Harley-Davidson To Close Factories
This post is a reminder that all businesses - well run and otherwise - are being severely impacted by the credit crisis. Of course, if you live in the real world, I'm talking to the hand.
Harley-Davidson is one of the best run consumer industrial companies on earth. Their global brand is on par with that of Apple and Toyota. They dominate the large bike segment in the U.S. with approximately 50% market share. They don't do too badly outside of the U.S. either. In fact, Harley-Davidson has achieved cult status from Japan to Germany. I've been a member of that cult for twenty years.
Less than two months ago we highlighted the problems at Harley-Davidson. Specifically we highlighted the deliquency rate at the finance unit and that same unit's contingency plan to tap finances from the parent company should they be unable to access credit outside of the company. An ugly situation that we said was going to get worse. Now we see the head of the finance unit, a former mortgage business executive, has left the company and results have deteriorated further. I haven't looked at the most recent SEC filings but I'm not sure I want to. The stock has already dropped an additional 60% since our last post.
Harley-Davidson is one of the best run consumer industrial companies on earth. Their global brand is on par with that of Apple and Toyota. They dominate the large bike segment in the U.S. with approximately 50% market share. They don't do too badly outside of the U.S. either. In fact, Harley-Davidson has achieved cult status from Japan to Germany. I've been a member of that cult for twenty years.
Less than two months ago we highlighted the problems at Harley-Davidson. Specifically we highlighted the deliquency rate at the finance unit and that same unit's contingency plan to tap finances from the parent company should they be unable to access credit outside of the company. An ugly situation that we said was going to get worse. Now we see the head of the finance unit, a former mortgage business executive, has left the company and results have deteriorated further. I haven't looked at the most recent SEC filings but I'm not sure I want to. The stock has already dropped an additional 60% since our last post.
<< Home