HOGS ON THE HORIZON?
September 2009
Harleys in Cardiff?
In a week that’s seen the announcement of Harley Davidson’s dealer network plans for India, the capital city of Wales still seems incapable of attracting the same level of interest.
Talk of a Harley Davidson dealership in the Cardiff has been on the books since the late 80’s when failed motor dealer Ken Thorne first flirted with the idea. Despite looking on paper like a natural shoe-in for his motors portfolio, Thorne failed to pursue a deal with H-D and the slot has been vacant ever since.
That was until 2007 when Phil Jessop, owner of Riders of Bridgwater proudly announced the opening of his third H-D dealership at a site to be announced, but confirmed as being within the city of Cardiff. The long wait was apparently over, especially when billboards went up on Cardiff’s Hadfield Road confirming the acquisition of the site and an intended opening date of October ‘08.
Prospective Harley owners had to wait longer than expected however, when lack of progress made the launch date impossible. Rumours of a rift between Harley Davidson and Riders appeared to be confirmed in December when Riders issued a statement to that effect.
‘It is with total regret and disbelief,’’ wrote Jessop ‘ that I inform you that we have had communication from Harley–Davidson UK, stating that H-D UK will no longer be proceeding with us in South Wales.’
A disappointing outcome for the company especially after an investment of £2.5 million, but the new facility eventually opened representing two of Riders high-end marques, BMW and Ducati.
‘Of course we were disappointed,’ admits Jessop, ‘but we have not turned our back on South Wales. All I can say is in this economic climate, you can’t rule anything out, watch this space.’
Time of reflection for Riders
Despite reporting a 58% drop in profits in the last quarter of 2008 and laying off 1100 employees in January, the Milwaukee based motorcycle manufacturer received a much needed economic shot in the arm in February of this year when US Investor Warren Buffet and the DSA investment group pumped in $600 million. The news saw the company’s shares rise 23%.
Hogfever Wales 
clever pic …. now if 500.000 people hit this website with a quid each …we have ourselves a HD dealership …simples !
char - November 17, 2009 at 9:50 pm |
Hmm!
Interesting thought and don’t think it didn’t occur to me either. As soon as I heard, my hand was straight down the back of the settee (only another £499, 998.57p to go). But unfortunately there’s a slight flaw.
The £500k, merely gets the ball rolling, on top of that you’ll need some top of the range premises in a prime location, so that will probably cost you another £1 million. Then as Mark Burrows pointed out, you’ll need some serious operating capitol, that’s a sum of money that is separate from the investment money and not dependent on transactions, that can be called upon to keep things on an even keel during the companies first year. For arguments sake, lets call it £200k.
So with legal fee’s, keeping staff on the pay roll until the builders from hell finish fitting out your premises and the other hundred and one other things to kick you in the financial nutz, I’d say you’d need about £2 million to get your name over the door.
Anyone got the number of that lottery winner in Newport?
Mal
Mal - November 18, 2009 at 10:41 am |