Is HARLEY DAVIDSON in financial trouble?

[Phantom]

Harley …. In Trouble ?

http://twistedthrottlelifestyle.com/...ny-in-trouble/

[glryder98]

Excellent article, Phantom. I would hate to see HD go the way of Indian MC. Harley is still an American tradition and it's still the first bike people think of when they see bikers. I put a lot of miles on Harleys during the 70's and 80's. One day I may even uncover my old pan head and get it running. (even though I don't think I can kick that thing to life!)

[F6B1911]

If the HD emblem was on a Fast Black water-cooled 1832cc power plant with a shaft drive, they'd run 3 shifts just to keep up with the demand.
I'd buy one.

[willtill]

Good article. But....

Are you a biker, or a motorcycle enthusiast?

[Steve 0080]

As far as I know H.D. still has 40% of the market. People are fighting to get in the door to buy one... They are fine, there are a lot of folks who love
100 year old tech !!!

Wan't to see it in action, go by the H.D. shop while at Daytona... people are bending over backwards to hand them money and pushing folks out of the way on the floor !

[53driver]

HD stock value has steadily decreased from mid $60s to $40 over the last year.
Yes, I own some.
Yes, they need to get back to basics.
Sooner than later if they are to enjoy their heritage namesake prosperity.

[taxfree4]

The great thing about America is if you make a shitty product the public will let you know, in this case - eventually. After years of overpriced under-performing motorcycles, parts, service, merchandise, arrogant dealers, terrible customer service, helpless helpline support - the public, finally, is waking up. It's a healthy thing in commerce and either you trim, improve, perform and conform or you're out. It may be too late or they may look for a bailout from the government, like Chrysler, or if Trump gets in a heavy tariff on imports. Either way, like AMC, if the product sucks it should just go away to the rust pile of history. I can't wait to dump this 1200 for a Scout, except no one is buying.

[SimonTemplar]

Hes Right You Know.jpg

[gandydancer]

Talked to a salesman from one of the HD Shops in Dallas last month at the Bike Show--he admitted that sales were down due mainly to Victory and Indian--both are running better motors with more HP at the same price or couple of thousand cheaper---very few of the real old school Bikers can throw down 30,000 or 40,000 for a CVO model--changes need to be made, but, Harley has come a long way over the last few years--they are not bad bikes at all---I came back to Honda mainly for the power of the "Wing" motor---believe it is the best motor in any motorcycle being made in today`s market---HD needs to drop prices and pay a bit more attention to little things, like oil over blow thru the air cleaner---believe they will be alright and to answer another question, I love all bikes--and am a Biker---49 years riding and still on two wheels----

[Cool Hand Luke]

I agree with all above posts. Also, thank you Phantom for posting an interesting article.

In my opinion, HD is long way from being done. Things fluctuate in business anyway. Here is the chart showing HD's income over the past few years:

Attachment 18965

I think their bikes are better in quality now then possibly ever before. Their prices are fairly high for a middle class and blue collar Americans, which is why HD's demographic has been shifting to older wealthier groups over the decades. Right now, they really market to people 45 and over.

The problem for HD is that American demographics are changing. Next decade or two will give them much trouble as it is expected to be a drop in people 45 and over, due to baby boomers aging. In fact, one can argue that baby boomers have kept HD in business for a long time. This generation grew up seeing their parents riding HD's, so when older and able they also wanted to ride HD's due to nostalgia. Baby boomers are also a wealthy generation, willing to spend the kind of money HD was asking, and also buying into the whole 'HD lifestyle'. However, as baby boomers age past their riding ability HD will be in trouble.

Generation X and Y kids don't seem to have the same nostalgia towards HD. If they like to ride two wheels than any brand would do. They don't care as much for an HD biker image and do not have the money that HD is asking for their touring bikes. In fact, they are more likely to have started on sport bikes.

HD knows this, their management is not stupid. That is why they are bringing in the Street line of bikes, which are much cheaper and decent performing bikes. The quality is not the same, but all that can be fixed thru HD's accessories and aftermarket. It remains to be seen if this strategy will work out.

Here is anoher great article strictly from investors point of view:

http://www.forbes.com/sites/moneybui.../#4f8cb51b28ef

Of course there is more competition today especially from Polaris. I am a good example of this. I had 2 HD's, Road King and VRod Muscle, and now I also ride Victory Cross Country (in addition to F6B, of course.) I really enjoy Victory's performance and comfort. I think that Polaris is going to continue to chip away HD's cruiser market share as they grow their two brands. Hopefully this competition will result in more choices for us and better, more affordable bikes.