Join Date: Aug 2012
Location: Side of a mountain in New Hampshire
Numbers don't lie. They don't always tell the whole truth though.
Honda is a heavy industry with a bunch of interconnected divisions. The Motley Fool did hit on a salient point. It relies on its auto division to pump in 78 cents out of every dollar they make. If I led a corporation that made three out of every four quarters from cars then I would be committed to 3/4's of my time and energy to cars, at least. Maybe more.
Honda hasn't fashioned an image as a cutting edge, risk taking motorcycle manufacturer. Really, in classic Japanese style they take innovations that exist and dial them into some pretty bulletproof products. I'm sure there's some tech that Honda brought to the game, but that I can't think of any off the top of my head is probably more important than whatever those improvements are.
The Fool makes the point that two percent of the market is American.
So, when you make 78 cents on cars and out of the remaining 22 cents you carve out your industrial, commercial and power generation pieces and then out of the remaining chunk you commit to your piece of 2 percent global sales, well I'm not all warm and fuzzy about you and me sharing the passion of the open road.
Kind of like Polaris, but at least Polaris has a focus on powersports, albeit shared with it's utility products. You got to give the kewpie doll to HD on this one. They are immersed in their motorcycles and they focus like a laser on their consumers.
The Fool doesn't understand the whole motorcycle thing either. Under the heading of enthusiast they lump all riders in. Jay Leno has little in common with a Filipino who scratches out maybe 2 grand a year and needs to move eggs from one place to the other.
Honda is a car manufacturer. 78% of their products are cars sporting 4 wheels and part of the remainder are cars with 2 wheels. Some sliver of their product portfolio is actual motorcycles. They used to make them in Ohio. They used to make Runes.
Cross Country Tour.
We can't help it
We just keep moving
It's been that way since long ago
Since the stone age chasing the great herds
We mostly go where we have to go
That was written by James McMurtry