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Archive for the ‘Dealer News’ Category

2018 CVO Lineup

It’s arrogant at best and obscene at worst.

I’m talking about the CVO pricing that Harley-Davidson management approved for the 2018 models.  Now that we’ve had a couple days to digest the euphoric feeling of the new 2018 models, we’re left with a gnawing and burning sensation in our stomach that even a spoonful of sodium bicarbonate won’t put an end too.

I can’t help but wonder if the new head of design, Brad Richards, who replaced Willie G. after more than 40 years is singing that new Taylor Swift single, “Look What You Made Me Do,” after going full-tilt Goth and dripping black on so many of the new designs.

2018 CVO Street Glide

Unless you’ve won the lotto, you’ll be crunching numbers very late into the night to learn how to squeeze a new Harley CVO into the garage without breaking the discretionary entertainment budget!  They are expensive!  In a small way, we have Polaris to thank for exiting the market with Victory motorcycles and reducing Harley-Davidson pricing pressures.

I’m reminded of the Mylan EpiPen scalping gone wrong in the pharmaceutical industry.  Will we see the motor company deploy industry “experts” to justify the value of overtly expensive models and purport to quantify the net social benefits of belonging to the riding “lifestyle?”  If they do, it’s likely to be based on a complicated economic model and include scholarly speeches, articles, blogs and conferences to lend prestige on the whole “we’re doing everything in manufacturing to keep our prices down” lobbying blitz.

2018 CVO Road Glide

The fact is, Harley-Davidson is a luxury brand cleverly disguised as a blue collar, workin’ man’s brand.

Millions of marketing dollars are spent every year on campaigns to drive home the point that it’s name is synonymous with regular, working class folk.

But, have you seen their luxury price increases on the 2018 CVO models?  Harley-Davidson has exceeded the price range of BMW and Ducati, two brands with a public perception of being expensive toys for the upper-class.

Most of us will never get to experience the CVO results of Harley-Davidson’s labors for ourselves, thanks to prices ranging from $40,000 to $43,000.  Specifically the MSRP pricing is:

2018 CVO Road Glide — $41,399 (not available in 2017)
2018 CVO Street Glide — $39,949 (+$2150 above 2017 price)
2018 CVO Limited — $42,949 (+$1950 above 2017 price)

2018 CVO Limited

I’ve written about Harley-Davidson’s sales and marketing woes.  Much of it outside their control, but we can’t absolve the motor company of any responsibility for these arrogant price hikes.  Harley-Davidson owns this one.  The pricing backlash has already begun across the motorcycle forums and the whole thing leaves a bad taste in consumers’ mouth — of all age groups!

For example, the CVO Limited jumped $1950 from 2017 to 2018.  Beyond paint, there are NO significant upgrades on the 2018 model.  Looking at web pages indicates the only “NEW” item was the addition of a Bluetooth wireless connection module to the stereo.  This may have been as simple as a firmware update to the BOOM stereo system.  Let’s assume it was a hardware addition.  A Cardo bike-to-bike intercom with dual handsfree to connect up multiple bluetooth-enabled mobile phones retail for less than $300.  That would mean the price increased $1650.

Let’s look at the 2018 CVO Street Glide — Harley-Davidson removed the radiator and abandoned water cooled heads as the lowers now have speakers along with another power amp to drive the sound “bubble.”  They’ve provided similarly configured models in the past.  The company added Bluetooth wireless connection to the stereo and created a “NEW” Gun Metal grey paint, however, they jacked the price up over $2100 above the 2017 model.

The CVO Road Glide is a bit trickier to do a price comparison as the last time they offered a similarly stripped down version of the CVO Road Glide was back in 2013 (remember the Cat Whisper paint stripe scheme which was priced at $33,999?) and it was based on the old 110cu.in. engine, old radio and outdated fairing, frame etc.  Harley-Davidson skipped a year and then for 2015 they offered up that behemoth CVO Road Glide Ultra at $36,649 which included all the accouterments which was based on ‘Project Rushmore’ enhancements that other touring bikes received.  It’s not a pure apple-to-apple comparison, but this basically equates to a $7,400 price increase over a 5 model year period.  Which is incredible given the low rate of inflation and manufacturing cost reductions.

Are the financial analysts really scratching their heads wondering why riders don’t line up to lay down these $$ on a motorcycle?

In fairness, Harley-Davidson does make some decent, affordable bikes in their Street lineup.  But they still have a bit of that stigma — which is backed up by most of their current lineup — of putting heritage before innovation and that’s turning some of the riding youth away from the brand.  Harley isn’t as strong a competitor in terms of bang-for-the-dollar with the likes of Triumph, Ducati and the Japanese manufactures.

Even the blue collar, workin’ man who can afford a nice bike will certainly take a look at the local Indian dealer and realize that the competition is making all-American cruisers that indeed have an appeal and nearly every model is priced less than a new Harley-Davidson.

It boggles the mind how according to Harley-Davidson management, the new 2018 motorcycles are less expensive for Harley to manufacture, with simpler frames and more commonality of parts yet they’ve rolled out what looks like an orgy of price scalping.

Photo courtesy of Harley-Davidson

All Rights Reserved (C) Northwest Harley Blog

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2018 Softail Lineup – Eight all-new models

When is “new,” “all-new,” “brand new,” “built from the ground up new,” “the newest,” “newer and refreshed,” advertising claims of an existing or previous Harley-Davidson really new?

Is there no objective basis by which to measure when a motorcycle is actually “new?”  What do you think?

It’s been reported that motorcycle enthusiasts are holding on to their old, reliable wheels for longer stretches of time, but Harley-Davidson wants to change that and has rolled-out the “brand new” 2018 #FreedomMachine models. Dealer launch video is HERE.

Send in the millennials and let’s make a deal!

Or in other words,  what the company is hopeful for after the ‘largest ever product development project’ was undertaken.

All-new Softail mono shock rear suspension

They may not look very different, but the 2018 changes to the engine, frame and suspension over shadow any “new” colors, new handle bar position or new seat thread design.  “All-new” is really what we’ve been promised to modernize these traditional bikes and it’s not a rehash of the old.

The quick read is that the Softail and Dyna product lines, as riders have known them previously, are gone.  The Dyna family is discontinued and the Dyna nameplates are now Softails!

Softail Big-Twin cruiser models

That’s the provocative and on the 2018 model revamp, all of the models that used to be in the Dyna’s lineup — the Fat Bob, Low Rider and Street Bob — rolled into the Softail lineup — Softail Slim, Heritage Classic, Deluxe, Fat Boy and Breakout — Harley completely redesigned the Softail chassis.  Not a minor cosmetic change, but a complete overhaul of the entire frame and suspension.  The new under-seat mono shock rear suspension aims to offer improved ride quality, traction, and control while the triangular swingarm maintains the classic lines of a hardtail frame.  The revamp also includes key accommodations for last years release of the Milwaukee-Eight, the first four-valve-per-cylinder heads engine packaged into the classic 45-degree V-twin.

From the styling department, all the new 2018 bikes have a much darker and aggressive paint scheme.  It’s largely a brooding “protester” feel with colors matched and with a “masked” or blacked out engine. There are smaller changes to individual models such a color-coded inner fairings, new wheels (including a 21” one for the Road Glide) and different exhaust finishes.  Oh and don’t forget that riders can now pair Bluetooth headsets with the stereo to remain wirelessly “connected” — on its top-of-the-line touring models.

I’ll address the hype right here: Your motorcycle and your smartphone are starting to have a lot in common, though only one can be used to take a selfie — at least for now.

115th Anniversary Eagle Badge

Lastly, the motor company announced the 115th Anniversary edition motorcycles.  There will be two limited-edition, serialized designs with 115th Anniversary Eagle and special anniversary paints available on nine different models in 2018 to celebrate the birthday.

But, what about that peculiar

In the social media and PR launch extravaganza for the 2018 line up earlier this week, Harley-Davidson quietly discontinued the V-Rod.

Discontinued V-Rod

The 2017 V-Rod Muscle and Night Rod Special are the final iterations of the VRSC (V-Twin Racing Street Custom) line.  You may recall this motorcycle had the Revolution engine that was co-developed with Porsche and based on the VR-1000 Superbike that Harley used in competitive drag racing.  It had a hydro formed tubular frame, a gas tank under the seat with round-topped airbox cover up front posing as a gas tank.

This was often referred to as the Harley for the non-Harley motorcycle rider and was a testimony that engineers and the brand were capable of doing something very different.  It was introduced in 2001 and discontinued 16-years later.

It would seem that Harley-Davidson is no longer “building products that fulfill customers dreams on the drag strip!

Photos courtesy of Harley-Davidson

All Rights Reserved (C) Northwest Harley Blog

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Harley-Davidson Press Release

In mid-August, Harley-Davidson rolled out a press release (on the Canadian news wire) to announce the launch of a global campaign that embraces “The Freedom of The Open Road.”

It’s part of a 10-year global strategy to build the next generation of Harley riders and the new brand platform is “All for Freedom, Freedom for All” which comes to life with videos containing user-generated and filmed content that shares moments of the open road by riders past and present.

The ambitious campaign goal is to increase Harley’s brand relevance and inspire those “sleeping license holders”  to experience the same freedom that all current Harley riders feel with the wind in the face and ultimately to purchase a motorcycle.

The Harley-Davidson marketing group is using the #FindYourFreedom hashtag to generate social media awareness.

It’s common knowledge that when using a hashtag, you are categorizing your post and is viewed as a valuable tool when marketing your brand.  The objective of course would be to find a hashtag that has never been used previously and one that would really set the campaign apart from all the other social media noise.  However, there is another large company with an equally large brand that is already using the #FindYourFreedom hashtag with an associated marketing campaign.

They spell it:  J E E P  — you know, the company with an adventurous lifestyle that requires an adventurous vehicle!

While you can’t legally own a hashtag, the marketing 101 manual suggests that you chose one that people will associate with your brand, by leveraging a distinctive phrase or word associated with your company and messaging that marketing execs would, at best, like to see go viral or, at worst, contribute to the marketing campaign in a very positive way.

Think about it.  Harley-Davidson just launched a multi-year campaign and is encouraging motorcycle fans to join the social media conversation of a larger Jeep fan base!

The marketing folks may have actually “muddied” the Harley-Davidson brand or made it vulnerable by this hashtag gone wrong.

Photos courtesy of Harley-Davidson and Jeep.

All Rights Reserved (C) Northwest Harley Blog

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Lewis and Clark; The Expedition Returned 2017

I’m a H.O.G. member, but not the type of person who displays an undying passion for the patches and pins or for that matter in attending a lot of H.O.G. events.  Sure, I’ve participated in the occasional H.O.G. rally, got the t-shirt and then headed home. Riding is primarily a solo activity for me and it’s more about riding in the wind, not the rally destination.  
 
Although there was this one time in Hawaii where it was all about the food.  The Aloha State Chapter #44 (Maui H.O.G.) were in the middle of a rally.  I wasn’t riding a motorcycle on the islands, but they were most gracious and let me enjoy some excellent pulled pork at their Luau!  We also had the opportunity to meet Cristine Sommer-Simmons, the book author of ‘Patrick Wants To Ride‘ fame.

But I’ve digressed.

Lewis and Clark Expedition Swag

A riding buddy and I decided to register and took a couple weeks last month to ride along with the H.O.G. Lewis and Clark; The Expedition Returns posse.  There were 182 register bikes for the tour which basically followed most of the same Lewis and Clark routes from Seaside, Oregon to St. Charles, Missouri.  They deviated a bit on the eastern side of the Rocky Mountains which only added to the adventure.

 

Before I jump in and provide some insights about the ride, I want to say that H.O.G. is a class act.  Yes, there was a pricey registration fee, but the swag and goody bag we received for the expedition was detailed, high quality and exceeded my expectations.  The hotel registration process via the H.O.G. web site worked well and we had no issues in any location.  Big shout-out to Harley-Davidson, Team MKE, Paul Raap (H.O.G. Regional Mgr), Paul Blotske (H.O.G. Contractor) and the H.O.G. planners for making it simple and a great experience!

Lewis and Clark Expedition and Routes

 

Now keep in mind this wasn’t a “group ride” where 182 bikes departed simultaneous every day with a ride captain.  We were free to forge our own path (with some solid guidance) and ride with who we wanted and at our own pace.  H.O.G. provided a travelogue with approximate mileage and points of interest along the way for each day’s schedule.  In some cases they included passes for the various parks and/or sight seeing destinations.  This process worked well.

Ride Details:

Day 1, (Tuesday, July 11) — Had us traveling to the Oregon coast to visit the Fort Clatsop National Historic Park  where the Corps of Discovery wintered from 1805 to Spring 1806.  After 18 months of exploring the West, the Corps of Discovery built an encampment near the mouth of the Columbia River. They wintered at Fort Clatsop into 1806 before leaving the Pacific Ocean to return to Missouri and the route we were going to follow.

That evening Mike Durbin and Paradise Harley-Davidson (Tigard, OR) sponsored the gathering for dinner.


Highway 14 looking west at Mt. Hood

Day 2, — We were traveling east and heading to Lewiston, ID.  Along the route we could visit the Rock Fort Campsite which is a natural fortification located on the shore of the Columbia River, and where the Corps of Discovery set up camp on their journey home.  There is the Columbia Gorge Interpretive Center, the Sacajawea State Park Interpretive Center, and the Lewis and Clark Trail State Park

That evening we were at Hell’s Canyon Harley-Davidson for dinner. 

 
Unsolicited Comments About Portland Traffic:  It was common practice to ask other H.O.G. members where they came from, how far they rode etc., and when we mentioned being from Portland, people were compelled to tell us about their bad experiences riding around in Portland/metro traffic.  The H.O.G. HQ hotel for this event was the Jantzen Beach Red Lion and folks would drone on about the congestion, freeway crashes and the lengthy delays which were awful in the record Portland heat.  About all I could say was “True that, and apologize for the apocalyptic congestion.”  Then I’d add something about those new spiffy ODOT RealTime signs — you know, the big electronic signs that relay the obvious?!

Day 3, — Took us to Great Falls, MT.  There were multiple stops suggested to riders.  The first was the Nez Perce National Historical Park.  The 
New Perce were critical to the success of the Expedition by providing food and supplies. 

It was hot riding so, we left Lewiston early morning and as a result the park wasn’t open and we toured the exterior.  Lewis and Clark actually split up at what is called today Travelers’ Rest State Park.  Lewis went to the north.  On the north route, you could see the Lewis and Clark Pass, Museum of the Plains Indian, and Camp Disappointment   Clark went to the south, where you could see the Lost Trail PassCamp fortunate Overlook  the three forks of the Missouri River at the Missouri Headwaters State Park, and the Gates of the Mountains.

Highway 12 heading toward Lolo Pass

We were on Highway 12 headed over Lolo Pass for much of the morning. You’ve undoubtedly seen the photos of the sign that says “Curves next 99 miles…”  Yeah, that one and it’s named one of the best motorcycle roads in the country with lots of sweeping curves and several tight ones.  The elevation at the top is 5,233 feet in the northern Rocky Mountains and the temperatures were quite nice.  Road conditions in some areas were a bit dicey and unfortunately a female member of the H.O.G. group veered up against the guardrail and crashed.  She survived with a number of broken bones, but as I understand it, spent multiple days in the hospital. As we rode by the crash, her motorcycle freakishly went 75 yards up highway 12 and across both lanes of traffic and was sitting upright on the left side of the road, as if someone just parked it there on the kick stand.  Very strange.

That evening the group all got together for dinner at Big Sky Harley-Davidson.


Day 4, — (Friday, July 14,) — Took us to Billings, MT where we spent a couple of days.  There were a couple of stops planned.  The first was t
he Lewis and Clark National Historic Trail Interpretive Center in Great Falls.  We also made sure to take time to see the Great Falls of the Missouri including Rainbow Falls before leaving the area.  

Great Falls, MT is actually situated on the northern Lewis return route, and Billings, MT is on Clark’s southern route.

Rainbow Falls

We took the more scenic route on Highway 89 south through the Helena-Lewis and Clark National Forest and then picked up Highway 12 east to Highway 3 south into Billings, MT.

That evening we had dinner at Beartooth Harley-Davidson, but to be candid we were getting a bit tired of the pork sliders or burgers and salad.


Day 5, — Was a “down day” from our ride schedule to allow riding in the Billings, MT., area.  Some jumped back on for full 400+ mile experience and rode to Livingston, MT., on I-90 then headed south on Highway 89 into Yellowstone National Park to see ‘Old Faithful.’  

Twin Lakes, along the Beartooth Highway

We decided to half that mileage and rode up Highway 212 to Red Lodge Montana and then over Beartooth Pass into Wyoming.  In Red Lodge, the annual Beartooth Rally was in full swing with a few thousand motorcyclists enjoying the area so, going over Beartooth Pass was slow riding, but we did enjoy the switchback curves.

It’s a great ride with some incredible vistas, but not for the faint of heart.

That evening we enjoyed a nice steak and ignored the gathering at Beartooth Harley-Davidson!


Day 6, — Had us traveling to Bismarck, ND., and it began early to avoid the sweltering heat. 

Across the NoDak Plains

We’d been riding in heat advisory’s across Montana for a few days and now the humidity was increasing!  One stop as we departed Billings was to tour Pompeys Pillar National Monument.  Pompeys Pillar was named by Clark and he and other members of the Corps of Discovery chiseled their names into the rock itself.  I believe this is the ONLY physical evidence that the Lewis and Clark Trail actually existed and took place. 

We rode on to Bismarck, ND.  There were additional stops along the way that included the Missouri-Yellowstone Confluence Interpretive Center and Fort Mandan.  I lived in Bismarck back in the day so, we ignored the extra miles and the point where Sacajawea and Toussaint Charbonneau joined the Corps. 

We enjoyed dinner at a local pub/restaurant while listening to some old Peter Frampton music on the jukebox! 


Fort Abraham Lincoln State Park

Day 7, — (Monday, July 17,) — The H.O.G. group headed west across the Missouri River from Bismarck and then we all rode south down Highway 1806 to Pierre, SD.  About 15 miles south of Bismarck we stopped at Fort Abraham Lincoln State Park & On-A-Slant Village and toured the area which provided a great example of Native American encampments Lewis and Clark would have encountered on their journey.

Missouri River riding south on Highway 1806

We rode along Highway 1806 south down the Missouri River pretty much to the North Dakota – South Dakota border while watching out for farm equipment on the roads.

From there, we had a couple of routes to follow into Pierre, SD., though most of the Missouri River between Bismarck and Pierre is covered by the Lake Oahe Reservoir and the road follows the east side of the lake all the way into Pierre.

Pierre, SD., City Park

We had dinner at Peterson Motors Harley-Davidson in Pierre, but actually moved over to a city park on the river and tried Bison Burgers for the first time!


Day 8, — (Tuesday, July 18,) — Due to other commitments we departed the Lewis and Clark H.O.G. group on this day and started our return trip back to Oregon.  We intended to spend a couple of days in Boise, ID., to take in the Pacific Northwest H.O.G. rally and meet up with some other riders there.  The next couple of days were about laying down some miles and we avoided the wandering of site seeing.  We rode from 
Pierre, SD to Rapid City, SD on I-90, and skirted the Black Hills National Forest.

We traveled along Highway 18 and then took a wrong turn at Lingle, SD and ended up a few miles from the  Nebraska border before having to backtrack, riding through Fort Laramie on Highway 26 and then on to I-25 and Casper, WY., where we overnighted.


Day 9, — Had us traveling to Idaho Falls, ID., and we departed early to avoid the afternoon heat.  We were riding toward the Grand Teton National Park and Jackson when about 30 miles west of Dubois, WY, we encountered a fatal head-on car accident. 

The Road Glide and Grand Teton’s

We arrived at the scene at 12:30pm and the road had been closed since 9:30am.  We had to endure a 3+ hour wait which put us behind and more importantly it put us riding in the hottest part of the day. 

The 50 miles from Jackson, WY to the border town of Alpine, WY was like walking a marathon with all the backed up traffic. 

We finally made it to Idaho Falls, ID on US26 by early evening.  

Day 10, — We continued our travel west to Boise, ID on the two-lane US 20/26.

There are views of high desert, Atomic labs and of course Craters of the Moon Monument with it’s vast ocean of lava flows and scattered islands of cinder cones and sagebrush.We stopped for some site seeing, but didn’t explore any trails.

We arrived in Boise, ID before 3pm and met up with some other riders who arrived from Portland.

Day 13, — (Sunday, July 23,) — After a couple days of enjoying the local rides and taking in the city life along with parts of the Pacific Northwest H.O.G. Rally (While at the rally in Meridian, ID., I had a chance to test ride a new 2017 CVO Street Glide with the new M-8 engine. I will do a post on that experience soon) we returned to Portland, OR via the most direct route on I-84.

We finally arrived back in Portland that evening after touring over 3,500 miles with a number of new stories from the adventure in retracing the Lewis and Clark Expedition.  In addition, we got to hang with a number of great H.O.G. members!

We could relate to Meriwether Lewis who wrote in September 1806:

Today Captain Clark will pen a letter to Governor Harrison and I shall pen one to President Jefferson informing them officially of our safe return and providing the details of our expedition. My hope, and that of Captain Clark, is that our work over the last two and a half years will accomplish this administration’s goals to expand the Republic westward and inspire future generations into even further exploration and adventure. — Meriwether Lewis 

Updated August 15, 2017:  Meriwether Lewis and William Clark left from St. Louis, Missouri with the Corps of Discovery and headed west in an effort to explore and document the new lands bought by the Louisiana Purchase.  To read more about Lewis and Clark, visit the National Geographic site dedicated to their journey or read their report of the expedition, originally published in 1814.  There are a number of period correct maps HERE.

Photos taken by author.

All Rights Reserved (C) Northwest Harley Blog

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It could be the title of Harley-Davidson CEO, Matt Levatich’s memoir on his failed 2017 year while in charge of the Motor Company.

I happen to be riding with the HOG Lewis and Clark Expedition last week when Harley-Davidson announced their disappointing Q2’17 financial results and late to weigh in:

* Harley-Davidson net income dropped 7.7%. Sales in the U.S. were down 9.3% and 6.7% worldwide.

* Harley-Davidson now expects to ship 241,000 to 246,000 motorcycles to dealers worldwide in 2017, which is down approximately 6% to 8% from 2016.

* Harley-Davidson expects to ship 39,000 to 44,000 motorcycles in Q3’17, which is down approximately 10% to 20% from 2016.

* Approx 180 U.S. based manufacturing jobs will be cut in Menomonee Falls and Kansas City.  This in addition to the 118 workers who were axed back in April this year at the York plant as some positions were being shifted to Kansas City.

For those keeping track, this is a continuation of a three-year slide by the motor company.  However, during the call Mr. Levatich described what can only be called an “alternative reality” in hopes (I assume?) to reassure the financial markets and stated “we are going to build bikers first, add 2 million new Harley-Davidson riders and launch 100 brand new models during the next 10 years while growing the international business by 50%.

Huh?

I’m being a bit snarky here, but his statement appears either woefully naïve to the point of negligence or a continuance of marketing spin.  Proclaiming an unprecedented future result of this magnitude smells like stunningly wishful thinking at best or at worst plain lying.  For reasons I can’t explain, why would Mr. Levatich climb up on a high-wire without a net given such an overly-optimistic prediction?  Even with nearly 8-million Americans that are “sleeping license holders,” — those who have motorcycle riding credentials, but don’t own a bike — it doesn’t pencil and seems unobtainable.

I don’t know if the boardroom folks in Milwaukee read the NW Harley Blog on a regular basis and/or  hang on its every word.  But, we know the motor company has been continuously producing motorcycles for more than a century,  yet seemingly everyone on the internet with a keyboard thinks they can do it better.

And it’s a well-established fact that internet bloggers and commenters are geniuses. They definitely know how to run a business better than a company that has been constantly producing motorcycles through two world wars, the Great Depression, and roughly 20 U.S. recessions.

Sure the motor company needs our help and I’ve got some feedback and plenty of comments.  But, until the motor company calls me asking for it, I’ll look for Mr. Levatich’s memoir, which will certainly be “a deeply intimate account and a cautionary tale on the world’s most iconic motorcycle brand.

Slightly modified book cover courtesy of Simon & Schuster.

All Rights Reserved (C) Northwest Harley Blog

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Harley-Davidson CEO Meets POTUS

Earlier this year, the President met with Harley-Davidson exec’s and put a spotlight on the company in his address to Congress, yet there was no “Trump Bump” as the motor company reported earnings which included sharp declines in revenue and profit for the first quarter of the year.

Some of the key Q1’17 stats:
— $186.4 million in net income, or $1.05 per share, for the period ended March 26, down more than 25% from $250.5 million, or $1.36 a share, in the same period a year ago.
— Revenue was $1.5 billion, down from $1.75 billion in the first quarter of 2016.
— Motorcycle sales in the U.S. were down 5.7% in the quarter compared with a year ago and International sales fell 1.8%
— Reported motorcycle shipments fell 14.7% to 70,831 in Q1
— Market share in the 601cc-plus segment was up to 51.3%.  Execs stated that the Victory liquidation helped market share.

Nothing screams Americana more than deep vehicle discounts and Harley-Davidson jumped head first into that pool by offering its dealers financial incentives to clear out the leftover 2016 motorcycles.  And in an unusual move the company has purposely constrained the supply of its 2017 hottest-selling new models, including bikes with the new Milwaukee Eight engine, leaving some customers waiting to conquer the open road.  All of this is happening with only 4-months until the 2018 model-year launch.

If you listened to the earnings call this week there was a lot of “feel good” expressions from management about the way the company is performing yet, there are tepid sales, a downbeat outlook, and consumer confidence numbers that don’t reflect spending behavior.  Clearly households worldwide are slow to embrace new motorcycles as a way to enjoy life.

According to Harley-Davidson this is the 9th year in a row (based on IHS Market New Registrations) for motorcycles with 601+cc where they were the number one seller of new on-road motorcycles in the U.S. on both their “outreach” and “core” customers.  “Outreach” is defined as four segments — young adults ages 18-34, women, African Americans and Hispanics.  “Core” is defined as Caucasian men aged 35-plus.

Harley-Davidson reported that more people than ever before are discovering motorcycles and claimed that they are dominating the motorcycle market as well as being recognized as the leader in addressing key demographics — women, younger riders, African Americans and Hispanics, however, the patterns of growth remain elusive.

So whats going on?

Let’s drill down:
— Press and media continue to push negative motorcycle narratives (motorcycle crashes, distracted driving, club violence (last years Waco example) etc.).
— Increased pricing on new motorcycles have pushed out the average length of ownership.  For example new autos reached 6.5 years in Q1 2015.
— In the northwest along with parts of California the wet weather has limited the number of days to ride in 2017.
— Increasing Insurance rates  — on auto, home and health care biting into the discretionary funding of a motorcycle hobby.
— Income growth has declined.
— Interest rates have increased (in past years people pulled $$ from their house to buy a “toy” and now there is no where else to pull $$).
— Fewer “Outreach” customers (aged 18-34) own vehicles or don’t drive as much, they UBER.
— Apathy of the motorcycle hobby/life style as a form of entertainment

All or some elements of this could be weighing down new motorcycle purchases.  But I’m an optimist, and Harley-Davidson has a 10-year strategy to train 2 million new U.S. riders, grow international business to 50% of sales (currently about 32%) and launch 100 new “high-impact” motorcycles.

As it turns out and according to this report, about 22% of all new motorcycle purchases come from first-time buyers. This figure has remained relatively stable since 2001.  It’s very likely some of those 2M new riders will buy a new “high-impact” Harley.

Photos courtesy of CNBC and Harley-Davidson

Full Disclosure:  I don’t currently hold or intend to hold any $HOG shares.

All Rights Reserved (C) Northwest Harley Blog

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2017 Indian Chieftain Elite

The marketing guru’s claim that Indian is authentic, was born with a dedication for pure performance and now are adding even more capability.

First a bit of history — the first Indian Motorcycle was sold to a retail customer back in 1902, but I’ll spare you a 100+ year recap of the motorcycle.  In modern day history, the Indian Motorcycle brand has been part of Polaris Industries since 2011, and began selling new motorcycles in 2014. The motorcycles are American made and built in Spirit Lake, Iowa.  The are distributed via 200 dealers across North America and nearly 450 dealers globally.  You might recall that the Victory Motorcycle brand, was recently shuttered by Polaris and ceased production.  To the dismay of many, many satisfied customers, it is now winding down operations after 15 years on the market leaving Indian as the only mass-produced American motorcycle brand other than Harley-Davidson.

2017 Indian Chieftain Limited

Jump ahead to April 2017 and we learn that Indian has announced expansion of its Chieftain model lineup with the addition of the Chieftain Limited and Chieftain Elite.  If you’re keeping track this brings the total number of 2017 Indian models to twelve.

It should be noted that the Chieftain was one of the first three bikes that Indian released in 2014, along with the Chief Classic and Chief Vintage.  Although model details differ, the bikes share a common platform — engine, transmission and chassis.

All three motorcycles come with Indian’s proprietary Thunder Stroke 111 V-Twin engine, cast aluminum frame with integrated airbox, air-adjustable single rear shock and many other shared mechanical features.  As it turns out, the Chieftain was the modern-looking of the three, showcasing a unique fork-mounted hard fairing which housed its gauges and electronics, while the Chief motorcycles came with accessory windscreens.

2017 Indian Chieftain Dash

The newly announced Chieftain Limited imitates some details from the custom bagger scene.  It has a skinny 19-inch front wheel replacing the 16-inch front. The “old-school” valanced front fender has been chopped to follow the design line of the wheel and exposes the mag wheel and oversized dual front brake rotors. There is a sleeker seat design, and the headlight bezel is painted, not chromed, to match the Thunder Black paint scheme.  The remaining elements of the Chieftain Limited match the Chieftain feature-for-feature, including the 7-inch touchscreen-operated Ride Command Infotainment/Navigation system and hard saddlebags.

For the well-heeled enthusiasts familiar with and looking at a Harley-Davidson CVO (Custom Vehicle Operations) motorcycle, you’ll appreciate the new Chieftain Elite. Let’s start with the 12-layer paint treatment which is built on a foundation of gold paint. Black accents are added with marble textures, and the bodywork is coated with layers of Fireglow Red Candy clear.  Yeah, it’s a looker with a stunning paintjob, thanks in part to that brilliant red candy color.  Some of you would drop a lot of money with a custom painter to achieve this look, but this one comes direct from the factory.  In addition, the Chieftain Elite gets billet floorboards, a flip windscreen, Pathfinder LED headlights and a 100-watt saddlebag audio system.

At first blush the Chieftain Elite is a factory custom that will hold its own against Harley-Davidson CVO’s.  As to price?  The new Chieftain Elite (starting at $31,499) and Chieftain Limited (starting at $24,499).  Both motorcycles are feature rich, available now and aggressively priced compared to Harley-Davidson.

With warmer weather and longer days on the way, the new Indian Chieftain’s might be the spark of inspiration you’ll need to explore a wide-open two-lane world.

Photos courtesy of Polaris/Indian Motorcycles.

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