Harley-Davidson Dismal Financial Performance

TAKEAWAY: The Q4 2020 Harley-Davidson retail motorcycle sales in the U.S. — the company’s biggest market — fell for the 16th straight quarter!

FINANCIAL PERFORMANCE DETAILS: Yesterday, I posted that Harley-Davidson unveiled “The Hardwire” — a new 5-year strategic plan.  My snarky responses were largely based on what I viewed as the motor company ‘selling the news’ with a lack of granular detail or disclosure around a growth path forward. It was a brutal Q4’20 and full-year financial result. Followed by executive management’s murky 2021 outlook.  The street wasn’t happy and the result was a 17% drop in share price followed by another 2% today.

My blog post today will be on the fourth-quarter and full-year 2020 financial results with less commentary.

The Hardwire Highlights 

• The Hardwire includes investing in the Touring and heavyweight Cruiser segment, expanding into untapped segments of Adventure Touring and creating a new division dedicated to electric motorcycles.
• The motor company views Inclusive Stakeholder Management in the context of people, planet and profit, as all three are now embedded in the past and future success of the company.
• The motorcycle maker plans to give stock grants to its employees, inspired by a program devised by KKR & Co Inc. executive Pete Stavros.

Q4 2020 Highlights

• Reported fourth-quarter adjusted loss of 44 cents per share. A big miss and notable executive mismanagement of expectations as the street consensus estimate was for a profit at 24 cents.
• The revenue decreased by 32% at $725 million compared to previous year.
• The company suffered a net loss of $96 million compared to the previous year’s profit of $13 million.
• The loss per share was 0.63 and the adjusted loss per share was $0.44.
• Total revenues from the Motorcycle and Related products segment, which constitute the bulk of the firm’s overall revenues, plunged 39% year over year to $531 million in the reported quarter.
• For Q4’20, Harley-Davidson retailed 33,925 motorcycle units globally, down 14.1% year over year. The company’s retail motorcycle units sold in the U.S. slid 14.5% from the year-ago quarter to 17,274. Sales in the Middle East and Africa, Asia Pacific, Canada and Latin America declined 2.2%, 9.6%, 30.2% and 50.9%, respectively, from the year-ago period.
• Revenues for Parts & Accessories (P&A) were up 13.3% from the prior year to $146.4 million. However, revenues for General Merchandise (GM) — including Motor Clothes apparel and accessories — dropped 13% from the prior-year quarter to $49.7 million.
• The selling, general and administrative expenses (SG&A) increased to $276.4 million from the $266.4 million compared to fourth-quarter 2019.

Full-Year 2020 Highlights

• Consolidated revenues for 2020 came in at $4,054 million, declining 24% from the prior year’s $5,362 million. Moreover, the company’s adjusted earnings per share for the year came in at 77 cents, tanking 77% from the $3.36 per share reported in 2019.
• The motor company streamlined the product portfolio, reducing the planned number of models by almost 30%.
• Paid dividends of $0.44 per share for the full year
• Re-set motorcycle model year launch timing to align with beginning of the year seasonality
• Exited 39 markets to focus on the approximately 50 highest-potential markets
• Reduced total dealer network by approximately 160 net global dealers in 2020

Jochen Zeitz, chairman, president and CEO, Harley-Davidson summarized the financial call: “The entire Harley-Davidson team put forth tremendous effort in 2020 and we now have the right organization, structure and strategy in place to make step changes in our performance and enhance our position as the most desirable motorcycle brand in the world.”

DISCLOSURE: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Harley-Davidson.  The author does not own or does the author plan to purchase and/or sell any $HOG stock.

Photo courtesy Harley-Davidson.

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The Harley-Davidson “Hardwire”

Drum roll please…with a rim shot!

Harley-Davidson released the secret recipe for “The Hardwire” — a new 5-year strategic plan rolled out oddly on Groundhog Day.  You can read the press release HERE.

Groundhog Day, the comedy film starring Bill Murray, Andie MacDowell and Chris Elliott portrays a cynical TV weatherman covering the annual Groundhog Day event in Punxsutawney, Pennsylvania, who becomes trapped in a time loop forcing him to relive February 2 repeatedly.

I reviewed the Harley-Davidson press release and like the film, the motor company seems to be in a time loop spewing marketing or business verbiage that doesn’t mean anything. The release reads like quotes from the books “Crossing the Chasm“/”Blue Ocean“/”Good To Great” / “Tipping Point” / “Outliers.”  I’ve never read all of these books, but I sound MBA literate if I quote them. And, besides, most biker enthusiasts probably never read them either to call me out on it.

Below are the main topics of Chairman, President and CEO Jochen Zeitz’s, The Hardwire = with my snarky management euphemisms added for clarity:

The Hardwire Strategy

Profit Focus: Don’t leave money on the table = Be as greedy with them as possible.
Selective Expansion and Redefinition: We’re all about value-add = Unlike our competitors who seek to add no value.
Lead in Electric: It’s best-of-breed = We hired a market research firm to say that.
Growth Beyond Bikes: This is the next big thing/new thing = Some of our 20-somethings have told me this is really cool.
Customer Experience: We’re customer-focused/proactive/results-oriented = That can’t be bad, right?  This is motherhood and apple pie stuff.
Inclusive Stakeholder Management: We need to monetize/strategize/analyze/incentivize = When in doubt, stick “-ize” on the end of a word and it will sound action-oriented.
People: I know you’ve been burning the candle on both ends = Get ready to do some more.
Planet: It’s basic New Green Deal blocking and tackling = How could you screw this up? I also played high school football and those were the best days of my life.
Profit: We want this to move up and to the right = I failed high school algebra but someone said this means we’ll be making a lot of money if this happens.
Financial Targets: It’s about synergies/1 + 1 = 3 = I don’t get the math either, but it sounds like more and more is better, right?

Metaphors or marketing euphemisms are always interesting to me.  Eu·phe·mism — a word or expression substituted for one considered to be too harsh or blunt when referring to something unpleasant or embarrassing. For example, a famous feature of the World Fair in New York in 1964-65 was something called the Dynamic Maturity Pavilion — basically a garden with benches where those of mature years could rest.

Maturity is a positive concept; it implies that a person is fully developed in body or mind. And as a “seasoned” motorcyclist I’ll need to wrap my head around reliving The Hardwire.  We’ve seen this film before. I’ll need to sharpen my pencil and circle back to fully understand the paradigm shift.

In the meantime, I know we’re all on the same team here, rowing in the same direction, and it’s not about me, it’s about us.

Photos courtesy Columbia Pictures and Harley-Davidson.

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The H-D 21 Virtual Launch

H-D 21 Virtual Broadcast

The H-D 21 virtual broadcast was an all digital event to announce new 2021 motorcycles, parts and accessories.

The new model launch yesterday came less than a year after the motor company reported plans to streamline its product portfolio by 30% while overhauling its launch timing (historically every August) and go-to-market practices for maximum impact.

As soon as the media, dealers and consumers logged into the Harley-Davidson online portal, I knew this year’s product launch was going to be … different.

The event opened with a long video montage on the joys of the motorcycling experience.  I watched Jason Mamoa gush about his Harley family, or “Ohana” — you’ll remember him as Aquaman.

As someone who has served time in the trenches creating marketing campaigns, this was the traditional entertainer-as-a-promotional vehicle initiative.  The idealized figure introduced Harley-Davidson CEO Jochen Zeitz who teased the audience with a number of motorcycles and projects that he apparently can’t speak about yet.

Huh?

As the motorcycle launch wore on, with a selection of motor company smooth-talking prognosticators from various departments sharing bits of information about updates to Cruiser, Touring and CVO models, the value of an all-virtual Harley-Davidson product roll-out actually became less clear. The new products, which we usually look forward to, felt less exciting. It’s hard to determine the viability of any product by watching a slick video about it in a browser. The discussions about the Harley-Davidson future of motorcycling felt less like revelatory conversations and more like a TED Talk that I’d scroll past in my Twitter feed.

For me the serendipity of discovery was gone. One of the most exciting parts of a product launch has been finding out about something or learning about something new through pure chance. At a virtual H-D 21, that’s a virtual impossibility.

Street Bob 114

But, I’ve digressed.

Cruiser Updates
Harley stated that the Street Bob 114 is the lightest Softail model to be equipped with the Milwaukee-Eight 114 engine. The legendary Fat Boy receives refreshed styling for 2021, getting brilliant chrome instead of satin chrome on the engine and exhaust, the front end, the rear fender struts and console.

Touring Models
The 2021 Touring lineup includes three baggers that feature the Milwaukee-Eight 114 motor: Road King Special, Road Glide Special and Street Glide Special. The Street Glide Special and Road Glide Special get new two-tone paint options, and a choice of a blacked-out or bright chrome styling treatment – a choice between dark and sinister, or brilliant and more traditional.

Fat Boy

Road King Special and Street Glide Special models get a new brilliant Daymaker LED headlamp. All Harley-Davidson Touring models that are equipped with the colour touchscreen Boom! Box GTS infotainment system that now have Android Auto and Apple CarPlay compatibility. The feature requires a wired connection to a smartphone rather than going through Bluetooth.

CVO Models
Custom Vehicle Operations (CVO) motorcycles are the poster child for Harley-Davidson’s styling and performance. The Milwaukee-Eight 117 V-Twin engine is exclusive to CVO models as standard equipment. For 2021, the CVO Street Glide and CVO Road Glide models receive all-new Harley-Davidson Audio provided through an exclusive partnership with Rockford Fosgate.

CVO Limited

The audio systems, featuring speakers and amplifiers, were designed specifically for Harley-Davidson motorcycles. These components will also be made available through Harley-Davidson Genuine Motor Parts & Accessories for 2014 and newer Touring models equipped with a Boom! Box infotainment unit.

The 2021 CVO models (CVO Street Glide, CVO Road Glide, CVO Limited and CVO Tri Glide) all feature new paint options and styling features. All four CVO models are also equipped with RDRS safety equipment, including Cornering Enhanced Electronic Linked Braking, Cornering Enhanced ABS, Cornering Enhanced Traction Control, Drag-Torque Slip Control, Vehicle Hold Control, and Tire Pressure Monitoring System.

Pan America 1250

Pan America Global Reveal
The upcoming and over exposed Pan America 1250 adventure tourer was previewed in the virtual launch broadcast, but the most important details weren’t provided as it’s official launch is set for February 22nd. Mark your calendar and register for the event HERE.

It will be interesting to compare how this virtual launch broadcast performs in attracting potential motorcycle buyers and if it will drive demand for products or make an emotional connection to the Harley-Davidson brand.

It’s been my experience that: “People don’t buy “what” you do, they buy “why” you do it.”  — Simon Sinek

Photos courtesy of Harley-Davidson

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What Harley-Davidson Exec’s Want For Christmas

Santa Wish List

Santa wasn’t good to the motorcycle industry in 2020.  It was the sort of year at Harley-Davidson where every week, you’d say “what just happened?” Soft sales and even negative growth along with company shutdowns then longer term layoffs followed by strategic plan “walk-backs” and then the high profile dumping of a Tennessee motorcycle dealer over racist Black Lives Matter posts followed by an ever discriminating consumer to boot.

Speaking of feet, did you hear that having footwear industry expertise is the new turnaround skill set for executives at the motor company?

As the motor company executives sit virtually in the Zoom conference room and wonder what happened to the year, I can’t help but believe there are some major things on their Santa wish lists.

So, I’ve followed the science (parody alert!) and highlighted below what I think a few of the top executives want for Christmas:

JOCHEN ZEITZ, Chairman, President and Chief Executive Officer, Harley-Davidson: Santa, I “charged” up and shorted out ex-CEO Matt Levatich on that EV motorcycle, but I got the head honcho job with the industry’s most iconic motorcycle manufacturer.  Did you know they have a cult-like following similar to my favorite thing — a Scottish Bailey guitar?  And to think that I’ve never even been photographed riding a motorcycle. I can’t think of anything more to ask for. Oh wait – listen up Santa, please help that Pan American be our rock star and displace BMW R 1250 GS Adventure bike sales. Santa, I need your help to move the company from The Rewire, to The Hardwire and now with marijuana being legal in Madison, my new strategic plan will be called The Higher Wire. Santa, I’ve never been to the White House for dinner and I wrote a book about my transcendental awakening with a Benedictine monk.  It’s my turn!  Please let the spinner land on my name. Lastly, can you help people forget about that botched “Gone Girl” firing of Michelle Kumbier and the $660K departure gift?

JULIE ANDING, Vice President and Chief Human Resources Officer: Santa baby, it’s cold outside. It’s not a Christmas party. It’s a non-denominational Zoom holiday mixer. More inclusive. With my team of over 200 HR professionals (“I say H, and you say R”) streaming video around the world, I posted a fun memo about the decisions made at the company Zoom holiday party will have consequences that will haunt them for the rest of their professional lives. I’ve got doughnuts. I’ve got jelly and sprinkles, but not cronuts because they’re a bastard pastry.

AMY GIUFFRE, Vice President and Chief Communications Officer: Santa, please let 2021 be “If the dream is big enough, the facts don’t matter” — a.k.a. the Mohammed Saeed al-Sahhaf school of bubbling optimism to distract the media and bloggers with superfluous BS so they ignore our fundamental problems. As the motor company leader of the world’s foremost authority on brand marketing please let my cutting edge hoo-ha marketers develop a comm’s strategy that will last longer than Aquaman in theaters!

JON BEKEFY, General Manager Brand Marketing: What the font?  Please Santa, I’m seeking stoke so, let the famously irreverent Enthusiast magazine right a wrong, while I write a song on the largest number of variable text sizes and drawing types ever used in a print magazine. We commissioned a student that designed a flyer for the H.S. prom to perform the magazine eye test. I’m a huge fan of Gliko Modern and Gliko Modern Condensed with Body copy set in Freight Text.  Oooh, so many fonts and so little time. I’m rather preoccupied with condensing the regular widths of every page and reducing The Enthusiast page count to a total of three on the next spread.  Is Santa seeking stoke?

BILL DAVIDSON, Vice President of the Harley-Davidson Museum: Hey Santa, I’m still working here and I bleed black and orange. Did you know I’m the son of William G. “Willie G.” Davidson? Just because the pandemic has closed the museum, I remain busy creating ways to bring light and meaningful impact to motorcycle enthusiasts.  In fact, I sketched a new color book that has cryptic clues, puzzles to solve, and you can uncover a mystery through an interactive story adventure in the museum gallery.  We’re doing this in collaboration with The Pabst Mansion and the Pabst Brewing Company. Pass me a cold one!

GINA GOETTER, Chief Financial Officer: Santa it’s not my fault.  The prepared foods at Tyson Foods taught me a lot. Please let me milk this “new in my job” for just a while longer.  What do they expect?  Miracles on Juneau Avenue!  Doesn’t it matter that I’ve been here less time than ZEITZ?   I do have a motorcycle endorsement.  And, my calculator is newer than Jonathan’s!

JAGDISH “J.A.G.” KRISHNAN, Chief Digital Officer: Santa, it’s all hands on deck. Open. Click. Buy. At Bose, I helped close 119 retail stores after digitization and all I want for Christmas is to be that invincible-gungho digital hero and repeat the success for Harley customers. I’m calling it The Wired Buyer plan. It’s no longer about taking care of every person who walks through our doors – whether that’s helping with a problem, giving expert advice, or just letting someone take a break and listen to a great rumble.  We’re going all in online and will digitize the entire customer experience. Now where are those IBM server rooms on Juneau Avenue.

JONATHAN ROOT, Senior Vice President, Harley-Davidson Financial Services: Santa, I’ve been busy creating forecasting models, assessing risk in investments and ensuring all accounting activities comply with regulations, but I need a new platinum edition HP 12C calculator.  The minus button on my current Texas Instruments model quit working.

PAUL J. KRAUSE, Vice President, Chief Legal Officer and Chief Compliance Officer: Santa, I’ll make this short and sweet.  Please tell us who is behind that NWHOG.com blog?!  We have an important legal document gift we wish to serve send over to the Northwest Harley Blog editor. By the way Santa, trespassing involves entering a chimney without consent, but by wishing for presents and sending letters we’re good to go on the legal front!

LUKE MANSFIELD, Vice President Motorcycle Management: I’m dreaming electric Santa. Think Serial Number 1! It’s a simple process that leads to a complex outcome, but I think I can optimize your gift delivery experience so you’ll be home for Christmas.  Sure you have the reindeer and elf idiosyncrasies, but consumer tastes are changing fast and they want those gifts immediately after they Open. Click. Buy.  Santa you need to adapt & disrupt.  By the way, we’re developing a new delicious lemon flavored drink for our motorcycle enthusiasts.  It’s called ‘Harley Harley‘ and will be a standalone new brand in the U.S.

BRYAN NIKETH, Senior Vice President, Product Development and Operations: Please make Indian Motorcycles go away like “Gone Girl” Michelle Kumbier.  We are tired of being embarrassed in our own backyard when it comes to American cruisers and we don’t want that company bragging about their superior performance anymore.  Santa, save the gifts for the laid off 70 employees in India because I’m flying over when the pandemic ends to discuss Harley’s continuing restructuring of the region. It’s the largest motorcycle market and the exit was hastily announced. Lastly Santa, can you find that blogger at the 105th Anniversary trying to take a photo during our plant tour. We ran his butt right out the building before he was able to take pictures of the lunch room, but the Six Sigma manufacturing team learned later we’re missing a crankshaft bolt.

I don’t know about you, but I’m looking forward to the time when I can throw away my mask. Visiting all my family and sitting around the table sharing stories, eating good food and laughing together again.  And of course, getting on the motorcycle and riding across the U.S. at pandemic-free events!

Thank you for your readership during this past year. Merry Christmas, happy holidays and best wishes to you and yours in 2021.

Photo courtesy of the author.

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The Cost of Employee Tension At Harley-Davidson

Michelle Kumbier

When handled well, conflict resolution can save a company time and money and help maintain a healthy work environment. Unfortunately, conflict management at Harley-Davidson in the executive staff is imperfect, as they have lost hundreds of thousands of dollars due to workplace disputes.

The latest example is Michelle Kumbier.  

In October 2017, Michelle Kumbier was appointed senior vice president and chief operating officer (COO) of Harley-Davidson Motor Co. with responsibility for overseeing the Milwaukee-based motorcycle manufacturer’s U.S. and international markets in addition to her current responsibilities leading product and operations. Previously, Kumbier served as senior vice president, Motor Company product and operations. In that role, she led a team of more than 4,500 employees worldwide to bring Harley-Davidson motorcycles, parts and accessories and general merchandise to market.

$HOG 10-Q Filing

Obviously she was a failure…  for the new Chief Executive Jochen Zeitz, and wouldn’t be part of getting the company on “a path to winning” —  the ‘scarcity strategy’ called ReWire — so, Kumbier departed Harley-Davidson on April 3, 2020.  In the filing with the U.S. Securities and Exchange Commission, Harley-Davidson did not disclose a reason for her departure.

However, earlier his week, Harley-Davidson Inc. paid the former high-profile executive a settlement of $660,000 after she threatened litigation connected to unspecified events related to her departure, the company stated in a regulatory filing.  I’m not a workplace dispute solutionist, but the reason people sue is often not rooted in money as much as the person does not feel they are being treated fairly.

10-Q Filing Section 10.2

Kumbier, who had been a Harley-Davidson employee since 1997, and the company “have disputes over events that allegedly occurred relative to her resignation from the company,” the Milwaukee-based motorcycle manufacturer said in exhibit 10.2 included in its 10-Q quarterly financial report filed Nov. 5 with the U.S. Securities and Exchange Commission.  

Harley-Davidson said it “has denied and continues to deny Kumbier’s allegations” and also denies that it has any liability to Kumbier on any of her “disputed claims.”

But, went ahead and paid her $660,000 for the general denial of those allegations.

The company will make a lump-sum payment to Kumbier after she signed the settlement agreement that was dated Aug. 14, 2020. The document also states that Kumbier acknowledged the settlement amount is more than she would otherwise be entitled to under the company’s normal policies and procedures and that Kumbier released the company, its executives and its board “from all claims, charges, demands, and liabilities of any kind.”  Kumbier also signed a noncompete clause that prohibits her from working for or consulting with a large list of Harley competitors or potential competitors.

It might be appropriate that Harley-Davidson devise a “conflict calculator” to augment their environmental profit-and-loss accounting method to put a figure on how much the company spends on conflict resolution and executive termination each year.

Harley-Davidson CEO Jochen Zeitz Background

Photos courtesy of Harley-Davidson, Michelle Kumbier and US SECURITIES AND EXCHANGE COMMISSION — FORM 10-Q (November 5, 2020) Filing

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Harley-Davidson Avoids $3M Retrofit Of Wood-Burning Appliances

In August 2016, Harley-Davidson agreed to pay a $12 million civil fine and stop selling engine “Pro Super Tuners” deemed illegal after-market devices that caused its motorcycles to emit too much pollution.  I previously posted about this topic HERE.

The motor company also agreed to spend about $3 million to retrofit or replace wood-burning appliances with cleaner stoves to offset excess emissions from the sale of “tuners.”

It’s important to note that the EPA legal action had a significant chilling effect on the performance parts market at Harley-Davidson dealers and many other after-market manufactures.

As previously disclosed, the settlement resolved allegations with the EPA, that the company sold about 340,000 “tuners” enabling motorcycles since 2008 to pollute the air at levels greater than what the company certified. Harley-Davidson did not admit liability and has always maintained that it disagreed with the government, arguing that the tuners were designed and sold to be used in “competition only.”

Even though the settlement had not yet taken effect, a U.S. judge this week approved a revised settlement with Harley-Davidson and dropped the requirement that it spend $3 million to retrofit or replace wood-burning appliances with cleaner stoves to offset excess emissions.

Multiple environmental groups along with a group of 10 states sharply objected to the revised settlement by U.S. District Judge Emmet Sullivan.

Photo courtesy of Harley-Davidson

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Harley-Davidson Layoff Wave Accelerates

Some numbers to start your day and it’s not pretty.

The coronavirus pandemic, social unrest, and a scarred economy has created a tipping sentiment toward many jobs NOT coming back.

According to a Harley-Davidson press release, “The ReWire” strategy will now eliminate 700 positions globally of which 500 of the layoffs will occur this year. It will result in a $50 million restructuring charge in 2020, including $42 million in the second quarter. According to new Chief Executive Jochen Zeitz, getting the company on “a path to winning” also includes CFO John Olin leaving the company effective immediately.

Flashback – remember this abrupt CFO departure in 2009?

Some news outlets have reported Mr. Olin’s departure as a “retirement,” but color me skeptical since most retirements have a longer celebratory departure than immediately exit through the door. The current VP Treasurer, Darrell Thomas assumed duties as interim CFO until a successor is appointed.

I’m not sure why, but the CEO press release declaration of “a path to winning” reminded me of that time Charlie Sheen was winning HERE … maybe I just needed some humor?!

Harley-Davidson is not alone on the layoffs.  Below are just a few of the latest examples:

• Macy’s announced it would lay off about 3,900 and shutter stores
• AT&T will lay off 3,400 and shut down more than 250 stores.
• Hilton Hotels announced it would lay off 2,100 corporate employees amounting to 22% of its corporate workforce.
• Chevron announced it will cut 10% – 15% of its 45,000 global workforce.
• Boeing announced it would lay off nearly 7,000 employees.
• Uber announced it is cutting 3,700 jobs (14% of its workforce), then a month later announced they will cut 3,000 additional jobs and close 45 offices.
• Airbnb announced it is laying off about 25% of its workforce, or 1,900 employees.
• Virgin Atlantic (now part of Alaska Airlines) announced it would cut 3,150 jobs.
• Hertz plans to lay off 10,000 employees.
• Under Armour announced that it will lay off about 6,700 employees.
• United Airlines will send layoff warnings to 36,000 employees — nearly half its U.S. staff.
• ZipRecruiter laid off 443 employees.
• GE announced it will be reducing approximately 10% of its aviation unit’s workforce, amounting to about 2,500 employees.
• Cirque du Soleil announced it is laying off 95% of its 4,679 person staff.

You get the point.  Sadly, a lot of employees are expected to exit various organizations. In fact, since February, about 4.6 million Americans have stopped actively looking for work, and another 2.2 million are unemployed NOT on layoff.

And, then there are those companies that have taken an extremely tacky and classless route of laying off employees via Zoom.  Looking at you Bird, the electric scooter company, who laid off 30% of its staff via a 2-minute Zoom call.

Talk about a Nobel Prize-winning way to “Put a Bird on It” — From the “Portlandia” TV show.

Photos courtesy of Harley-Davidson, Great Art and IMDb.

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Ending The Monarchy’s Hold On America

American Flag at Willamette Falls

The Fourth of July—also known as Independence Day—has been a federal holiday in the United States since 1941, but the tradition goes back to the 18th century and the American Revolution.

On January 9, 1776, writer Thomas Paine published his pamphlet “Common Sense,” setting forth his arguments in favor of American independence. On July 2nd, 1776, the Continental Congress voted in favor of independence, which ended the monarchy’s hold on America and two days later delegates from the 13 colonies adopted the Declaration of Independence, a historic document largely drafted by Thomas Jefferson.

An interesting sidebar is that John Adams and Thomas Jefferson both died on July 4, 1826—the 50th anniversary of the adoption of the Declaration of Independence.

Clackamas County Marine Unit – Willamette River

From 1776 to the present day, July 4th has been celebrated as the birth of American independence, with festivities ranging from fireworks, parades and concerts to more casual family gatherings and barbecues.

For the 4th of July this year, we’re all burdened by a pandemic and being strongly encouraged to stay home.

An important and notable item to highlight, is that the Clackamas County Marine Unit deputies did something very special: they replaced the tattered American flag at Willamette Falls. If you’ve ever been on the Willamette River or looked out at Willamette Falls from one of the viewpoints, you’ve likely noticed a flagpole with a severely tattered American flag in the middle of the falls.

The flag has been there for a number of years and it was tattered, worn and faded— hanging only from its lower grommet. The Marine Unit deputies did some research to try and determine who was responsible for the flag’s presence at the Falls, but in the end, replaced the flag themselves. Thank you Clackamas Co. Sheriff’s Office and Marine Unit!

If you do go out, ride safe and have an enjoyable 4th.

Photos courtesy of Clackamas Co. Sheriff’s Office

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Oregon Scenic Byways

Oregon Scenic Byways

You might have an image in your mind of what motorcycle riding through Oregon is like, and the truth is, it’s a compilation of adventures. The landscapes are incredibly varied from Martian-like vistas in the driest place to ecosystems with a staggering array of flora, fauna and fungi.

America’s Byways® is an umbrella term used for a collection of 150 diverse roads designated by the U.S. Secretary of Transportation. The road designation is typically based on their archaeological, cultural, historic, natural, recreational, and scenic qualities.  They are considered gateways to adventures where no two experiences are the same.

Oregon is fortunate to have 10 incredible roads as part of America’s Scenic Byways and whether a maiden voyage or seasoned adventurer, you can see a lot of Oregon from behind the handlebars.

Below are snapshots of each Oregon Byway:

Cascades Lakes

Cascade Lakes Scenic Byway — 66.0 mi
This byway cuts a path through the mountains, lakes, and forests of central Oregon. Volcanism and glaciation formed more than 150 lakes for which the region is well known. See outstanding examples of lava flows, alpine lakes, and meadows. Cross paths taken by such historic figures as Kit Carson.

 

Hells Canyon

Hells Canyon Scenic Byway — 218.4 mi
Journey from river’s edge to mountain top and down to valley floor. Savor panoramic views of rugged basalt cliffs and fertile fields, rimmed by snow-tipped peaks. Tour foundries, galleries, and museums. Touch the weathered track of the historic Oregon Trail. Watch the majestic Snake River tumble through North America’s deepest canyon.

 

Columbia River

Historic Columbia River Highway — 70.0 mi
Travel to magnificent overlooks that provide views of the Columbia River and waterfalls, including Multnomah Falls. Springtime has magnificent wildflower displays, including many endemic plants. The Columbia River formed the last leg of the Lewis and Clark Expedition and was part of the early route of the Oregon Trail.

 

McKenzie Pass

McKenzie Pass-Santiam Pass Scenic Byway — 82.0 mi
Experience dramatic views of the snow capped High Cascade Peaks. The panorama of lava fields and six Cascade peaks is made more striking by the contrast between the black lava and white snow. The mountains are mirrored in crystal-clear lakes, and the byway passes beautiful waterfalls, including Sahalie and Koosah Falls.

 

Mt Hood

Mt. Hood Scenic Byway — 105.0 mi
On this byway, volcanoes once erupted and mammoth floods scoured deep gorges. Discover geologic wonders, waterfalls, temperate rain forests and wild rivers. Explore pastoral valleys with farm-fresh produce. Experience the formidable last leg of the Oregon Trail, the Barlow Road. Enjoy this bountiful wonderland that the pioneers called “paradise.”

 

Outback

Outback Scenic Byway — 170.0 mi
“Outback” refers to land with a natural ruggedness. Though people come here seeking independence, they know each other’s first names. Community is paramount. Jonathan Nicholas, publisher of the Oregonian, said it is “a star-spangled landscape of marsh and mountain, of reflection and rim rock, of seamless vistas and sage-scented dreams.”

 

Pacific Coast (North, Mid and Southern)

Pacific Coast Scenic Byway — 363.0 mi
Starting in Astoria and traveling south to Brookings, the Pacific Coast Scenic Byway provides views of amazing coastal scenery. The road winds by estuarine marshes, clings to seaside cliffs, passes through agricultural valleys, and brushes against wind-sculpted dunes. Charming small towns, museums, state parks, overlooks, historic bridges, and lighthouses ensure a delightful journey.

 

Rogue-Umpqua

Rogue-Umpqua Scenic Byway — 172.0 mi
From rolling, oak-covered hills to towering coniferous forests; from roaring whitewater rapids to incised inter-canyon lava flows; the Rogue-Umpqua Scenic Byway invites you to experience 172 miles of diverse river and mountain landscapes. Drive alongside the Upper Rogue and North Umpqua Wild and Scenic Rivers, both of which contain world-class fisheries.

 

Volcanic Legacy

Volcanic Legacy Scenic Byway — 500.0 mi
Explore the wonder and beauty of a dramatic volcanic landscape from Oregon’s Crater Lake National Park to California’s Lassen Volcanic National Park. Encounter ancient natural forces that shaped exquisite mountain lakes. Amid spectacular scenery, you’ll enjoy charming towns, abundant wildlife, world-class birding, and extraordinary recreational, historical, and cultural opportunities.

 

West Cascades

West Cascades Scenic Byway — 220.0 mi
This byway offers some of the best up-close views of thundering waterfalls, ancient forests, rushing whitewater, and cool, placid lakes. The drive begins in the historic logging city of Estacada, immersing you in an old growth forest. Continue and see snow capped volcanic peaks and the breathtaking Wild and Scenic Clackamas River.

Are you an owner of the new Harley-Davidson LiveWire and wanting a new perspective in sustainable travel?  Oregon is home to one of the largest and most robust networks of electric vehicle fast-charging stations in the U.S. You can download the Oregon Electric Byways map and guide HERE.

Information, maps and photos courtesy of Oregon’s Scenic Byways

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Harley-Davidson Announces Layoffs

Specifically, the motor company announced it will lay off approximately 90 employees at the York manufacturing plant and and 50 at the Tomahawk site in Wisconsin as part of an adjustment to its production volume.

The plant in Springettsbury Township just re-opened on May 20th as York County moved into Pennsylvania’s “yellow phase” of COVID-19 mitigation.

You might also recall that the motor company is pivoting from the “More Roads” plan to now focus efforts and energy to appeal to customers of premium-priced brands with limited availability.

I previously posted about this new success formula HERE.

Harley-Davidson has leveraged “scarcity” in the past. Underproduce motorcycles and limit distribution, which creates longer waits that in turn create an exclusivity mystique. Then up-sell consumers on the “premium-ness” motorcycle choice/brand.

As part of the new ‘scarcity strategy’ the company is adjusting its production volume (which to be fair, it routinely adjusts headcount), which will now result in a workforce reduction of York employees.

Previously, Harley-Davidson announced that it was reducing all non-essential spending and temporarily reducing salaries by 30 percent for executive leadership and 10 to 20 percent for most other salaried employees.

This reduction is nothing like the 2009 great recession when Keith Wendell cut the workforce by 2,700 hourly workers and 840 administrative employees.  Unless you are one of the laid off employees…then downsizing feels like cutting into “muscle” and is painful.

Laying off employees is difficult in normal times; but amidst the COVID-19 pandemic can magnify the tension and make coping with the turbulence very difficult. I hope Harley-Davidson makes the process equitable and those laid off have a soft landing.

Photo courtesy of Bradley Staffing Group.

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