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Wall Street Journal Article 7/29/2020 - "Harley Sales Decline as It Shifts Strategy"

exgman

exgman

Active member
Wall Street Journal Article 7/29/2020 - "Harley Sales Decline as It Shifts Strategy"

An article in the WSJ today looks at the Harley-Davidson company in light of its revealing of the most recent sales figures. The article is on page B8 of the 7/29 paper. Here's the URL for those who can access it: https://www.wsj.com/articles/harley...ns-11595938710?mod=searchresults&page=1&pos=2

For those who can't read the article, here are some highlights gleaned from the article:

1) HD posted a quarterly loss of revenue. For the quarter ending on 6/28, it sold 52,700 bikes world-wide. The same quarter in 2019 saw sales of 71,800 bikes. Motorcycle sales fell 27% in the US, which is the largest market for H-D.

2) Harley says it plans to reduce its number of models by one-third. It will emphasize best-selling models and reduce complexity in its factories.

3) Sales have fallen in the US for five straight years.

4) The company will focus on 50 markets where sales are strongest, to include the US, Canada and Europe and will leave smaller-volume markets. No indication which markets will be left.

5) H-D will cut 700 jobs around the world, or about 13% of its global workforce. Expenses will be cut $250-million per year.
 
cap said:
:scratch
Click to expand...

Cap - I looked at the online article and here's the entire paragraph regarding markets:

"The company plans to release its new Pan America adventure touring motorcycle early next year, but said it would delay the introduction of the Bronx Streetfighter, a smaller, cheaper motorcycle that is targeted at younger riders in cities. It was originally planned for release this summer. The company said it would focus on 50 geographic markets that are the company’s strongest sales generators, including the U.S., Canada and Europe, and will exit smaller-volume markets. Mr. Zeitz didn’t identify which markets Harley would leave."
 
ExGMan said:
Cap - I looked at the online article and here's the entire paragraph regarding markets:...
Click to expand...

Thanks for the extended passage. I wasn't questioning your transcription. I was applying my 30 years as a professor of business to the notion that the word "focus" was used in the same sentence as "50 markets." That seems conceptually flawed. Humans can typically "focus" on a maximum of 2-3 things simultaneously, and even that number requires tradeoffs on performance. Obviously, an organization can be structured to share the "focus" among many individuals, but then that will cause other challenges for communication and coordination. So that single sentence might explain some of HD's difficulties.

Cap
 
Sales

ExGMan said:
An article in the WSJ today looks at the Harley-Davidson company in light of its revealing of the most recent sales figures. The article is on page B8 of the 7/29 paper. Here's the URL for those who can access it: https://www.wsj.com/articles/harley...ns-11595938710?mod=searchresults&page=1&pos=2

For those who can't read the article, here are some highlights gleaned from the article:

1) HD posted a quarterly loss of revenue. For the quarter ending on 6/28, it sold 52,700 bikes world-wide. The same quarter in 2019 saw sales of 71,800 bikes. Motorcycle sales fell 27% in the US, which is the largest market for H-D.

2) Harley says it plans to reduce its number of models by one-third. It will emphasize best-selling models and reduce complexity in its factories.

3) Sales have fallen in the US for five straight years.

4) The company will focus on 50 markets where sales are strongest, to include the US, Canada and Europe and will leave smaller-volume markets. No indication which markets will be left.

5) H-D will cut 700 jobs around the world, or about 13% of its global workforce. Expenses will be cut $250-million per year.
Click to expand...


Hate to hear this. I live a couple miles from a local dealer and there's a significant lack of activity when I ride by on Sat. mornings. :(
 
Yet dealers that sell Side x Sides, UTVs, ATVs tell me that the past 90 days have been the best they have ever had.

Both Honda and Polaris were at one point out of product, the pipeline appears to be recovering.

All that I spoke with, friends from when I was in the business, say that it is families looking for something they can do outside and together.

The Top-of-the-line Side by Sides easily sell for equal to or more than a Harley, BMW or Gold Wing.
 
Harley's current CEO was previously a shoe salesman. Without a doubt that's the type of experience I am certain will lead Harley to to new levels of success. It should work out just as it did at IBM in the 90's when they hired a soda cracker salesmen from Nabisco. The CEO will make out like a bandit, but the shareholders and employees not so much.
 
Blacque Jacque Shellacque said:
Harley's current CEO was previously a shoe salesman. Without a doubt that's the type of experience I am certain will lead Harley to to new levels of success. It should work out just as it did at IBM in the 90's when they hired a soda cracker salesmen from Nabisco. The CEO will make out like a bandit, but the shareholders and employees not so much.
Click to expand...


Abe Lincoln use to split logs for hire and Harry Truman was a store clerk ...what is your point?
 
Motodan said:
Abe Lincoln use to split logs for hire and Harry Truman was a store clerk ...what is your point?
Click to expand...

While I can't speak for Blacque Jacque, I believe his point would be that, in his professional life, this new CEO may not have the right background to guide H-D through this time in its history. Truman had been in public life for 23 years before assuming the presidency which probably gave him some relevant experience. A similar timeline can be seen for Abraham Lincoln.

You can argue the merits and benefits of having shoe salesman experience (Puma) before moving into the motorcycle world...but I won't. :laugh
 
BC1100S said:
While I can't speak for Blacque Jacque, I believe his point would be that, in his professional life, this new CEO may not have the right background to guide H-D through this time in its history. Truman had been in public life for 23 years before assuming the presidency which probably gave him some relevant experience. A similar timeline can be seen for Abraham Lincoln.

You can argue the merits and benefits of having shoe salesman experience (Puma) before moving into the motorcycle world...but I won't. :laugh
Click to expand...

Having been born and raised near the home of Piper Aircraft, I can say the acquisition of a niche market product by a conglomerate (Bangor Punta, in the case of Piper) didn't turn out well. Much like H-D in the 60s, a holding company bidding up the company stock made some local folks wealthy. But, after the purchase, it was then "what's the profit for the quarter". Under family ownership, the business timeline was longer term.

Bangor Punta competed with ChrisCraft corporation for the purchase of Piper and also owned Ossa. IIRC ChrisCraft competed with AMF for the acquisition of HD. Luckily, the WillieG group purchased HD from AMF and saved it. That bit of luck wasn't bestowed on Piper or its home town.

I get what Jacque was saying......
 
BC1100S said:
While I can't speak for Blacque Jacque, I believe his point would be that, in his professional life, this new CEO may not have the right background to guide H-D through this time in its history. Truman had been in public life for 23 years before assuming the presidency which probably gave him some relevant experience. A similar timeline can be seen for Abraham Lincoln.

You can argue the merits and benefits of having shoe salesman experience (Puma) before moving into the motorcycle world...but I won't. :laugh
Click to expand...

"Where the rubber meets the road", would pretty well cover the experience aspect. :)
 
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