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Harley plans to ship fewer models to U.S. dealers - WSJ

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  #1  
Old 05-20-2020 | 02:13 PM
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Default Harley plans to ship fewer models to U.S. dealers - WSJ

https://finance.yahoo.com/news/harle...133044242.html

(Reuters) - Harley-Davidson Inc is reopening its factories this week at lower production rates and sending dealers a narrower range of motorcycles, the Wall Street Journal reported on Wednesday.

The U.S. motorcycle maker, which closed its U.S. plants in March due to the coronavirus outbreak, may not ship any additional new motorcycles this year to about 70% of its 698 dealers in the country, the report said https://on.wsj.com/2Tn92JP.

The company did not immediately respond to Reuters request for comment.

Harley would reopen its plants in Wisconsin and Pennsylvania and accelerate production in phases that would be limited to bestselling models and palette of colors and without customizable features for the rest of the year, the report said.

The company has failed for years to increase sales in the United States, its top market which accounts for more than half its motorcycles sold.

As its tattooed, baby-boomer consumer base ages, the Milwaukee-based company has found it tough to attract new customers. To make matters worse, the pandemic has further dented demand as Americans stay at home.

In April, then acting Chief Executive Officer Jochen Zeitz, who has since taken a permanent role at Harley, told investors about plans to cut costs and "de-emphasize" some of its unprofitable international regions.

Jochen and team have been working on a new five-year strategic plan https://investor.harley-davidson.com...sults-covid-19 to revive sales, which the company plans to reveal in the second-quarter earnings update.

Harley has also moved the launch timing of new models to the early part of the first quarter from August to better align with the start of the riding season. That provided some boost to its U.S. retail sales in the first quarter.

Harley's annual dealer meet, usually held in August, will now take place early next year.
 
  #2  
Old 05-20-2020 | 03:05 PM
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Sounds like HD is going back to the early 90's when demand was high and showrooms were empty. You ordered a bike back then and waited 6 months for delivery.
There was no haggle pricing and used bikes retained their value.
 
  #3  
Old 05-20-2020 | 03:18 PM
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Originally Posted by upflying
Sounds like HD is going back to the early 90's when demand was high and showrooms were empty. You ordered a bike back then and waited 6 months for delivery.
There was no haggle pricing and used bikes retained their value.
It will never happen like that again. Too many good used bikes around and the new bike are way too expensive
 
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  #4  
Old 05-20-2020 | 03:19 PM
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I think reducing the number of models is a good idea. It can be daunting to walk into a showroom with 100+ bikes in 20 different models. Not exact numbers, but you get the point. Hard to decide on one with so many to choose. Wind up leaving unsold because a decision cant be made.
 
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  #5  
Old 05-20-2020 | 03:27 PM
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Lot of people out of work or hours have been cut etc. Demand will show this for the foreseeable near future.
 
  #6  
Old 05-20-2020 | 04:10 PM
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Originally Posted by heritageblue2013
Lot of people out of work or hours have been cut etc. Demand will show this for the foreseeable near future.
Demand has been slowing for 14 years, but I know what you mean.

And so reducing production makes sense. Now dealers can leave new bikes in the crate (and hidden), and attempt to hold the line on pricing.
The rub comes when they can't pay the rent or mortgage due to cratered cash flow.

The dealer network is going to have a bunch off closures, or consolidation with other brands. Harley is the Neiman Marcus of the motorcycle world - but has independently owned "stores".
If HD owned all their stores they would be closing a ****-ton of them.
Instead, the dealers will make the decision.
 

Last edited by HiDrag; 05-20-2020 at 04:17 PM.
  #7  
Old 05-20-2020 | 04:15 PM
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They basically gave away their position when they called Harley's customer, not just baby boomers, but used the adjective "tattooed". It is a negative label and placed there intentionally.

It is not that some riders have tattoos, so do, so do many women. It was added as a hate term, but they are trying to appeal to a narrow audience.

Shame on Reuters.
 
  #8  
Old 05-20-2020 | 10:06 PM
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I don't know man, the two dealers near me have sold a bunch of new bikes last couple of weeks. Buddy of mine just traded his SG for a new Road King. They gave him top dollar for his trade. He said they told him that California dealers have been calling wanting some of the local dealers bikes also.
 
  #9  
Old 05-20-2020 | 10:39 PM
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Originally Posted by jfl330
I think reducing the number of models is a good idea. It can be daunting to walk into a showroom with 100+ bikes in 20 different models. Not exact numbers, but you get the point. Hard to decide on one with so many to choose. Wind up leaving unsold because a decision cant be made.
Ha ha!
 
  #10  
Old 05-20-2020 | 11:45 PM
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"As its tattooed, baby-boomer consumer base ages"
Damn, guess I have to sell my bike 'cause I don't have a single Tattoo. Neither do two of my friends or my son and his best friend. Guess we all need to sell.
 


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