US Motorcycle Sales down 44%

[Freebird]

Not really a big surprise but still not good. Yamaha's production numbers are actually down by 60.8%.

 

http://www.webbikeworld.com/Motorcycle-news/statistics/motorcycle-sales-statistics.htm

[autopilot]

Might not be as bad if they'd try giving us what we want for a change!

[Condor]

Might not be as bad if they'd try giving us what we want for a change!

 

With sales volumn off by that much we'll be lucky to get anything at all.

[Owen]

Not really a big surprise but still not good. Yamaha's production numbers are actually down by 60.8%.

 

http://www.webbikeworld.com/Motorcycle-news/statistics/motorcycle-sales-statistics.htm

 

Maybe I'm reading the Yamaha production thingy wrong, but I read the chart as saying the production level is 60.8% of last year... if 100% of last year is even, then they are down 39.2% ? Still not good but 2nd only to Honda.

 

Or I got it wrong.

[Freebird]

No...you are correct. I read it wrong. So...they are down almost 40%. Still not good but better than 60%. But it looks like they are third to Honda and Kawasaki.

[Eck]

I would think being that far down, Yamaha will be somewhat reluctant to invest in anything bigger (cc wize), or make any changes to what they already have.

[BradT]

Interesting. Not sure why motorcycle production has dropped for 4 years in a row. Seems odd to me. Maybe they were over producing in the first place.

 

I work for a manufacturer in the construction industry and 2005-2008 were record breaking years.

 

The Construction industry is suppose to be a drop of 55% which sounds horrible however this is a 55% drop from previous years which were not the norm. So the big question what is the norm and then if you compare this years sales to the norm it is not as bad as it sounds.

(obviously not good but not as bad as the numbers show, guess it depends on how you look at the numbers).

 

I know off topic but was trying to put some positive on the negative

 

Brad

[loehring]

The bike folks are just going through what every other industry is going through. The world economy sucks so they will all just hunker down and ride it out. All those companies are very diverse so they will be fine. I think you all are right about the R&D though. That will suffer until the economic smoke clears.

[Squeeze]

What Kind of Sense would it make to NOT invest in Future Products ?

 

I you can't sell what you already have, how will you sell them same Stuff in the Future. They have to increase their Efforts to regain the Focus of their Customers. Of Course, this goes along with the Down Fall of the Ecnomy and you have to adjust between cutting down and investing in the right Departments.

 

Interesting. Not sure why motorcycle production has dropped for 4 years in a row. Seems odd to me. Maybe they were over producing in the first place.

 

I work for a manufacturer in the construction industry and 2005-2008 were record breaking years.

 

The Construction industry is suppose to be a drop of 55% which sounds horrible however this is a 55% drop from previous years which were not the norm. So the big question what is the norm and then if you compare this years sales to the norm it is not as bad as it sounds.

(obviously not good but not as bad as the numbers show, guess it depends on how you look at the numbers).

 

I know off topic but was trying to put some positive on the negative

 

Brad

 

That why i run the Average of the last 4 Years for judging my own Numbers. I do this since 8 Years and it gives you a much better Basis on saying where you really are. We had a horrible last Year, but there have been several temporary Issues. If i'd compare only this Year with last Year, like the Bankers like to do, we would have exploding Earnings, but actually they're not so much of "exploding" if you lost a half of a Fortune last Year. This MBA-like Point of View isn't the best Way of looking at your Balance. I prefer mine and deal with those short-termed Babblers. They might be gone next Year anyway ...

[Sylvester]

I believe the down in mc sales is as much social as economic. I was born early 1946 (baby boomer) and have ridden for fifty years. I grew up with motorcycles and my son (36 years old) has been around them all his life. He has no desire to own or operate a motorcycle and never has. His passions are other than mine. I have been a STAR Touring and Riding member, officer and national officer for many years and membership has fallen. I feel that the baby boomer generation promoted the rise in mc sales over the last few decades and now it is declining. I have an 02 RSMV and no matter what they bring out, I will not buy another. This will last the rest of my riding life.

 

 

[Freebird]

I agree with you. My son is 17 and though I've had a number of small bikes around and he has ridden some, he never got excited about it like I did at his age. I got my first bike when I was about 14 and couldn't get enough of it. He's the same way with cars though. I was always doing something to my car whether it was wheels, exhaust, stereos (8 track by the way), whatever. He has no interest as long as it starts and gets him where he needs to go.

 

As for the Star Touring membership decline, I wonder if that is not directly related to the drop in motorcycle sales. I know that a new purchaser of a Star brand motorcycle gets a free one year membership. Like most clubs, the renewal rate is not spectacular. So with less new members coming from new one year free memberships, I would think that would have a definite affect on the number of members. Don't know if I'm right or wrong, just thinking out loud.

[jfoster]

I would think being that far down, Yamaha will be somewhat reluctant to invest in anything bigger (cc wize), or make any changes to what they already have.

 

That's ONE thing I like about HD's, They seem to keep making upgrades to their current models; transmissions, motors, exhaust, etc. I really like the new rear blinker set-up they have on the 2010's (removing the traditional brake light).

[Grandpagak]

i would have to conclude that prices are a major factor with the motorcycles. you can buy a small car for less than a large motor cycle, that gets about the same mileage.( chevy aveo) $10,800 in '08,with 40+ mpg..and with this economy, many would need to go with the car.. just my thoughts.:smile11:

[jlh3rd]

i also have the same observations as freebird.............i couldn't get enough of airplanes at the age of TWO ! ( confirmed by my mom and my memory).....subsequently, that included cars, bikes anything mechanical....by ten i wanted a mini bike in the worst possible way...and i do all my own wrenching

 

well, i've got 4 sons....and none of 'em show interest like i did....and the two that are married don't want more than one or two kids........the boomer's have supplied the latest surge in bikes...and that 's probably the last great upswing

[firewalker]

Actually talking to the Owner of my local Yamaha dealership, the problem is not with sales, the issues come from the fact that it is very hard for the dealers in this market to get a person financed on what is considered a Luxury Item. He told me that they are extremely busy with the people that want to buy, but when they try to get the financing that is when the sales are falling through.

[slick97spirit]

I think that television had alot to do with the upsurge in motorcycle sales over the last several years. There were alot of shows on that made it cool to own a custom bike and as a result alot people bought them as well as alot of upstart custom bike companies were started and have since folded.

I think many people bought bikes that had never ridden before (or much anyway) and found they didn't like it as much as they thought they would resulting in a nearly flooded used motorcycle market of all types. Since there were so many used bikes, not as many are buying new. Just MHO

[CrazyHorse]

I believe the down in mc sales is as much social as economic. I was born early 1946 (baby boomer) and have ridden for fifty years. I grew up with motorcycles and my son (36 years old) has been around them all his life. He has no desire to own or operate a motorcycle and never has. His passions are other than mine. I have been a STAR Touring and Riding member, officer and national officer for many years and membership has fallen. I feel that the baby boomer generation promoted the rise in mc sales over the last few decades and now it is declining. I have an 02 RSMV and no matter what they bring out, I will not buy another. This will last the rest of my riding life.

 

 

 

 

I have to agree with the Baby Boomer statement I was reading somewhere about the housing market and the effect the baby boomers had on it they needed houses and they built like crazy. Now boomers are starting to retire and dont have the replacments (people) so you never going to see the housing boom you once saw again unless you have another baby boom or big immigration boom. I believe this is going to cover all business sectors your not going to have as many people spending big money on items. Couple this with the bad economic situation and your not going to have the big sales on cars, houses, motorcycles etc. that you once did. Sales in my opinion in all sectors are not going to be what they once were. Heres an article about boomers and bikes http://articles.moneycentral.msn.com/Investing/StockInvestingTrading/is-harley-davidson-over-the-hill.aspx#pageTopAnchor

 

And boomers and houses. http://blogs.wsj.com/developments/2008/01/16/why-baby-boomers-may-bust-the-housing-market/

Edited October 22, 2009 by CrazyHorse

[OldBear]

I think that television had alot to do with the upsurge in motorcycle sales over the last several years. There were alot of shows on that made it cool to own a custom bike and as a result alot people bought them as well as alot of upstart custom bike companies were started and have since folded.

I think many people bought bikes that had never ridden before (or much anyway) and found they didn't like it as much as they thought they would resulting in a nearly flooded used motorcycle market of all types. Since there were so many used bikes, not as many are buying new. Just MHO

 

I'd expand on that and add that today's "beginner" bikes are larger and significantly more powerful than the "Hot" bikes were in 1968 (When I started to ride). Makes me wonder how many "new" riders climbed on board their shinner new "beginner" bike and promptly scared the HE double hockey sticks out of themselves and consequentially NEVER actually became a rider? My first "big" bike was a nice year old Yamaha 305 cross country (32 horses if memory serves). Coming off a 90 Bridgestone I scared the crap outta myself taking it the 35 miles to the Yamaha shop, only to find out that it was only running on ONE cylinder!!! If it had been my first bike, I'm not sure I'd have ridden anymore...just a thought..

[BradT]

What Kind of Sense would it make to NOT invest in Future Products ?

.

Personally I agree and think it is wise to bring the new products out when the economy is doing well so that it sells. Too many companies will cut back too far and then when things pick up they can not handle the work load.

 

Swifty no need to add any comments to these posts:stirthepot:

 

Brad

[Squeeze]

Personally I agree and think it is wise to bring the new products out when the economy is doing well so that it sells. Too many companies will cut back too far and then when things pick up they can not handle the work load.

 

Swifty no need to add any comments to these posts:stirthepot:

 

Brad

 

 

That's what we see over here. The Ecomomy is down and yet Delivery Times go up. Partly tremendously. That's because everybody keeps the Inventory low and when a Order comes in, the Work Power might be there to do something but you can't get needed Materials any soon. This goes throughout the whole Range of Products. It's unbelieveable in first Place, but when you acknowlegde the Logic behind this, it's normal. This will fall on our Feet soon.

[RPG]

I believe the down in mc sales is as much social as economic. I was born early 1946 (baby boomer) and have ridden for fifty years. I grew up with motorcycles and my son (36 years old) has been around them all his life. He has no desire to own or operate a motorcycle and never has. His passions are other than mine. I have been a STAR Touring and Riding member, officer and national officer for many years and membership has fallen. I feel that the baby boomer generation promoted the rise in mc sales over the last few decades and now it is declining. I have an 02 RSMV and no matter what they bring out, I will not buy another. This will last the rest of my riding life.

 

Totally agree, the crest hit a year or so ago and now the decline has begun and will likely continue for the next few years. Kinda like the tatoo fad I suspect Lol...

[Bobby G]

I think that there is still a sufficient level of demand for motorcycles in all sectors - street, cruiser, touring and off road - but the ability of your typical customer to acquire the bike today is what is mainly affecting sales. Consumer finance options have shrunk with big lenders like GE Money and HSBC significantly cutting back in this industry due to massive credit losses, and with the seemingly non-stop erosion of consumer credit due to job losses, home foreclosures, etc., even top tier lenders who are still in the game, like HD Credit, Sheffield Financial and State Farm Bank, are being very cautious about who gets financed. New regulations in revolving credit are also affecting what kind of loan programs will be offered by the Big 5. The days of $79 a month for the first 12 months, then 23.99% for the next 15 years are over! If you don't have the wherewithall to make a reasonable installment loan payment on a bike, and don't have at least a 675 credit score, you won't qualify. Lenders are more risk-averse than ever, and F&I managers at the dealerships are learning that they can't make chicken salad out of chicken sh1t anymore to make the sale.

 

Welcome to the new age of retail selling and lending!

[Condor]

Everyone can theorize all they want, but it all comes down to this.. the economy sucks. Getting down to the basics, there's 10% plus unemployment, there's another 10% that aren't on unemployment but still unemployed, There's another $20% of the work force that are working but don't know if they'll have a job next week or next month. Do the math. That's 40% of the market that aren't spending any money for anything other than necessities. If you lost 40% of your potential sales income you wouldn't be buying anything either. Until the most prolific employer we have get's back on it's feet and starts hiring we're all going to have to tighten our belts. That employer is the small business man.

[Venturous Randy]

Everyone can theorize all they want, but it all comes down to this.. the economy sucks. Getting down to the basics, there's 10% plus unemployment, there's another 10% that aren't on unemployment but still unemployed, There's another $20% of the work force that are working but don't know if they'll have a job next week or next month. Do the math. That's 40% of the market that aren't spending any money for anything other than necessities. If you lost 40% of your potential sales income you wouldn't be buying anything either. Until the most prolific employer we have get's back on it's feet and starts hiring we're all going to have to tighten our belts. That employer is the small business man.

 

Ditto!!!

I agree 110% with everything you said.

The small business man it what makes up much of our working force.

As far as getting a loan, what it comes down to is; "If you don't need the money, they will give you a loan"

RandyA

[rdunbar123]

I'd expand on that and add that today's "beginner" bikes are larger and significantly more powerful than the "Hot" bikes were in 1968 (When I started to ride). Makes me wonder how many "new" riders climbed on board their shinner new "beginner" bike and promptly scared the HE double hockey sticks out of themselves and consequentially NEVER actually became a rider? My first "big" bike was a nice year old Yamaha 305 cross country (32 horses if memory serves). Coming off a 90 Bridgestone I scared the crap outta myself taking it the 35 miles to the Yamaha shop, only to find out that it was only running on ONE cylinder!!! If it had been my first bike, I'm not sure I'd have ridden anymore...just a thought..

I always have thought the same thing. I started with a honda 50, progressed to a 305 and when I was 17 bought Bonneville. With eachstage I was surprised by the jump in power. To go out and buy a HD or a Raider for a first bike is insanity. My Yammi dealer will tell stories of people who have bought the biggest bike they can afford and promptly driving into the canal across from the shop!!. On youtube there is a video of a man on what has to be a CVO electra glide on a ride that lasted 13 seconds before he hits a car in the parking lot.