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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.

All Rights Reserved (C) Northwest Harley Blog

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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 2015-04-07 at 9.10.26 AMThe Pacific Northwest…bounded on one side by the pacific ocean and the other side is the mountainous Rocky’s.

It’s perfect for finding a two-lane crowd-free by-way and rolling past acres of lush forest.  Those acres can turn into meandering hours of riding the countryside on a motorcycle.   In fact, the Pacific Northwest HOG rally will be hosted in the picture-esq Northwest (Portland) in a couple of weeks where we will deliver the aesthetic vision of why we ride!

Welcoming the 1000’s of riders to the adventure will be hot and dry weather.  Not only will they encounter the best weather temps, but they will also have to deal with wildfires.  Yes, the west could be described as being on fire!

Wildfires In Oregon and Washington State

Wildfires In Oregon and Washington State

The fires across the region have forced evacuation, burned down structures and created breathing issues for some.  Twenty minutes outside the Portland metro area the air is thick with particulate and smoke permeates the sky for miles across the region.  In Washington state over a 1000 people have been evacuated in Chelan county.  The Warm Springs fire (Countyline 2 fire) in Oregon has exploded into the largest fire at 36K acres.  U.S. 26 is closed at Oregon 126.

According to NatGeo, on average more than 100K wildfires clear 4-5 million acres each year in the U.S.  In 2014, some 1.2 million acres burned in Oregon and Washington and sadly this year it’s looking like a repeat.

Wildfires In Canada, BC

Wildfires In Canada, BC

In scanning the reports I got to thinking about the last time I’ve taken a motorcycle trip during the summer that wasn’t marred with a wildfire.  Of course it depends on how many miles I’ve traveled, but in a typical week long ride during the summer I realized that it’s been a fair number of years where I didn’t pass near or through a burning wildfire during a ride.  I’ve had multiple trips to Sturgis.  Through Yellowstone Park, through Glacier National Park – both with fires on multiple trips.  There was U.S. Route 550 or the “million dollar highway” that had a San Jan National Forest fire.  There was Beartooth Highway (U.S. Hwy 212) and a lingering wildfire.  I’ve taken a couple extended trips up north to British Columbia Canada and the land of lumberjacks was on fire both times.  In most all cases we were not close enough to see flames, but dark smoke and particles filled the sky for many miles as we navigated across the country.

In Washington and Oregon there are now 31 major wildfires currently burning.  See the map.  In Canada BC, there are even more.

In addition to the economic woes that these fires cause it does makes one wonder whether motorcyclists should even consider traveling the west during the height of the summer fire season.

But, life is for living and I’m not talking about the thrill of a car ride snaking through the marquee Going-to-the-Sun-Road in Glacier.  It’s about feeling small in a very big world and how that is a great thing on a motorcycle.  So, I’ll continue to plan motorcycle trips to ride the west – wildfires and all!  Sure some of my photos will be filled with smoke obscuring the mountain views but, just know that I’ll have a big smile underneath that slightly wetted down dew rag covering my face!

Photos courtesy of the Oregonian and NWCC.

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2015 Sturgis Rally Stats

2015 Sturgis Rally Stats

Stat pushers.

Not a day goes by that we’re not confronted with or overwhelmed with statistics or key metrics and the 75th Sturgis Rally is no exception.

But, what’s the one item we didn’t see at Sturgis this year?  Nada.  Not one.  Tickets issued for ape-hangers!  Thank South Dakota ABATE.

Starting July 1st, there are no longer regulations about where to hang your hands!  Ape-hangers are now legal in South Dakota and the $20 fine for riding with your hands too high was wiped off the books as governor Dennis Daugaard signed Senate Bill 85, effectively abolishing South Dakota law that prohibited such handlebars.

In previous years it was a petty offense in South Dakota if you rode a motorcycle on a public street or highway with the handlebar grips positioned at or above shoulder height.  For law enforcement it was almost an automatic excuse to pull over a motorcyclist.

sturgis_infographic_2_0And then there were the daily public safety reports.  The number of people in attendance, the number of vendor permits, the tons of garbage recycled, the number of arrests, the number of accidents, the number of DUI’s and the motorcycle deaths.  An endless parade of daily stats.  Some of it confusing as the stats didn’t match day-to-day in the media given the spaghetti architecture that makes up the western South Dakota tracking system.

Maybe the City of Sturgis can contract with Booz Allen who recently won the healthcare.gov contract to coordinate and manage the various agency’s reporting data.  How about an infographic at the conclusion of the event so that we can all tweet and share on social media!

It turns out that in previous years, the State Police counted arrests and traffic crashes in and near Sturgis, as well as in the Rapid City Patrol district which is most of western South Dakota, beginning the Saturday before the Rally’s official start on Monday and going through early Sunday morning, on the final day.

That made for eight days of data.

However, this year because it was the 75th anniversary, the Patrol began counting on Tuesday, July 28. So the totals reported each day for DUI arrests and injury accidents didn’t compare exactly, with previous years’ reporting.  They release a special comparative statistics for Saturday Aug. 1 through Saturday Aug. 8, – actually until 6 a.m. Sunday – to compare with previous years.

That means instead of 220 DUI arrests this year as previously reported, the eight-day total was 195 DUI arrests for the Rapid City district, which includes Sturgis and most of western South Dakota.  Even the Puddle of Mudd singer (Wes Scantlin) was charged with DUI.  City managers can now point to the report and state that stats were well below the 244 DUI arrests related to the Sturgis rally last year for the same eight days.

Felony drug arrests this year were at 80 during the eight days, compared with 90 for the same period in 2014. The 12-day total previously reported was 99 felony drug arrests this year, if counted from July 28.  But who’s counting?

Sadly, the traffic fatalities remain well above last year independent of which metric (8 day vs. 12 day period) used.  The total of 12 this year for the eight days; previously the Patrol had been reporting 13 fatalities connected to the Sturgis rally this year, counting from July 28.

Why?  More people, more crashes seems to be the prevailing answer.  That answer seems too simplistic and certainly doesn’t root cause how to have a fatality-free rally.

The Department of Transportation counted vehicles entering Sturgis, as it has been done since 1990.  Final numbers weren’t available, but is projected to be in the 500,000 and 600,000 range.  More than the previous two years, but not as many as the record year of 2000.

Harley-Davidson motorcycles dominate the rally, but was a lot of other breaking news this year.  For example, the underwear world record attempt, failed.  Given all these side shows being reported by the media, the opening of an Indian Dealer in Sturgis and lots of foreign motorcycles in attendance the Harley dominance might be reduced.

Photo courtesy of South Dakota State News  |  Infographic courtesy of Lancetdatasciences.com 

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Screen Shot 2015-07-22 at 1.44.35 PMI’ll get right to the point.  Motorcycle sales down.  Revenues down.  Earnings down. Currency issues.  Tough competition.

The company’s Q2 earnings were hard to sugar coat for Matt Levatich, President and CEO.  But he sure tried.

“Our actions during the quarter have had a positive impact. We are encouraged by the momentum at retail as the quarter progressed, both in the U.S. and internationally.”  “We are confident in the strength of our business and the strategies we have in place to maintain our industry leadership and grow our business over the long term,” said Levatich. “Our singular focus on the customer through unrivaled products, unique experiences and our expanding dealer network is the bedrock we are building on to continue to grow our reach and impact with customers across the globe.”

Dealers worldwide sold 88,931 new motorcycles in Q2 2015 compared to 90,218 motorcycles in the year-ago quarter. In the U.S., dealers sold 57,790 new motorcycles in the quarter compared to sales of 58,225 motorcycles in the year-ago period.  In international markets, dealers sold 31,141 new motorcycles during the quarter compared to 31,993 motorcycles in the year-ago period, with sales up 16.6 percent in the Asia Pacific region and down 8.9 percent in the EMEA region, 2.6 percent in the Latin America region and 9.9 percent in Canada.

Second-quarter revenue from motorcycles decreased 11.6 percent to $1.31 billion compared to revenue of $1.48 billion in the year-ago period. Following the company’s decision in April to lower motorcycle shipments, the motor company shipped 85,172 motorcycles to dealers and distributors worldwide during the quarter compared to shipments of 92,217 motorcycles in the year-ago period.

Revenue from motorcycle parts and accessories was $256.8 million during the quarter, down 5.4 percent, and revenue from general merchandise, which includes MotorClothes apparel and accessories, was $77.5 million, up 1.5 percent compared to the year-ago period.

As the new CEO, this is Mr. Levatich’s first solo “ride” on an earnings report after Keith Wandell retired.   You have to give the company cred for its integrity of not over producing its motorcycles, but employees and shareholders can’t be happy with these sales.

Full disclosure:  I have no positions in HOG stocks and no plans to initiate any position within the next 72 hours.  I wrote this article from publically accessible information and expresses my own opinion.  I am not receiving compensation for it and have no business relationship with the company.  I currently own a Harley-Davidson Road Glide.

Photo courtesy of H-D.

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2015 Road Glide

2015 Road Glide

Harley-Davidson (NYSE: HOG) released its Q4’14 financial report along with full-year results.  The motor company reported a drop in net income for the final quarter, but overall profits were up for the year.

Celebrating its 112th year, Harley-Davidson shipped 270,726 motorcycles around the world in 2014.  The Road Glide had a big comeback and sales have been robust and represented about 14% of total U.S. retail sales in the fourth quarter.

For the full year 2014, the Company shipped 270,726 motorcycles to dealers and distributors, a 3.9 percent increase compared to 2013 and in line with guidance. Full-year revenue from motorcycles was $4.39 billion compared to $4.07 billion in the year-ago period. Revenue from parts and accessories was $875.0 million compared to $873.1 million in 2013.  Consolidated revenue topped the $6 billion mark for the first time since 2006.

In 2014, international sales of new Harley-Davidson’s grew at more than 5% and accounted for more than 36% of total retail Harley-Davidson  motorcycle sales which is up from 30% in 2008.

You can read the full financial press release HERE.

Photo courtesy of H-D.

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HD-CrowdMany riders are on the road and in route to the Sturgis Rally.

If you rushed out of the garage before finalizing a list of things to do while in S.D., below is a list of activities Harley-Davidson will be rolling out for rally attendees.

The 2015 models will not be launched at Sturgis.  Last year the motor company started a new trend of  introducing the new model line up during the 3rd week of August after all the press/media noise subsides post-Sturgis and they can garner more mind share.

3rd & Lazelle Street, Downtown Sturgis, SD
Saturday through Saturday, August 2-9, 9am – 5pm

  • Stunt Show – 3 times daily (10am, 1pm, & 4pm) Produced by Ill Conduct Team
  • H.O.G. Rally Point – Join Tina, Thor and other H-D staff in the H.O.G. area. Pick up your FREE event Pin, join the club or renew your membership.  Plus, August 2-8 all H.O.G.® members + one guest are welcome to join us in the H.O.G area  from 3:00pm – 5:00pm for live entertainment, complimentary samples of our new H-D Road House Meats and beer samples.
  • Willie G. ® and H.O.G.® Commemorative Merchandise – You can’t buy it at home! Stop by to purchase exclusive Sturgis 2014 clothing.
  • Genuine Harley-Davidson® Parts & Accessories Display – the latest Harley® models equipped with the full line of custom Parts & Accessories. Check out our 12 fully accessorized bikes!
  • 2014 H-D® Motorcyle LineupCheck out the 2014 bikes, including NEW customized Street motorcycles, RUSHMORE bikes, the Low Rider® and the SuperLow®1200T.
  • Women’s Area – Rebel One hosts the JUMPSTART® Rider Experience and Bike Lift Seminars on how to properly lift a dropped motorcycle. Enter the sweepstakes to win a FREE Riding Academy course or Rental.
  • Weber® Mobile Grill Academy – Get a first-hand look at Weber grills and accessories; Weber Experts will be there to answer any questions you may have about grills, grilling techniques, recipes, and all things grilling!  Join the Weber Family by signing up for Weber Nation and you will be entered to win a Weber Genesis gas grill.
  • Craftsman® Garage Station – Come for a free oil fill-up and tire pressure check! Stay and watch our artists sculpt, paint, and engrave. Take home a cool new design on your bike helmet or a personalized engraving on a free Craftsman cap wrench.
  • Free Bike Wash – Wash away all the Black Hills dust and dirt at the free bike wash from 9am – 4pm. Just bring a dirty bike and a little elbow grease.
  • MDA will sell event pins and host a bike raffle. Enter to win a black 2014 Street Glide!
  • Visa will offer Visa Card membership application and free giveaways to all applicants!

Black Hills Harley-Davidson
2820 Harley Dr.
I-90 Exit 55, Rapid City, SD
Saturday through Saturday, August 2-9, 9am – 5pm

  • Harley-Davidson ® Motorcycle Test Rides – Take a FREE test ride on a 2014 Harley-Davidson® motorcycle, including our new RUSHMORE bikes, LowRider® and SuperLow® 1200T. Come early and ride as many bikes as you want. All riders must have a valid motorcycle license and adhere to riding gear requirements and safety rules.  Demo registration will close at 4:00pm daily.
  • 2014 H-D® Motorcycle Lineup – Check out the 2014 bikes
  • Harley-Davidson® Motorclothes® – Try on our new jackets – even take them for a test ride! All items will be available for immediate purchase.
  • H-D1 Fit Shop – Come experience the feel of a more comfortable, safer ride. Stop by the H-D1 Fit Shop and find your perfect seat and handlebar combination.

Featured Activities:

  • Sunday, August 3 – “Weber® Big Burger Battle Cook-Off” competition. Come to the Weber® display at 3rd and Lazelle St. to watch pre-selected finalists compete in a cook-off!
  • Tuesday, August 5 – The 6th Annual Women’s Biker Belles Ride and celebration sponsored by Harley-Davidson®. Visit www.bikerbelles.com to register and for more information.
  • Wednesday, August 6 – “Weber® How to Grill a Perfect Burger” hands-on grilling class exclusively for H.O.G members led by Weber® Grill Expert, Kelsey Heidikamp.  Classes offered at the Weber® display at 3rd and Lazelle St. at 11:45am, 1:30pm, and 3:15pm. To participate, please send your name, cell phone number, H.O.G. number and preferred class time to HandsOnGrilling@harley-davidson.com. Space is limited so sign up soon! Sign up ends Friday, August 1.

Photo courtesy of H-D.

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