It’s The Economy, Stupid!

(apologies to James Carville)

There have been lots of talk about why motorcycle sales are plummeting across the board (Harley 2Q profit tumbles on fewer shipments/Victory sales fall in second quarter/), especially in this time of high gas prices. So…here is my $0.02….

Motorcycles, for the most part, are considered luxury toys to the general populace and when the economy is bad, people will not consider getting them.

We of the baby boomer generation were argueably the biggest reason for the sales boom as the surging economy allowed many to be able to purchase “that cool motorcycle I’ve always dreamed of owning” as indicated by the sales surge of cruisers and touring models in 2005, 2006 and 2007 (we also have to remember that the “custom chopper” market exploded in 2005 and 2006 as well). These classes of motorcycle are not practical “go to work” vehicles for most middle class white collar workers (I mean… GAWD…how can you expect me to ride to work and not get my clothes wrinkled) or worse ride in the rain!

So can the powersports industry recover? You bet!

Scooters!

Let’s be honest that’s the real money at the moment.  Both Honda and Suzuki are looking hard at scooters as the means to keep up sales (while Harley-Davidson is looking at buying Italian Motorcycle manufacturer MV Agusta Group to tap into the stable European market).

So…what about hybrids?
All the Japanese manufacturers are already testing hybrid motorcycles and American company eCycle has been making hybrid motorcycles since 1996, but it’s just not mainstream…yet.

Until America rethinks transportation, only a select few will see – and apply – the practical benefits of motorcycling.

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July 26, 2008 · Filed Under General

Comments

2 Responses to “It’s The Economy, Stupid!”

  1. RoadRat537 on July 26th, 2008 5:21 pm

    The economy is terrible right now. I was just reading on the Ironworks blog that Sam Kanish got laid off from his day job. With that kind of thing becoming the norm–what else can one expect, but for the sales to go down. Regardless of if your product gets better gas mileage or not, people just don’t have the cash flow to run out an buy something new. Used bike sales are up, and for good reason.

  2. Two Tone on July 27th, 2008 8:35 am

    Again all factors proving my point about general attitude towards motorcycles. Until Americans realize that motorcycles are a real alternative to cars for transportation, we can call this “wild hogs” fad over!

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