Harley Davidson and the Credit Crunch

(2009) Harley-Davidson is an American manufacturer of some of the most sought-after motorcycles in the world. Like many companies interested in multiple mount up streams, Harley-Davidson also operates a fiscal arm Harley-Davidson Financial give-up the ghost (HDFS). The recent economic conditions have added some significant filtrate to that portion of the business and left many stakeholders worried that the financial arms problems could spread to the main company. HDFS offers loans not just to retail customers, but also to Harley dealers who purchase the motorcycles for their taperrooms. Unwilling to surrender market share to competitors, HDFS has aggressively marketed its services to sub-prime borrowers. The article estimates that loans to riskier buyers more than than doubled between 2003 and 2006. Such tactics are reduplicate to the housing application practices of late that have left the assiduity crippled. Many stakeholders and analysts a re concerned that the same situation could gain at Harley-Davidsons doorstep and leave the business in crisis. Harley-Davidson spokesman Bob Klein points step forward that HDFS involvement with subprime loans has remained between one-fourth and tether of their entire portfolio.

But the article also points out that loans do through HDFS have grown from 38% five geezerhood ago to over half currently. This means that although the percentage of dicey loans may still be only a lead of the entire portfolio, that third is a much larger passing than it used to be. As the current financial crisis was makening to show through, HDFS began t! o roll in the hay some warning signs. The delinquency rate on their loans was outgrowth well past normal to almost 4%. gross sales also started a downturn and the company begin wrench back on production. But even with these events, HDFS continue to attempt out riskier loans with zero money down and let out interest rate offers. With the financial crisis now upon us all, Harelys finance arm has begun to...If you want to get a sizable essay, order it on our website: OrderCustomPaper.com

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