Harley's Secret bailout.

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Thaloc

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Jun 23, 2008
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And they take that money and open up facilities in India, and now maybe Brazil? Way to go Hardley, take our money, cut our jobs, and now outsource the rest. The financial definition of a parasite. [down]

Harley-Secret-Bailout1-599x435.jpg


According to a new disclosure by the Federal Reserve, Harley-Davidson was given a previously secret $2.3 billion bailout during the fall of 2008 and winter of 2009. We’ve previously reported that Harley borrowed nearly $1 billion in emergency operating capital from Warren Buffet at 15 percent interest during the same period and has since upped that amount to nearly $2 billion from other lenders. The disclosure of this emergency aid by the Fed gives a new indication as to just how close Harley was to the brink during the darkest days of the financial crisis and a new indication of how much American taxpayers spent to keep it open.

Photo: Harley-Davidson Archives, Copyright Harley-Davidson


The bailout provided to Harley is just a drop in the bucket of $3.3 trillion total emergency aid just disclosed by the fed, other recipients include everyone from the usual Wall Street suspects to McDonald’s, foreign banks and even the South Korean government.

“The American people are finally learning the incredible and jaw-dropping details of the Fed’s multitrillion-dollar bailout of Wall Street and corporate America,” stated Senator Bernard Sanders (I, Vt). “As a result of this disclosure, other members of Congress and I will be taking a very extensive look at all aspects of how the Federal Reserve functions.”

The aid took the form of the Fed purchasing large amounts of commercial paper at non-market rates in order to fund the daily activities of these corporations and organizations. Between October, 2008 and February, 2009, the Fed bought paper from Harley-Davidson 33 times for a total of $2.3 billion.

“It is hard to say what would have happened without the facility, and how its absence might have affected GE, but overall the program was extremely effective in helping stabilize the market,” a GE spokesperson told The Washington Post. GE took $16 billion in aid under this program.

“We took an enormous amount of risk with the people’s money,” the president of the Dallas Federal Reserve told The Post. “We didn’t lose a dime, and in fact we made money on every one of them.”

Senator Sanders suggests the corporations that received this aid got off easy for irresponsible financial practices and that loaning them the money hasn’t altered their practices or even created jobs. “We bailed these guys out, but the requirements placed upon them had very little positive impact on the needs of ordinary Americans,” said the Senator.

Harley-Davidson’s net income fell from a record $1,043,153 in 2006 to a $55,116 loss in 2009. During the same time period, total motorcycle shipments fell from 349,196 to 223,023. That drop in sales isn’t enough to explain why Harley needed $2.3 billion from the federal government, instead, it seems as if the company’s exposure to bad debt by Harley-Davidson Financial Services is really what led to the company’s apparent near-death.

Harley has not yet responded to our request for comment.

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And people can't understand why I will not give those theives another dime of my money! I need an air filter for Bruiser, but I will make the damn thing myself before buying one from Harley. I hate to see anyone loose their job, but Harley needs to do us all a favor and go belly up. End Rant! Razman
 
******* a. they should've been closed. it would have been a better death for buell. i'm not saying i hate them because harley closed buell. i hate them because thats my tax money that could have to better things. and on top of that They had the opportunity to sell buell to brp and did not act upon it! there was a slight possibility they didn't even need the bailout if they had properly done so.
 
It does make you wonder why get a bailout then spend $125 million to shut down Buell when there might of been a buyer. They just wanted to keep the trademarks and patented technology that will NEVER be used on a hog ![down]
 
Harley feared Buell sales gaining momentum. They blamed XB sales for a decline in the sportier Harleys. The decline was not from Buell sales it was from Harley reselling the same old **** over and over. Look how many used Harleys there are on Ebay and Craigslist. Why buy new when the new is the same as the last 20 years. They got lazy just like GM, and Buell could have been the inequivalent as GM's new breed but they killed them instead.

I mean this is fact, and i know we all feel different about it. I'm somewhere in the middle as i do like having a rare bike, so it is what it is. Believe it or not these bikes will be worth a lot of cash one day.
 
I was mad at first when harley killed buell but now I am happy. Buell leaving harley is the best thing that ever happened for Buell.

LONG LIVE EBR!!

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we will never know what all harley did to keep going,buell is a good brand and so was agusta, they needed a sport bike market but pissed it away. so now they are trying to make some of them their hogs in to sportbikes but that isn't going to work, and with all of this service is still crapy at best and their bikes are still way over priced for us laymen, so now most of the clients will still be the rich, all though they arn't buying like the use to[sad], when all is said and done harley could still end up in the toilet. ok my rant is over, ride safe :D:D
 
The government should've just taken that money, given it to the would be 'former' employees as a payout, and let HD hit the floor. Everyone would've been better off.
 
If Harley Davidson went under , just think of all the chromers and leather makers that would be unemployed ! [sad]
 
it is the domino effect that when one company goes down they will take others with them. its just that when they got their money we who gave it to them don't know how they used it. how much do you think went to the top officers and the share holders[mad], and this is just one company.it will be years before we know all that has happen because companys wouldn't change their ways and always the bottom line[sad]
 

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