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2015 Road Glide

2015 Road Glide

Ideas are a dime a dozen.  Execution is everything.

We know that behind the success is a lot of unseen work by the employees and dealers, but is Harley-Davidson ever executing!

Success is hard work and very few want to do the heavy lifting.  Because it’s boring, because its challenging, because no one is paying attention and it might not pay off in the long run.

However, passion and excitement are contagious and leading the Q3’14 financial news announcement is how the new 2015 Road Glide models were the best-selling 2015 Harleys!  The Road Glide was the highest selling model from the new line-up, yet only constituted 4% of the net retail sales this quarter, down from 8% in Q3 2013. This was because the model was only available since the latter part of the quarter, and is now expected to spur domestic sales in Q4.

2015 CVO Street Glide

2015 CVO Street Glide

Sure there was continued strong demand for Street Glides and Ultras, which contributed to the strong sales and the new Rushmore models including the CVO Street Glide, the Electra Glide Ultra, Classic Low and Ultra Limited Low and the Freewheeler, a trike all contributed.

Retail sales at dealers in the US, which account for two-thirds of Harley-Davidson’s business, jumped 3.4 percent in the third quarter as domestic dealers rolled out 50,167 new motorcycles onto the highways.  Keep in mind that motorcycle sales rose this quarter despite a tough comparison with last year’s huge launch of Project Rushmore touring bikes, which had fueled a U.S. sales surge of more than 20 percent.

The stiffer competition from Indian didn’t seem to materialize, but there was a profit hit from an unprecedented number of motorcycle recalls, which cost the company $14 million in the quarter or approximately $0.04 on EPS.

Here are some of the financial stats for Q3’14:

  • There are now more than 1,450 H-D dealers in 90 countries
  • U.S. market segment share (MSS) was flat at 56.3%
  • Harley reported that net income for Q3’14 was $150.1 Million, or 69 cents per share, a decrease of about 8 percent compared with $162.7 Million, or 73 cents per share, in the same period a year ago.  The company cut shipments to dealers who had been saddled with inventory after a slow Q2.
  • Revenue for Q3’14 was $1.3 Billion, down from $1.34 Billion. Supply chain problems with the Street, its newest motorcycle platform, caused the company to delay shipping the motorcycles.
  • Harley dealers worldwide sold 73,217 new motorcycles, up from the 70,517 sold in the third quarter of last year.
  • Harley expects shipments in the fourth quarter of 2014 to increase by3.5 to 5.5 percent from 2013, which had been a record year for sales.
  • 30-day delinquency rate for motorcycle loans was 3.0% vs. 3.11% in 2013.

Congrats to everyone at H-D on the great execution in the quarter!

Photo courtesy of H-D.  Full disclosure:  The author does not own HOG stock or have a financial vested interest in the company.

All Rights Reserved © Northwest Harley Blog

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At Sturgis 2012 and the marketing spin on the delayed launch of new 110th Anniversary models.

A couple weeks back, Harley-Davidson announced its 2013 model lineup.

I’ll cut to the chase.

What the marketing department portrays as a launch at the intersection between craft, art, and technology… it is in truth mostly carryovers and there is little to stimulate excitement other than a new paint scheme.  Adding fuel to the excitement starved debate is how H-D was late to release the 2013 motorcycles compared to previous years.  Why did the motor company avoid the traditional opportunity to showcase the new models at Sturgis?  Instead having a wooden crate on display with the launch date stamped on it for later in August.  I was disappointed and thought it was a bit lame, but it likely stopped people from asking the pesky question of where are the ’13 models, over and over of the Sturgis staff.  They could just point to the box…

Post Sturgis and as expected (and previously blogged HERE) there are a number of 110th Anniversary models receiving the press attention. Understandable, given its the kick-off celebration of the 110th Anniversary.  Recently at the Harley-Davidson Museum, and then in a Europe continuation of the festivities at European Bike Week in Faaker See, Austria, on Sept. 4-9, 2012.  However, the ‘official’ Harley-Davidson Anniversary Celebrations will unfold in Rome, June 13-16, 2013, and in Milwaukee, Aug. 29-Sept. 1, 2013.

H-D vendor area at Sturgis 2012

There will be ten models available as part of the 110th Anniversary Editions.  They will have unique serial number plates and Anniversary Vintage Bronze/Anniversary Vintage Black paint (CVO models get Diamond Dust/Obsidian paint).   Each will feature commemorative solid bronze fuel tank badges plated in black nickel and then distressed to highlight the bronze. A bright gold-tone Bar and Shield cloisonné is inserted in the main body of the “single wing” badge along with special anniversary badging and trim.  All of the Anniversary Editions will be loaded up with factory-installed options as ‘standard equipment’ including a premium price between $665 and $2,495 over the non-Anniversary models.

The ten 110th Anniversary Edition Harley-Davidsons are:

  • 1200 Custom 110th Anniversary Edition (limited to a quantity of 1,500): MSRP $11,699
  • Super Glide® Custom 110th Anniversary Edition (limited to a quantity of 1,450): MSRP $15,999
  • Fat Boy® Lo 110th Anniversary Edition (limited to a quantity of 1,750): MSRP $19,499
  • Heritage Softail® Classic 110th Anniversary Edition (limited to a quantity of 1,900): MSRP $20,799
  • Road King® 110th Anniversary Edition (limited to a quantity of 1,750): MSRP $20,999
  • Electra Glide® Ultra Limited 110th Anniversary Edition (limited to a quantity of 3,750): MSRP $25,999
  • Tri Glide® Ultra Classic® 110th Anniversary Edition (limited to a quantity of1,450): MSRP $33,499
  • CVO™ Ultra Classic® Electra Glide® 110th Anniversary Edition (limited to a quantity of 1,100): MSRP $38,599
  • CVO™ Road King® 110th Anniversary Edition (limited to a quantity of 900): MSRP $30,999
  • CVO™ Road Glide® Custom 110th Anniversary Edition (limited to a quantity of 900): MSRP $33,999

Historically the Anniversary models become a collector item and sometimes retain higher resale value.  In addition, for 2013, the motor company is pushing the Hard Candy Custom program, a shout-out to the styling movement from the chopper era of the 1960s that showcases metal flake paint, and styling details.  The motor company also introduced the new CVO™ Breakout™ model.

Photos taken by author at Sturgis 2012 and courtesy of H-D.

All Rights Reserved © Northwest Harley Blog

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