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Buell Motorcycle Forum » Quick Board Archives » Archive through September 23, 2007 » Harley Layoff, How will it Effect Buell? « Previous Next »

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Buellinachinashop
Posted on Wednesday, September 19, 2007 - 01:50 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Well, Harley is having a mandatory/unpaid layoff over the week of Nov 26th. How does this effect Buell production for 2008?

ideas? thoughts? facts?
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Lake_bueller
Posted on Wednesday, September 19, 2007 - 01:57 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

It shouldn't effect Buell in the least. They'll be building the 1125R faster than they can sell them.

The Harley deal is most likely to pull back on an oversaturated inventory of new bikes in dealerships. In my opinion, they need to cut back on production to remain competitive.

It sucks for the employees (especially right before the holidays). But the people at the mother company brought it upon themselves.
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Buellinachinashop
Posted on Wednesday, September 19, 2007 - 02:06 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Lake, Buell motors are made at the Capital drive plant.
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Court
Posted on Wednesday, September 19, 2007 - 02:14 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

We had this discussion last week, when the action was announced. The general consensus was that it would have no impact on Buell.
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Daves
Posted on Wednesday, September 19, 2007 - 05:54 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

are they building the 1125 motor in Milwaukee?
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Bads1
Posted on Wednesday, September 19, 2007 - 06:01 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Come on Dave.... Rotax builds em. lol
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Kuuud
Posted on Thursday, September 20, 2007 - 07:58 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

They'll be building the 1125R faster than they can sell them.

Hmmm..that doesn't sound like a good thing!
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Mikej
Posted on Thursday, September 20, 2007 - 08:31 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

This is getting to be an annual event.
(and there is no appropriate smiley)
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Davegess
Posted on Thursday, September 20, 2007 - 09:34 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Another sign of the economy heading south. I hope it does not go very far.

I think H-D is reacting quickly to keep supply and demand in line. It is shocking after so many record years to see them actually slowing down.

I think that for once in his life Erik has really good timing. If this had happened two year ago I suspect the 1125 project would have been whacked. Too late to stop it now.

I am sitting here fantasizing what might transpire in the board room in a year if Buell can't make enough bikes to meet demand and H-D has to reduce production? That would be ironic would it not?
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Mikej
Posted on Thursday, September 20, 2007 - 09:57 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

I'd wager they'd talk about moving assembly and production of Buell to one of the H-D plants.
Then I'd suspect EB would head home and start sharpening up a broadsword.
(2008 is going to be interesting on many levels, all I can say and probably too much)
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Strokizator
Posted on Thursday, September 20, 2007 - 01:11 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

It's not that bad. If the company announced a one week furlough almost 10 weeks in advance it should give every employee ample time to stash a little away each week and enjoy a long Thanksgiving holiday. Of course I live paycheck to paycheck so my advice is worth nothing. I just bought an '08 FLTR and am trying to do my part for the greater good.
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Tommy_black_shark
Posted on Thursday, September 20, 2007 - 02:33 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

I don't think its time to start lighting candles for Harley-Davidson. Financially they are still far and away the healthiest motorcycle company out there. For 2007 after a 3 week strike, in the midst of a sub-prime meltdown they announce that they are going to sell about 5% fewer bikes than they did in 2006. And oh, by the way sales and earnings are still going to increase.

Compare that to the world's largest motorcycle company, Honda. American Honda reported a drop in motorcycle sales of 18.2% for 2007, this after a drop of 10% for 2006. Earlier this year Honda quietly moved 20% of its US motorcycle workforce from bikes to cars. Good for them they have a no layoff policy.

To put just how strong a company Harley-Davidson is in perspective: the worlds largest motorcycle company, Honda did almost $12B in sales worldwide in 2007. On that revenue they had net income of about $850 million. In 2007, on revenues just under $6 billion, HD will have net income of about $1.1 billion.

You have to ask yourself why HD's troubles are front page news, and Honda's troubles go unnoticed by almost everyone.
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Blake
Posted on Thursday, September 20, 2007 - 03:41 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

"Another sign of the economy heading south. I hope it does not go very far. "


Here in East Texas the economy is booming. So in that respect at least, your "economy heading south" comment is accurate.
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Rex
Posted on Thursday, September 20, 2007 - 07:06 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

harley really ramped up, upgraded facilities, added facilities, research centers, etc.

There has to be a slow down of cruisers sometime, but they still are putting out some great stuff.

I think their new sportster line, the new rocker models this year, their new ABS brakes, etc. They have really stepped up.

They are getting top dollar, they now have bikes in the showrooms that were not there 5 or 6 years ago.

buell is coming on, dirt bikes on the horizon. I think their motorclothes folks should be smart enough to stay up with all of the trends, etc.

we will see.

Too bad they do not have a car division to send their over scheduled help to, like Honda. rex
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Rex
Posted on Thursday, September 20, 2007 - 07:08 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

I think the Big Dogs of the world should be the ones doing some hard thinking.....most of those guys would fall out first.....rex
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4cammer
Posted on Thursday, September 20, 2007 - 10:33 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

I was just (well, two weeks ago) lamenting with an old time flat track racer at my local HD/Buell shop that I miss the days when the dealerships were small and the bikes took up more room than the clothes and chrome.

Just sayin.
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Mikej
Posted on Friday, September 21, 2007 - 08:40 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

The "Big Dogs" of the world will just morph into the next thing that comes along, in fact some of them already are to some extent. Some lead, some follow, some copy, some don't.
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Paint_shaker
Posted on Friday, September 21, 2007 - 05:58 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

4cammer... I remember those days (and I ain't that old)!
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Cityxslicker
Posted on Friday, September 21, 2007 - 06:50 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

its not the factory you really need to worry about... its the trucking company that delivers the bikes. During the strike last year, they stood in union with them, and there were no bikes coming in, despite bikes in the warehouse that were available for shipment. There is already writing on the wall for decreased production and lowered allocation. We will have to see what spring brings.
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