Suzuki expects to be down to around 900 dealers by 2011

[originaldirt]

My buddy who works at the local Suzuki dealership says that the Suzuki DM who just returned from the June Suz/DM meeting told his boss that Suzuki now has roughly 1100 dealers, but they expect to be down to around 900 by 2011. If that is true, then they expect to lose about 20% of their existing dealers over the Winter.
There have already been a significant number of shop closings and consolidations in my region, so this could get serious. We need to support our local shops and forgo the shop on the internet for a while or we too are going to suffer.
The O.E.M.'s better get on with production and delivery of 2011 machines soon in every brand if they want to save their dealer network and customer base. I have several friends who wanted to buy a new bike this year and couldn't find one so they got out of motorcycling, maybe permenantly by spending money on new hobbies and interests.
What do you guys and gals think about the situation?

 

[Wolf]

You can support them all you want for as long as you want. As long as OEM's shove too many units down the dealers throats even though the numbers are down, and as long as banks (GE is the main underwriter for floorplanning as far as I know) keep hammering these dealers with insane interest rates on floor planning, you'll be lucky to only lose 20% of the dealers. Interestingly, while there seems to be a lot less money floating around, and the spend on "toys" is way down, I don't see any effort on the OEM's part to adjust pricing or offer any kind of help. Oem's have done a fine job of pricing themselves out of the sport - much of that can be attributed (IMO) to the overhyped development of 4-strokes and the affiliated costs to run them. (I subscribe to the thinking of Scott Harden in this case). I for one am completely done holding the bag for these greedy *******s and shop wherever it is cheaper. If I were a dealer I'd say good riddens, get all your crap out of here so I have more room for scooters...cause everybody buys scooters nowadays :)

 

[Ol'89r]

What do you guys and gals think about the situation?

Just a sign of the times. We have had a few dealers close in our area (So. Cal) and we are in the hub of dirtbike riding/racing. When people are losing their jobs and watching their neighbors lose their jobs, having fun on your motorcycle is the last thing on your mind. Even those with money are not spending it because of our unknown future in this country. The OEM's know what is happening and they are not going to build more motorcycles than they think people are going to buy.

TODAY, Voting day, is the day to start making changes that will put fun back in our lives. Stand up to and vote out the morons that are taking our future from us.

I know there are many of you that get upset when someone talks politics. You say,"This is a dirt bike site." Politics don't belong. But, by now, everyone has to see how politics and electing the wrong politicians can affect our daily lives, especially our ability to have fun on our dirt bikes.

 

[XRpredator]

I think its cyclic. Dirt bikes got huge in the early 70's, started to plateau, then kind of began to taper off in the early to mid-80s as bikes got more expensive, then started back up again with the ATV boom, then really started back up in the early 90s with McGrath's popularity, and I think we've been riding that wave. I think we're in the same trough as we were in during the mid-80s, waiting for the next big thing.

And Vulf, I love the four strokes!

 

[Chili]

Suzuki is absolutely killing it's busy dealers here in Canada with their stance of delivering almost no 2010's until the leftover 09 inventory is depleted. This would be fine if there were leftover 09 RMZ's in Canada but you can't find them and most dealers have little access to 2010's. One of our busiest dealers here had the owner have to buy a 2010 from another dealer to get his own personal bike as he had sold his 09 before finding out he'd only be getting less than a handful of 2010's.

 

[dirt bike dave]

I'm not surprised the market for toys is way down in this economy. Increased sales of scooters or fuel efficient commuter bikes is only going to carry a dealer so far.

There will always be some demand for toys from wealthy persons, and people with very stable jobs and lots of paid vacation (such as most government employees).

But the sales must have all but disappeared to people who buy based on rising home equity and/or improving job prospects.

I agree with Wolf that the dealers will be lucky to weather this economic downturn with only a 20% drop in their numbers.

 

[Wolf]

My point got lost a little bit...sorry, I will rephrase.
While it may well be true that yellow is killing their dealers in CA by holding back the 2010's...I was really trying to make another point.
The way I understand it, as a dealer you HAVE to carry x amount of units of brand x in your dealership every year. BRP (Skidoo, etc) is a prime example of how they work very hard at effing the dealers:
A dealer may have lost 50% of OEM sales in 09 due to a down economy (I know several that are in this position), yet BRP requires them to carry the same amount of units again for 2010. So a dealer that sold 1mil of equipment in 08, then only 1/2 mil in 09 is asked to carry the same inventory as in 08, even though he still has 1/2 of his 09 inventory on the lot. So who's going to buy the left over 09 stuff and all of the 2010 inventory? Last I checked, people still aren't spending.

GE (or whoever is writing the floor planning) licks its chops as they write the floorplanning and now get to collect on left over 09's as well as the 2010 inventory. The OEM (in this case BRP) in essence passes the buck directly to their own dealer, who in turn is left holding the bag...hence my conclusion that we'll lose more than 20% of the power sports dealers.

I could have easily used a motorcycle manufacturer in place of BRP, but I like motorcycles and don't want to bash them...BRP on the other hand isn't on the very top of my list :)
Of course this is all only my perception of how it works, if I'm wrong I'm not sorry.

Oh, and Pred, :nener:

 

[ellandoh]

maybe we could trick the greenies into believing motor-cycling is the next best thing to re-cycling and get in on some sort of stimulus pkg?? to pick up sales

 

[2strokerfun]

maybe we could trick the greenies into believing motor-cycling is the next best thing to re-cycling and get in on some sort of stimulus pkg?? to pick up sales

While I know you gest, that is actually a pretty good idea for economic stimulation. Discretionary spending and resulting service, modifications and money spent playing with the new toy is a huge way to stimulate the economy. Of course, it would have to also apply to boats and other types of recreational products. But hey, look up how the stimulus dollars were actulaly spent and keep you blood pressure medicine nearby when you do........

 

[Vic]

Well, there was this.

http://www.motorcycle-usa.com/2/2805/Motorcycle-Article/2009-Motorcycle-Tax-Deduction-Details.aspx