Sunday, May 2, 2010

Kyle Maichle Just Making Shit Up

Here's is an interesting read of this AP article:
As the news over the past week surrounds Harley Davidson shipping more jobs out of state due to the high taxes in Wisconsin...
The article Maichle cites doesn't mention the word "taxes" once. The actual reason is put rather bluntly:
A recent analysis found a number of significant "cost gaps" that must be filled for the company to remain competitive, Harley spokesman Bob Klein said. The largest gaps involved labor costs and scheduling flexibility, Klein said.
In other words, it's a dispute between labor and management, not a tax issue.

Furthermore, Maichle misses the bigger problem with Harley:
The Milwaukee-based company has been struggling with sluggish sales, particularly of its high-end bikes. It reported last week that its first-quarter profit plunged 72 percent from the same period last year, while revenue dropped 19 percent. Retail sales of its heavyweight motorcycles fell more than 18 percent worldwide, the company said, with sales in the U.S. falling by nearly a quarter.
This should come as no surprise. Harley's aren't cheap. They're a luxury item that caters to an upper income consumer. When the economy sucks people tend to cut back on their luxury spending.

1 comment:

Anonymous said...

only losers make links THAT huge - what's he compensating for anyway?!