HD Seems to Have a Problem

[PGlaves]

From msn:

Harley-Davidson's global retail sales also shrunk by 13%, compared to the same time period in 2023, as its motorcycle shipments decreased by 39%. This contributed to the company’s 32% consolidated revenue decline. In addition, Harley-Davidson’s revenue from its parts and accessories unit fell by 6% year-over-year due to “lower customer traffic.”

Despite the declines in its core business, the company managed to increase its apparel revenue by 13% year-over-year.

 

[omega man]

They do have some really great looking apparel.
Whole report here- https://investor.harley-davidson.co...-Third-Quarter-Financial-Results/default.aspx
Maybe it’s because of one of my neighbors has left his touring HD out in the weeds and weather all year? I think they sell covers.
I feel like rescuing it.
OM

 

[oldcamper]

HD’s traditional market is fading away, due to customer base age-out and declining worldwide interest in $30,000 American-made motorcycles. I see Harley possibly transitioning to a much smaller niche manufacturer over the next decade or two, and leadership’s main challenge will be managing cash flows as the company continues to shrink.

It seems to me the motorcycle market in general is trending towards smaller displacement, lower cost product from Asian and Indian manufacturers. “European” brands like BMW, KTM, and Triumph now source a significant percentage of content from these low-cost producers, even while maintaining “European” price structures. How long they will be able to continue this subtle ruse is anyone’s guess, but it hasn’t worked well for US car manufacturers as they saw their low-cost “partners” of the ‘70’s eventually take over much of their their business. Time will tell …

 

[GTRider]

H-D switched from a CEO who oversaw introduction of the PanAmerica and other models geared toward attracting a new customer base, to one who believed limiting production and raising prices would grow profits. Sales have declined, dealer inventories (and thus floor plan costs) are way up, and profits and market share declining. Look for the board to change CEOs again, but it may be too little and too late.

Best,
DeVern

 

[mikegalbicka]

The last few issues of Moto eMag offer some insight about this discussion as well

 

[oldcamper]

The last few issues of Moto eMag offer some insight about this discussion as well

And it’s interesting to see the Japanese reclaiming “premium” status.
One intelligent thing they have done to insure this is keep most critical manufacturing under their own roof. Even when they offshore to lower labor cost markets like Thailand, the product is still built in their own factories, owned and managed by the Japanese parent company. There are no conflicts of interest.

There’s an old adage about feeding a small pet alligator. Someday it will grow big and want to eat you. The Japanese are smart to avoid this.

 

[CaptCF]

advrider ran an article on it too - https://www.advrider.com/is-harley-davidson-ceo-jochen-zietzs-job-at-risk/

 

[riderr1150gsadv]

H-D switched from a CEO who oversaw introduction of the PanAmerica and other models geared toward attracting a new customer base, to one who believed limiting production and raising prices would grow profits. Sales have declined, dealer inventories (and thus floor plan costs) are way up, and profits and market share declining. Look for the board to change CEOs again, but it may be too little and too late.

Best,
DeVern

This didn't help either..... https://knowyourmeme.com/news/man-g...torcycle-after-claiming-company-has-gone-woke

 

[bluegrasspicker]

Another take, which I agree with...

MSN

 

[kbasa]

Another take, which I agree with...

MSN

They are Cadillac 25 years ago. An aging buyer, less and less likely to spend big coin on a bike. An image many don’t care for nor want be associated with. Feckless attempts to expand their lineup.

They are also BMW until not long ago. BMW has done a great job expanding their market with a lineup none of us would imagined 20 years ago.

Can Harley solve it? I dunno.

 

[akbeemer]

From msn:

Harley-Davidson's global retail sales also shrunk by 13%, compared to the same time period in 2023, as its motorcycle shipments decreased by 39%. This contributed to the company’s 32% consolidated revenue decline. In addition, Harley-Davidson’s revenue from its parts and accessories unit fell by 6% year-over-year due to “lower customer traffic.”

Despite the declines in its core business, the company managed to increase its apparel revenue by 13% year-over-year.

The finance officer at the Harley/BMW dealership in Fairbanks once commented to me that the sales of HD t-shirts, hats and other apparel was their single biggest money maker. They ran a store in Glitter Gulch, the strip of motels restaurants and souvenir shops outside Denali National Park. It was open about 3-3.5 months a year and made more than sales of HDs and accessories. The Anchorage dealership ran a similar operation in Skagway.

 

[kbasa]

The finance officer at the Harley/BMW dealership in Fairbanks once commented to me that the sales of HD t-shirts, hats and other apparel was their single biggest money maker. They ran a store in Glitter Gulch, the strip of motels restaurants and souvenir shops outside Denali National Park. It was open about 3-3.5 months a year and made more than sales of HDs and accessories. The Anchorage dealership ran a similar operation in Skagway.

San Francisco had similar, but Dudley Perkins, who were a really old HD dealer has closed. So did the one in Marin County, just north of SF. We still have an HD dealer up here in Sonoma. Plenty of Harleys rolling around the vineyards up here and plenty of those riders know their way around a curvy road.

But it’s kind of stunning that two dealerships in a pretty wealthy area are closed up. The old Golden Gate HD is now a bicycle shop. And a pretty good one, at that.

 

[etiennelau]

In 2023, I introduced or I should say my son wanted to get his MC license and never once did HD come into the discussion. My son's generation "Gen-Z", don't have much interest in riding motorcycles. Let alone buy a $30,000 HD as their first motorcycle...The image projected by HD (No helmet, no protective gear, etc...) just does not sit well with them. Gen-Z are seeking value above life style, they see/saw the mistakes the millennials made. He and I bought a used 2022 G310R and he enjoys riding it. Light and easy to learn on. Buying any HD is about buying into the life style and that's completely against their moto.

 

[crna59]

In 2023, I introduced or I should say my son wanted to get his MC license and never once did HD come into the discussion. My son's generation "Gen-Z", don't have much interest in riding motorcycles. Let alone buy a $30,000 HD as their first motorcycle.... Buying any HD is about buying into the life style and that's completely against their moto.

As a H-D Riding Academy Instructor, the 2 local Dealerships in my area have dropped the program... saying they are losing money and it's not worth it to them. We have a fleet of Street 500's and the newer X350-RA bikes they came to pick up. I know several of the students complained that they either can't touch the ground or were too heavy, though the X350 was more accommodating to folks of lesser statue.
There are still 2 Dealerships in WA State (Vancouver and Spokane) that still provide the training. The younger clientele is just not there....... pretty sad.

 

[omega man]

I have mentioned before, here in Mass, there are VERY limited places to ride. Most riders are doing what they can to stealth ride. With such limited places to ride, I’m surprised that they sell any dirt bikes. I’m still of the opinion that dirt/backyard riding sets the seed for a lifetime of interest in motorcycles.
OM

 

[etiennelau]

As a H-D Riding Academy Instructor, the 2 local Dealerships in my area have dropped the program... saying they are losing money and it's not worth it to them. We have a fleet of Street 500's and the newer X350-RA bikes they came to pick up. I know several of the students complained that they either can't touch the ground or were too heavy, though the X350 was more accommodating to folks of lesser statue.
There are still 2 Dealerships in WA State (Vancouver and Spokane) that still provide the training. The younger clientele is just not there....... pretty sad.

LOL. The place my I took my son to for his MSF course was hosted by the local HD dealer....But they/we rode Honda Grom, Kawasaki Z125 for the on road portion.

 

[etiennelau]

I have mentioned before, here in Mass, there are VERY limited places to ride. Most riders are doing what they can to stealth ride. With such limited places to ride, I’m surprised that they sell any dirt bikes. I’m still of the opinion that dirt/backyard riding sets the seed for a lifetime of interest in motorcycles.
OM

Yes and No. I have met many people that road dirt when they were younger. But now as adults will not go near them.

IMHO we here in the US keep using the term "Motorsports". Key word "sport". That's the issue, unlike other countries, we don't want or accept using motorcycles as a form of transportation and we only use them/view them as a life style for fun and entertainment....This results in poor sales and service at all dealers, NOT just HD. Dealers are not in a hurry to get you back on the road. Mind you I personally have not asked or wanted my BMW dealer to give me a loaner, I am sure they would. But I do know that Honda, Yamaha, etc...loaner? What is that. How many days to get me back on the road? Days, oh no weeks.

 

[kbasa]

I have mentioned before, here in Mass, there are VERY limited places to ride. Most riders are doing what they can to stealth ride. With such limited places to ride, I’m surprised that they sell any dirt bikes. I’m still of the opinion that dirt/backyard riding sets the seed for a lifetime of interest in motorcycles.
OM

I think electric dirt bikes could address the noise issue and help.

 

[omega man]

I think electric dirt bikes could address the noise issue and help.

Not the noise issue. It’s the majority of residents that see a dirt bike as something only the “lesser” people do.
Example- horse shoe playing, Red Neck. Corn Hole playing- acceptable, “genteel” and civilized.
It will be a long time before an electric starter motorcycle like a Honda 50cc gas powered will be price comparable.
OM