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A Japanese Harley? Nah!A Japanese Harley? Nah!
Shahwar Hussain
[ INDIATIMES NEWS NETWORK ]MONDAY, JULY 16, 2007 06:19:53 PM
NEW DELHI: Any American worthy his name would bleach at the prospect of a takeover of the last all-American icon, the Harley Davidson motorcycle. And he would have a severe case of rashes if the aspiring company happens to be Japanese.
But this is precisely the buzz that’s been doing the rounds and the rumour seems to be gathering steam. Closer home, there is strong speculation in the industry that Bajaj Auto Ltd. is eying big time stakes in the two European heavyweights; Ducati Motor Holding of Italy and Triumph Motorcycles of UK. In short, the motorcycling industry may be in for a churn!
It is rumoured in the industry that Honda, the world’s number 1 motorcycle manufacturer is lining up to buy Harley Davidson, the American symbol of ‘freedom on two wheels’.
The reports were so strong that at one point the Harley Davidson shares at the New York Stock Exchange (NYSE) exchanged hands an extraordinarily high number of times.
Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services. Harley-Davidson Motor Company, the only major US-based motorcycle manufacturer, produces heavyweight motorcycles and offers a complete line of motorcycle parts, accessories, apparel, and general merchandise.
In typical Japanese style, Honda officials were tight lipped about the rumours, refusing to either deny or confirm them.
On the face of it, the move seems like a highly unlikely one, but if the takeover does happen, then Honda will account for about 60 per cent of the big bike market...a frightening prospect indeed for the other motorcycle manufacturers.
The rumours did nothing for Honda shares and experts feel that the takeover (if it happens!) will not do Honda any good. Harley owners are fiercely loyal and they would never want to buy a Japanese Harley Davidson.
In fact, the reports of the takeover seem strange especially when Harley Davidson had sales of $5.8 billion last year and is also reportedly in talks with Ducati for a strategic merger. HD is also trying to consolidate its standing in China – which promises to emerge as a major market for the company in the near future.
Bajaj Auto, the second largest two wheeler manufacturer in India, had switched on to the aggressive mode sometime back and shows no sign that it is going to slow down in the near future.
Even though top officials in the company refuse to comment, the industry is abuzz about the manufacturer’s purported approach to Ducati and Triumph. Bajaj is the leading player in India when it comes to manufacturing performance bikes and the company is now looking for technologies and expertise to crank out higher displacement bikes.
The 220 DTSi is the latest bike from Bajaj and the company has promised more. A tie-up, in whichever manner, with both Ducati and Triumph will work wonders for the manufacturer, both in terms of capturing the domestic market, drive up exports and an entry into the big European market.
Bajaj is also reportedly in talks with Japanese giant Yamaha Motors for a technology tie-up for bigger bikes. Bajaj may stop manufacturing entry level bikes in the near future and will only concentrate on the higher displacement performance bikes.
Ducati is a $420 million company with a very impressive lineup of performance bikes and is the current leader in the MotoGP series. Triumph has come from the dead and now it is a $336 million company. Triumph does have a brand recall in India due to the numerous pre and post War era motorcycles which are jealously guarded by their owners.
Meanwhile, Suzuki and Kawasaki, the other Japanese giants may merge their motorcycle units to cut development costs and excess capacities which will help them arrest the decline in domestic bike sales.
Both these companies lag way behind Honda and Yamaha in Japan’s domestic as well as in the international market. A new motorcycle is likely to be introduced by Kawasaki and Suzuki under a new brand name within a couple of year’s time.
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