| Japanese automaker Honda Motor Co. has | | | | profile and it's not a good business sense |
| recently denied rumors alleging that it will | | | | for an LBO investor to shell out a |
| buy Harley-Davidson Inc., which caused the US | | | | significant premium and be able to generate a |
| motorcycle maker's share to rise in New York | | | | fitting return. |
| last Friday. | | | | |
| | | | Harley's share gained as much as 6.4 percent |
| But just in case Honda and Harley do combine, | | | | before closing last Friday's session by $2.43 |
| their union would be able to control 65 | | | | or about 4 percent at $62.55 on the New York |
| percent of the US motorcycle market while its | | | | Stock Exchange. On the other hand, the shares |
| next leading competitor Yamaha will be left | | | | of Honda, the world's biggest motorcycle |
| with only 16 percent. Such type of stronghold | | | | maker and producer of high quality Honda |
| on the motorcycle market would definitely not | | | | exhaust system have gained very little |
| please the Federal Trade Commission. | | | | increase in Tokyo with only 0.5 percent last |
| | | | Monday at 4,420 yen. |
| Honda through its spokeswoman Yoshido has | | | | |
| extended their stand on the issue. According | | | | Honda Tidbits |
| to Honda spokeswoman Makiko Yoshida in Tokyo | | | | |
| last Monday, "There's absolutely no truth to | | | | For the past 50 years, Honda has made racing |
| it." | | | | as its training ground for challenging the |
| | | | abilities of both its engineers and |
| Amidst doubts from analyst and market | | | | designers. Soichiro Honda said that the |
| participants, Harley-Davidson shares and | | | | pressures that people gets from racing |
| options were able to increase with 58,535 | | | | encourages them to seek for innovative |
| options last Friday which is fourteen times | | | | solutions and demands fast, precise responses |
| more than the daily average that is basing | | | | to new problems that they have not |
| from the figures gathered by market research | | | | encountered before. |
| firm Track Data. | | | | |
| | | | This is also the very reason why racing is |
| RBC Capital Market Analyst, Edward Aaron in | | | | embedded in the corporate culture of Honda. |
| an interview with last Friday said, "I'd be | | | | Aside from that racing also teaches people |
| surprised if there was a Honda and | | | | how to work harmoniously with each other |
| Harley-Davidson combination, basically for | | | | since in racing no single individual can |
| regulatory and cultural reasons." He also | | | | bring success to the team because it is a |
| added, "Harley is an iconic, American brand. | | | | group effort. |
| I don't think it would be a great fit if they | | | | |
| were under the ownership of a larger Japanese | | | | Throughout the racing history of Honda either |
| corporation." | | | | it be in two wheels or four, the Japanese |
| | | | automaker has been able to win at the highest |
| Aaron further stated that it was unlikely | | | | levels. From the Isle of Man TT motorcycle |
| that Harley would become the target of a | | | | race to Formula One Grand Prix, Honda was |
| buyout. He said, "Although an LBO is more | | | | able to obtain 60 race victories and four |
| plausible than a merger with Honda, the math | | | | consecutive Constructors' Championships from |
| behind such a transaction is not highly | | | | 1988 to 1991. Various Honda models are |
| compelling." And besides Harley is already a | | | | displayed in victory lanes around the world. |
| well operated business with a high margin | | | | |