Modern Vespa

The numbers aren't looking good for the first six months of 2009 compared to the same time period in 2008. Sources tell us that street bike sales for the first two quarters of the 2009 year so far totaled 212,130, down 46% from the same time period in 2008. Dual sport sales are down 47%; off-road motorcycle sales down 37% and scooter sales are down a whopping 67% from the first 6 months of 2008.

Meanwhile, some numbers from Japan indicate motorcycle production in May 2009 was down 28,445 units or 40.9% of the May 2008 number of 69,626 units produced. Motorcycle exports from Japan in May 2009 totaled 33,845 units, down 28,203 units or 45.5% of May 2008 figure of 62,048 units.

Just for comparison, Japanese automobile exports in May 2009 were 233,217 units, down 295,400 units or 55.9% from the May 2008 figure of 528,617 units.

Note: Harley Davidson got hard hit on two fronts...decline in unit sales and defaults on MC loans (this is my opinion) from their Financial Services Ops. (not much said about this)...but it's sounds like the same case scenario as sub prime with real estate...really would like to know what how much bad debt was written off.

No facts, only anectdote. My brother just bought a motorcycle in El Paso, TX - helping Ducati's +10%. The sales folks told him they're hurting, mainly due to lack of financing for potential customers. Fewer than last year can get credit, fewer still can pay cash. Lots lots lots of inventory sitting on the floor.

I was just reading about Senator Casey's (Pennsylvania) proposed legislation to include motorcycles in the Cash for Clunkers program: $2,500 toward purchase of a new motorcycle. Personally I'm not keen on the way the law is written. The performance criteria is weak and the incentives misdirected. But I do have a prime candidate vehicle for the program. Since getting the scooter, my rusty beach truck spends most days blocking the gutter. The program might induce me to visit a dealership.

I'd be interested to hear what folks with industry ties have to say.

Harley sales dropped much less than the Japanese bike sales.

The 2009 second quarter numbers are in for Harley-Davidson and the results, like the rest of the motorcycle market right now, aren't pretty. The Motor Company's Q2 retail sales dropped worldwide 30.1% compared to 2008. The US-only sales figures are even more grim, with a 35.1% decline.

Harley-Davidson is far from alone as a motorcycle manufacturer feeling the economic sting in 2009.The net income plunge is more dramatic, falling from $222.8 million in 2008 to $19.8 million in 2009. This is due, in part, to an operating loss of $62.1 million by the firm's HDFS (Harley-Davidson Financial Services) arm, which posted $27.1 million in income for the same quarter in 2008. Another hit in H-D's total 2009 financial numbers comes from a claimed $22.5 million one-time tax charge from its acquisition of MV Agusta.

The drop in demand forces H-D to lower planned 2009 production shipments from estimates of 264,000-273,000 to 212,00-228,000 units. The approximate 50,000-unit reduction necessitates another round of layoffs - Harley announcing job losses of "approximately 700 positions in the hourly production workforce" as well as "about 300 non-production, primarily salaried positions."

The production drop will also require shutdowns of the Kansas City V-Rod and Wauwatosa, Wisconsin Sportster operations for "approximately 14 weeks in 2009, including the entire fourth quarter." The Motor Company also continues to analyze whether restructuring can save its York, Pennsylvania, plant or if York's operations will be relocated entirely.

H-D President and CEO Keith Wandell, maintains the brand is solid, while also acknowledging the industry-wide downturn is presenting significant challenges, saying of the Q2 numbers:

"While the underlying fundamentals of the Harley-Davidson brand remain strong and our dealers' retail motorcycle sales declined less than our competitors, it is obviously a very tough environment for us right now, given the continued weak consumer spending in the overall economy for discretionary purchases."

It seems the lower gas prices (for now) and the declining economy are also affecting the used market. Is it just me or are there some great deals out there on used scooters? Last year, less than perfect scoots were being sold-or at least the asking prices were- at crazy levels. Now I'm seeing near perfect bikes with low mileage just sitting even after many price reductions. It's definitely a buyers market right now.

Bob