs to get his bike fixed and go riding. He actually had the time to look those up? Or, even weirder, are they saved in his Favorites for future reference??? :D
He's obsessed with me--keeps all my posts, PMs me with detailed criticisms and love notes. It's gotten worse since his bike's been down. I'm thinking about a restraining order.

 
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