Feeds:
Posts
Comments

Posts Tagged ‘Harley-Davidson’

Harley-Davidson Two-Cycle Engine

When you think about Harley-Davidson motorcycles, it’s most often about the V-Twin engines, the retro-styling and the inescapable sound.

Many forget that the motor company manufactured a lightweight two-stroke engine and runabout motorcycle for 15-years.

In 1947 as a 1948 model, if you purchased an entry level runabout motorcycle it came with a two-stroke 125 cc single piston motor.  There were two motorcycles engines built — the Model 125 or S-125 (eventually called the ST-125).  The Model 165 or ST-165 replaced the ST-125 in 1953 when the engine size was increased to 165 cc. The ST models were the motor companies idea of how America motorcycle riding should be accomplished after WWII.

The Hummer

So how did Harley-Davidson develop or get the 2-stroke design?

The name “DKW” comes from a two-stroke engine built in 1919 by the Danish engineer Jørgen Skafte Rasmussen, in Saxony, Germany. It was a small engine, which Rasmussen called Das Kliene Wunder (the little marvel) that gave DWK its start in the motorcycle industry.

As WWII drew to a close in 1945, DKW’s factories had either been damaged or occupied by the Red Army. The Soviets took DKW plans, tools, and personnel back to Moscow where copies of the 125 were soon produced. The Soviet version of the 125 was first released in 1946 as the Moskva M1A and later as the K-125.

AMF Merger – 1969

As part of Germany’s war reparations, Harley-Davidson acquired the rights to the German DKW three-speed, two-stroke 125 cc Single.  Harley product shipments began in 1948 and thousands were manufactured in various incarnation until production ceased in 1966.

An updated model called the Hummer was added to Harley’s lineup in 1955, and subsequently all Harley single-cylinder two-strokes built between 1948 and 1966 incorrectly have come to be known as Hummers. The Hummer was named after Dean Hummer, a Harley-Davidson dealer in Omaha, Nebraska who led national Harley two-stroke sales.  The Hummer was very basic — it had magneto ignition and was sold without battery, electric horn, turn signals, or a brake light.

The Topper Scooter

In 1960, Harley-Davidson consolidated the Model 165 and Hummer lines into the Super-10, introduced the Topper scooter, and bought fifty percent of Aermacchi’s motorcycle division. Importation of Aermacchi’s 250 cc horizontal single began in 1961. The motorcycle had Harley-Davidson badges and was marketed as the Harley-Davidson Sprint. The engine of the Sprint was increased to 350 cc in 1969 and would remain that size until 1974, when the four-stroke Sprint was discontinued.

In 1962, Harley-Davidson built the Ranger, an off-road motorcycle without lights, made only for a year.  It had an extra-low final-drive ratio of 7.0:1 (12-tooth countershaft gear and 84-tooth rear sprocket) had neither a lighting system or front fender. Speculation was this motorcycle was built to consume the motor company supply of 165 cc engines, which would not be needed for any other models.

Aermacchi-built Harley-Davidson — The  Sprint

After the Pacer and Scat models were discontinued at the end of 1965, the Bobcat became the last of Harley-Davidson’s American-made two-stroke motorcycles. The Bobcat was the last of the 125-based Harley’s and manufactured only in the 1966 model year.  It was also the only 125-based Harley with a standard dual seat.

In 1969, American Machine and Foundry (AMF) bought Harley-Davidson, streamlined production, and slashed the workforce. The tactic resulted in a labor strike and lower-quality bikes.  Sales and quality declined, and the company nearly went bankrupt.

Harley-Davidson replaced their American-made lightweight two-stroke motorcycles with the Aermacchi-built two-stroke powered M-65, M-65S, and Rapido. The M-65 had a semi-step-through frame and tank. The M-65S was a M-65 with a larger tank that eliminated the step-through feature. The Rapido was a larger bike with a 125 cc engine. The Aermacchi-built Harley-Davidsons became entirely two-stroke powered when the 250 cc two-stroke SS-250 replaced the four-stroke 350 cc Sprint in 1974.

Harley-Davidson purchased full control of Aermacchi’s motorcycle production in 1974 and continued making two-stroke motorcycles there until 1978, when they sold the facility to Cagiva and ending it’s run of two-stroke engines.

Photos courtesy of and taken at Harley-Davidson Museum

For additional Harley-Davidson V-Twin Engine History see this page.

Sources:
Craig Hammitt LinkedIN Article
Wikipedia
Cycle World Article (1993) Article

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

Harley-Davidson CEO Meets POTUS

Earlier this year, the President met with Harley-Davidson exec’s and put a spotlight on the company in his address to Congress, yet there was no “Trump Bump” as the motor company reported earnings which included sharp declines in revenue and profit for the first quarter of the year.

Some of the key Q1’17 stats:
— $186.4 million in net income, or $1.05 per share, for the period ended March 26, down more than 25% from $250.5 million, or $1.36 a share, in the same period a year ago.
— Revenue was $1.5 billion, down from $1.75 billion in the first quarter of 2016.
— Motorcycle sales in the U.S. were down 5.7% in the quarter compared with a year ago and International sales fell 1.8%
— Reported motorcycle shipments fell 14.7% to 70,831 in Q1
— Market share in the 601cc-plus segment was up to 51.3%.  Execs stated that the Victory liquidation helped market share.

Nothing screams Americana more than deep vehicle discounts and Harley-Davidson jumped head first into that pool by offering its dealers financial incentives to clear out the leftover 2016 motorcycles.  And in an unusual move the company has purposely constrained the supply of its 2017 hottest-selling new models, including bikes with the new Milwaukee Eight engine, leaving some customers waiting to conquer the open road.  All of this is happening with only 4-months until the 2018 model-year launch.

If you listened to the earnings call this week there was a lot of “feel good” expressions from management about the way the company is performing yet, there are tepid sales, a downbeat outlook, and consumer confidence numbers that don’t reflect spending behavior.  Clearly households worldwide are slow to embrace new motorcycles as a way to enjoy life.

According to Harley-Davidson this is the 9th year in a row (based on IHS Market New Registrations) for motorcycles with 601+cc where they were the number one seller of new on-road motorcycles in the U.S. on both their “outreach” and “core” customers.  “Outreach” is defined as four segments — young adults ages 18-34, women, African Americans and Hispanics.  “Core” is defined as Caucasian men aged 35-plus.

Harley-Davidson reported that more people than ever before are discovering motorcycles and claimed that they are dominating the motorcycle market as well as being recognized as the leader in addressing key demographics — women, younger riders, African Americans and Hispanics, however, the patterns of growth remain elusive.

So whats going on?

Let’s drill down:
— Press and media continue to push negative motorcycle narratives (motorcycle crashes, distracted driving, club violence (last years Waco example) etc.).
— Increased pricing on new motorcycles have pushed out the average length of ownership.  For example new autos reached 6.5 years in Q1 2015.
— In the northwest along with parts of California the wet weather has limited the number of days to ride in 2017.
— Increasing Insurance rates  — on auto, home and health care biting into the discretionary funding of a motorcycle hobby.
— Income growth has declined.
— Interest rates have increased (in past years people pulled $$ from their house to buy a “toy” and now there is no where else to pull $$).
— Fewer “Outreach” customers (aged 18-34) own vehicles or don’t drive as much, they UBER.
— Apathy of the motorcycle hobby/life style as a form of entertainment

All or some elements of this could be weighing down new motorcycle purchases.  But I’m an optimist, and Harley-Davidson has a 10-year strategy to train 2 million new U.S. riders, grow international business to 50% of sales (currently about 32%) and launch 100 new “high-impact” motorcycles.

As it turns out and according to this report, about 22% of all new motorcycle purchases come from first-time buyers. This figure has remained relatively stable since 2001.  It’s very likely some of those 2M new riders will buy a new “high-impact” Harley.

Photos courtesy of CNBC and Harley-Davidson

Full Disclosure:  I don’t currently hold or intend to hold any $HOG shares.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

This is interesting timing because April is Alcohol Responsibility Month and the partnership announcement stated nothing about responsible drinking and riding!

Sailor Jerry Spiced Rum

The multi-year marketing partnership was announced this month and the two companies will honor the father of American old school tattooing, Norman “Sailor Jerry” Collins and unveil a series of twenty-two customized Harley-Davidson motorcycles designed by high profile artists and visionaries from around the U.S.

If you are unfamiliar with Norman “Sailor Jerry” Collins story, after serving in the U.S. Navy during WWII, he dedicated his life honing the art of tattooing out of his shop on Hotel Street in Honolulu. His shop became the must-stop destination for sailors on their shore-leave.

In the 50’s and 60’s, Americans getting tattoos included the most aggressive elements of counterculture.  And it was a time of another level of commitment to inscribe your body with an image that permanently stated your beliefs, affiliation or anti-establishment attitude.  In the 70’s and early 80’s, getting aggressively tattooed and pierced became a mark of punk culture’s disdain for conformity and social mobility.  Today the range of things that people express with tattoos continues to widen.

Oregon Has 2nd Highest Alcohol-Impaired Driving Fatalities From 2014-2015

But, I’m intrigued about this motorcycle and spiced rum marketing partnership which has some historical IRONY.  First, as previously mentioned the two companies chose April to kick-off the marketing partnership which  officially celebrates Alcohol Responsibility Month.  On the surface, that seems a bit tone deaf considering the increasing number of automobile and motorcycle accidents/deaths related to impaired driving.  In addition, is the fact that Norman “Sailor Jerry” Collins was out riding his Harley-Davidson in 1973 when he had the heart attack that took his life (after collapsing in a cold sweat, he got back on his bike and rode home).  So, when Scott Beck, Harley-Davidson director of marketing stated: “We are struck by the natural ties Sailor Jerry has to the motorcycle culture” it raises some awkwardness in my view and wonder how the two companies ever got mixed up in all this in the first place.

But I’ll stop reflecting and focus on the announcement.

According to the Milwaukee Biz Times — the two companies said the partnership would “come to life in bars, restaurants, Harley-Davidson dealerships and joint celebrations around the country” and consumers should expect a number of shared events leading up to Harley’s 115th anniversary in 2018.  “Sailor Jerry Spiced Rum and Harley-Davidson are all about freedom of expression and customization, whether that is expressed by a Norman Collins tattoo or a bike,” said Scott Beck, Harley-Davidson director of marketing.

The first event will be the unveiling of 22 customized motorcycles at the Harley-Davidson Museum on May 2. Harley’s Forty-Eight, Iron 833 and Roadster models were used for the project.

The artists will incorporate the flash art style of “Sailor Jerry” into their motorcycle design.  And members of the Harley-Davison styling team will also work on the motorcycles to inspire their designs.  The custom motorcycles will be on display at events at liquor retailers, Sailor Jerry’s Fleet Week New York celebrations, the Harley-Davidson Museum and more. The motorcycles will also be available to win in a sweepstakes that starts May 15.

Clearly the reckless spirit of motorcycle riding and alcohol don’t mix.  However, the collaboration with Harley-Davidson and Sailor Jerry Spiced Rum does have a natural feel about it and I’ll be curious to see some of the artwork and craftsmanship that comes from the partnership.

Photos courtesy of Sailor Jerry Spiced Rum and Responsibility Org.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

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

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

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.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

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.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

screen-shot-2016-11-11-at-12-24-21-pmLong form content in a short form world is a novelty these days and I plan to keep this post brief.

I’m thinking about all the Veterans (and their families) today who have sacrificed so much for so many.

I’m eternally thankful.

A very big thank you to all those who have served and continue to serve.

#VeteransDay

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

Older Posts »

%d bloggers like this: