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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Harley-Davidson Q2 2020 Financial Results

Jason Momoa (i.e. “Aquaman”) collaborates with Harley-Davidson

How often have we recently heard… “We continue to face challenges during these unprecedented times.” — Harley-Davidson CEO Jochen Zeitz opening statement during the July 28, 2020 financial call.

I’m not a grammar nerd, but “unprecedented times” is a tiresome word.  Stop saying it Mr. Zeitz – and it’s also inaccurate!

We are not in an “unprecedented” time.

This isn’t the 1930’s Great Depression, the worst economic downturn in the history of the industrialized world. There’s been no dot-com bubble (i.e. Internet bubble) that was caused by excessive speculation in Internet-related companies in the late 1990s. It’s not the real estate bubble of 2008 and the follow-on market crash, recession and unemployment that was linked to the “subprime mortgage crisis.” There is no automotive industry crisis of 2008–2010 where declining automobile sales and scarce availability of credit led to General Motors, Chrysler, and Ford facing insolvency without major government intervention. It’s not the 1918 flu pandemic, which killed 675,000 Americans and the worldwide death toll was estimated at 100 million. One pandemic death is too much, but the COVID-19 deaths are currently nowhere close to that, thankfully.

Q2 2020 HOG Earnings Report

So, stop using these new most-hated sayings: “unprecedented” times, it’s the “new normal” and “we are in this together” mantra.

And, who’s the “we” here? The point is “we” are not all on the same team in this pandemic. Everyone is dealing with it in their own way. The restaurant employee who’s been unemployed for months isn’t in this together with a Fortune 500 CEO.  The nurse on the front-line treating pandemic patients isn’t in this with the marketing manager who can work from home.

It’s not “unprecedented” for me to rant about something while being largely sequestered at home for nearly five months. But it is what it is, I guess.

Back to the Q2’20 financial call… and some key comments made during the call:

• The Harley-Davidson culture has suffered. The company has seen five consecutive restructuring’s every year in order to basically chase the downward trend in sales.
• “The Rewire” strategic vision is now being replaced by “The Hardwire.” (more on this at the bottom of the post)
• Extending the 2020 model year through fall (historically launch was late August) and now new bikes will arrive in dealer showrooms early 2021.
• Used motorcycle pricing increased about 6% throughout Q2, certainly, higher than Harley has seen in any previous quarter.
• Harley continues to see strong potential in Adventure Touring and will launch Pan America globally in 2021.
• Harley has streamlined the structure, which now requires approx 700 fewer positions and approximately 500 employees laid off.
• H-D is not willing to sacrifice the strength of their legacy in a quest for pure volume growth going forward.
• Increased recognition on the role of digital technology as a critical priority in the future for Harley-Davidson.
• H-D will focus on roughly 50 primary markets that generate the vast majority of their retail sales and shipments.
• Surprise!  Planning to add a Sustainability Officer to the team who will further H-D commitment to the planet and to society.
• New brand building approach and social media campaign directed by “Aquaman” i.e. Jason Momoa (video of Mr. Momoa touring H-D Museum)

Q2’20 Numbers:

• Harley-Davidson posted a loss of $0.60 per share for Q2’20
• Worldwide retail sales of new motorcycles were down 26.6% versus prior year and Q2 revenue of $865 million was down 47% year over year.
• U.S. retail sales in Q2’20 were down 26.7% versus prior year.
• EMEA declined 29.8%, Asia Pacific was down 10.2%, and Latin America saw declines in Mexico and Brazil and finished the quarter down 51%.
• U.S. market share of new bike registrations was 38.5%, down 8.1 percentage points
• Motorcycle mix shifted from touring to cruising versus Q2’19, which reduced average motorcycle revenue per bike.
• Credit losses were down due to lower delinquencies and lower repossessions helped by H-D offering of payment extensions to certain customers.
• While Q2 results were again terrible, Harley-Davidson was still able to sell over 31,000 motorcycles in the U.S. during a global health crisis that closed off its retail stores.

During the financial call, Mr. Zeitz announced Harley will have yet another roadmap to follow: “The Hardwire,” the motor company’s third visionary plan in two years.

You might recall “The More Roads to Harley-Davidson” plan unveiled in July 2018 which stated the development of 100 new models over 10 years, giving more attention to international markets than in the U.S. market, and putting a much greater focus on electric vehicles.

That plan was largely abandoned earlier this year when then CEO Matt Levatich abruptly left the company and was replaced by chairman Zeitz. The “More Roads” was replaced by the vague and loosely defined “The Rewire” plan, which incorporated some of Levatich’s plan, but would instead focus more on key markets and products to drive the bike maker’s profitability and growth potential.

Now we can look forward to a new 5-year strategic plan; “The Hardwire,” which will be grounded in enhancing the desirability of Harley’s brand and protecting the value (i.e., keep pricing elevated) of the iconic products.” The Hardwire roadmap is expected to take over in the fourth quarter and serve as the strategic plan for the company to follow through 2025.

Photos courtesy of Asphalt & Rubber and Harley-Davidson

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The Missing Road To Oregon

Forty & Eight Club - Seaside, Oregon (circa: 1952)

 

“…it’s in Oregon; and Oregon like you know, nobody ever thinks about it.”

The above statement was made by Mohamed Osman Mohamud, a naturalized U.S. citizen from Somalia who planned to set off a car bomb during Portland’s Christmas tree lighting ceremony in Pioneer Courthouse Square last December.  Mr. Mohamud made the statement to arresting detectives.

Yet, the statement could very well explain the H.O.G. rally in the state of Oregon for 2011.  It’s M.I.A.!

I’ve been planning out my riding season and I’ve seen a number of zany things in my travels, but nothing as wild as the veterans in the above photo of the Forty & Eight Club.  So I went looking for event dates on the HOG members page and there is nothing listed on the site.  I re-reviewed the latest print edition of H.O.G. (Edition: OO9 2011) which has a pull-out section dedicated to H.O.G. events in the U.S. and indeed it ignores Oregon state.  Okay H.O.G. what’s the story?

Being impatient I decided to call the national HOG-800 number and ask the question.  After several minutes of press “#1-for-HD” and “#2-for-HOG” a nice lady put me on hold to check with her supervisor.  She returned to the phone and told me that there is nothing planned as yet for Oregon – explains the lack of any information as I explained to her!  More importantly I wanted to know if the state was being ignored because of my occasional less than flattering blog post on the motor company?   Was it a decision made by National H.O.G. or was this a lack of initiative and action at the local level?

I gave them an out on that last question and she stated that the local H.O.G. chapters had yet to provide any information to national.  Classic shift of blame, but it might be true?  Washington, Idaho and Nevada all have H.O.G. dates set!

So, what’s up: Salem, Coos Bay, Sunset, Rose City, Southern Oregon, Pioneer, Central Oregon, and Twin Rivers H.O.G. chapters…???

Photo courtesy of H-D Museum.  Photo taken in Seaside, OR. Circa: 1952

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Thinking Snow And Wishful Drinking

Think Snow Bumpersticker - HD Advertising (circa: 1972-74)

It was a big year for Harley-Davidson as they shifted from downsizing, labor agreements and weathering the recession to now looking forward to growth in 2011.  With freezing temperature and snow falling in many parts of the U.S., I’ve compiled some 2010 highlights to provide you some entertainment as you warm up with hot chocolate:

January
1.    Downtown H-D Renton, WA., one of the northwest dealers named among top 100 (Link: HERE)
2.    H-D reported its first quarterly loss since 1993 (Link: HERE)
3.    H-D announces the new, but “old” Forty-Eight Sportster (Link: HERE)

February
1.    H-D donates 28 new Buell and H-D motorcycles to assist in the earthquake disaster (Link: HERE)
2.    H-D marketing continues to pitch brand with young-rebel-with-tats ethos (Link: HERE)
3.    H-D internal documents indicate 382,000 absenteeism hours in the factories (Link: HERE)

March
1.    H-D promotes danger as Seth Enslow breaks Bubba Blackwell’s jump record (Link: HERE)
2.    H-D dealer (Shumate) in Kennewick, WA., closes under a mountain of debt. (Link: HERE)
3.    H-D CEO, Keith E. Wandell 2009 compensation package becomes public as the $6M dollar man (Link: HERE)
4.    H-D marketing pulls out all stops on innovation and launches Super Ride II (Link: HERE)

April
1.    H-D consolidates motorcycle testing in Arizona Proving Grounds (Link: HERE)
2.    H-D files mass layoff notice with Wisconsin department of workforce development (Link: HERE)
3.    H-D CEO, Keith E. Wandell is “encouraged” as Q1 motorcycle sales revenue declines 20% YOY (Link: HERE)
4.    After 26 years of service Bill Davidson is put in charge of the Museum (Link: HERE)

May
1.    H-D CEO, Keith E. Wandell states in interview that H-D is like GM…a fading American industrial might (Link: HERE)
2.    H-D threatens to leave the state of Wisconsin (Link: HERE)
3.    H-D CMO, Mark-Hans Richer is no man crush of this blog (Link: HERE)

June
1.    H-D launches XR1200 Refresh (Link: HERE)
2.    H-D launches Wii based-game: “Road Trip” (Link: HERE)
3.    H-D at the National Law Enforcement Museum (Link: HERE)

July
1.    H-D opens Hyderabad, India showroom to pandemonium (Link: HERE)
2.    H-D reports Q2 earnings with financial services being largest money maker (Link: HERE)
3.    H-D launches the 2011 model lineup of 32 bikes vs. 38 the prior year (Link: HERE)

August
1.    H-D announces closure of sidecar business which operated since 1914 (Link: HERE)
2.    H-D announces 1-MILLION fans on Facebook (Link: HERE)
3.    H-D sold back MV Agusta to its previous owners (Link: HERE)
4.    H-D announces that after 31 years they’ve parted ways with PR firm Carmichael Lynch (Link: HERE)

September
1.    Erik Buell releases teaser ads promoting a new street bike based on 1190RR (Link: HERE)
2.    H-D gives away free posters of any of their 32 models (Link: HERE)
3.    H-D under threat of moving out of state announces ratified 7-year labor agreement (Link: HERE)
4.    H-D “spins” the fact that massive branding efforts result in a 24% brand value decline (Link: HERE)

October
1.    H-D reports Q3 earnings with motorcycle sales declining 7.7% worldwide and 14.4% in the U.S. (Link: HERE)

November
1.    H-D management “negotiates” with Kansas City plant to accept a new labor agreement or we’ll leave state (Link: HERE)
2.    H-D turns down a $25M tax credit deal by Wisconsin State (Link: HERE)

December
1.    H-D never disclosed a $2.3 BILLION deal with Federal Reserve (Link: HERE)
2.    H-D announces first ever “Crowd Sourcing” for new marketing ideas (Link: HERE)

Photo courtesy of H-D.

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Boo! Harley-Davidson Nightmares

Halloween Motorcycle Ghosts

As Halloween approaches, I decided to ponder: What strikes fear into the hearts of Harley-Davidson executives all over the land?

To answer that question, I peeked into a crystal ball, reviewed the Christine O’Donnell ad on “witches” and met with a couple carneys on voo-doo to peer into the subconscious of the motorcycle company’s most powerful execs and see what goes bump in their night.

To be clear: Some of these nightmares clearly stretch the bounds of reality, but some have a level of plausibility. They range from trivial worries to scenarios that could bring down an entire company. Read on to find out about Harley-Davidson executives’ nightmares:

CEO Starts Shooting Black-and-White Commercials: An attempt by Keith E. Wandell (CEO) to humanize the company, explain its brand value and reverse the damage which was done by the glaring hole in his garage when he admitted after being hired in 2009 that he didn’t ride a Harley-Davidson or even have a motorcycle endorsement — he has since rushed out and bought one, placed a yellow one on display in his office, obtained a “Rode Mine to Sturgis” patch and rumors are he’s ordered a 2011 model.  The CEO as pitchman in commercials is not exactly a new concept.  Just look at Sprint who seemingly cornered the market with classy, black-and-white appearances and what it did for them.

H-D Factory Employees Ride BMW: The nightmare manufacturing scenario is this: Matthew S. Levatich (President and COO) calls an all-hands meeting and scores of manufacturing personnel show up riding BMW’s new K1600. Not only would it be a rebuke of the company’s own philosophy, but it would be another sign that H-D’s bet on union workers in WI., was at a dead-end.

H-D Restarts Side-Car Manufacturing and No One Buys Them (Again): John A. Olin (CFO) doubles down on the H-D investment as the marketing efforts were not enough to sell a sidecar-challenged public the first time around, but this time side-cars will have a renaissance comeback.  Or the company hopes so.

H-D Brand Falls Off Top 100 List: Mark-Hans Richer’s (CMO) continued branding efforts to market motorcycles that boasts history over flash results in Harley dropping from the Top 100 Global Brands.  In 2010, H-D went from #73 to #98 — a 24% drop in popularity and brand value. Finding another Malcolm Forbes or Jesse James out there who can provide their personal endorsement will help improve the motorcycle brand value and might keep it on the top 100 list?  In the mean time more advertising is in the pipeline that will lead the public to think that if you own this product you too will be cool.

Fed’s Apply GM Like Pressure On H-D To Be Green(er): Jon Flickinger, (President & COO of Buell) says that H-D being a “tree-hugger” is not the first thing that comes to mind. But, just as President Obama has told our CEO during their lunch meetings, the greenhouse standards will become tougher and H-D will need to aggressively adopt new ‘green’ codes for its factory and dealer network inorder to meet the U.S. Green Building Council’s L.E.E.D. certification.  In addition they will add a new electric motorcycle to their product line, based on the Sportster Family.  Lastly and for good noise measure the company will implement California’s, SB 435 law early — on all 2011 models — which requires all street motorcycles built after 2012 to have EPA-labeled exhausts.

Secret Motorcycle Design Found At Museum Teambuilding Scavenger Hunt: Willie G. (Chief Designer) celebrates his design team accomplishments in an elegant 1920’s style glam and glitter – “the new beginning of the motorcycle” – party with everyone’s family in attendance that was hosted by the H-D Museum.  Some H-D employees dressed in the era of 1920’s to 1930’ in their caps, knee socks and knickers to remind people what it was like during the ‘roaring’ yesteryear. The feeling was eerie and mysteriously exciting all at the same time.  The employee’s children participated in a pencil and paper design contest of which an 8th grader defined the motorcycle shape that will be used to create all future motorcycle styles.

Merger Madness: Joanne Bishmann (VP Communications) is weaving a compelling story and spinning the news how Harley-Davidson is pressured into a merger in order to save the company from further manufacturing cuts and/or collapse.  H-D sells 49% of its shares to Daewoo Corporation in exchange for a much needed influx of capital and to pay off the $6B in debt.  Hyosung Motorcycle director, Mr. Ji Jas Ryong (pronounced “jus wrong”) says “We do not expect to change anything with the famous look of the H-D product, other than the logo, in fact we consider it an honor to include it along side Hyosung premium sport bike line.”

What are your thoughts?  Are there other H-D nightmares out there?

Photo courtesy of Sony Pictures (Ghost Rider) This blog post is satire and entirely fictitious.

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The Harley-Davidson Decade

Ice Racing -- Franky Zorn

Yes, it’s been ten years!

Magazines and newspapers with decade-ending rankings have started to appear.

Over the next month, we’re going to be deluged with statistics.  Telling us who the winners were.  People who provided fodder for the system, that you consumed, and forgot.  Best movies, best athlete, best TV shows, best songs, best companies etc.  So, I thought it would be good to go back and compile highlights on the Harley-Davidson decade.

It wasn’t all good news—marked by the roughest economy since the Great Depression.  In pulling together the data I was reminded of a song by James McMurtry’s “We Can’t Make It Here”.  It’s a favorite and one I would vote as the “best” song of the twenty first century, yet it never seems to get air play.  But, this isn’t a rant about how they killed radio and now have us anesthetized in front of the flat screen, selling us products we don’t need, that we put on credit cards that charge 29%.  Sure, McMurtry’s lyrics are poignant, but there’s a hypnotic groove that hooks the listener.  It makes me want to play the song again and again.  But, I’ve moved a little off topic… here is a look back:

2000 — The Softail Deuce is introduced.  All 2000 Softail models have the Twin Cam 88B engine, a counter-balanced version of the Twin Cam 88.

2001 — The V-Rod is introduced for the 2002 model year. Inspired by the VR-1000 racing motorcycle, the V-Rod is H-D’s first motorcycle to combine fuel injection, overhead cams and liquid cooling.  It delivered 115 horsepower.

2002 — The all-new Buell Firebolt is launched.

2003 — Buell launches the Lightning XB9S.  More than 250,000 people come to Milwaukee for the final stop of the Open Road Tour and the H-D 100th Anniversary Celebration.

2004 – The Sportster family models receive rubber engine mounting, a new frame, and a wider rear tire. The Road King Custom is introduced with a low rear suspension and wide handlebars it brings a beach cruiser look to a classic motorcycle.

2005 — The XL 883L Sportster 883 Low brings a lowered seating position to the Sportster line.  H-D and the Muscular Dystrophy Association (MDA) mark the 25th anniversary of their partnership.

2006 — The first of the 6-speed transmissions are made available on 2006 model year Dyna motorcycles. The 2006 model year includes the all-new Street Glide, a lower profile touring motorcycle. H-D appoints Beijing Feng Huo Lun (FHL) as the first authorized H-D dealer on mainland China.

2007 — Union rejected a proposed new collective bargaining agreement for employees and went on a strike at its final assembly operations in York, Pa.  H-D launch the Sportster XL 1200N Nightster. The H-D Foundation and the Disabled American Veterans (DAV) Mobile Service Offices (MSOs) launched the Harley’s Heroes Tour.  H-D celebrated 100 years of Police Motorcycle Sales.

2008 – H-D teamed up with the Ultimate Fighting Championship (UFC).  H-D holds its 105th Anniversary Celebration and the H.O.G. 25th Anniversary.  H.O.G. launched the Million Mile Monday ride. A H-D Softail stars in the new Indiana Jones movie. H-D acquires MV Agusta Group expanding presence in Europe.  The H-D museum opens to the public. H-D introduces the 2009 Tri Glide Ultra Classic motorcycle (3-wheel).  For 2009 touring models H-D introduces the all-new frame, swingarm, engine mounting system, wheels and tires and new chassis.   The H-D XR1200 is launched in the U.S.

2009 — CEO James Ziemer retires and is replaced by Keith Wandell. H-D reports decreased revenue, net income and diluted earnings per share and provides a new strategy and restructuring update. Buell named Official Pace and Safety Bikes of AMA Pro Road Racing. H.O.G. set a 5 Million Mile Monday goal, but falls just short of the goal. H-D launched the Ride Free II Guarantee program.  H-D rolls out nine new motorcycle models for 2010 across six model platforms. H-D formally enters the motorcycle market in India. H-D unveils long-term business strategy after poor Q3 revenue and announced the discontinue of its Buell product line and plans to divest its MV Agusta unit.  Erik Buell leaves the company to establish Erik Buell Racing.  H-D announced it will keep its motorcycle operations in York, Pa., that includes a restructuring plan which eliminates almost 50% of the workforce.

H-D Revenue: 2000 = $2.24 Billion (2000 was the 15th consecutive year of record revenue); **2009 = $4.08 Billion (back-to-back yearly declines — in ’06 revenue = $4.55B)

H-D U.S. & Canada Market Share (651+cc): 2000 = 45.9%; **2009 = 45%

H-D Gender:  2000 = Male (90%); Female (10%); **2009 = Male (89%); Female (11%)

H-D Median Age: 2000 = 44.2; **2009 = 48.1

H.O.G. Membership: 2000 = 582,400; **2009 = 1.3 Million

Unit Shipments: 2000 = 204,592; **2009 = 225,000

(** indicates estimates as final results not tabulated/reported and subject to change)

From record revenue and income to record downsizing and decline.  I didn’t mean to get you reaching for the Prozac, but it’s not all that bad.  Just like ice racing in winter months can be slippery with the occasional crash, H-D will continue to modify, adapt and adjust to come out on top.

Photo courtesy of Rutger Pauw;  Statistical Sources: H-D; H-D Investor; Google Finance and various analyst estimates.

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Captain America Turns 40

Easy Rider Replica Bike

Not the fictional character who appears in comic books, but I’m talking about the classic motorcycle movie Easy Rider which marks the 40 year anniversary this week.

About two bikers (Fonda and Hopper) who travel the America landscape to experience freedom of the open road from the seat of their motorcycles.  Fonda played “Captain America” and his bike is one of the most recognizable motorcycles in history.  Stories vary, but according to the H-D Museum there were two choppers used in the film.  There is some irony in that both were created from H-D FLH police motorcycles.  One was destroyed in the making of the film and the other mysteriously disappeared from the movie set.  By some accounts there were a total of 4 motorcycles used which 3 were stolen.

Jack Nicholson played an alcoholic ACLU lawyer, George Hanson.  One of his more memorable comments after observing that Americans talk a lot about the value of freedom, but are actually afraid of anyone who truly exhibit it was:

“This used to be a hell of a good country.  I can’t understand what’s gone wrong with it.”

Ten years ago for the 30th anniversary celebration Fonda and H-D collaborated to build an exact replica of the California chopper which is now featured in the H-D Museum.  In 1998, the movie was added to the U.S. National Film Registry have been deemed culturally, historically, or aesthetically significant.

I posted previously about producer William Hayward, his role in the movie and his unfortunate death.

Photo taken at H-D Museum during 105th Anniversary Celebration.

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