Recession and the motorcycle industry

I wonder how this recession will affect the motorcycle manufacturing industry? I think we may end up very glad that MG is affiliated with Piaggio, which seems to be one of the manufacturers that is set to weather the storm. Piaggio's strong presence in the scooter market gives it an income stream that is likely to resist the downturn. In fact, as people look for cheaper vehicles, they may prosper. And while they do, our marque will last, if only because the Italian government insists that it last.

Honda and the other Japanese manufacturers are part of very large industrial concerns that are likely to weather the storm.

Royal Enfield is part of a large Indian transportation group, Eicher Group.

BMW is also part of a larger manufacturing concern.

Harley has enormous reserves. If the recession lasts too long, however, they may also find it hard to adjust their product mix. Piaggio sells Guzzis as well as scooters. Harley sells Harleys, and their past offerings of cheaper bikes have not gone over well. For one thing, can they retool to produce much smaller motors?

Victory, which is part of Polaris, may have a good chance.

It is the smaller marques that may suffer the most. Ducati and Triumph may have a harder time. Mergers with stronger firms may hold the best outlook for them.

I think that in 5 years we may have a much smaller range of marques.