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Strong rumors continue to reach my desk about Roger Penske still very interested in buying some (or all?) Rossmeyer’s Harley Dealerships. As a matter of fact, Mr. Penske made an apparition in a couple of dealerships very close to me in South Florida. Sources wishing to remain anonymous tell me that an agreement would have already been signed for the acquisition of 3 stores. And these 3 ones are those that Bruce described to me before his death as non performing. The Rossmeyer family remains silent. I continue to investigate…
West Coast Choppers Place. Yesterday, the city of Long Beach renamed the street in front of the shop “West Coast Choppers Place”. During a brief ceremony Jesse James thanked the city for putting up with all of the shenanigans, traffic infractions, burn outs, and slightly questionable use of fireworks that have occurred at 718 West Anaheim over the past 14 years. He was given the honors of pulling the rip cord and unveiling the shiny blue West Coast Choppers Place sign. The crowd cheered, angels sang, the Virgin Mary appeared briefly in the clouds… – I smiled when I read in the financial news that President & CEO of HarleyDavidson Inc. (HOG) Keith E Wandell bought 1,000 shares of HOG on 01/26/2010 at an average price of $23.59 a share. A total of only 1000 shares? Doesn’t believe too much in his company and its stock for the near future?
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I’m surprised that Roger Penske would be interested in HD stores. It seems like such small potatoes since he was recently trying to purchase Saturn from GM. I understand that not every deal he makes can be a huge deal. But he seems like a serious businessman who is interested in profit. Most would agree that owners of motorcycle dealers aren’t in it to get rich. Many of them did over the past ~15 years because of the boom in the industry. But that is over now and who knows when or if it will return. If Bruce described these stores as “under performing” a year ago, then how much worse are they doing now? And what could be done to improve the performance when the industry is so depressed?
If Penske buys the stores, my guess it’s because the Rossmeyer family is desperate to sell and Penske pays next to nothing for them.
Just my $0.02
one big shell game. you can hear pins drop at any of the B.R. South Florida locations.
Congratulations Jesse on the street renaming, that is WAY cool!
Any luck finding your lost puppy?
Over & Out,
Jeff
I remember reading a press release that Penske, who owns Ilmor Enginerring, has an agreement with Viper motorcycle Company to produce Viper’s new engines? It would give them access into some of the biggest H-D stores in the country, for the bikes and the engines, IF Penske does buy Rossmeyers stores. Just food for thought.
http://www.abnakigsc.org/integrity-media-a-new-member-of-the-club-220.html
And even a guy with such huge business holdings needs a hobby, right? I occasionally peel of some green for an old Chevy or a bike nobody else wants too figuring to play with them for a little while and then pass them on.
Yeah, wasn’t kinda buying this anyway, then the part about Penske taking the 3 NON performing stores? Not a chance…..
LOL- excellent point on the Harley CEO- how embarrassing, dude- why even bother for 1000 shares? Sends the WRONG message……. What a mess this company is…..
I don’t think MR. Penske would be buying a hobbie. I do think he may be willing to take on several dealerships knowing that he can use his own money to finance people at a low enough rate to get the bikes moving. Think about this HD charges a customer 15-20 % to finance a new bike. If Mr. Penske was to buy these dealerships and finance at let’s say a rate of 7-10 % he would have every one with in several hundred miles wanting to buy bikes from his dealerships. Some of you may be thinking that if he does that he will run out of bikes to sell so what good is that? Do you really think HD would not supply him with what ever he needed if he get into the HD business? I bet if the truth be told HD has warehouses full of unsold bikes that they would be willing to sell to a dealer that can actually move them.
Mr. Penske could be just what these dealerships need to become profitable and that is exactly what HD corporate needs and wants. If it is true that Mr. Penske is trying to buy these dealerships all I can think to say is Good Luck I hope it does work out. It would create jobs at the dealerships, it would help HD and it will help people to buy their dream bike at an affordable rate.
Guess it would depend WHY the 3 locations were non-performing. Folks buy failing business for a song if they feel they can turn them around, maybe it’s just a good place to juggle some profits/funds for tax reasons, who knows? Time will tell.