Interesting story on Harley's declining sales

[Speed3Chris]

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.

I like that bike. Also, I wish Eric Buell well....a very talented man.
He sure faces stiff competition...more in terms of cost than design for the kind of bikes he is known for.
Harley had a niche which is really drying up so they are pretty hosed. Takes a whole lot of capital to reinvent their product line and a huge gamble for a company with no experience competing against all the other big sport bike manufacturers out there with much more sophisticated R&D. If there is a flagship for Harley's failure...it is the Rocker...it showcases everything that is wrong with Harley Davidson.
PS: As a sidebar, Indian was doomed before they really got started. Purchased by a group of millionaire motorheads...well intentioned, but timing couldn't have been worse. Same investors tried to resurrect Chris Craft...as in the old wood speed boat variety which to me are some of the most beautiful boats ever floated and with the wonderful ride of wood. But same issue...economy has dried up and will be a long time before there will be enough demand for those kind of discretionary high ticket items.

 

[Sal Paradise]

And that is the problem. Motorcycles as a discretionary toy will always be extremely vulnerable to economic cycles. Unlike motorboats motorcycles still have a realistic function as day to day transportation. Motorcycles original market advantage many years ago was lower cost than cars. That is long gone, but should be very possible to recapture. The main problem is image and business model both set up for $15k per unit. Indian claimed the lower priced motorcycle market is too competitve and they were forced to go upscale. They only make 10 bikes a week so they have to make their whole nut per month on 40 bikes.Not sure why they couldn't have gone the other way and put out a Rotax powered Sportster/Bonnie type standard and sold 100 bikes a month for the same money. The money is in the add ons they could sell online or at dealerships anyway, they totally missed that point.

Last year at the motorcycle show in New York City all the action was at the scooters.

 

[Speed3Chris]

And that is the problem. Motorcycles as a discretionary toy will always be extremely vulnerable to economic cycles. Unlike motorboats motorcycles still have a realistic function as day to day transportation. Motorcycles original market advantage many years ago was lower cost than cars. That is long gone, but should be very possible to recapture. The main problem is image and business model both set up for $15k per unit. Indian claimed the lower priced motorcycle market is too competitve and they were forced to go upscale. They only make 10 bikes a week so they have to make their whole nut per month on 40 bikes.Not sure why they couldn't have gone the other way and put out a Rotax powered Sportster/Bonnie type standard and sold 100 bikes a month for the same money. The money is in the add ons they could sell online or at dealerships anyway, they totally missed that point.

Last year at the motorcycle show in New York City all the action was at the scooters.

Yup...scooters as they have been for years popular throughout the world will likely be more prevalent in America as well. Young people looking for cost effective transportation and even a bit of style as the design paradigm changes away from behemoth sled's of the 50's....makes sense. Also...FWIW there is an industry of hotrodding scooters as well. There are scooters out there that will run with our bonnies.

 

[Sal Paradise]

True dat, I was on the interestate this summer and got passed by an older SCOOTER going at least 85. We laughed our asses off about that, but that guy obviously did some mods. Not sure how his stability and braking was, but he was flying.

 

[Kirkus51]

A note about the Indian thing. The Harley shop my Bro works at also took on Indians and believe it or not they've sold about 8 units at 30k a pop. They're located in an area that has that kind of stupid money to spend so there's 8 guys that spent it. That's twice the Indians they thought they'd sell in that time frame.

 

[Kframe]

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."

I agree completely.
The saying could also go: "Those who fail to adapt to the present are destined to become history."
-K

 

[ivar]

Triumph has diversified their product line, as has virtually every other manufacturer.

I think Triumph did something very smart when they waited 10 years before they brought out the Bonneville/Speedmaster etc.

Instead they established themselves as capable to build solid/reliable tourers, sportbikes, big trailies and standards before diving into the retro niche.