Harley-Davidson worldwide retail motorcycle sales were down 6.7% in 2017 compared to 2016. U.S. retail sales decreased 8.5% and international retail sales were down 3.9%. In 2017, Harley shipped 241,498 motorcycles total, down about 8% from a year earlier.
Harley-Davidsom is struggling to reverse a four-year sales slide, with growth overseas somewhat helping offset a decline in the U.S. bike market.
Hurt by a continued slide in motorcycle sales, Harley-Davidson is planning to close its assembly plant in Kansas City, Mo. and consolidate production in York, PA. The restructuring will eliminate about 260 U.S. jobs, Chief Executive Officer Matt Levatich said this morning on a conference call.
Tuesday, the Milwaukee-based company said its net income fell 82% in its fourth quarter of 2017 to $8.3 million from $47.18 million in the same quarter last year.
“For 2018, Harley-Davidson anticipates full-year motorcycle shipments to be approximately 231,000 to 236,000 motorcycles. In the first quarter of 2018, Harley-Davidson expects to ship approximately 60,000 to 65,000 motorcycles,” the company said. Both figures are below analysts’ forecasts. The stock has struggled over the past 12 months, falling 3.1%. But since the start of 2018, shares have rallied 8.7%. In premarket trading on Tuesday, Harley stock fell nearly 6% to $52.
In the fourth quarter, Harley-Davidson worldwide retail motorcycle sales declined 9.6 percent versus the prior year. Harley-Davidson U.S. retail motorcycle sales were down 11.1 percent and the overall industry was down 6.5 percent compared to the year-ago quarter. Harley-Davidson U.S. market share was 50.8 percent in the 601+cc segment in the fourth quarter.
Fourth quarter revenue from motorcycles and related products was up versus the prior year behind higher motorcycle shipments. Operating margin as a percent of revenue increased in the quarter compared to the same period in 2016.
“Our actions to address the current environment through disciplined supply and cost management position us well as we drive to achieve our long-term objectives to build the next generation of Harley- Davidson riders globally,” said Matt Levatich, president and chief executive officer, Harley-Davidson, Inc. “We finished 2017 with over 32,000 more Harley-Davidson riders in the U.S. than one year ago, and we delivered another year of strong cash generation and cash returns to our shareholders.”
Objective to Build Riders Globally.
As the company executed against its long-term objective to build the next generation of Harley- Davidson riders globally, 57 new international dealer points were added in 2017, and U.S. dealers trained more than 62,000 riders through the Harley-Davidson Riding Academy. The company also maintained its number one 601+cc motorcycle market share position in countries including the U.S., Canada, Japan, Australia and India for 2017.
The company also launched its model year 2018 lineup of motorcycles, featuring the all-new, highly- acclaimed Softail® motorcycles featuring the powerful Milwaukee-Eight® engine. Harley-Davidson remains fully committed to investing in product development to inspire new riders through redefining its product in traditional spaces and expanding into new spaces. The company is on target to launch its first electric motorcycle within 18 months. Today, the company announces it will invest more aggressively to lead in the application of electric motorcycle technology to inspire ridership among a new audience.
It’s an active project we’re preparing to bring to market within 18 months.”
“The EV motorcycle market is in its infancy today, but we believe premium Harley-Davidson electric motorcycles will help drive excitement and participation in the sport globally,” stated Levatich. “As we expand our EV capabilities and commitment, we get even more excited about the role electric motorcycles will play in growing our business. The LiveWire Project is an active project we’re preparing to bring to market within 18 months.”
Suffice it to say this is what the real economy versus the Hype & Hyperbole being bloviated across the country actually looks like in and throughout all manufacturing in the US . Declining sales , factories closing , jobs outsourced overseas etc . So with this small window of reality : welcome to the real world gentlemen ( and ladies )
Suffice to say this is a market driven toward a smaller and smaller niche in the USA so it’s really dependent on the off shore sales. Worldwide; big bikes just aren’t affordable or popular like the smaller workhorses in the sub-500cc market. Millennials didn’t grow up with “Easy Rider”, “Renegade” or “Then Came Bronson” as something to dream about. Okay; maybe “Renegade”. They don’t get their kicks on Rt. 66; they get them in VR or Xbox or Nintendo, etc, etc. Since most sales are off shore these days; the economy in those countries is what to look at. Look at the average age of most big bike riders today; bet they have a gray or white beard and most are retired.
Boomer. Another popular trend with younger people is that they tend to value experiences more than big ticket possessions. I think this has given rise to the popularity of renting rather than owning. Companies like Eagle Rider recognized this and introduced subscription based rentals (kinda like Amazon Prime, Netflix ect.). I have taken advantage of it myself a couple of times when traveling and I can see how a more casual rider might put off buying a new $8,000 – $26,000 motorcycle when they can ride one of their choice for 12 days or more a year for a fraction of the cost.
HD sold fewer bikes but made more money selling those fewer bikes quarter over quarter.
2016 4th quarter had 46,610 bikes sold (wholesale) for $685,047,000. Average $14,697 per bike.
2017 4th quarter had 42,142 bikes sold (wholesale) for $801,726,000. Average $19,0243 per bike.
This tells me that the product mix has skewed heavily towards the big touring models in the fourth quarter. I am guessing that he M8 is getting traction now that it is a year old, and that the introduction of the new softail lineup may have delayed purchase of the same until next year.
But who is buying the expensive bikes, and for how long? As many have pointed out in past threads, HD is weak in the $10,000-$14,000 price range segment which is where they need to be to get the new riders.
just heard that Harley is closing Kansas City plant-600 out of work. Hiring 450 SESONAL workers for York
Where your funds in 1983 or 1984, sitting in a bank savings account? Then what? That’s right, the Porsche/H-D Evolution caught us napping.
The ONLY thing holding back the “Electro-Glide” is the battery. H-D will be making their own battery, continuing the “we-don’t-need-no-partners” in the Parts Dept. policy.
The dealerships need to change their attitudes when selling. If they want to sell bikes, they need to start offering really good deals. I was looking to buy a Streetbob with an MSRP of 14500 and tried to give me an Out the door Price of 19500.
In the end HD still made money
You get a softail, and you get a softail, and we all get a softail. Softails for everyone!!!!!
My kid is 25 and she rides. But when I look at her and her friends I don’t see any new bikes. Period. What they are doing is picking up classic bikes from the 70’s and rebuilding them. So on one hand they really are shooting for that authentic biker experience (not necessarily a Harley one), and not the commercialized, biker parody that exists in older, middle class Harley circles. Second, they don’t have a lot of money to spend on bikes and they don’t like to (or can’t) finance. So they’d much rather spend $2k on a used piece of junk and fix it up over time. Lastly, she’s got a whole other group of friends who are into hopping up and racing mopeds of all things! Not sure what that’s about. But all this to say…. the kids don’t care about Harley Davidson.
perhaps H-D can show some vision to american capitalism by changing its business form & function to an employee owned business cooperative that limit salary spreads across the company to 6x. employee-owned/ employee- run seems more fitting for the american icon than the wall-street bled & dead public-owned (ready? all laugh on cue) companies. (btw, increased profit-margins simply show that management is better following the communist china model of treating their employess as robots, providing tiny cells with bare floor and cots to sleep in while they work around the clock. fuks. MBAs i mean.)
This press release doesn’t explain things very well. The KC plant made Dyna’s VRods and Sportsters, two of which they don’t make anymore so it makes sense that they wouldn’t have the volume there to keep it open with just sportsters. They are hiring more season workers for York which will help.
Overall they need to reverse the trend, here’s hoping they can do it.
Polaris is down $17.- today on the stock market ! I’ll check Hog ?
PS, I’m up $250K, since Nov. 8th, 2016 ! I’m down a little, yesterday & today !
Open a plant in India, close a plant in Kansas City. 800 workers get laid off but the CEO gets a tax cut on his ten million dollar bonus. The more things change the more they stay the same. MAGA.
Bob S,
to sell in India you have to build in India. As stated above, 2/3 of the models built in Kansas are being discontinued. It makes no sense to keep it open. But hey, when has sense ever been linked to the liberal mindset.
A tax cut? Umm, no, he’ll be paying more under the new plan.
Let’s not forget that our President presented H-D as a model of American manufacturing success. Ha. ha. Always wrong or lying.
The vast majority of Millennials are liberals. Harley must change its marketing language or even with an EV offering the company will kaput.
Harley is irrelevant in this Millennial-driven market. Harley needs to change its product (EV bikes, range 10/14K maxi) and to refresh its narrative.
StS you’re mistaken. To REASONABLY sell in India you need to assemble in India. You do not need to manufacture in India to sell there. Anyone who thinks this wasn’t planned with more to come is kidding themselves. What has Harley “promised” us, was it 50 new models in five years or 100? Is anyone foolish enough to think all they’re going to do is import Street models into America? I bet the next Sportster is manufactured there in parts to be assembled in York for a couple years until the public forgets about it and they move all of its production over there laying off more Americans.
The World is changing at a very fast rate, and we are aging at what seems a fast rate.
Some young people out there in big cities don’t even bother to own cars.. public transport etc
I can turn this around….yes me. Guaranteed…..
been a long time coming….going to buy lots of cheap used HD’s soon…
Its not over but HD better get their price, performance and reliability in line.
Always comes down to management.
Harley has failed to change with the market. Lazy management has been focused on today’s share price and not where this company will be in 10 years. Suddenly, they’re going to be an electric bike maker- really? You’re five years too late on that move, you should already have a brand established in the EV market by now, that ship is half-way out the door already.
Too many years of lazy products. Ooh, a new black series. Oh, let’s top that with a blacker-than-black series. And then the Limited Black series.
C’mon.
This is nothing new. It’s how companies die.
I think current design issues with the Milwaukee 8 engine are hurting sales. Check the forums abd you’ll see many horrir stories of wet sumping (Harley is on at least it’s 5th oil pump design without success) and the even more common problem with fluid migration — transmission fluid migrating into the primary with no identified fix for that either. I was going to buy a 2018, but have delayed until at least 2019 due to the problems. As the saying goes — never buy a first (or in this case 1st or 2nd) new model from Harley.
Too many issues with the new M8 engine are hurting sales. Wet sumping and fluid transfer (transmission to primary) top the list.
HD needs to stop building overpriced,poor quality machines aimed at the one foot in the grave generation!
Less people buying big bikes, and more people making them. Harley didn’t have any entry level bikes for years, and the Street looks like metrics costing less. If they’d had any kind of vision for the future, there would be 1-2 generations of Buell Blast riders on new big twins, and the Blast itself would have evolved into nice cruiser bike like the best “first bike” ever-the Suzuki Savage 650.
We can’t even get kids to be motivated enough to get a Drivers License, now you wan them to want a motorcycle?!?! It is not HD’s fault, but it is their problem.
450 new workers in York they did say some full time just not how many of the 450, the sportster and street models just moving to York for assembly, more automation is involved in building sickles now days that equals less workers and less sales, the Kansas City plant came at a time when you couldn’t buy a bike in 1997 if you bought a bike for 10k you could sell it the next day for 15k, look at total production numbers for 1996 and for 2017 big difference, eventually it’s gotta slow, kids now days don’t want motorcycles (I know some do its a broad statement) most were raised by electronic devices of some sort and buy anything cheap, no loyalty to buy american and H-D and Polaris ain’t gonna change that
Drake Tilson,
Are you saying HD isn’t a great American success story because there’s been a downturn in total motorcycles sold the last couple of years yet has been in business since 1903 and still sold 241k bikes last year? I’d like to hear what you consider a success story then. Demographics in America has changed along with trends. This isn’t HD’s fault but as someone else said; it is their problem to solve to maintain their level of sales. Even if they had to downsize and sold half the number; they would still be a success as long as they could produce a decent profit which is the first of many goals of any business. They may have to sell e-bikes in 30 years with only a couple of models still running on gas.
I don’t get the electric thing?
Gas is cheap now what’s all this crap about buying a boring, no soul, not good for the economy electric vehicle. The moron we had running this country before Mighty Trump and his minions don’t drive they. don’t do anything but put their hand out and then bitch about what they got, and don’t understand what it is to have your own business. I am hoping this goes away soon and HD will be back.
Been There Done That. Electric vehicles. If you ask me to explain the worldwide interest, including yours, you would not understand. Check PolitiFact for the number of lies made by Trump during his State Of The Union Speech. Very sad…
It’s simple. The Motor Co needs to have a ”shortage” of bikes available. peace
All politicians lie,live in Illinois and you suffer under Chicago rule and we all know where our former pres came out of. the corrupt city of Chicago. So just concentrate on bikes and ride and be happy till they take that away!
LiveWire is coming within 18 months! I’m excited for that! I rode LiveWire 1.0 a few years back and loved it.
Now, I’ll wait for the comments from the crowd that H-D is not aiming for to commence.
HD problem was and continues to be large overpriced dealerships selling like they have limited production and the continued graying of their main customer base. HD makes nothing that interests the younger gen population and in addition they have never accepted the fact that they cannot continue making more on financing than bikes. If they really listened to their surveys of the younger customer they would have produced a sub 10k motorcycle. I know the parts costs and the labor is only slightly more than many other bike manufacturers, but bloated overhead at factory and dealerships can only be covered for as long as their buyer were growing but now they are continually being reduced by attrition and have screwed their partners for so long no other bike builders will not join with them. If HD management does not wake up and smell the roses the decline will continue and oversea sales will not pick up the slack they cannot compete with Chinese production of crappy small bikes and scooter or even their much ballyhooed electric (HA-HA) motorcycles. HD decline does not have anything to do with how many muslims or Mexicans that sneak into the country or that the democrats cannot force more EPA regulations onto business to help the continued movement of our cash into their over sized pockets
Bitch all you libs want about Trump but he did not get this country in the condition it is and he really cares about it no matter who thinks he does or not.
Trump does not apologize for America being GREAT or RETURNING to its once GREATNESS and neither do I or should any other of it citizens.
This was not paid for by President Trump or anyone else. Have a great day.
1 – H-D isn’t going away anytime soon.
2 – They only build Cruiser class bikes be it 500 to touring.
3 – They don’t produce water craft, snow craft, off road crafts etc. which is what their competitors do.
4 – Millennial’s are not all a bunch of Liberals. Have you not heard of Ben Shapiro, Steven Crowder, Joe Rogen, and the many other under 40 conservative talker found on YOUTUBE not general radio. I know as I have two sons who are in the M camp and they are not liberal nor are their friends.
5 – Remember the first bike you bought? Most likely it wasn’t a H-D it was a small inexpensive metric the H-D came later as in all the baby boomers who started buying H-D’s in the 90’s (they were in their 40’s they are now in their 60’s.
6 – Used bikes rules. Why spend so much for a bike with no mileage when you can spend half or less and buy one with low mileage. Eagle Rider gets this in 2 respects they rent bikes and they sell used bikes (secondary market) – they are making a killing in both arenas with very little marketing.
7 – Buying back shares doesn’t add value to a company it takes it away less money for R&D that goes into propping up share values not developing new bike lines – Polaris is also guilty of this, this practice only makes the CEO’s and stock holders rich while the everyday worker doesn’t get anything other than a pay check.
According to a new poll conducted by SSRS almost half of Americans — 48% — who watched liar in Chief President Donald Trump’s first State of the Union address say they had a “positive” impression of the speech. It’s the lowest net positive rating for a State of the Union address since at least 1998.
Dee makes a valid point…Its not that “liberal millennial” as so many of you call us, aren’t buying bikes. Motorcycles are an ideal product for a very consumer and image driven age demographic.
The nut the whole industry needs to crack is how to get kids who have grown up in almost a non-stop recession into buying NEW bikes, and new BIG bikes at that.
Fewer & fewer can afford $20-$30k bikes. Nor do they want to. I applaud The Motor Company for the 46 c.i. Street & Street Rod line. I like they promoted the XG750A to NHRA racing &, more believable, Flat Track Racing. Just wished the XG750R was more competitive.
Dante; most people have learned to ignore the polls ever since they predicted HRC would win by 80% then lost but since you like them so much, the CBS poll, hardly a right wing news source, showed a 75% favorability to just 25% non favored after the SOTU speech. The dems made fools of themselves and the public saw it with their own eyes. Hopefully the commie dems will shrink and wither away to nothing in time. Nothing but anti-American obstructionists with no message and nothing positive to say about anything anyway. Joshua III; name one lie. Just one.
Boomer. Go to Politifact. (Independant). You will find the list of more than 2000 lies made by Trump in one year in speeches and tweets. Liar in Chief.
Name one lie. I bet I can easily debunk it just as all the rest can be. Trump embellishes, everyone knows this, but that doesn’t make it a lie. Telling the people you will save $2,500 a year on O’care and you can keep your doctor and health plan is an example of a bold faced lie. It’s a shame this thread of comments went immediately to politics when it’s about HD. TDS is real. Trump lives rent free in the heads of so many these days.
I assume the polls mentioned in previous comments are the same polls that told us Hillary was going to win in a historic land slide?
HD isn’t going anywhere any time soon, and the Dem wits ain’t gonna like TRUMP, but loyalty counts at the end of the day.
Boomer: If you truly believe by now that Trump has never told a lie I don’t have any illusions that anyone could convince you otherwise, Nor would I want to. However in the interest of entertainment value perhaps I could implore you to indulge us by explaining why and how exactly Mexico is paying for a proposed $18,000,000,000 + border wall? And PLEASE don’t hesitate to be descriptive as possible.
Thank You.
*grabs popcorn and gets comfortable* =)
Well since the wall would literally pay for itself in the first year of service by what we didn’t spend on taking care of illegals and their offspring; this question is really moot but there are many ways to recoup the money. Tolls coming into the country and a percentage of all money wired out of the country are just two ways that come to mind. You have to remember the huge savings comes from the big drop in in illegals with the tons of drugs they are currently bringing in. All the hard core gang bangers stopped from entering is another huge plus. Not sure we can even put a price tag on that one. Hope you put lots of butter on that popcorn to help it go down.
Yes, this is the market need to improve and work on price, U.S. retail sales decreased 8.5%… need to work on market research industry about the all deep points
Boomer. Sorry, you are typical of many Trump supporters. Low IQ, childish, naive, believing what you hear without verification. Most illegal immigrants arrive by plane with a tourist visa that they overstay. A wall has always failed at the objective you describe in all countries where there its or there was one Walls don’t prevent drug being smuggled. There are better ways to enforce a border. And yes, Trump exaggerates, lies all the time and brags about results not obtained by him. All the world has a good economy. Europe & Asia have a GDP superior to America and American companies benefit. The stock market climbs since March 2009 under Obama, Why Trump is opposing his investigation. Why he never critiqued the Russians? Tax return? Real estate money laundering for Russian Oligarchs? Yes, a liar in Chief, opportunist, incompetent at governing.
Boomer. Haha I love it! You don’t disappoint Sir.
Would you be willing to do an encore? I’ve got around 2000 more.
Remember the 90’s … there were waiting lines to get new Harleys … Many times I would pull up to my local shop and people would offer to buy my FXR for more than I paid for it new … Times have changed … Architect said it all, “We can’t even get kids to be motivated enough to get a Drivers License, now you want them to want a motorcycle?!?! It is not HD’s fault, but it is their problem.
……………. Domino Dave……………
p.s. why did this thread turn into a political debate?!?!
Some young people out there in big cities don’t even bother to own cars.. public transport etc
THANK GOD I LIVE IN THE MIDWEST AND CAN ENJOY ALL 4 SEASONS AND RIDE & DRIVE VEHICLES……… YOU CAN KEEP YOUR BIG CITIES OR GIVE ME A GS 1200 BMW IF I DECIDE TO LIVE IN A BIG CITY
This goes out to the a hole who posts the first negative political comment to any non-political forum, hush your mouth child and let the adults talk.
And as in the movie Elizabeth as Walsingham is questioning a monk assassin with fire he asks “Why would the church get its hands dirty meddling in politics”? We are on hollowed ground here, please respect.
Never seen the movie but I may have to look it up thanks davis
OK…the genus running the Motor Company has been a part of spending millions of dollars to produce an all electric Harley-Davidson. My understanding is it will go 60 miles without a recharge. He wants to get this to the market before any other motorcycle company beats Harley. End result….in my opinion failure. Who wants to ride a bike that you can’t hear…sound saves lives! Who wants to ride a bike you are stuck with finding a place to recharge? V-Rod was better, Buell was better then this idea. This so called leader of the Motor Company must not pay much attention to his core riders…the ones who trade every year or every few years…the riders that brought Harley-Davidson back by investing in the market. If leadership does not wake up fast the hole they have dug is going to get a lot deeper.
many times in the past I posted that Harley needs to be selling motocross bikes to youth to build brand loyalty. They offered them before and quit. I watched the winter x games on tv the other day and it was sponsored by hd. they showed snow bikes powered by had twins. that was nice, but if a competitive dirt bike can be offered with the hd cool feel of skulls and cross bones ect. the kids would grow up hd! face it, when a rider gets old he no longer wants to be seen on a crotch rocket bike. A dirt bike would be a small effort to build compared to a bagger. come on
The Trump trade is over. Ha, ha.
Hey Rucker what drug(s) are you on man? Trump all along did NOT want to be Pres.. He wanted, along with that fat, scumbag pervert, Ailes, to form another laughable Fox News network. After all with people like you here obviously there’s a market for it. The running for pres. was a PR stunt that backfired. But don’t worry he’s headed for Cell Block D. Very shortly.
Could some one explain something? I just don’t understand why the two reason for the lay-offs is because of the big recall and some tax thing ? Okay you made good on your product but what about this tax thing that is so bad your laying-off? Could some one just explain that?
For the 800 Families that will lose a paycheck from this , I hope you will find work.
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