Like any style of bike, the heavy weight, large displacement, cruiser/bagger will come and go just as SUVs have replaced mini vans and minivans replaced station wagons. The cruiser market has already reached its zenith and the market is now contracting to where it will eventually become a niche style again in the broad spectrum of motorcycle types. HD needs to stop putting all their eggs into the cruiser/bagger basket or they will end up a has been manufacturer making a niche style of bike.

While this is happening the adv/tour bike market is overheating, particularly among middle aged and older riders. It too will eventually reach it's zenith perhaps 10-15 years from now when another style comes along.

The problem for HD is they are damned if they do and damned if they don't. If they do launch other styles their existing clients may feel they are not "authentic". If they don't they face a shrinking market. Perhaps another alternative is to launch another brand like they did with Buell, only don't half *** it this time with unsuitable engines transplanted from HD. Buells also had quality and design issues, perhaps because they were only produced in small quantities and they could not afford to refine them like larger scale manufacturers could.

 

The idea behind a new bike and attracting a new customer does not mean you turn away from your core customer.

Is it the customers or the dealerships that kept riders away from Buell, or MV Augusta, or even the V-rod or Street. Many dealers (sales) even handle sportsters like second class citizens.

Most metrics welcome any rider that walks in the door. I've even been treated as a second class citizen at Harley dealerships when not on my bagger. If Harley launched a new sport touring bike, do you think your dealership would get behind it?

I remember when the dealers had Buell, they were stuck in a corner, no salesman knew anything about them except they had sportster engines.

I think the issue is less with the riders than it is with dealerships. If they had built a fantastic 500 or 750, I was looking for one. The Street, sorry, did nothing for me and I knew more about it (before I saw it in person) than the sales person who finally asked if he could help. Why?

 

In calling my dealer in the twin Cities area. I was informed that I should come and visit their new building, just down the road from their old one. Opening Presidents wkend. He bragged that it will be the largest H.D. dealership in Minnesnowta. I've been in there a few times since I bought my bike there 10 years ago. They'll never service my bike's again.

I'M NOT IMPRESSED!

 

The problem for Harley is when you have as much market share as they had and a new kid on the block like Polaris comes into the market with a decent product. You only have one way to go with market share. Add to this the fact the world wide market has already been shrinking. I'm happy Harley has strong competition from Indian. It causes them to innovate.

As for putting heavy incentives on their products. Coming from the auto business and seeing GM and Ford destroy their products resale values by placing huge incentives and volume sales to renters. Going down that road would be a disaster. 1) It would cause resale values to fall for others that have the product 2) it would diminish the overall reputation 3) More volume with lower profit margins does not necessarily move the company in the right direction.

Its better that they produce less bikes and cut internal cost by closing production lines rather then depreciate the brand prestige by playing the incentive game. A leaner and meaner HD thats focused on innovation and improving their products will always pay higher dividends in the future.

The problem with Harley is what happens to every other huge company thats enjoys market dominance. They got too big and lazy. It takes time to turn that ship around but I think they are on the right track.

Its not doom and gloom, they are profitable and not in danger of bankruptcy. They will figure out this new market and get back on track. Maybe not enjoying 50%+ market share but they will be just fine.

John
Another Very Happy M8 Owner!

 

Levatich sure has a stellar resume since he took over. Quoting from the article you referenced.

"Since Levatich came to the helm, the shares are down 14 percent, and Harley is losing share in a declining market for motorcycles in the United States."

"Harley is still the dominant player in the heavyweight motorcycle market in the United States, but its market share has steadily fallen to 50.8 percent from 58 percent in 2013."

"In the last quarter alone, its market share shrunk by 2.6 percentage points, forcing it to announce the closure of one of its four U.S. factories and 800 job cuts."

"Polaris enjoyed a 30 percent on year jump in North American retail sales in the last quarter, whereas Harley’s sales dived 10 percent."

The worst of it- "credibility"

"Analysts at RBC Capital Markets said Harley’s weak performances in the past have dented its credibility." “We won’t sugar-coat it. HOG has a tough road ahead of them,” RBC Capital Markets said.

The analysts must not be buying into management's "strategy".

 

And yet, here you are posting numerous times in a useless debate and just bsing.

 

The CEO wants people (shareholders) to be patient while they layoff 800 workers. How long should they wait?. Does he get impatient when his paycheck is delayed? Does it make sense to lay off workers, when the man who's job is to lead the company and make it profitable can't do his job?. If the new riders of tomorrow say Harley's are too expensive today, does he think they're going to all of a sudden spend big bucks for an electric motorcycle with no history of performance or reliability, in a year or two?. ,,

 

I like to see them get creative and make a reverse trike that has two motorcycle wheels up front that are no more then 30” apart with the V rod or Street Engine in it .
This would cover a whole host of riders , the old , the women, the city dweller, and Maybe some millenniums that don’t want to put there feet down when they stop .
The biggest problem For Harley would be making it affordable . This is where all the Electric bikes will be in the future . 3 wheels !

Just like Honda’s NEW Neowing tilting reverse trike. There’s a bike that will appeal and sell very well to the millenniums and to me if Harley is not making one in the next 5 or 6 years !

Or they should be looking good at things like the Yamaha MWC4 because this is where the millenniums will be in as little as just 15 years . I bet Polaris is working on a Proto type of something in same category as this .

Harley Davidson needs to empower their innovations to survive in tomorrow’s world !

 

I wonder if the tax cut sill inspire more people to by moorsickles. Gotta do something with
that extra money!!

 

if you make $48k a year you'll pay about a grand less in taxes. that's nowhere near a "buy a Harley" windfall.

especially if you're already basically just making ends meet.