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http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg Harley said it had reclassified a $72.7 million noncash provision to establish an initial credit loss allowance. (cleanmpg.com/forums/showthread.php?t=23626)

http://www.cleanmpg.com/photos/data/501/1991_FXR_Harley_-_1_million_miles.jpgSean Welch - CleanMPG (cleanmpg.com) - July 16, 2009

A Harley is not what the public wants right now.

Milwaukee, WI. -- Harley-Davidson reported decreased revenue, net income and diluted earnings per share for the second quarter of 2009 compared to the year-ago period.

Net income of $19.8 million and diluted earnings per share of $0.08 were primarily affected by the planned 27.6 percent reduction in motorcycle shipments compared to the year-ago period and by two non-cash charges related to HDFS: a $72.7 million credit loss provision for a one-time reclassification of motorcycle loan receivables; and a one-time $28.4 million charge to write off the total goodwill associated with HDFS.

Worldwide retail unit sales of new Harley-Davidson(R) motorcycles were down 30.1 percent compared to the year-ago quarter. Retail new Harley-Davidson motorcycle sales in the U.S. were down 35.1 percent and declined 18.2 percent in international markets compared to last year's second quarter. Industry-wide retail sales of heavyweight motorcycles in the U.S. declined 48.1 percent for the same period.

"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," said Harley-Davidson, Inc. President and CEO Keith Wandell.

In light of the decline in retail motorcycle sales, the Company also lowered its 2009 shipment expectations for Harley-Davidson motorcycles. The Company now plans to ship between 212,000 and 228,000 Harley-Davidson motorcycles to dealers and distributors worldwide in 2009, or 25 percent to 30 percent fewer than the 303,479 shipped in 2008. Prior 2009 guidance was for shipments of 264,000 to 273,000 motorcycles. In the third quarter of 2009, the Company expects to ship 52,000 to 57,000 Harley-Davidson motorcycles.

As a result of the lowered shipment volume, the Company will implement a further reduction this year of approximately 700 positions in the hourly production workforce. Harley-Davidson will also be reducing the non-production, primarily salaried headcount by an approximate 300 additional positions, including a reduction at HDFS. The Company plans to offer a voluntary separation incentive package to eligible salaried employees. Earlier this year, the Company had announced workforce reductions totaling about 1,100 to 1,200 hourly production positions in 2009 and 2010 and about 300 non-production, primarily salaried positions.

"We continue to take these difficult actions to manage through the current challenges and we also continue to take major steps in creating the operational effectiveness that is essential to our long-term future," said Wandell. "We are committed to doing what is required to enable Harley-Davidson to operate as a competitive business and employer over the long haul."

The Company continues to expect full-year gross margins to be between 30.5 percent and 31.5 percent.

They need to make some motorcycles with a MPG of at least 100 or preferably 150. That'll attract a lot of attention from those saving energy.

What they really need is an image makeover. Their core demographic is in their 60s. Young people just don't buy Harleys compared with their rice-rocket making colleagues.

Sorry this is happening to an American company, but given the incredible (and often illegal) noise levels made by those things I have a hard time coming up with any tears.

jhu, FYI: Please remember that the potential audience to this forum includes many who are offended by the term "rice-rocket."

What they really need is an image makeover. Their core demographic is in their 60s. Young people just don't buy Harleys


What really bothers me is that all the other bike companies seem to make bikes that look like those outdated Harleys... They all look like 1950s police bikes to me... I just don't get it.

jhu, FYI: Please remember that the potential audience to this forum includes many who are offended by the term "rice-rocket."

I've always called them crotch rockets.... what is the proper term for the sporty bike?

I've always called them crotch rockets.... what is the proper term for the sporty bike?

Funny enough "Sport Bike". The other primary category (that most Harleys fall into) is "cruiser". Other notable sub categories are high postive caster bikes "chopper", "muscle bike" Honda Magna, Ducati Monster, some Buells (a Harley sub brand).

In my early 20s I bought a brand new Honda American Classic Edition cruiser. It was a much more reliable bike than the Harley and cost $6000 less that the equivalent Harley Fat Boy. I just wasn't willing to spend that kind of money on Harley marketing.

Sorry this is happening to an American company, but given the incredible (and often illegal) noise levels made by those things I have a hard time coming up with any tears.

jhu, FYI: Please remember that the potential audience to this forum includes many who are offended by the term "rice-rocket."

You know what? People are just too sensitive. I'm Asian and I really couldn't care less. I find, in general, the people who are most offended by such terms aren't really even the target!

Hi All:

___One item that Harley does have going for them is the stretched out riding style (not with the high chopper bars but comfortable seating) AND resale.

___Try and take a 15-year old Goldwing in and you will find out how little it is worth by comparison to a 15-year old Harley Davidson just about anything... When they were not manufactured by AMF that is ;) They are crude but reasonably durable and you can always fix them no matter how old they are!

___Apart from that, I do not see myself on a Harley as they are not all that fuel efficient let alone to much noise and vibration compared to the Japanese and European bikes of similar size and function. This is too bad because it is the only bike I can make a few calls and have one in my drive for a week long review within two hours. I would look awfully funny rolling into Sturgis with a Hi-Viz Yellow Aerostich Darien and Silver Arai XD-3 Cross over full face on while sitting on a lowly 45 mpg rated $8,000 Sportster 883 :D

___Regarding the Ricers or Rice Rocket... I do not think anyone means any harm by the terms and the bikes (Japanese Sport Bikes) have been described by those two terms for well over two decades. In the PC world, Sport Bikes is the correct option.

___Good Luck

___Wayne

You know what? People are just too sensitive. I'm Asian and I really couldn't care less. I find, in general, the people who are most offended by such terms aren't really even the target!

One of my closest friends is Asian as well and he also takes no offense to it. He actually finds it quite funny when people stumble over trying to find a replacement word in his presence.

but given the incredible (and often illegal) noise levels made by those things I have a hard time coming up with any tears.

To be honest, a stock harley exhaust isn't any louder than a stock sports car exhaust.

I guess that means most owners add aftermarket pipes to their rides?

I guess that means most owners add aftermarket pipes to their rides?

Yep... usually the first mod

To be honest, a stock harley exhaust isn't any louder than a stock sports car exhaust.At idle? At midrange? At redline? At least at moderate (driving around the neighborhood) revs -- which is what matters at 1 am -- Harleys are a lot freakin' louder!