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Harley-Davidson too feels subprime heat

October 20, 2008

Harley-Davidson Financial Services has for years aggressively pitched retail bike loans to subprime borrowers, who now hold nearly a third of them.

Now there's concern that the problems at HDFS could jeopardize the parent company's pristine credit rating.

While acknowledging the "difficult environment," Harley spokesman Bob Klein says the subprime portion of the HDFS loan portfolio has remained between 25% and 30% since 2004.

"Overall, the portfolio is very high quality," he says.

Image: 'Chevy Bike' Harley-Davidson motorcycle | Photograph: Francois Guillot/AFP/Getty Images

Also read: The Fed, the crisis, and your portfolio

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