Interesting story on Harley's declining sales

[drlapo]

something like the XR1200?.

That seems like a bike where harley got it right..

too fat (and ugly)and it handles like a wheelbarrow full of water

 

[Speed3Chris]

something like the XR1200?.

That seems like a bike where harley got it right..

Problem being, the Harley reputation really works against the sales of that bike. That bike isn't bad. Sportbike meets std with big V twin. Lots of smile per mile. But...there are many other high tech companies out there that specialize in that kind of bike and customers will flock to those companies before they will buy Harley's version. This in particular applies to young buyers.

Harley cultivated it neanderthal image of old guys trying to hang on to their declining virility for the simple fact that old guys have more money. When the economy robs those old guys of extra cash to throw down for an image based, blinged out leadsled of a motorcycle, they are doomed.

 

[Littlejoe]

That XR1200 is okay, but its also $12K. That money would easily buy a Ducati Monster that will do everything the XR can do better with money left over.
If HD wants younger people to buy that bike it needs to be under 10 grand.

 

[Bonniebret]

The new 883 Sportsters go for $8,000 and aren't bad. The thing is HD for years has enjoyed a customer brand loyalty that any company would kill for. You don't see people walking around with Gap tattoos do you?

Now HD's brand loyalty has bit them in the ass because there's a whole generation out there that don't want to be associated with that. They want a bike, not a brand. They know who they are and they have a lifestyle already. They don't want permission. Did you know on the HD website there's a section on how to convince your wife to let you get one?

It ought to be interesting to see what happens next.

 

[KingBear]

Triumph has diversified their product line, as has virtually every other manufacturer. Harley has one basic product, albeit with many variations and price points, but still basically one type of product. Harley builds old-style cruisers. The only exception is the V-Rod.

I happen to know that Harley did some market research exploring the possibility of making off-road bikes, but obviously that went nowhere. Sport bike? Adventure bike? Could they? Would they? Under a different badge? They don't have Buell or Agusta anymore. Harley builds a niche product and the niche is shrinking.

As the saying goes, "Those who fail to learn from history are destined to re-live it."

 

[tooblekain]

I think Harley Davidson is making a right move

I recently saw one of their commericials.

It looks like they are getting smart and now focusing their market on younger folks and females. The bikes shown aren't the big Dyna Glides, but rather Sportsters.

It goes something along the lines of stating statistics about how much was spent on life coaches, male peticures etc...and then stating "well, that's one way to go." It also has a clip of young kids in a lake swinging off a rope and showing she removed her bikini.

So it seems like Harley Davidson has finally woken up.

If I can find it I will post it on here.

 

[D9]

That XR1200 is okay, but its also $12K. That money would easily buy a Ducati Monster that will do everything the XR can do better with money left over.
If HD wants younger people to buy that bike it needs to be under 10 grand.

Was thinking the same thing... hell... you might be able to score two or three excellent used Bonnies for that $$... I like the XR and would enjoy test riding, maybe even having one... but 12K is too much IMO

 

[fishonline]

Maybe they can tap that lucrative Goldwing market.

ease up...actually I think most of that market is for us old, tight-arsed bastards who buy second hand...

 

[sweatmachine]

the only factory Harleys I ever really liked were the Sportster "Sport", the FXR, and the FXDX (Dyna Sport). They were all Harleys with a capital "H" and handled worth a damn and looked the business too. Harley, of course, killed them off.

Instead, we get a 12k 600lb street tracker sportster, the Vwad, the abortion called the "Rocker" (and a bunch of crappy Softails). I hate Softails.

 

[bikeypikey]

"Vwad" - love it! :lol3:

Cheers,

Pikey.

 

[KingBear]

Published yesterday...

Wisc. Offers Harley $25 Million in Tax Incentives

Wisconsin has offered Harley-Davidson up to $25 million in tax credits days after The Motor Company agreed to keep its Tomahawk and Milwaukee plants open. The decision to stay in Wisconsin was made after workers approved a seven-year contract that freezes pay and cuts hundreds of jobs while delegating other assignments to part-time employees.

Wisconsin Gov. Jim Doyle made the announcement September 17th, four days after Harley workers ratified the latest contract. The incentive package gives H-D up to $25 million in Enterprise Zone tax credits over a nine-year period in exchange for Harley keeping jobs in-state and making capital investments. The state’s offer was based on the number of manufacturing jobs at risk, roughly in the area of 900 full-time union employees. The tax credits are related to Harley’s employment levels, capital investments and purchases from in-state suppliers.

"Through hard work and cooperation Harley-Davidson will keep its production operations open in Wisconsin, and keep hundreds of jobs in this state - both at Harley and their suppliers," Doyle said. "This has been a challenging time for Harley and its great employees, and I want to thank everyone who came together in difficult circumstances to ensure this iconic Wisconsin company stays in Wisconsin."

"The state has worked closely with Harley-Davidson to bring about a good outcome in this tough situation. I personally spoke with Harley's CEO, and the state has offered a strong $25 million incentive package to help the company stay in Wisconsin. The incentive package created by the state consists of tax credits primarily linked to jobs at Harley, and with their Wisconsin suppliers."

Harley-Davidson had threatened to move its production operations to another state if the new labor contracts were not passed. The contract called for the cutting of 325 unionized jobs, but keeps about 1,000 full-time union workers employed. The company’s new leaner, more flexible business model will utilize more seasonal “casual” workers during peak production periods. Now The Motor Company has two of the successions it perceives as necessary in order to reduce labor costs and return to profitability.

"Together with our employees we are making the changes necessary for us to compete and win in a global marketplace. We have worked closely with the state of Wisconsin and we appreciate their efforts to foster a competitive business environment that will help us succeed here long term. As we look to the future, we are confident that Harley-Davidson will be as great going forward as it has been in the past," said Harley-Davidson CEO, Keith Wandell.

Offering big businesses tax incentives to keep their base of operations in-state is a common practice. The offer Harley-Davidson received is smaller than the package Wisconsin extended to Mercury Marine Inc. last year for expanding its Fond du Lac operations instead of moving to Oklahoma. Mercury Marine was pledged up to $70 million in state tax credits, plus a $50 million loan funded by an increase in the Fond du Lac County sales tax.

 

[Sal Paradise]

Wow! Thats about $28,000 per job.

Damn!!! United Steel Workers, they bend you over and cut your pay, make you work part time thats bad enough but then while you are bent over they kick you in the nuts and make YOU give THEM your tax $$.

I wonder if HD has any plans to modernize their motorcycles or if this is their plan.

Maybe Eric Buell is hiring.

 

[Kirkus51]

Well here's to ALL the citizens of Fon Du Lac for paying additional sales tax so they can keep jobs up there for ONE company. I can't say if it's fair or not. I just wonder if the local government will cut that particular sales tax when the loan is paid back to them. I don't think so.

 

[tezza]

a new fatboy here in oz is $34,000.00.be fucked if i can afford that.i could buy 3 or 4 bikes for that (my very own triumph collection 1 new bonnie and 20grand left to buy some old trumpys)

 

[ivar]

the only factory Harleys I ever really liked were the Sportster "Sport", the FXR, and the FXDX (Dyna Sport). They were all Harleys with a capital "H" and handled worth a damn and looked the business too. Harley, of course, killed them off.

because ppl didn't buy them.

which one of those was Erik Buell's baby..?

 

[RoyNC]

Meanwhile poor Indian motorcycles is living by a string and a prayer. Their production facility is down the street. I know two guys working there and they are engineers. Unfortunately without enough work they are reduced to overpaid janitors. Everyone there says they need to develope a cheaper entry level bike. Revamp the Scout. Instead Indian only makes the Chief and it's EXPENSIVE. Same mistake as HD. They make a bike to a certain market that is now too old, over extended, no savings left and upside down on their mortgage.

 

[em_dot]

which one of those was Erik Buell's baby..?

The FXR had a lot of input from Eric Buell. It was the frame stiffness, thanks to the big square backbone, frame gussets, and low CG that made this bike turn. Posers didn't like it, so it got canned.

This '93 is my favorite. Borrowed from Jockey Journal. I love this bike.

 

[sweatmachine]

Oh yeah!

 

[Craigore]

the only factory Harleys I ever really liked were the Sportster "Sport", the FXR, and the FXDX (Dyna Sport). They were all Harleys with a capital "H" and handled worth a damn and looked the business too. Harley, of course, killed them off.

Instead, we get a 12k 600lb street tracker sportster, the Vwad, the abortion called the "Rocker" (and a bunch of crappy Softails). I hate Softails.

I didn't know what "Rocker" was so I googled. Straight from HD's official website: "The Harley-Davidson Rocker™ C motorcycle is a hardcore chopper, low-down and chromed-out, with a unique trick seat"

OMG RELLY!!!!!11111111111one I LUV ME A CHROME ASSESSORY AND TRICK SEET!

Overall, I love Sportsters (the hardtailed ones) and I own a pan so I can't really hate.

 

[Sal Paradise]

Meanwhile poor Indian motorcycles is living by a string and a prayer. Their production facility is down the street. I know two guys working there and they are engineers. Unfortunately without enough work they are reduced to overpaid janitors. Everyone there says they need to develope a cheaper entry level bike. Revamp the Scout. Instead Indian only makes the Chief and it's EXPENSIVE. Same mistake as HD. They make a bike to a certain market that is now too old, over extended, no savings left and upside down on their mortgage.

Everyone and anyone could see that coming, except apparently the owners of Indian. Building $40,000 S&S nostalgia bikes with tassles and indian head ornaments using the names of old long gone bikes from the 1940's was the stupidest way they could have gone. I hate to say it but they make HD look smart by comparison.:vp:

Hate to see any MC company bite it, but they were just looking to cash in instead of actually designing real motorcycles..The engines aren't even counterbalanced or rubber mounted or anything. The bike cost as much as a Lexus and it must just vibrate the bezeesus out of you.

Kind of like Harley, only much worse.