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Archive for the ‘Harley’ Category

Does it matter?  You bet!

Pendleton, Oregon and the “wild west” stands for — freedom, independence, self-expression and the rebel spirit.

That could be a marketing campaign for Harley-Davidson and likely why the motor company will grace Oregon’s Pendleton Bike Week (July 19 – 23rd).

This is major news, especially in biker circles.  It’s a lot of work and a big deal in the consumer goods and services sector to obtain a title sponsor on any type of event, let alone when the backbone of American culture, the flagship of American brands elects to throw its considerable weight behind an event and partner with an up-and-coming independent motorcycle rally in the Northwest.

Big shout out and congrats to Eric Folkestad and the Pendleton team for securing the sponsorship!

You may recall that the Pendleton Bike Week (PBW) is not a local or national sponsored HOG event so, this is really the first-of-its-kind partnership with Harley-Davidson and will help legitimize this event for motorcycle enthusiasts.  What makes this even more interesting is the fact that the Pacific Northwest HOG Rally (July 20 – 23rd) held in Meridian/Boise, ID will occur on the same set of dates as PBW.  Pendleton and Meridian, ID are about 3 hours apart on I-84 and I would anticipate some riders are working on a plan to attend both.

PBW is in it’s third year and it’s estimated there will be upwards of 20,000 bikers over the four days visiting the area this year.  I attended the first event in 2015 (read about HERE) where there was about 6,000 attendees and last year’s attendance spiked to about 16,000 across the four days.

Harley-Davidson will have factory reps on hand to chat with and two factory demo trucks onsite so riders can experience the performance of the company’s new line of motorcycles, including the new Milwaukee-Eight engine.  Pendleton is at the base of the scenic Blue Mountains, which has become well-known as a hub for motorcycle touring eastern Oregon.

The city of Pendleton is an appealing venue and the rally is a nice ‘back to the basics’ ride in the “wild west.”  See you there.

Photo courtesy of PBW

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HOG Lewis And Clark Touring Rally

Lewis And Clark Touring Rally

Harley Owners Group registration is now open!

It starts on July 10th in Portland, Oregon and ends July 21st in St. Charles, Missouri.

It’s a throw back to 2002 when HOG led a contingency of riders along the route made famous by Meriwether Lewis and William Clark during their 1804 – 1806 expedition.  I didn’t attend the original ride, but wrote about it in a post HERE.  I’m sure the box of commemorative “swag” from HOG only contributed to the adventure and road stories.

From the Pacific Ocean to the banks of the Mississippi River in Missouri, the touring rally will take Harley-Davidson riders to 9 cities along the famed route, numerous museums and interpretive centers, as well as some spectacular wind in the face riding.  It’s an especially great opportunity to ride the famous Bear Tooth Pass and explore Yellowstone National Park.  Here is a post with some photos from when I traveled this route back in 2013.

It’s not an inexpensive touring rally as registration on the members.hog.com website is $450.  It does include numerous meals, commemorative merchandise and special gatherings with fellow participants as part of the event package.

Notes from the website state: Maximum Capacity for the rally is 300. Full members may invite 1 guest on the tour.  The member must register the guest under his/her member number and purchase one of the above packages.  Cancellation: Prior to May 1, 2017 there is no cancellation fee. May 2, 2017 – July 3, 2017 a 50% fee will be imposed ($225).  If the Rally Package has been mailed to members they will need to return the rally package before a refund will be issued.  Cancelation deadline is July 4th, 2017.

Alert: You might not have this issue, but I was registering for the Pacific Northwest Rally earlier in the day and had numerous issues with the HOG website hanging.  I was using a MacBook with Safari browser, but couldn’t get the site to work. I called the HOG Support phone line and it was suggested that I use Google Chrome browser, which I did and it worked fine with that browser.

Photo courtesy of HOG website.

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BITW-HelmetAs I write this I’m reminded that I was flying home from Barcelona, Spain about this time last year after a long work week at an industry event and that every year in business is different.

A few years are easy, some are hard, and most are somewhere in between. Each year you face a different set of circumstances: changing economic, political, social and what’s cool in the billet industry.

We know from the Discovery Channel which scripted a mini-series project about the history of Harley-Davidson, that in the early years the company really struggled to survive. From month to month, they worked hard to keep from getting further behind and sinking further into debt.  There were the AMF years and then came the housing bubble.  Those of you who have tried or are establishing a little business of your own know that success is much harder than you envisioned it should be. Many folks think there must be “one big thing” they are missing that if discovered and remedied would turn things around and put them on the path to major prosperity.

Clearly, that isn’t the case, and over the course of a few startup years often you learn that rather than “one big thing,” there are many functions throughout the business that had to get established in good working order for the business to really succeed.

After 114 years, this still holds true for Harley-Davidson. There are no guarantees or shortcuts to success. There is only doing the hard work that needs to be done, doing it to the highest standards, and identifying the next area to establish or improve in order to build the next generation of Harley-Davidson rides and riders to control their destiny.

All of this became acute over the last week when Harley announced their Q4 and full-year 2016 financial results (HERE).

Words like “intense competition, flat market, soft sales, and earnings miss” ruled the day.

These are just words.  I’m of the viewpoint that how well any company performs is a key factor in how well they succeed compared to their competition.  Since we’re a few days before Super Bowl — a sports analogy is in order — how well a team executes ALL aspects of their game has everything to do with whether they win or lose.

Obviously taste in motorcycle brands, styles, or in paint schemes, is subjective. Some in the press have beaten down the overall market with reports that seem to indicate the riding “fad” has ended. Granted there’s been negative publicity with Polaris shutting down the Victory Motorcycle brand and overall motorcycle industry earnings not being great, but there are many very nice motorcycles being made, and WE the riding enthusiasts/public have lots of choices.

Why do I bring this up?

I’ve notice in my travels that many successful companies have a sense that they are masters of their own fate; their success is within their control. They know it’s a myriad of little things done well that add up to their success. And no matter what their size, they realize that a company always has the resources at hand to take their next step. Isn’t that really the “art” of it: to creatively employ existing resources to advance the ride, the employees and the company?

Most of us know the answer to a problem is rarely found outside the company; it usually comes from within.  I’m confident that Harley-Davidson will find the answers and simply function better as an organization.  I predict they will do a more thorough job of performing the functions a successful motorcycle company needs to and roll out compelling new products that will be industry hits.

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Screen Shot 2016-08-10 at 11.42.14 AMI’m a bit late getting this information out, but you can read the company press release HERE.

From my experience you know it’s going to be a long day when the financial perspective includes statements about how we’re in challenging times…  “Political, economic and cultural forces working against the confidence and security for people everywhere in the world” — whoa, roll the eerie and scary sound effects!

Here is a quick synopsis:

The Bad:

  • Worldwide sales for the quarter were down due to significant declines in the U.S. industry which was a surprise and far weaker than expected. Worldwide retail sales of new Harley-Davidson motorcycles in Q2 were down 1.9%.  U.S. retail sales were lower than expected on surprisingly weak industry results.  Q2 retail sales in the U.S. were down 5.2% versus prior year, behind weak U.S. industry sales.
  • U.S. retail inventory was up at the end of the second quarter.
  • Manufacturing expenses were higher than expected, driven by startup costs related to the implementation of a new ERP system in Kansas City, and costs associated with plant retooling.  In addition, plant efficiencies were lower than expected due to lower production given soft sales in Q2.  This is an overly simple statement because in reality it’s complex planning and execution, including numerous down days, inventory bridges and careful new model ramp plans.
  • The motor company stated they are taking steps to lower expected 2016 shipments which is largely due to continued pressure on industry growth in the U.S.  Third quarter shipments are expected to be approximately flat to down 9% versus 2015 third quarter.

The Good:

  • Revenue was up slightly.  Net income was $280.4 million on consolidated revenue of $1.86 billion compared to net income of $299.8 million on consolidated revenue of $1.82 billion in last year’s second quarter.
  • Q2 market share of 49.5% in the U.S., was up a strong 2.0 percentage points. The gains came in all segments, Touring, Cruisers and the Street/Sportster segment size of motorcycles. And it came from all seven sales regions in the U.S. The market share gains were over double the nearest competitor and came largely at the expense of Japanese competitors.
  • Retail sales in international markets were up in Q2 in all regions except Latin America (Brazil).
  • The company added six new international dealerships in the second quarter and has a goal to add 150+ international dealers over the next 4 years.

Given this current environment one could wonder if Harley-Davidson is positioned appropriately for the flat/declining industry which seemed to surprise them in Q2 — management states they are prepared.

Full Disclosure:  I have NO personal stock holdings in HOG or plans to procure any.

Some parts of the above text are attributable to the Seeking Alpha transcript on July 28, 2016.  Photo courtesy of Harley-Davidson.

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Screen Shot 2016-08-10 at 10.42.54 AMNot long ago Jesse James of West Coast Chopper (WCC) fame left California for the more gun-friendly state of Texas.

On the motorcycle front there’s no denying that he is a master marketer and craftsman.  But, motorcycle craftsman to custom firearms entrepreneur?  Not everyone was thrilled.

Keep in mind that it’s been 16 years since Discovery channel chronicled his every move in Motorcycle Mania.

Meanwhile, some in the firearms community were reluctant to accept his custom line of guns (JJFU — Jesse James Firearms Unlimited) as anything other than being overpriced “customization.”  But, hand-made firearms blended with multiple layers of different metals in Damascus style craftsmanship is an art form and now with months of product backlog after a couple years of forging his own work, those allegations don’t hold true.

Now the National Rifle Association announced a new licensing deal with Jesse James that will venture into Second Amendment-themed apparel with a branded clothing line called NRA Originals.

The Jesse James “outlaw persona” has without a doubt gathered a fan base over the years and one the NRA is looking to tap into.

Photo courtesy of NRA Originals web site.

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Screen Shot 2014-06-04 at 2.35.53 PMDo you agree with the adage — “You are what you ride?”

While I don’t claim the axiom is foolproof, there are many observable examples that support the concept — from the successful lawyer driving to the office in a tire-shredding German sedan and then rides a chopped and stripped down Forty Eight on the weekends, to the general contractor who most days is in a tool-ridden F-250, but prefers to ride a CVO Limited, the grand American cruiser for the long road trips.

I fell hard for Harley-Davidson (over 20 years ago now) and it took me more than three models later to acquire the current riding spirit of the Road Glide.

I’ll admit it.  I enjoy the attention that comes with owning motorcycles of the Harley-Davidson caliber — parking lot discussions and drive-by salutations from strangers.  Sure it sounds pretentious, but I’ve spent way too much time behind the handle bars of a Honda and Yamaha to resist metaphorically blowing my own horn.

Right or wrong, many of us place a great deal of importance on what we ride. Critiquing others freely, we are likewise judged by the sheet metal of our ride.  Because, like it or not, motorcycles are a reflection of ourselves — a view into our wind in the face wandering soul.

Think about it.

We often purchase what fits our current character and life status. Everything from the color to the style and model is carefully and deliberately selected.  Much of our riding and our life for that matter, is spent developing this ride persona — and it evolves as we do.  Our environment may change from year to year where a mortgage or a kid in college influences what sits in the garage — as would the line of work, the economy, the community and our circle of friends.  Whether we currently own the motorcycle of our dreams does not mean the statement is any more or less true.

As we know, not everyone can live with a Harley-Davidson status symbol — whether they intended to or not. Just go to any dealer and look at the low-mileage castaways in the used area. Those owners moved on to a more practical ride or abandoned the entire motorcycle “lifestyle.”  An association with a Harley-Davidson motorcycle is an extension of ourselves and a natural consequence of the freedom of the road culture. Like clothing, we dress in leather, steel and rubber, the same as we do with cotton or silk. Color, texture, design and shape — we’re being seen in public with our best “outfits.”

But, there is one great equalizer for all this pomp and circumstance activity — the gas station!  It’s the one place where we gather like creatures in the desert at the waterhole, replenishing empty tanks. The perfect spot to critique both motorcycle and rider while staring through polarized shades at the others from a distance.  I might dismount and swipe a credit card at the pump as fellow bikers draw conclusions based on my re-fueling habits.  I’m not bothered by that — after all, I’m doing precisely the same thing they did just minutes earlier.

Vanity comes in many forms, and even the modest will present their motorcycle with some defiance — like wearing blue jeans to a formal event.  It’s just a different perspective.

You may deceive society by how you look and the way you dress, your manner of speech and education, the neighborhood you live in or the reach of your bank account, but none of this really matters in a material world.  Because in that moment of judgement, you are inevitably what you ride.

Photos courtesy of H-D
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Sturgis Rally 2016 -- 76th

Sturgis Rally 2016 — 76th Year

Life is about choices. What to wear, what to eat, where to ride… And if you pondered each one in advance, trying to get it exactly right, you’d be left far behind and barely make it out of your house.

There’s something unique about touring by motorcycle whether it be spontaneous or calculated.  Some riders want a state-by-state listing of the best motorcycle roads with in-depth descriptions of each highway and ratings for the road’s scenery, surface quality, and a description of the best greasy food stops.  They obtain motorcycle maps, get motorcycle trip tips, reviews, suggestions, and more.  Others are just fine to point the front wheel in a direction with back roads, freeways and cornfields without ever looking at a map.

I’m having some personal restlessness and feeling a bit starved for rides this year. I was aiming for Laughlin, Sharkweek/Sturgis and Reno, but circumstances eliminated the first two.  I don’t need to worry about Reno, yet. Although, when I last looked, I see all the local hotels have already raised their rates for those dates.  Then I remind myself that the best rides I take are never the trips to any of the big rallies anyway.

And speaking of the heightened motorcycle adventure called Sturgis (August 6-13th) — prep is in full swing for the 76th Rally celebration which starts in a couple weeks.

Last year Harley-Davidson announced that the motor company is now the “official motorcycle” of the annual Black Hills Rally in Sturgis, South Dakota (through the year 2090!). And until November 2015, nobody had ever successfully trademarked the name of a city, but Sturgis Motorcycle Rally, Inc. is the official sponsor of the Sturgis Rally and it has trademarked “Sturgis,” “Sturgis Motorcycle Rally,” “Sturgis Rally & Races,” “Take The Ride To Sturgis” and “Sturgis Bike Week.” The corporation has also trademarked the official Sturgis rally logotype or picture mark. The oldest of these trademarks dates to 1997 and the most recent was registered in 2011, just before their suit was filed.  The Sturgis Motorcycle Rally, Inc., won that trademark infringement case against Walmart.

But, I’ve moved off topic where every American should try at least once the Legendary Steak Tip Dinner at the Loud American Roadhouse (no colors policy strictly enforced).

Harley-Davidson dropped a press release to outline all their plans at the 76th Sturgis Rally (HERE).  A quick re-cap is:
  • The Harley-Davidson Rally Point is a their permanent year-round space in Sturgis that will feature events and live music daily from the stage.
  • Kick-off Party for the 76th Sturgis Motorcycle Rally, Friday, Aug. 5, at 3 p.m.
  • Rides:
    • Mayor’s Ride featuring Grand Marshal Ben Bostrom, Monday, Aug. 8.
    • Harley-Davidson Editor’s Choice Bike Show, Tuesday, Aug. 9- Registration 8 a.m./Awards 4 p.m.
    • First Ever Angel’s Ride, Friday, Aug. 12 – The number of women riders is on the rise.
    • Free Motorcycle Demo Rides on the 2016 line-up.  Staging for demo rides takes place in the parking lot behind the Community Center
  • The Project RUSHMORE Experience is a behind-the-scenes and hands-on look at H-D’s latest touring motorcycle technology
  • H-D Fit Shop and Genuine Motor Parts & Accessories area is new this year will have a “Quick Install” area for 30-minute or less installations of selected accessories for your motorcycle.
  • Better than a selfie stick!  Pro Bike photos taken of you/your bike to post on social media and an option to purchase the photo as a keepsake.
  • Hollywood Harley Bikes from the movies Captain America and Avengers will be on display including Steve Rogers and the hero bike from FX’s Sons of Anarchy TV show will be located on a red carpet area

In addition, there are many, many other “not-to-be-missed” activities around town, in the camp grounds and at various music venues.

Whether you are spontaneously twisting throttles to South Dakota or making a road trip that is highly calculated — Enjoy!

@HarleyDavidson social media is providing wall-to-wall coverage at #LiveYourLegend.  The official H-D Sturgis App, is at:  www.h-d.com/sturgis.

Photo courtesy of H-D.
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