June 08 Hot Flashes

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June 08 Hot Flashes

HARLEY-DAVIDSON TO CUT JOBS “Harley-Davidson, Inc., will significantly cut shipments of motorcycles to dealers and trim more than 700 jobs this year as it confronts a steep reduction in U.S. sales,” reported The Wall Street Journal. The company also scaled back its earnings expectations for the remainder of 2008 due to the challenges in the economy, the paper explained. The Journal continued by saying, Harley-Davidson plans to ship between 23,000 to 27,000 fewer motorcycles this year than in 2007, putting the total dealer deliveries in 2008 to no more than 307,500 units. “The company will implement temporary plant shutdowns and adjustments to daily product rates, which will result in a reduction of about 370 unionized employees, or about 6.5 percent of that workforce, it explained, adding the company will also cut about 360 non-production jobs, or 10 percent of that segment of workers.

HELMET HOUSE POSTS RECORD 2008 SALES Helmet House announced record sales for the first four months of 2008. “April 2008 sales results exceeded April 2007 results by almost 13 percent, also a record for the company,” stated Director of Marketing Richard Kimes, who continued, “These results have also outpaced 2008 growth projections for Helmet House.” Tour Master and Cortech have exhibited remarkable growth for the company over the past six years, as well as the first four months of 2008, Kimes explained. The company’s TCX boots are said to have reported strong sales growth after its positive reception at the Dealer Expo. “The Helmet House collection of brands continues to be complemented by their highly rated customer service scores,” he added.

HONDA ISSUES MOTORCYCLE RECALL American Honda Motor Company reported it has issued a recall of three of its motorcycles, the 2006-2007 VT600, 2007-2008 VT750 and 2007-2008 VTX1300. “The affected units have an improperly manufactured fuel valve diaphragm and the fuel valve may drip fuel,” Honda explained, and in the presence of an ignition source, dripping fuel poses a risk of fire. Honda said it recommends owners of these motorcycles to stop using their vehicles and to contact their local Honda dealer for a free repair. The recall is said to affect almost 40,000 motorcycles.

MC ADVANTAGES TO DISTRIBUTE BAKER DRIVETRAIN MC Advantages announced it will now be distributing the All-American line of Baker Drivetrain products to all MC Advantages dealers. “Baker represents innovation and determination in the V-Twin market,” said MC Advantages General Manager Kent Reed. “We are proud to add Baker to our product offerings — they cut no corners and accept no substitutes. Their drivetrain products are the real deal,” he stated.

NICHOLS & HAP JONES MERGE In a letter to customers sent out mid-May, it was announced that Hap Jones and Nichols Motorcycle Supply have been merged into one, single distributorship, located in Alsip, IL. The letter stated, “By combining Nichols and Hap Jones, we are building a stronger company that will be a leader in providing customer service and great products.” The new NHJ Powersports will be shipping out all orders from the Chicago area facility, according to the letter.

ESPOSITO DEPARTS GLOBAL Frank Esposito has reportedly exited Global Motorsports/Custom Chrome, after being let go by new and former owner/founder, Nace Panzica, on April 21. Esposito told MI it came as a complete surprise and was a “huge disappointment.” The company was purchased/settled out of bankruptcy on March 6, 2008, by an organization in Korea, by the name of Dae-Il, in conjunction with Mr. Panzica.

KAWASAKI’S NA SALES UP 5% “Kawasaki Heavy Industries’ sales in North America rose for a fourth consecutive year,” announced an online news source. The site explained Kawasaki’s North American sales for all of its divisions for its fiscal year that ended Mar. 31, 2008, totaled over $2.9 billion, which is an increase of about 5 percent over the year prior. “Kawasaki Heavy Industries’ consumer products and machinery division, which includes powersports, had more than $4.3 billion in sales, a 29 percent rise from the prior year,” the site added.

AMA APPLAUDS WA GOVERNOR “The American Motorcyclist Association praised Washington State Gov. Christine Gregoire’s line-item veto of a measure that would have banned all construction of new trails or facilities for offroad motorized recreation for at least a year,” reported spokesperson Peter terHorst. He told us the measure would have prohibited the state’s Department of Natural Resources from building or expanding trails or facilities for offroad recreational vehicles until July 2009. “We are very gratified that Gov. Gregoire recognized the unfairness of this measure, which would have cut off funding for offroad motorized recreation while continuing to collect taxes and fees from offroad vehicle users,” stated AMA Western States Representative Nick Haris.

Passings	`

BERNARD LI “Bernard Li, 62, founder of Eagle One Car Care Products, tragically passed away Saturday May 3rd as a result of injuries received in a single motorcycle accident on Highway 260, just outside Springerville, AZ,” stated spokesperson Doug Dwyer. The accident reportedly happened at approximately 10:30 in the morning and the cause is unknown, as there were no witnesses. “Barney, to his friends, was a lifetime motorcycle enthusiast and entrepreneur. In addition to his highly successful Eagle One Company, Barney also created Wheels of Fortune Motorcycles, a Yamaha dealership in Carson, CA,” described Dwyer. Li dreamed of recreating the Vincent Motorcycle brand and had developed several prototypes of the icon, he added.