NEWS
Harley Davidson Motorcycles best capitalized competitor in the heavyweight cruiser motorcycle market, Victory Motorcycles announced significant layoffs Friday.
Polaris Industries Incorporated is Victory Motorcycles parent company. Polaris said they will cut 460 jobs. 300 of the layoffs will affect temporary and part-time employees. The balance of the layoffs will be full-time employees working at the Roseau, Minnesota plant. Victory Motorcycle’s builds it V-Twin engines in Osceola, Wisconsin and the balance of the motorcycle is assembled at their plant in Spirit Lake, Iowa.
Polaris is obviously tightening its belt but the company is clearly not in trouble.
Scott Wine, the Polaris Chief Executive Officer, released a statement in which he called the layoffs, “necessary in light of the external environment and will better enable us to remain competitive in the future.”
The company remains profitable. Thursday, Polaris announced it was increasing its regular, quarterly cash dividend by three percent.
Victory Motorcycles decisions coincide with the article I wrote about Harley Davidson Motorcycles last week. It cannot be denied that Harley is a company in distress.
Investors, as opposed to motorcycle enthusiasts, think Harley Davidson has over-estimated the value of its brand. Last week, the company was quietly looking for a new advertising agency. The financial arm of the motor company, Harley-Davidson Financial Services (HDFS) unit Eaglemark Savings, has become increasingly unprofitable. Harley is widely rumored to be trying to unload Eaglemark Savings.
Also last week, Senator Bob Casey, of Pennsylvania asked the Federal Deposit Insurance Corporation (FDIC) to make Harley-Davidson eligible for the next Federal bank bailout. Harley expects to need an astounding $1 billion to continue to finance loans for consumers and dealers in 2009.
Harley Davidson’s departing CEO, Jim Ziemer, said the Harley brand is so strong it can even survive the mess George Bush has made of the American economy. Well Jim clearly doesn’t believe his own statements are strong enough for him to bother sticking around because Ziemer announced that he intended to leave the company last month.
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{ 2 comments… read them below or add one }
It’s a f*cking sickening situation: blue-collar layoffs that generate white-collar profits. When will these executive dicks realize that what looks good on paper (aka the Bottom Line) is not always the best resolution? Let’s see those suits try to assemble their machines when they’ve run off the production staff!
They’re especially shooting themselves in the foot by lining up for their “share” of any future bailout. People will think the company is in serious trouble, and won’t support it with their purchase dollars. Hell, I know *I* won’t!
Yeah it really hurts us all. Take a look at the latest fiasco…18.4 billion for Wall Street Bonuses from the bailout money at the American taxpayers expense. Sure good build a lot of custom motorcycles from that.
Boss Hawg Put a breeze between your knees ride safe.
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