Harley Davidson
Introduction:
Harley Davidson Inc is the leading motorcycle company in the United States, with an approximate 46% market share. It derives its revenue from the sale of motorcycles to dealers, the sales of parts and Harley Davidson accessories, and the financing of approximately 53% of its U. S. Consumer motorcycle purchases. Harley Davidson stock sold for P12.70 per share in late March 2009, down from a high of $70 in October 2007. Harley Davidson like manufacturers of big-ticket items has been hurt by the U.S. recession and the securitization liquidity crisis. Harley Davidson’s 2008 Annual Report refers to two major lawsuits, the claims of which Harley Davidson vigorously contests and which Harley Davidson has asked the courts to dismiss. These lawsuits deal with the year 2004 through April 2005, and the complaints are based on interviews with more than twenty confidential witnesses who worked for Harley Davidson. The lawsuit allege that Harley Davidson engaged in channel stuffing to inflate the sales of its motorcycles to its dealers and Harley Davidson Financial Services lowered its consumer underwriting standards to make loans to people who ordinarily would not qualify, artificially boosting its sales to meet Wall Street expectations. In effect, the lawsuits accuse Harley Davidson of making sub-prime motorcycle loans and increasing substantially the percentage of such loans in order to meet earnings estimates. Harley Davidson denies all allegations. The lawsuits further allege that there was substantial insider selling of stock while these activities were going on. Harley Davidson founded in 1903, but it was not an overnight sensation they got their name marked in the industry until the 1980s where they got an iconic status. They now offered a range of reliable heavy weight motorcycles. The company found it profitable to tap the growing demand for nostalgia influenced styling. Throughout its styling, the company was careful to stick certain basic elements
Harley Davidson Inc is the leading motorcycle company in the United States, with an approximate 46% market share. It derives its revenue from the sale of motorcycles to dealers, the sales of parts and Harley Davidson accessories, and the financing of approximately 53% of its U. S. Consumer motorcycle purchases. Harley Davidson stock sold for P12.70 per share in late March 2009, down from a high of $70 in October 2007. Harley Davidson like manufacturers of big-ticket items has been hurt by the U.S. recession and the securitization liquidity crisis. Harley Davidson’s 2008 Annual Report refers to two major lawsuits, the claims of which Harley Davidson vigorously contests and which Harley Davidson has asked the courts to dismiss. These lawsuits deal with the year 2004 through April 2005, and the complaints are based on interviews with more than twenty confidential witnesses who worked for Harley Davidson. The lawsuit allege that Harley Davidson engaged in channel stuffing to inflate the sales of its motorcycles to its dealers and Harley Davidson Financial Services lowered its consumer underwriting standards to make loans to people who ordinarily would not qualify, artificially boosting its sales to meet Wall Street expectations. In effect, the lawsuits accuse Harley Davidson of making sub-prime motorcycle loans and increasing substantially the percentage of such loans in order to meet earnings estimates. Harley Davidson denies all allegations. The lawsuits further allege that there was substantial insider selling of stock while these activities were going on. Harley Davidson founded in 1903, but it was not an overnight sensation they got their name marked in the industry until the 1980s where they got an iconic status. They now offered a range of reliable heavy weight motorcycles. The company found it profitable to tap the growing demand for nostalgia influenced styling. Throughout its styling, the company was careful to stick certain basic elements