Why bubble? Well, first the news (AP):

NEW YORK (AP) — Harley-Davidson Inc. said Friday it will cut 1,100 jobs over two years, close some facilities and consolidate others as it grapples with a slowdown in motorcycle sales.

The Milwaukee-based company also reported its fourth-quarter profit fell nearly 60 percent, and said it is slashing motorcycle shipments in 2009 to cope with reduced demand.

The iconic motorcycle maker said it will consolidate two engine and transmission plants in Milwaukee into its facility in Menomonee Falls, Wis. It will shrink its paint and frame operations in its York, Pa., plant and close its distribution facility in Franklin, Wis., whose duties will be handled by a third party.


Not good news. I like to hate on a lot of Harley owners, not the old timers but the yuppie scum, but this sucks for those effected. Something else caught my eye a little ways down the page (emphasis mine):

Harley has been stung by the rapid downturn in motorcycle demand. The economic recession has prompted many consumers to put off purchases of its high-end bikes, while the credit crunch has kept some would-be customers from obtaining financing.

Well, now I’m annoyed. Are they whining now because the people who really can’t afford a motorcycle (especially a $20k motorcycle) can no longer get loans they shouldn’t qualify for? Turns out Harley’s huge sales over the last several years (pretty much since the 100th Anniversary in 2003) was a lot like the housing bubble. Were it not for the predatory lending practices (and infinite other factors) that led to the current economic meltdown, if loans for motorcycles were only made to those who could actually afford them, Harley would’ve sold far less motorcycles. Hence, the bubble. I hope they banked all that profit or they are scah-rewed.

Ya know, I really want a Rocket III. Wanted one every since I flogged the demo bike at Tingley’s in 2005. But I realized that I was lucky to have my ($8k) Bonneville America paid off and all my cars paid off and that still, I was in no position to finance a $16k motorcycle. I only wish I was in better shape myself so that I could capitalize on all the deals happening now.

No word yet on whether Harley is applying for TARP funds…