Harley-Davidson in China

**zhu** · 08-04-2013, 01:17 PM

not an expert on American culture but is this hardly a double wide?

**MJH** · 08-04-2013, 02:24 PM

The HD sales are small, very small proportion of all sales in China They seem to like to use growth numbers, selling one then selling two….wow look 100% growth, they keep the actual unit sales numbers hidden, they are making gobs of profits on those small sales.

The top 1% can say hey if we get rid of the tariffs and restrictions and open up the markets then our collective small group looses value.

High prices keep the bikes exclusive, if they freed up the market then the values fall and the exclusiveness goes away. They would end up with egg on the face, if prices fell, the top 1% get access only and conveniently have the most influence.

**Lao Jia Hou** · 08-04-2013, 10:43 PM

Originally Posted by MJH

High prices keep the bikes exclusive ...

Yeah, loud pipes scream "look at me, I'm rich, and you're not". At least in China they do.

Sent the pics to my 'Mericun buddies, and I have already received two replies claiming I had photo shopped the price tag. They absolutely refuse to believe that anyone would spend >$100K on a floor model Harley. Sigh, yet another example of nobody believing what actually goes on in China.

**bikerdoc** · 08-05-2013, 01:27 AM

Originally Posted by MJH

The HD sales are small, very small proportion of all sales in China They seem to like to use growth numbers, selling one then selling two….wow look 100% growth, they keep the actual unit sales numbers hidden, they are making gobs of profits on those small sales.

The top 1% can say hey if we get rid of the tariffs and restrictions and open up the markets then our collective small group looses value.

High prices keep the bikes exclusive, if they freed up the market then the values fall and the exclusiveness goes away. They would end up with egg on the face, if prices fell, the top 1% get access only and conveniently have the most influence.

HD does not make the profit... of the difference between USA MSRP and PRC MSRP... it is the PRC government that makes that profit... same as pretty much all imported 'luxury' goods in PRC.

**MGAlbion** · 08-05-2013, 02:02 AM

Anyone wanna come up with a killer ride you could do if you were the proud owner of such a machine here in the Celestial Kingdom? What do you reckon: for 100K you'd want a pretty good ride before the winter set in. Lets say starting and ending in BJ.

**bigdamo** · 08-05-2013, 04:15 AM

Over a $100K for a Harley you have got to be kidding. As my friend told me don't buy a Harley you'll turn into a Ars#****. Most of the wanabes Harley riders here have a serious attitude problem and there not the 1%ers .

Harleys Don't turn Don't stop, Don't accelerate just make alot of noise.So the riders think everyone looking at them think there legends.There not there just Tools.

I could see certain groups of Chinese fitting in well in the wanbe bikers.

Rant over.

**bikerdoc** · 08-05-2013, 04:55 AM

Originally Posted by bigdamo

Over a $100K for a Harley you have got to be kidding. As my friend told me don't buy a Harley you'll turn into a Ars#****. Most of the wanabes Harley riders here have a serious attitude problem and there not the 1%ers.

Harleys Don't turn Don't stop, Don't accelerate just make alot of noise.So the riders think everyone looking at them think there legends.There not there just Tools.

I could see certain groups of Chinese fitting in well in the wanbe bikers.

Rant over.

Bit of an over-generalisation, but that being said, fundamentals of these sentiments can equally be applied in other jurisdictions such as OZ...

**zhu** · 08-05-2013, 06:24 AM

Originally Posted by MGAlbion

Anyone wanna come up with a killer ride you could do if you were the proud owner of such a machine here in the Celestial Kingdom? What do you reckon: for 100K you'd want a pretty good ride before the winter set in. Lets say starting and ending in BJ.

hit every starbucks in Beijing?

**MJH** · 08-05-2013, 07:53 AM

HD does not make the profit... of the difference between USA MSRP and PRC MSRP... it is the PRC government that makes that profit... same as pretty much all imported 'luxury' goods in PRC.

Yeah your correct, HD likely gains nothing significant off its operations in China, however the small group running the operations in China are all pulling significant salaries. There is allot of overhead for those operations there, it is possible that the operations in China take a loss or breaks even on the corporate side of HD, the value for them is bragging rights, which are not even in realty significant since the actual sales are so small.
Some people love HD and others love to hate HD…

I had a friend that was a trainer at HD, she set up dealer training sessions. When she left them she said it was the worst company she ever worked for…narrow minded and chauvinistic was her summation.

I would not be surprised if HD gets kick backs in China, look who they cater to. All they would have to do is talk about closing up there and the 1% would hand them money they would be screwed otherwise.

**MJH** · 08-05-2013, 08:15 AM

I am not sure how incomes disperse in China, I’ve read that they are similar to the USA a 1% earning the majority of the capital and the rest break out differently, not sure what the middle class in China earns maybe some of them earn enough to buy an HD there? The 1% in the USA are not likely riding motorcycles, here it’s a middle class bike, mostly trades people or working class labors that ride. They do not hang out at coffee houses, they hang out at biker bars though.