04-05-2015, 01:00 AM
Good news for those shopping for a new Honda.
There's a substantial gap between the value of the US dollar and the Japanese yen. The official value of the yen was discounted about 25 percent versus the US dollar this past August. In the meantime, the US dollar has grown even stronger.
Forex Seen Fueling Some US Motorcycle Price Cuts -- Market Talk
BY Dow Jones & Company, Inc.
— 6:56 AM ET 03/30/2015
6:56 EDT - While the stronger dollar hit Harley-Davidson's (HOG) 4Q result and are likely to continue doing so for a good chunk of this year, the currency shift is helping fuel some price competition, says Wunderlich. Its survey of more than 55 US motorcycle dealers show "relatively lukewarm retail sales trends year-to-date in heavyweight motorcycles." Between that and some currency tailwinds, "key competitors...have begun aggressive promotions to help...clear dealer inventories." The investment bank says Honda ( ok - fmr.qnr.components.snapshot.Mini HMC end - fmr.qnr.components.snapshot.Mini ) "has been especially aggressive" in recent quarters on the new- product front and during the winter "became more aggressive with promotions as well." Wunderlich adds Yamaha Motor ( ok - fmr.qnr.components.snapshot.Mini YAMHF end - fmr.qnr.components.snapshot.Mini ) is also "taking advantage of the weaker yen" with its pricing. (kevin.kingsbury@wsj.com; @kevinkingsbury)
(END) Dow Jones Newswires
03-30-15 0656ET
Copyright © 2015 Dow Jones & Company, Inc.
There's a substantial gap between the value of the US dollar and the Japanese yen. The official value of the yen was discounted about 25 percent versus the US dollar this past August. In the meantime, the US dollar has grown even stronger.
Forex Seen Fueling Some US Motorcycle Price Cuts -- Market Talk
BY Dow Jones & Company, Inc.
— 6:56 AM ET 03/30/2015
6:56 EDT - While the stronger dollar hit Harley-Davidson's (HOG) 4Q result and are likely to continue doing so for a good chunk of this year, the currency shift is helping fuel some price competition, says Wunderlich. Its survey of more than 55 US motorcycle dealers show "relatively lukewarm retail sales trends year-to-date in heavyweight motorcycles." Between that and some currency tailwinds, "key competitors...have begun aggressive promotions to help...clear dealer inventories." The investment bank says Honda ( ok - fmr.qnr.components.snapshot.Mini HMC end - fmr.qnr.components.snapshot.Mini ) "has been especially aggressive" in recent quarters on the new- product front and during the winter "became more aggressive with promotions as well." Wunderlich adds Yamaha Motor ( ok - fmr.qnr.components.snapshot.Mini YAMHF end - fmr.qnr.components.snapshot.Mini ) is also "taking advantage of the weaker yen" with its pricing. (kevin.kingsbury@wsj.com; @kevinkingsbury)
(END) Dow Jones Newswires
03-30-15 0656ET
Copyright © 2015 Dow Jones & Company, Inc.