Yamaha Sales Predicted Down 20%

[JamesW]

Happy to still have bikes and riding, do not need any new upgrades, my 2008fjr still takes my breath away at times, I need no more then I have, probably never be looking new again. I still enjoy the 04 Connie although it feels a little more shake, rattle and roll then the fjr. As for selling anything, they are all paid for and there is no monetary deal for the pleasure they provide.

 

[oio]

Economists call it "creative distruction...."

 

[FJR-RemingtonRider]

The southern market is down quite a bit as well. A lot of pre-owned shops have closed, can't compete with private sales and no credit to offer. Was in XX Kawi/Suzi dealership and they were offering 1.99% financing till 2015...which last year it was just for 12 months. So they are laying out some serious lures to get people on their bikes.

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Personally, I am very happy with my 04', the updates on other bikes just seem like a neat farkle, you can love it or live with out it. Besides ABS, nothing really has been put on any bike of consequence...I like the FJR because it is pure and simple, heck I love doing the farkling myself, gets me totally familiar with the bike. I just don't see the advancement being that life altering...(Electronic Traction Control) not a game changer for me.

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Bikes aside, economy is a cycle that we are all in, so I hope it will be picking up for everyone real soon.

 

[spike747]

Several local Yamaha shops that I used to frequent are now empty buildings.A friend who works for Yamaha goes around the country and tends to closures of dealers and the disposition of their inventories -- a sad state of affairs, to be sure.

OTOH, "It's an ill wind that doesn't blow someone some good" -- there are really good prices on excess product.

Still..., unless the economy turns around -- it'll be 'tough sledding' for m/c dealers...

That's the kind of friend I'd like to have. I want to find a new FJR for a great deal. I don't care if the model year is a year or two old. I'd be willing to fly to just about anywhere in the states to pick one up for cheap.

 

[marcusorelius]

Just watched a show on the story of H/D, it ended with the statement that in 2010 H/D suffered their first quartly loss since 1993. Must be be why they are trying to move some of the slower selling bikes (like the v-rod) with a 1% loan now. Interesting that H/D sold blueprints, tools & such to the japanese in 1935

 

[harpo]

I was in a dealership last summer and asked about the 2010 FJR, I was told that he would'nt know if Yamaha would even have a 2010 till the dealer show. Guy told me that sales of the FJR had droped so much over the last few years they may stop production for 2010. Glad to see they did'nt. 2011 may be a good year to get a really good deal on a new 2010 model.

 

[Checkswrecks]

+1 to most of what folks've written about lack of financing, lower cost to buy used, yen/$, etc.

Europe has been through some bigger ups & downs than the US, so I'd expect two things for Yamaha:

1. Death of the FJR production and "consolidation" (less models) in the high end sport/cruiser market as the profit margins dry up.

2. More emphasis on the scooters and fuel efficient smaller bikes. They can make several scooters for the expense of one FJR, then bank the accessories and maintenance income.

 

[Mike Aldea]

Yamaha should take the same tact that Kawasaki did with the original Concours (ZG1000) till the economy picks up. Hold or lower the price and keep producing the FJR1300 as it currently exists so financially it will be the best deal available. Once the tooling is paid for the profit margin at the current price point will increase considerably. It will disappoint riders who want the latest & greatest. But a lot of sport touring riders will appreciate a stable platform that is supported over a long time frame that is inexpensive to buy new.

 

[blueman]

My son works for the local Yamaha shop. They have been in business for 35 years. And sales are off but they are surviving. The simple solution to increase business is to buy new bikes. I am always looked for reasons by a new bike. If this is not a good one I do not know what is. I seem to feel a portion of the recession is mental driven. People naturally hold on to there wallets when recessions occurs. And that only makes the problem worst. I am looking forward to seeing this thing turn around.

 

[Bellerophon]

There are some amazing deals out there right now. A friend of mine just bought a new non-current 2008 Star Raider for $8700. If you're looking to buy a new bike, clearly now is the time.

 

[Hudson]

This to me was the telling line in the story:

Declining demand for large leisure-oriented models in the U.S., such as the 1.3-liter $19,690 Royal Star Venture, contrasts with a recovery in car sales.

Cruiser bikes were dead almost 2 years ago, when their buyers: in it for the image, not the sport, stopped getting cheap and easy credit. But the Japanese kept producing: Honda with the Fury is a good example of piss poor timing. And what is Harley's response? Sell MV Agusta and Buell, the only things that made that brand interesting (beyond the XR1200, perhaps).

Walk into a dealership now, and only the Italians, Germans, and Brits are building anything interesting, cool, and performance oriented. I don't think they are suffering nearly as much.

 

[dcarver]

Yamaha should take the same tact that Kawasaki did with the original Concours (ZG1000) till the economy picks up. Hold or lower the price and keep producing the FJR1300 as it currently exists so financially it will be the best deal available. Once the tooling is paid for the profit margin at the current price point will increase considerably. It will disappoint riders who want the latest & greatest. But a lot of sport touring riders will appreciate a stable platform that is supported over a long time frame that is inexpensive to buy new.

Amen, brother!

 

[2006FJR]

Buying a new bike is fun but it is a lot of work to get it where my current ride is now. Not sure I want a new bike right now and mostly because I love everything about the one I have now.

 

[Crash Cash]

Yamaha should take the same tact that Kawasaki did with the original Concours (ZG1000) till the economy picks up. Hold or lower the price and keep producing the FJR1300 as it currently exists so financially it will be the best deal available. Once the tooling is paid for the profit margin at the current price point will increase considerably. It will disappoint riders who want the latest & greatest. But a lot of sport touring riders will appreciate a stable platform that is supported over a long time frame that is inexpensive to buy new.

Amen, brother!

Best idea I've heard yet!

(Plus this forum needs a post upvote/downvote feature like the comments at https://www.theregister.co.uk/ - that's another good idea)

 

[markjenn]

Certainly the general economy is hurting Yamaha sales, as is the dollar-yen situation. But I also think Yamaha's product decision makers share much of the blame for how badly the company is doing right now. They've been remarkably gun-shy to come out with new exciting products and they've ignored the US market by keeping bikes like the Tenere overseas. And their updates to their bread-and-butter bikes like the R1 have not worked out as hoped. Finally, they've squandered opportunities on bikes like the V-Max by going so overboard, they're required to be priced at levels that are simply not competitve.

Ducati, KTM, and BMW are producing a lot of new and interesting bikes during this period. Yamaha needs to stop acting like IBM and get their act together.

- Mark

 

[oldryder]

Economists call it "creative distruction...."

democrats call it "recovery summer"

 

[Wee Willy]

Remember in the HD glory years, you had to order a HD and wait 6mos to a year for certain models, and they were not negotiatign on price.

What's scary is how recently that was the case -- less than 3 years.* And I'm not seeing signs of a significant turn-around anytime soon.

+1...and it will be decades to recovery if it occurs because the pieces needed to get moving in the right direction are not even happening today...in fact we're going in exactly the wrong direction. Yamaha says they can't see the turn around from where they are today.

" 'There's no end in sight to the severe conditions,' said Kozo Shinozaki, the company's general manager of finance and accounting." Net income down 85% in the second quarter. Read the whole article here.

Cheers,

W2

 

[madmike2]

I wonder if anyone has tracked the sales for all "upper end" bikes.

At some point we FJR-ists should accept that our bike-style is included in the "touring" category, as separated from the "sport", "standard", "dual sport" and other categories. That being said (accepted?) I wonder at the percentage of drop in bike sales of that market segment. If one includes Goldwings, BMW K1200LT/1200 RT all STs and the top V-twin touring bikes, I'd bet these are not exactly "fast movers" on the sales floor.

I would think that the development process for the upgrades is probably 2 years (after design and engineering processes filter to the production line). If so, many of the changes now present began before the worst of the current economic climate. FJR sales were steady and there were major complaints from C-14 owners. Kawasaki NEEDED to make the upgrades on the Concours, much the same as Yamaha did upgrading the Gen I to Gen II FJR.

I certainly wouldn't expect Yamaha to make major changes for a couple of years, if then. I'm sure they remember the fiasco of the GT (though it was an answer for the question nobody was asking) and don't want to make that mistake again.

One would hope the design team has been assigned future projects but they've been shelved for the moment.

BMWs top seller is the GS and it has a strong market identity. As nice a bike as the Tenere is, it competes in a narrow market that is populated by many who wouldn't necessarily change from a BMW. That would be made a more difficult task because of the bikes initial cost (rumored over $19,000 base) and a lack of aftermarket pieces readily available for the BMW.

It's much easier for us to comment when we don't have the money invested that needs to turn a profit for the stockholders and the bank support.

 

[fljab]

Just watched a show on the story of H/D, it ended with the statement that in 2010 H/D suffered their first quartly loss since 1993. Must be be why they are trying to move some of the slower selling bikes (like the v-rod) with a 1% loan now.

It's too bad about the VRod; that's the only bike in the lineup that is "new" - well except for the Rotax 1125R Buell which they canned. IMO, the Vrod could be a competing Sport Tourer, but they won't develop it that way and trying to cater to a crowd that still prefers the old technology.

I don't know what it is about HD, I guess because they have been so successful with new/old bikes they have stuck with that and not "moved on".

 

[charismaticmegafauna]

I wonder if anyone has tracked the sales for all "upper end" bikes.At some point we FJR-ists should accept that our bike-style is included in the "touring" category, as separated from the "sport", "standard", "dual sport" and other categories. That being said (accepted?) I wonder at the percentage of drop in bike sales of that market segment. If one includes Goldwings, BMW K1200LT/1200 RT all STs and the top V-twin touring bikes, I'd bet these are not exactly "fast movers" on the sales floor.

BMWs top seller is the GS and it has a strong market identity. As nice a bike as the Tenere is, it competes in a narrow market that is populated by many who wouldn't necessarily change from a BMW.

It's too bad about the VRod; that's the only bike in the lineup that is "new" ...IMO, the Vrod could be a competing Sport Tourer, but they won't develop it that way and trying to cater to a crowd that still prefers the old technology.I don't know what it is about HD

I think many, if not most, BMW GSs (especially the newer 1200cc versions) are used for 'Sport-Touring' -- so much for "niche marketing"...? (admittedly it's sport touring with a "butch" slant... )

As to Harleys (and BMWs, too) -- at the high end of the market, it's not so much about the product as more esoteric considerations like: image, lifestyle, snob-appeal. It's only among the more plebian sections of the market where the competition of product virtues has any relevance.

And that's where future successful companies should focus their efforts.