793952--2/17/2009--HARLEY_DAVIDSON

related topics

{customer, product, revenue}

{condition, economic, financial}

{product, market, service}

{capital, credit, financial}

{cost, operation, labor}

{system, service, information}

{cost, contract, operation}

{personnel, key, retain}

{product, liability, claim}

{operation, international, foreign}

{financial, litigation, operation}

{cost, regulation, environmental}

{debt, indebtedness, cash}

The Company must effectively execute the Company s restructuring plans within expected costs. The Company sells its products at wholesale and must rely on a network of independent dealers and distributors to manage the retail distribution of its products. The Company s dealers may experience a further decline in retail sales resulting from general economic conditions, tightening of credit, political events or other factors. The Company and its independent dealers must balance the economies of level production with a more seasonal retail sales pattern. The Company relies on third party suppliers to obtain raw materials and provide component parts for use in the manufacture of its motorcycles. Recent and any future government actions to stabilize credit markets and financial institutions or other industries may not be effective. The Company s financial services operations rely on external sources to finance a significant portion of its operations and may require additional funding to repay amounts that may become due in 2009 and beyond. The Company s financial services operations are highly dependent on accessing capital markets to fund their operations at competitive interest rates, the Company s access to capital and its cost of capital are highly dependent upon its credit ratings, and any negative credit rating actions will adversely affect its earnings and results of operations. The Company s financial services operations are exposed to credit risk on its retail and wholesale receivables. The Company has a number of competitors of varying sizes that are based both inside and outside the United States some of which have greater financial resources than the Company. The Company s marketing strategy of associating its motorcycle products with a motorcycling lifestyle may not be successful with future customers. The Company s success depends upon the continued strength of the Harley-Davidson brand. The Company s ability to remain competitive is dependent upon its capability to develop and successfully introduce new, innovative and compliant products. The Company s Motorcycles segment is dependent upon unionized labor The Company s operations are dependent upon attracting and retaining skilled employees, including executive officers. The Company s future success depends on its continuing ability to identify, hire, develop, motivate and retain skilled personnel for all areas of its organization. The Company incurs substantial costs with respect to employee pension and healthcare benefits. The Company manufactures products that create exposure to product liability claims and litigation. The Company must maintain its reputation of being a good corporate citizen and treating customers, employees, suppliers and other stakeholders fairly. The Company must invest in and successfully implement new information systems and technology. The Company is and may in the future become subject to legal proceedings and commercial or contractual disputes. The Company must comply with governmental laws and regulations that are subject to change and involve significant costs. Breaches of security involving consumers personal data may adversely affect the Company s reputation, revenue and earnings. The Company is exposed to market risk from changes in foreign exchange rates, commodity prices and interest rates.

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793952--2/17/2009--HARLEY_DAVIDSON_INC