From: ed@Tekelec.gecko.uucp (Ed Campbell)
Subject: Re: The new motorcyle yuppies.
Originator: ed@rover
Organization: Tekelec Inc
Date: Fri, 11 Dec 1992 23:01:42 GMT


>The problem here is the manufacturing division of Harley-Davidson. Ask any
>Harley dealer what their biggest complaint is, and you'll get the same
>answer: "Not enough product!"
>
>Harley has been too conservative to tool up to meet the current demand. This
>allows them to have a high price and a good margin, but in the long term it
>hurts their market share, especially on a world wide basis.


     In the early 70's they upped production to market demand plus
a little more. The result was disastrous. Re: crap.amf.no_sale.
They learned from AMF's mistake and realize that they can't afford
a rerun. Customers who drop out because they got tired of standing
in line are more likely to come back than those who got a thrown
together bike right away.


>Harleys command fantastic prices outside the U.S. because so few are ex-
>ported. Harleys cost over $30,000 in Japan! With the manufacturing capasity
>to export 10 or 100 times their current tiny export volume, the company
>could afford even better engineering (which IMHO is currently quite good),
>and their increased volume could reduce manufacturing and parts costs. And
>exporting more Harleys could help our balance of payments.

     The price in Japan is not Harleys doing. The high tarrif there
is actually a break for the Japanese people, because not so long
ago it was totally illegal to own an American bike there. This is
one of the main reasons I do not aprove of buying their stuff, they
sell here for less than their domestic prices and make it impossible
for us to sell in their market. Look at Toys R Us (No reverse R on
this keyboard). They spent years in court before they were allowed
to open a store in Tokyo selling goods made in Japan! Look at the
big hoopla recently over American made sushi! 

> If Japan puts a big tarif on imported Harleys, we can put the
>same tarif on imported Hondas, etc. (Of course this assumes someone in
>Washington would have even the tiniest bit of backbone and would not be
>influenced by the thousands of American lobyists hired by "Japan Inc." or
>polititions getting fat campaign contributions -- But I digerss...)

     When Honda and Yamaha were having their trade war just after
Harley bought themselves out, we did put a tarrif on 700+ cc bikes
to let them have time to reorganize and get going. This was later
dropped before its expiration date on a petition from Harley
because they were doing well and didn't feel they needed artificial
playfield leveling. I think the big problem is the difference in
western and eastern perception of "fair play". Look at the differences
in the Bushida and the Geneva Convention.



Ed Campbell

'57 FL
'76 XLCH
My other car is a '54 Harley Servicar.

*************************************************************
   "Those twins are nice, but since I put in that Plymouth 4
    engine, there aint a Harley, Indian, or Exelcior that can
    touch my Henderson!"
                        Grandmother 1936
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