Harley-Davidson Bailout. This week American people learned the incredible details of the Fall of 2008 Fed’s 3 trillion dollars bailout of Wall Street and of Corporate America. Not only, the Fed lending almost daily to the largest US banks but also to foreign ones, but to companies like GE, Verizon, Harley-davidson and many others. The Fed justifies its actions because the economic situation was much worse that what was stated to us with credit frozen across all the financial system, including the commercial paper. To avoid an international panic the Fed lowered its standard for the kind of collateral it accepts, accepting assets carrying a greater risk of default. Among other disclosures, we learned that to help Harley-Davidson finance its daily activities the Fed lent money to the company a total of 33 times in 2008 and 2009 for a total amount of $2.3 billion.
Harley-Davidson In Brazil. The company will expand its dealer network in Brazil and reached an agreement with HDSP/Grupo Izzo, its exclusive dealer in the country already operating nine retail outlets. That will allow Harley to appoint new retailers in the future. Recently, Harley opened an office in Sao Paulo. The company has a factory in Manaus, Brazil, where since 1999 it has assembled motorcycles for the sale in that country. Harley has sold heavyweight bikes in Brazil since 1993. Harley’s motorcycle sales in the U.S., its largest market, dropped 37 percent to $2.91 billion last year from 2006, hurt by the recession. The company, which had total motorcycle sales of $4.29 billion in 2009, doesn’t report a breakdown of revenue from Brazil or the Latin America region.