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Old 08-06-2010, 11:55 PM   #10
Mudpuppy
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Originally Posted by goof2 View Post
Even if HD did manage to start secretly importing bikes made in India, something I find unlikely since they would have a few thousand former employees paying very close attention to where their jobs end up, once they were discovered I believe it would kill the company. Bankrupt companies aren't able to pay out golden parachutes.

Concerning the Indian market, yes it is a predominantly poor country, but it also has a very large population. Not only did India have over one hundred thousand people with a net worth over $1 million dollars in 2009, some recent projections expect that to triple in the next 10 years. If you are trying to sell HDs to that group would you rather sell them a $75k+ CVO Ultra Classic Electra Glide or the same bike for less than half that? How about a $42k Night Rod vs. the same bike for less than half? It makes a lot of sense to manufacture motorcycles destined for India in India.
Well I am sure they have done market research and feel there is enough of a market there.. but even with 300,000 people worth over $1m how many are going to buy bikes? and even if say 5% of them bought bikes that is 15,000 bikes sold.. the capital expense of the initial equipment and operating costs, even in india, would far exceed any profit you would make from it.. and really if 15,000 bikes are sold how soon would the same people buy another bike? not for a few years at least.. so HD is either planning on building in india to sell in india and countries nearby because there is a market or potential market or they are just positioning themselves for the future in india because its an emerging market which seems unlikely because they are talking cutting millions in manufacturing costs why would they make such an investment in this bad economy or they are planning on building dirt cheap bikes in a low cost country to sell here.. i have no idea what the answer is just wild speculation and my own theories that involve golden parachutes for the select few..
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