Harley-Davidson Dealer Sentiment Index Survey. Mixed Feelings.

3A new Harley Dealer Sentiment Index survey of 74 dealers in the USA and Canada conducted by Baird Research and Dealernews shows that 2nd quarter retail sales falls short of expectations, that inventory levels are somewhat too high (in average a U.S. Harley dealer had 67 bikes on the floor at the end of first quarter) and that higher discounting of new models is required due to competition from used bikes.

Excluding the impact of the Street models sold into the Riders Academy program dealers said that U.S. retail fell between 1 percent and 2 percent in April/May, inclement weather being partly responsible. Demand in the Touring category, including Trikes, remains solid but the excitement for the Rushmore models and for the re-introduced Road Glide has tapered off. Sales of other models in the Custom category – Dyna, Softail, V-Rod – as well as Street and Sportster bikes have slowed down.

12 Responses to “Harley-Davidson Dealer Sentiment Index Survey. Mixed Feelings.”


  1. 1 BobS Jun 10th, 2015 at 11:27 am

    Considering how much the competition has stepped it up in the last couple years I don’t think a drop of only 1-2% can be seen as a negative.

  2. 2 Nitchke Jun 10th, 2015 at 12:45 pm

    2nd Qtr ends June 30th. I’d wait until the earnings call to make any definitive statements.

  3. 3 warren Jun 10th, 2015 at 12:56 pm

    ok.. my take is

    1) the American competition, primarily Indian, has impacted HD sales as there are comparable models.

    2) HD new models are impacting HD… the reason for a lot of used bikes are folks buying the new “Rushmore” bikes using the older ones for trade-in. I traded a 2011 Ultra for a 2014 Ultra. My old bike was on the dealer floor for about 6 months, and I did not ask what happened to the bike.

    And the weather has not helped… normally I would have several thousand miles logged on the bike I think I have put on about 1500 so far… sad.

  4. 4 mkv Jun 10th, 2015 at 1:34 pm

    So can this be a reason why they are doing 1.99 financing. And I also got approved for 5.49% with my crap 675 credit score.

  5. 5 Zenaldo Jun 10th, 2015 at 2:51 pm

    Victory is also selling more bikes as well…but, pretty soon HD will run out of those customers buying all those touring bikes due to aging..then what ? There are a lot of used late model bikes out there with quite low mileage that are a hell of a bargain if someones interested…Im not sure Id have to buy a new one if I was looking right now..financing is almost as on the used bikes too..

  6. 6 TJ Martin Jun 10th, 2015 at 3:34 pm

    BobS and Nitchke hit the nail on the head ; The only numbers than matter at the end of the day are the P&L numbers . As far as Zenaldo’s ” .. then what ” question . When things reach that point guaranteed everyone across the board will be feeling the pinch with the more established and better financed brand surviving with at least one if not both of the newcomers falling into the relegation bin and the Rice/EuroCruisers hanging on by a thread . The Rice/EuroCruisers survival being shored up by the other styles of bikes they sell

  7. 7 Blackmax Jun 10th, 2015 at 5:32 pm

    Well it is awful early for results
    But agree with warren & Zenaldo, both Polaris brands
    are making inroads into H-D’s heavyweight market.
    And will continue to do so in the foreseeable future

  8. 8 takehikes Jun 11th, 2015 at 9:08 am

    Its why HD is circling the wagons…cutting staff, counting on stock price (which is now rated neutral or dont buy) and so on….the years of overpricing and under performing are catching up along with the core group of HD riders aging out. Most of the young guys I see and meet are either not posers, ride old school stuff (all brands) or sport bikes or they do not ride. The last one is huge. when I was young nearly everyone rode at some point but not now.
    HD dug their own grave. It was typical American business, foist off an inferior product at high price based on nostalgia, pump the stock price, reap the profits and let her die.

  9. 9 Dr. Rock Jun 11th, 2015 at 3:05 pm

    The next question is what will the impact be when Polaris fires up their 600,000 square foot facility in Huntsville AL and are building many times the number of Indian and Victory units than today? Stay tuned…..

  10. 10 mr dick Jun 12th, 2015 at 8:26 am

    I think things will get tougher for them, especially in Canada. How many 30-50 grand bikes can the market use? I have one, and have no plans for another any time soon. I am probably not the only one.

  11. 11 BobS Jun 12th, 2015 at 8:34 am

    Dr. Rock, Huntsville is for Ranger / 4 wheeler production, no motorcycle production. The Spirit Lake motorcycle plant has plenty of capacity. I think we all know Polaris doesn’t realease production numbers but my gueestimate calculation is one of their lines is capable of 20-25k units a year, per shift so 60-75k units a year if they run 3 shifts. They have 5 lines currently set up so total plant capacity would be 300 to almost 400k units a year. I think it’ll be awhile before they outgrow that facility.

  12. 12 marc mazerolle Jun 15th, 2015 at 12:12 pm

    I wouldn’t buy used if I could more afford to buy a new one, that’s the bottom line with me, when the competition is nipping at your heels, reduce the profit margin and offer better prices, simple as that.

Comments are currently closed.
Cyril Huze