cato.org
HDI needed help during the economic and motorcycle recession of the early 1980's...things went from good to bad rather quickly -g-
In the past three decades the motorcycle market has grown
tremendously. The number of American motorcycle registrations
has increased from 198,000 in 1945 to 1.4 million in 1965 and
to nearly 6 million in 1981.
In the past two years, however, the American motorcycle
market has severely contracted. The recession left many young
people, the greatest motorcycle-buying age group, with less to
spend. Employment in heavyweight-motorcycle production and re-
lated activities rose from 2,239 persons in 1977 to 3,110 in 1981,
but (as a result of slackened demand) dropped to 1,974 in 1982.
(Heavyweight motorcycles have engines with piston displacement
of 700 cubic centimeters or more.) From 1981 to 1982, total
inventories of unsold heavyweight bikes jumped from 108,000 to
more than 200,000. For the first nine months of 1982, hours
worked declined 20 percent and wages paid fell 12 percent from
the same period in 1981.[1]
The Harley-Davidson Motor Company, the only American com-
pany to manufacture motorcycles since 1948, has been hit espec-
ially hard. In 1980 the company had record sales of $289 million
and pretax earnings of $12.3 million, but in 1982 sales slumped
to just over $200 million, causing "substantial losses."[2]
The company operated at a loss in 1981 as well. |
