Tuesday, March 3, 2009

Cycle sales help Honda cope with down economy

I came across this article (Cycle sales help Honda cope) that, in summary, states that Honda is expected to post a significant profit largely due to its motorcycle sales. It goes on to state that most of these sales are in southeast asia where motorcycles are used for everyday transport and while the $20,000-30,000 Honda car and SUV sales have plummeted, sales of relatively affordable motorcycles have held strong.

“Motorcycles are more resilient against a recession than cars because these products are used in Asia for people’s main mode of transport,” said Makoto Haga, president of Tokyo-based hedge fund Wing Asset Management Co. “Motorcycles give Honda an advantage over its rivals.”

What are the implications for the rest of the world? What if cash-strapped Americans were to turn to efficient and affordable motorcycles as a means of everyday transport? What would it take to make this happen? In my opinion, safe motorcycle infrastructure is needed, the riders will follow.

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