Harley-Davidson Is Losing Its Cool -

[Historic NY]

On Tuesday morning, the company posted a quarterly update that was dismal all around. Perhaps most alarming, however, was a 17 percent drop in revenue from general merchandise, a sales slump that outpaced declines in dollars derived from bikes, parts, and financing. Souvenir sales were even worse in the first quarter when it recorded a 21 percent drop in merch revenue. The company that rides on the strength of its brand appears to be moving far less apparel, jewelry, and do-rags than it has in the past.

* kicker they going to build a new factory in Thailand.

https://www.bloomberg.com/news/articles/2017-07-18/harley-davidson-is-losing-its-cool


Harley’s layoffs run counter to Trump’s claims he would drive U.S. economic growth by spurring more factories and hiring. The president in February called Harley a “great example” of successful American manufacturing and said his administration would make it easier for businesses to create jobs and build plants. Instead, slumping demand for pricey bikes has left Harley with too much inventory and needing to pare production at home.

“It’s unfortunate,” said David Beckel, a Bernstein analyst who downgraded the stock last week, citing a lack of demand from younger Americans. “It’s just a symptom of the environment they’re facing,” as competitors cut prices and millennials show less interest in motorcycles than past generations.

“Not long ago, President Trump hailed this company as a model of American manufacturing,” Mike Bolton, a district director for the United Steelworkers, said in an emailed statement. “Shortly thereafter, management announced plans to open production facilities in Thailand. Now we get word that 180 hard-working Americans will be losing their jobs.”

https://www.bloomberg.com/news/articles/2017-07-18/harley-davidson-cuts-bike-sales-forecast-seeing-deep-u-s-slump

[central scrutinizer]

1. Looking at Local want ads

Harley's don't seem to keep their value. Why buy new when you can get one with only a few miles for 1/3 the cost?

[DetlefK]

2. It's the 21st century now. Harley-Davidson has too much "cultural competition".

That whole Harley-Davidson- and biker-culture was a result of the post-WWII industrialization.
People dropped out of the work-force and bonded with fellows over biker-clubs.
Foreign-made products came into the US and as a response the hard-to-steer and impractical bikes à la Harley-Davidson were suddenly hailed as the american must-have.

But that cultural back-drop no longer exists.
People no longer seek friendship and support in the biker-culture. That's just one culture among many.
And there no longer is the demonification of foreign products, so people no longer buy american for the sake of buying american. People really don't care where their product comes from.



As Adam Conover once explained in a ted-talk about Millenials: They can be summed up in few words: Intelligent, educated, curious, diverse.

And this diversity is what is breaking up traditional business-models like Harley Davidson, because there are more and more lifestyles and cultures to choose from nowadays. Harley Davidson simply has more cultural competition now.

[Fred Sanders]

10. Well said. You are right, the younger folks care much less about motorcycles in general, period.

[n2doc]

3. Boomers are getting old

And the younger generations don't want to play biker gang. They are too busy trying to survive.

[global1]

7. Who Can Afford Anything Nice These Days With....

the crushing student loans incurred?

[Historic NY]

4. HD never seems to learn.....

I hear old guys saying they stopped riding because #1 reason they are old, fat, and can't pick it up .

HD relied heavily on the rich wanna-be week end bikers . Like cars young people would rather have the new gizmo cell phone.

I am seeing more of those can-am spiders and some 2 wheelers made into 3 wheelers.

** Maybe Donald will get out on one with his man-crush Putin.

[Dustlawyer]

5. Harley Davidson priced themselves out of their market and have not been loyal

to bikers.

The Twin Peaks Waco shootout was an ambush by law enforcement who thought anyone on a bike must be a 1% criminal motorcycle gang member so they shoot up a gathering of clubs attending a legislative update. Most of the people there belonged to clubs like the Booze Fighters - recovering alcoholics, religious clubs, Veteran's clubs and clubs dedicated to charitable works. Yes there were also some clubs like the Bandidos, but not all are the same.

Harley Davidson (HD) had their Waco dealership closed by cops for a few days and instructed all employees not to talk about the shooting and not to support all of the innocent bikers who just ran for their lives. Now those bikers are charged with RICO violations and conspiracy to commit murder just for being present for the meeting. HD does not support them and takes no side in this prejudicial attack on motorcyclists.

[alcibiades_mystery]

6. Biking culture has been strongly articulated to reactionary, right wing politics

with the more reactionary being more attached to Harley Davidson.

[lunasun]

9. Yes it's probably wrong but I always think of them as creepy people.HD Not a thing anymore either

[Historic NY]

14. You have that right, they spread inaccurate or fakes alerts all the time to the masses.

[yellowcanine]

8. And Honda makes a better MC.

No contest.

[yankeepants]

11. The Trump Anti-Midas Touch

Everything he endorses goes to sh*t.

[Kleveland]

12. Not to mention "Bikers for Trump".

That to me, was a seriously revolting development, that only makes sense on a hateful and racist level.

Motorcycling always represented a level of freedom to me, and here we have bikers, endorsing a maniac regime who is bound and determined to undermine our personal freedoms and liberty in general.

I do know bikers who detest *Rump, so do not think that I am throwing all bikers into the bottomless basket of deplorables.

As for Harley Davidson, meh. I respect their history and influence on creating a motorcycling world, but I agree with others, and think that they are overpriced, poor resale value, and technologically speaking, not very advanced in design.

The only new thing they have created that I was impressed with is the V-Rod, which has an engine co-engineered with Porsche.

It is a pretty amazing bike for a V-Twin, but has garnered scorn from the traditional Harley lovers for its nontraditional design, being water-cooled and all. And what looks like a gas tank, is actually the air cleaner! Tank is under the seat. Blasphemy!

Personally, I'd buy a Honda, or a BMW if I could afford it.

But I would like to see Harley survive, and keep all of its manufacturing jobs in the US!

What's the deal with that Thailand stuff?

And why the hell did they buy Ducati if they are having financial woes?

Weird stuff.

[HeartachesNhangovers]

13. Motorcycle styles - like car and clothing styles -

go in and out of fashion. Harley-Davidson has had an unusually long, successful run, but that success seems to have kept them from innovating enough. They have updated their engines and gone to belt drives; they bought the Buell sportbike company and manufactured Buells for a few years, but ultimately discontinued the line. I'm sure they believed that growth of global sales would more than make up for any drop on North America. Not a bad strategy, but it may not have worked out.

[raven mad]

15. I respect Harleys and their riders. I'm a rider, too.

Have been for 49 years, started young at 14. I ride a big Yamaha. Why? Our repair shops and such are few and far between. We do charity rides 2 or 3 times a summer. It's always a Harley that breaks down. Always.

Harley-Davidson needs to understand that the "mystique" of the outlaw biker is long gone. Most folks who ride know that; those who buy for the prestige or name and really are NOT riders don't get it.

(Not mine, but you can get the idea.)

The wacky bunch we ride with has a slogan. It doesn't matter WHAT you ride, it's THAT you ride.