Motorcycle dealers still scrambling to find customersSales fall 4.6% in the first quarter compared with a year earlier.By Susan Carpenter, Los Angeles Times
There are signs the economy is getting better, but not when it comes to motorcycles and scooters.
Even though they're often more economical to operate than a car, the two-wheeled vehicles saw their sales decrease in the first quarter of 2010, continuing a drop-off for the industry after a disastrous 2009.
Sales of motorcycles and scooters were down 4.6% in the quarter compared with the same period a year earlier, according to the Irvine-based Motorcycle Industry Council trade association.
Street bikes, as opposed to off-road motorcycles, suffered a 7% drop, while scooters did even worse — down 13.3%. That's troubling for an industry that was hoping business would improve in 2010 after a disastrous 2009 that saw sales tumble 43.2% for the year.
Hard hit by a down economy that has tightened credit and by stable gasoline prices that no longer have people considering motorcycles and scooters because of their fuel economy, motorcycle dealers are scrambling to find customers any way they can.
"This year is going to be rough," said Dennis Johnson, editor in chief at Dealer News, a trade magazine in Irvine that covers the power sports industry. With so few buyers in the market for new bikes, Johnson said dealers were focusing on parts, accessories and pre-owned motorcycles as a survival strategy.
"Coming off a year of sales declines, the industry knew it had to get aggressive," said Cam Arnold, vice president of communications for the Motorcycle Industry Council, which represents motorcycle, scooter and ATV manufacturers and parts suppliers. "We had to do something to get customers back into dealerships."
Last month, the "something" was a Revive Your Ride sweepstakes with discounts, a sweepstakes and other dealer promotions. But it's not likely to be a magic bullet.
"Things really don't look that encouraging," said Oliver Shokouh, owner of Harley-Davidson of Glendale. "We're definitely cutting back on inventory, realizing this year nothing is going to set the world on fire."
What's selling for Shokouh right now?
"Not a whole lot," he said, even though the top sales season for motorcycles is generally April through June. Shokouh says the lowest-priced Harleys, such as the Sportster and Dyna models, are selling best.
Like a lot of dealerships, Harley-Davidson of Glendale has pared its hours and trimmed its staff in the last year...
http://www.latimes.com/business/la-fi-motorcycle-dealers-20100518,0,3541358.story
