Smaller motorcycles from Harley Davidson???

Globalisation is changing things across the world and the impact is being felt in the US also. The most favored cult brand in the US or rather I would say the world, Harley Davidson is facing the brunt of the economic downturn in the US. During the 1990s when the US economy was booming the bike manufacturer was the most favoured company of bike dealerships and stock brokers in wall street. But a decade down the line, US is spending billions of $s in fighting two wars half-way across the world and domestically people are grappling with steep increase in gas prices, home mortgage crises, rising unemployment (6.5 percent) and sky-rocketing grocery and food prices. Historically the motorcycle has been a symbol of prestige; a vehicle of pleasure and entertainment in the US and now people are so strapped for money that they are just not riding lesser and lesser as the days pass. The first to be hit in this flagging economy has been the motorcycle behemoth, Harley Davidson. The company has been experiencing sales at snails pace and is planning to cutting back production and laying off workers. Harley-Davidson stock split four times during the 1990s, but the last split was eight years ago, and shares in end-August were priced at $38.78, down considerably from a 52-week high of $55.41 reached in September of last year.

Since the US markets are pretty much saturated Harley Davidson is looking at international markets for sustainance. They are opening dealerships in South American and Asian nations in the hope of drumming up flagging sales. But in Asian countries where roads are narrower than the sidewalks in the US it is difficult to ride the elephantine Harleys. And perhaps for the first time in the history of the company, Harley Davidson is contemplating manufacturing smaller motorcycles. It would be sad to see the big-daddy of motorcycles falling from grace like this.