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This article is about HD's poor performance last quarter and resulting stock price plunge, but it brings up a very interesting point about the strength of the US dollar and it's impact on sales, specifically foreign manufacturers' sales in the US and US manufacturers' sales abroad. It caught my eye because there's been a lot of mention in various threads about the steep discounts on the CTX since its introduction last year. Well, it's not entirely due to poor sales, an it's not just Honda who's doing it.
Particularly interesting:
Harley-Davidson shares are at a discount even if its motorcycles are not - MarketWatch
Particularly interesting:
Probably doesn't help anybody who bought at or near full sticker, but it might ease the pain just a little.One problem for Harley is that the strong dollar makes motorcycles from Japanese competitors, like Honda, Yamaha and Suzuki, much cheaper for U.S. consumers. Those companies don’t make bikes in the U.S. So all their products land on U.S. shores at a much lower price whenever the dollar is high. That’s the case now. Not good for Harley.
Next, in a move that would make any biker steaming mad, these competitors are just piling on. Japanese and European motorcycle makers have bloated inventories because their economies are weak. To deal with it, they’re offering U.S. buyers steep discounts of up to $3,000 on a bike.
Harley-Davidson shares are at a discount even if its motorcycles are not - MarketWatch