While the fortunes of many North American companies are on a downward spiral, Australia’s resources boom is helping to keep at least one afloat.

Harley-Davidson’s motorcycle sales volumes in its domestic market have fallen markedly from the beginning of 2008, with the company predicting a 10 per cent fall-off to year-end against 2007.

At the same time, its Australian subsidiary is reporting a 10 per cent hike in volumes for the same period.

And it seems that the West Australian mining boom is the major contributing factory.

Harley-Davidson Australia’s marketing manager, Adrian O’Donoughue, says the Australian operation expects to retail 7700 motorcycles in 2008, compared with 7000 in 2007.

“Obviously, things can change at any time, but we’re on track for those sorts of numbers,” he said.

And on the face of it, the growth is coming from the west.

“Two years ago, our biggest dealer was in Brisbane,” Mr O’Donoughue explained.

“That was when Queensland was on the up, but now, our biggest volume dealership is in Perth. WA makes up about eight per cent of our total sales.”

“Obviously, the whole economic picture in the US is not good, but we’re [Australia] still being propped up by the resource boom.”

But will the economic maladies of the USA rub off on us? Mr O’Donoughue doesn’t think so.

“Maybe panic will set in, but we’re tipping interest rates won’t go up, so there’s still a relatively good level of confidence.”

Perhaps the bigger question for Harley-Davidson right now is what will happen to resale values – traditionally a Harley-Davidson strength.

The company has kept prices for its dramatically revised 2009 touring models more or less stagnant and has been forced to revise the prices of some existing models down – in some cases by up to $1000 – to maintain relativity.

“I guess it’s a case of some short-term pain for long-term gain,” Mr O’Donoughue said.

“We’ve adjusted prices of a handful of models, but we expect resale values to remain a Harley-Davidson long suit.”