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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Harley Pulls In New International Business

"Mob Scene" at Harley-Davidson Hyderabad Opening

India is mostly known for Mohandas Gandhi, who fought for Indian independence with non-violence.

But, in Hyderabad last week it was the sight of a near mob scene thanks to Nandamuri Taraka Rama Rao or more popularly known as Jr. NTR.  The film actor was present for the inauguration of the first Harley-Davidson showroom opening in the country.  You can watch the pandemonium HERE.

Should we care?  Given that one of the major tenants of Mr. Wandell (CEO) and Harley-Davidson board’s growth strategy being international expansion I think it’s fair to follow India’s success.  India has culture, spiritualism, yoga, spices, multiple languages and now Harley-Davidson Hyderabad.  With four more dealer/showrooms in the pipeline at Chandigarh, followed by New Delhi then Mumbai and Bangalore the motor company could be set to capitalize on any untapped heavy cruiser market.  Clearly the company is betting on India to help grow sales.

Interesting to me is that India is the world’s second-largest motorcycle market.  However, most sales are of small, inexpensive scooters that can weave through traffic in the heavily clogged cities.  India does have some open roads outside the large cities but many are marred with potholes and don’t make for easy riding.  As part of Harley’s long-term commitment to the country they chose to enter India as a subsidiary rather than through a pre-existing dealer network.  With the motorcycles being made in the U.S. and shipped to India they face hefty custom duties.  In fact, the cost of a basic Sportster starts at 695,000 rupees ($14,917)… all this does make one wonder just how many India customers are willing to pay for ownership bragging rights.

I also found it intriguing that buried in the announcement was the point that the company plans to relocate a 20-year service veteran from Harley’s headquarters.  Talk about a culture change…  Miller vs. India Pale Ale (IPA).

UPDATE: July 14, 2010 — Anoop Prakash (H-D Managing Director, India) told reporters during an announcement about securing the ICICI Bank for vehicle financing that the size of the market (800cc and larger) for 2009 was about 700 units and was growing at double digits.

Photo courtesy of HD and TV5.

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