1st Gen Hypermotard Hooligan
A GPM, even a Partner GPM, is not an executive, there are literally hundreds, if not thousands, in the company. And if he was doing his job at Microsoft, there is no way he had time to manage 5 dealerships.The guy is an executive at Microsoft, so it appears the dealerships were a hobby. I have seen rumors online that at least 3 of them were shuttered by the bank for non-payment of bills. I don't think it had anything to do with online sales.
I'm inclined to disagree. When they moved from Bellevue to Redmond Town Center, all the space went to the showroom and there was only space for 2 techs in the service area. Plus the service manager who, in my opinion, was less than stellar on customer service and appeared to me to be pure overhead. The showroom was frequently empty of customers, the service area always full of bikes waiting for attention. And $149/hour labour rates to cover the swanky showroom space.The Redmond Ducati dealer has always had what appeared to be a decent business. The service area was always busy.
Young people are interested in their minute by minute dopamine hit. The quintessential ~me~ generation.The industry has been in decline for 15 years, young people have little interest in motorcycles (or cars). the vehicle now competes with the smartphone in the marketplace.
Or the continuation of one in the MC business since 2008. Annual MC sales in the US from 2009 forward are little more than half of what they were before that.I don't think it is going to stop anytime soon either. Call it whatever you like, it looks like the preceedings of a recession to me........sean
General Motors posted a record profit of over six billion dollars recently. GM said the 34% jump in first quarter net income to $2.6 billion. Roughly fifty thousand GM workers are currently striking for better salaries and better benefits because they busted their asses to make GM show record profits. Car sales in my area are booming as well. One may wish for a recession, but it's not happening. Motorcycle sales have to compete with smart phone addiction since young people who would rather take an Uber so they can remain attached at the spine to their smart phones and get that constant hit of dopamine ... or have their parents drive them somewhere for the same reasons I just cited. But, the sky is not falling.Just playing the devils advocate here, the article did mention several times that it was a hobby for the owner, and he was not in anyway an industry savvy businessman.
New motorcycle sales are in the toilet across the board. Not just in the Seattle area, the whole country. I read a stat a few weeks ago that stated sales were down nearly 60% over last year. Even sales on the used market are down overall.
Bikes that would have been snapped up on Craigslist just a year ago, are not selling. Sellers dropping prices and still not moving the bikes. I don't know what the drop off is there, but I'm guessing similar to the market overall.
My further guess is, that drop in sales is what is triggering this more than any online sales. That, and the general incompetence of the owner as a business manager. You can't just fire sale your inventory out the door when there isn't a fire. Profits tumble and bills go unpaid. Precisely what it appears is the issue. Banks don't repossess your stuff if you're paying the bills. Manufacturers don't either.
It isn't the motorcycle industry alone. Here, where I live, our entire auto mall was emptied out last year when the owner of the sales group went bankrupt. That was 5 dealerships I think that disappeared and all the jobs that went with them. That's just the ones here where I live. There were 2 or 3 more in the next town over.
My point is, it isn't an isolated thing. I don't think it is going to stop anytime soon either. Call it whatever you like, it looks like the preceedings of a recession to me........sean
I don't see what car sales in your area have to do with the reality of 8 car dealerships closing down at the same time? Or 5 motorcycle dealerships in one of the largest metro areas in the US?Car sales in my area are booming as well. One may wish for a recession, but it's not happening. But, the sky is not falling.
There's like a million plus cars that need an owner.It's easy to buy a car. If you have good credit you can walk in and drive out with whatever you like - I did and I don't have a job.