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Face facts...when the baby boomers stop riding...the MoCo will have to downsize about 50%. . . .
News flash! In terms of sales and production, Harley has already downsized about 50% since 2006, and can probably go further if the US market continues to shrink. It is no doubt a wise business strategy to continue to increase their focus on the more affordable Sportster and Dyna variants. With the real US unemployment and underemployment numbers (including those who have given up entirely) sitting at around 45% of the workforce, it's becoming more of a challenge to sell motorcycles that cost as much as a new small car or truck.
The prices of the bike is the obvious factor. The INS reason kept me off a Harley for awhile , The combined cost is the killer. High rates with higher payments make a guy pick and choose to stay on a cheeper bike and still ride.
News flash! In terms of sales and production, Harley has already downsized about 50% since 2006, and can probably go further if the US market continues to shrink. It is no doubt a wise business strategy to continue to increase their focus on the more affordable Sportster and Dyna variants. With the real US unemployment and underemployment numbers (including those who have given up entirely) sitting at around 45% of the workforce, it's becoming more of a challenge to sell motorcycles that cost as much as a new small car or truck.
Oh I forgot to mention in my previous thread re: demographics and such...When we opened our Indy shop in 1996, HD produced 112,000 units that year. At the 2004 Dealer Meeting in Florida, the CEO announced plans for 400,000 units by 2006, ( which caused one huge groan from the audience.) I don't know if that figure would have been sustainable without a recession. So 50% shrinkage is a relative number.
News flash! In terms of sales and production, Harley has already downsized about 50% since 2006, and can probably go further if the US market continues to shrink.
It is all about total population and demograhics...there is a huge shortage of young workers in industry already. There will be about a 10-12 year "gap" where there are simply very few buyers. Out of that group the vast majority will prefer the European or Asian brands. Currently, there are 10,000 boomers retiring daily and in 7 years that number will go to 14,000 per day. DHS granted 250,000 H1-B work visas this year to foreign immigrants. Do the math.
Oh I forgot to mention in my previous thread re: demographics and such...When we opened our Indy shop in 1996, HD produced 112,000 units that year. At the 2004 Dealer Meeting in Florida, the CEO announced plans for 400,000 units by 2006, ( which caused one huge groan from the audience.) I don't know if that figure would have been sustainable without a recession. So 50% shrinkage is a relative number.
Who would have guessed during the AMF years that there would ever be a waiting line to buy a Harley? Like any good business, the moco will adjust and survive. If not, I don't think its going to matter much to me when I'm planted 6 foot down.
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I don't think that most of the younger generation really care abut the "HD mystique."
It is ol' school and most of the guys that ride are getting older, and I don't think that they want to be associated with the ol' school thing.
They are more into technology type stuff, cell phones, crotch rockets, etc., not too mention the prices that HD charges for their bikes.
It turns the younger generation off and away.
It'll survive by being more like GM, who because of their worldwide sales is already knocking on Toyota's door to become the biggest auto maker in the world again. ( They sold more cars in China last year that they did in the U.S.)
HD has had an assembly plant in Brazil for about 10 years, and just opened up a new assembly plant in India this year, to serve that HUGE Indian population.
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Slideshow: The Swiss custom shop has taken a Harley Softail and stretched it into something so long and low that it looks closer to a rolling sculpture than a conventional motorcycle.
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Slideshow: A standard cruiser becomes an intricate metal canvas in the hands of a Swiss custom house known for pushing Harley-Davidson platforms far beyond their factory brief.
Slideshow: Harley-Davidson's challenges aren't abstract; they show up in dropping shipments, shrinking dealer traffic, and strategic decisions that aren't yet translating into growth.