As gas approaches $4 a gallon, are consumer going to switch to two wheels to save money? It would seem early results are ..yes.
The questions was posed to an Illinois Harley Dealer recently.
Shad Zimbro, co-owner of Black Diamond Harley Davidson in Marion, Illinois says,”It really is the truth because they do save a lot of money in gas by going to a motorcycle.” He says his sales have doubled since last year.
Motorcycles tend to average about 50 miles a gallon and Harley makes models that get 70. Zimbro says he commutes 40 miles a day to work on his Harley and saves about $100 a week by doing so.
It does make perfect sense but obviously we need more data to see if it is just a regional trend or a larger on. The significance of his increase though, is impressive and that does lead me to believe it may be more than a local event.
In January Harley did issue 2008 guidance above the consensus estimates so perhaps they are seeing something?
We’ll have to wait until late spring to get more info but I am thinking that this may actually be something larger..
Disclosure (“none” means no position):Long HOG
