Lewis and Clark; The Expedition Returned 2017

I’m a H.O.G. member, but not the type of person who displays an undying passion for the patches and pins or for that matter in attending a lot of H.O.G. events.  Sure, I’ve participated in the occasional H.O.G. rally, got the t-shirt and then headed home. Riding is primarily a solo activity for me and it’s more about riding in the wind, not the rally destination.  

 

Although there was this one time in Hawaii where it was all about the food.  The Aloha State Chapter #44 (Maui H.O.G.) were in the middle of a rally.  I wasn’t riding a motorcycle on the islands, but they were most gracious and let me enjoy some excellent pulled pork at their Luau!  We also had the opportunity to meet Cristine Sommer-Simmons, the book author of ‘Patrick Wants To Ride‘ fame.

But I’ve digressed.

Lewis and Clark Expedition Swag

A riding buddy and I decided to register and took a couple weeks last month to ride along with the H.O.G. Lewis and Clark; The Expedition Returns posse.  There were 182 register bikes for the tour which basically followed most of the same Lewis and Clark routes from Seaside, Oregon to St. Charles, Missouri.  They deviated a bit on the eastern side of the Rocky Mountains which only added to the adventure.

 

Before I jump in and provide some insights about the ride, I want to say that H.O.G. is a class act.  Yes, there was a pricey registration fee, but the swag and goody bag we received for the expedition was detailed, high quality and exceeded my expectations.  The hotel registration process via the H.O.G. web site worked well and we had no issues in any location.  Big shout-out to Harley-Davidson, Team MKE, Paul Raap (H.O.G. Regional Mgr), Paul Blotske (H.O.G. Contractor) and the H.O.G. planners for making it simple and a great experience!

Lewis and Clark Expedition and Routes

 

Now keep in mind this wasn’t a “group ride” where 182 bikes departed simultaneous every day with a ride captain.  We were free to forge our own path (with some solid guidance) and ride with who we wanted and at our own pace.  H.O.G. provided a travelogue with approximate mileage and points of interest along the way for each day’s schedule.  In some cases they included passes for the various parks and/or sight seeing destinations.  This process worked well.

Ride Details:

Day 1, (Tuesday, July 11) — Had us traveling to the Oregon coast to visit the Fort Clatsop National Historic Park  where the Corps of Discovery wintered from 1805 to Spring 1806.  After 18 months of exploring the West, the Corps of Discovery built an encampment near the mouth of the Columbia River. They wintered at Fort Clatsop into 1806 before leaving the Pacific Ocean to return to Missouri and the route we were going to follow.

That evening Mike Durbin and Paradise Harley-Davidson (Tigard, OR) sponsored the gathering for dinner.

Highway 14 looking west at Mt. Hood

Day 2, — We were traveling east and heading to Lewiston, ID.  Along the route we could visit the Rock Fort Campsite which is a natural fortification located on the shore of the Columbia River, and where the Corps of Discovery set up camp on their journey home.  There is the Columbia Gorge Interpretive Center, the Sacajawea State Park Interpretive Center, and the Lewis and Clark Trail State Park. 

That evening we were at Hell’s Canyon Harley-Davidson for dinner. 

 

Unsolicited Comments About Portland Traffic:  It was common practice to ask other H.O.G. members where they came from, how far they rode etc., and when we mentioned being from Portland, people were compelled to tell us about their bad experiences riding around in Portland/metro traffic.  The H.O.G. HQ hotel for this event was the Jantzen Beach Red Lion and folks would drone on about the congestion, freeway crashes and the lengthy delays which were awful in the record Portland heat.  About all I could say was “True that, and apologize for the apocalyptic congestion.”  Then I’d add something about those new spiffy ODOT RealTime signs — you know, the big electronic signs that relay the obvious?!

Day 3, — Took us to Great Falls, MT.  There were multiple stops suggested to riders.  The first was the Nez Perce National Historical Park.  The New Perce were critical to the success of the Expedition by providing food and supplies. 

It was hot riding so, we left Lewiston early morning and as a result the park wasn’t open and we toured the exterior.  Lewis and Clark actually split up at what is called today Travelers’ Rest State Park.  Lewis went to the north.  On the north route, you could see the Lewis and Clark Pass, Museum of the Plains Indian, and Camp Disappointment   Clark went to the south, where you could see the Lost Trail Pass, Camp fortunate Overlook  the three forks of the Missouri River at the Missouri Headwaters State Park, and the Gates of the Mountains.

Highway 12 heading toward Lolo Pass

We were on Highway 12 headed over Lolo Pass for much of the morning. You’ve undoubtedly seen the photos of the sign that says “Curves next 99 miles…”  Yeah, that one and it’s named one of the best motorcycle roads in the country with lots of sweeping curves and several tight ones.  The elevation at the top is 5,233 feet in the northern Rocky Mountains and the temperatures were quite nice.  Road conditions in some areas were a bit dicey and unfortunately a female member of the H.O.G. group veered up against the guardrail and crashed.  She survived with a number of broken bones, but as I understand it, spent multiple days in the hospital. As we rode by the crash, her motorcycle freakishly went 75 yards up highway 12 and across both lanes of traffic and was sitting upright on the left side of the road, as if someone just parked it there on the kick stand.  Very strange.

That evening the group all got together for dinner at Big Sky Harley-Davidson.

Day 4, — (Friday, July 14,) — Took us to Billings, MT where we spent a couple of days.  There were a couple of stops planned.  The first was the Lewis and Clark National Historic Trail Interpretive Center in Great Falls.  We also made sure to take time to see the Great Falls of the Missouri including Rainbow Falls before leaving the area.  

Great Falls, MT is actually situated on the northern Lewis return route, and Billings, MT is on Clark’s southern route.

Rainbow Falls

We took the more scenic route on Highway 89 south through the Helena-Lewis and Clark National Forest and then picked up Highway 12 east to Highway 3 south into Billings, MT.

That evening we had dinner at Beartooth Harley-Davidson, but to be candid we were getting a bit tired of the pork sliders or burgers and salad.

Day 5, — Was a “down day” from our ride schedule to allow riding in the Billings, MT., area.  Some jumped back on for full 400+ mile experience and rode to Livingston, MT., on I-90 then headed south on Highway 89 into Yellowstone National Park to see ‘Old Faithful.’  

Twin Lakes, along the Beartooth Highway

We decided to half that mileage and rode up Highway 212 to Red Lodge Montana and then over Beartooth Pass into Wyoming.  In Red Lodge, the annual Beartooth Rally was in full swing with a few thousand motorcyclists enjoying the area so, going over Beartooth Pass was slow riding, but we did enjoy the switchback curves.

It’s a great ride with some incredible vistas, but not for the faint of heart.

That evening we enjoyed a nice steak and ignored the gathering at Beartooth Harley-Davidson!

Day 6, — Had us traveling to Bismarck, ND., and it began early to avoid the sweltering heat. 

Across the NoDak Plains

We’d been riding in heat advisory’s across Montana for a few days and now the humidity was increasing!  One stop as we departed Billings was to tour Pompeys Pillar National Monument.  Pompeys Pillar was named by Clark and he and other members of the Corps of Discovery chiseled their names into the rock itself.  I believe this is the ONLY physical evidence that the Lewis and Clark Trail actually existed and took place. 

We rode on to Bismarck, ND.  There were additional stops along the way that included the Missouri-Yellowstone Confluence Interpretive Center and Fort Mandan.  I lived in Bismarck back in the day so, we ignored the extra miles and the point where Sacajawea and Toussaint Charbonneau joined the Corps. 

We enjoyed dinner at a local pub/restaurant while listening to some old Peter Frampton music on the jukebox! 

Fort Abraham Lincoln State Park

Day 7, — (Monday, July 17,) — The H.O.G. group headed west across the Missouri River from Bismarck and then we all rode south down Highway 1806 to Pierre, SD.  About 15 miles south of Bismarck we stopped at Fort Abraham Lincoln State Park & On-A-Slant Village and toured the area which provided a great example of Native American encampments Lewis and Clark would have encountered on their journey.

Missouri River riding south on Highway 1806

We rode along Highway 1806 south down the Missouri River pretty much to the North Dakota – South Dakota border while watching out for farm equipment on the roads.

From there, we had a couple of routes to follow into Pierre, SD., though most of the Missouri River between Bismarck and Pierre is covered by the Lake Oahe Reservoir and the road follows the east side of the lake all the way into Pierre.

Pierre, SD., City Park

We had dinner at Peterson Motors Harley-Davidson in Pierre, but actually moved over to a city park on the river and tried Bison Burgers for the first time!

Day 8, — (Tuesday, July 18,) — Due to other commitments we departed the Lewis and Clark H.O.G. group on this day and started our return trip back to Oregon.  We intended to spend a couple of days in Boise, ID., to take in the Pacific Northwest H.O.G. rally and meet up with some other riders there.  The next couple of days were about laying down some miles and we avoided the wandering of site seeing.  We rode from Pierre, SD to Rapid City, SD on I-90, and skirted the Black Hills National Forest.

We traveled along Highway 18 and then took a wrong turn at Lingle, SD and ended up a few miles from the  Nebraska border before having to backtrack, riding through Fort Laramie on Highway 26 and then on to I-25 and Casper, WY., where we overnighted.

Day 9, — Had us traveling to Idaho Falls, ID., and we departed early to avoid the afternoon heat.  We were riding toward the Grand Teton National Park and Jackson when about 30 miles west of Dubois, WY, we encountered a fatal head-on car accident. 

The Road Glide and Grand Teton’s

We arrived at the scene at 12:30pm and the road had been closed since 9:30am.  We had to endure a 3+ hour wait which put us behind and more importantly it put us riding in the hottest part of the day. 

The 50 miles from Jackson, WY to the border town of Alpine, WY was like walking a marathon with all the backed up traffic. 

We finally made it to Idaho Falls, ID on US26 by early evening.  

Day 10, — We continued our travel west to Boise, ID on the two-lane US 20/26.

There are views of high desert, Atomic labs and of course Craters of the Moon Monument with it’s vast ocean of lava flows and scattered islands of cinder cones and sagebrush.We stopped for some site seeing, but didn’t explore any trails.

We arrived in Boise, ID before 3pm and met up with some other riders who arrived from Portland.

Day 13, — (Sunday, July 23,) — After a couple days of enjoying the local rides and taking in the city life along with parts of the Pacific Northwest H.O.G. Rally (While at the rally in Meridian, ID., I had a chance to test ride a new 2017 CVO Street Glide with the new M-8 engine. I will do a post on that experience soon) we returned to Portland, OR via the most direct route on I-84.

We finally arrived back in Portland that evening after touring over 3,500 miles with a number of new stories from the adventure in retracing the Lewis and Clark Expedition.  In addition, we got to hang with a number of great H.O.G. members!

We could relate to Meriwether Lewis who wrote in September 1806:

Today Captain Clark will pen a letter to Governor Harrison and I shall pen one to President Jefferson informing them officially of our safe return and providing the details of our expedition. My hope, and that of Captain Clark, is that our work over the last two and a half years will accomplish this administration’s goals to expand the Republic westward and inspire future generations into even further exploration and adventure. — Meriwether Lewis 

Updated August 15, 2017:  Meriwether Lewis and William Clark left from St. Louis, Missouri with the Corps of Discovery and headed west in an effort to explore and document the new lands bought by the Louisiana Purchase.  To read more about Lewis and Clark, visit the National Geographic site dedicated to their journey or read their report of the expedition, originally published in 1814.  There are a number of period correct maps HERE.

Photos taken by author.

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Harley-Davidson: What Happened

It could be the title of Harley-Davidson CEO, Matt Levatich’s memoir on his failed 2017 year while in charge of the Motor Company.

I happen to be riding with the HOG Lewis and Clark Expedition last week when Harley-Davidson announced their disappointing Q2’17 financial results and late to weigh in:

* Harley-Davidson net income dropped 7.7%. Sales in the U.S. were down 9.3% and 6.7% worldwide.

* Harley-Davidson now expects to ship 241,000 to 246,000 motorcycles to dealers worldwide in 2017, which is down approximately 6% to 8% from 2016.

* Harley-Davidson expects to ship 39,000 to 44,000 motorcycles in Q3’17, which is down approximately 10% to 20% from 2016.

* Approx 180 U.S. based manufacturing jobs will be cut in Menomonee Falls and Kansas City.  This in addition to the 118 workers who were axed back in April this year at the York plant as some positions were being shifted to Kansas City.

For those keeping track, this is a continuation of a three-year slide by the motor company.  However, during the call Mr. Levatich described what can only be called an “alternative reality” in hopes (I assume?) to reassure the financial markets and stated “we are going to build bikers first, add 2 million new Harley-Davidson riders and launch 100 brand new models during the next 10 years while growing the international business by 50%.”

Huh?

I’m being a bit snarky here, but his statement appears either woefully naïve to the point of negligence or a continuance of marketing spin.  Proclaiming an unprecedented future result of this magnitude smells like stunningly wishful thinking at best or at worst plain lying.  For reasons I can’t explain, why would Mr. Levatich climb up on a high-wire without a net given such an overly-optimistic prediction?  Even with nearly 8-million Americans that are “sleeping license holders,” — those who have motorcycle riding credentials, but don’t own a bike — it doesn’t pencil and seems unobtainable.

I don’t know if the boardroom folks in Milwaukee read the NW Harley Blog on a regular basis and/or  hang on its every word.  But, we know the motor company has been continuously producing motorcycles for more than a century,  yet seemingly everyone on the internet with a keyboard thinks they can do it better.

And it’s a well-established fact that internet bloggers and commenters are geniuses. They definitely know how to run a business better than a company that has been constantly producing motorcycles through two world wars, the Great Depression, and roughly 20 U.S. recessions.

Sure the motor company needs our help and I’ve got some feedback and plenty of comments.  But, until the motor company calls me asking for it, I’ll look for Mr. Levatich’s memoir, which will certainly be “a deeply intimate account and a cautionary tale on the world’s most iconic motorcycle brand.

Slightly modified book cover courtesy of Simon & Schuster.

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Harley-Davidson — Did You Know?

Ted Gilbert on his Sport Model on top of Larch Mountain

Did you know, that in August 1919, Ted Gilbert became the first motorcyclist to ride a machine to the top of the rocky butte near Portland, Oregon?

His motorcycle of choice was a Harley-Davidson Sport Twin. Sitting at 4,045 feet above sea level, Larch Mountain is 11,000 feet of narrow, brushlined trail. Rugged and heavily timbered, with huge boulders, sharp stones, and logs lining its sides, it had previously withstood all attempts for anyone to reach its summit on a motor vehicle. The three-mile climb took 2 hours and 20 minutes and needed neither chains nor a tractor band to help the Sport Model along. A big sign measuring 4 feet by 6 feet nailed to the side of a huge fir tree marks the time, the name “Harley-Davidson Sport Model,” and the name of its rider, so that when Mazamas and various other organizations of mountain climbers would later reach the top, they would be able to see that a motorcycle could climb the hazardous cliffs of Larch Mountain.

“Hot Road” Perfume and Cologne

Did you know, Harley-Davidson offered a line of perfumes and colognes?

During the “Disneyfication” era which included branding any merchandise product such as T-shirts, leather jackets, caps, helmets, socks, gloves, knifes, signs, wedding cake decorations and key chains.  This was a product to complete the all-encompassing Harley-Davidson lifestyle and smell like your favorite bike at all times. The line of perfumes and colognes were called “Hot Road” and featured woody aromas with hints of tobacco.  It was 1996 and Harley-Davidson thought they’d attempt to capitalize on the company’s unique brand loyalty and decided to produce their own line of perfumes and colognes.

The woodsy scent with faint traces of tobacco did not make the top of the list for even the most loyal Harley-Davidson fans, yet you can still purchase some HERE.

Jeffrey L. Bleustein

Did you know, Jeffrey L. Bleustein is considered the “Father” of the Kevlar Belt?

Mr. Bleustein was Harley-Davidson Chairman from December 1998 to April 25, 2009.  He retired as Chairman of the Board in April 2009.  Previously, he served as Harley-Davidson CEO from June 1997 to April 2005.  He also served at Brunswick Corp in many capacities and was President of Tri-Hawk, Inc., a subsidiary of Harley-Davidson, 1984 to1985.  Mr. Bleustein was a technology consultant with AMF.  In 1969, AMF merged with Harley-Davidson and in 1975, AMF assigned him to help reorganize H-D engineering operations.  Led by AMA Hall of Famer Vaughn Beals and 11 other Harley-Davidson executives (including Willie G. Davidson), Bleustein helped execute an $81.5 million leveraged buyout of the company from AMF Corporation in 1981.

Mr. Bleustein was responsible for engineering innovation which included the rubber engine mounts, redesign of the V-Twin and introduction of the Kevlar drive belts.

More on the CEO’s of Harley-Davidson HERE.

Harley Owners Group

Did you know, Rich Teerlink established HOG?

Mr. Teerlink  — served as Chairman and CEO until 1999 at Harley-Davidson until he retired.  Mr. Teerlink joined Harley-Davidson in August 1981 as CFO where he enjoyed great success over his 18-year tenure.  He started just two months after a group of 13 Harley managers had bought the company from its then parent company, AMF, in a leveraged buyout.  Mr. Teerlink’s greatest accomplishment was establishing the Harley Owners Group (HOG) in 1983.

More on the CEO’s of Harley-Davidson HERE.

Did you know, the birthpace of Harley-Davidson in Australia, is considered to be Morgan & Wacker in Brisbane?

Many people don’t realize that Harley-Davidson started operations in Australia just 14 years after the U.S.  At the Morgan & Wacker dealership is a 1917 V-Twin, the exact bike that was one of the first in Milwaukee, and it sits half-way around the world in Brisbane, Australia.  Bill Davidson recently visited and was photographed by the motorcycle.

Oregon Fueling Experts

Did you know, Oregon Regulation of gasoline dispensing recognizes the special fueling requirements of Harley-Davidson motorcycles and makes the motorcycle rider the expert at fuel dispensing?

According to Oregon’s legislature, ORS 480.330 it’s all about the inconvenience and hazards of self service.  I feel it’s just another step in the government ladder of dependancy.  At any rate, the law states that an owner, operator or employee of a filling station, service station, garage or other dispensary where Class 1 flammable liquids, except aviation fuels, are dispensed at retail may not permit any person other than the owner, operator or employee to use or manipulate any pump, hose, pipe or other device for dispensing the liquids into the fuel tank of a motor vehicle or other retail container.  However, on June 11, 2001, Oregon motorcyclists won the right to pump their own gas. Governor John Kitzhaber signed House Bill 3885 into law, which gives motorcyclists the choice of fueling their own bikes. Oregon and New Jersey are the only two states which prohibit “Self-Serve” gas pumps, and motorcycles are the only class of vehicle allowed to actually dispense fuel into their own tanks in Oregon, which was effective January 1, 2002.

The law recognized the special fueling requirements of various motorcycles which then made the rider the expert at fuel dispensing. This bill also removed a liability for gas station owners who permitted the common sense practice of allowing motorcyclists to fuel their own motorcycle.

Bruce McGill “D-Day”

Did you know,  Bruce McGill, “D-Day” character in Animal House, rides a Harley-Davidson Sportster motorcycle up the Delta House internal staircase?

The 1978 John Landis movie was filmed in Eugene, Oregon and starred John Belushi. Many campuses rejected the filmmaker’s location request, due to the raunchy content of the script, before the University of Oregon approved it. Then-President William Boyd even allowed his office in Johnson Hall to be used as that of Dean Vernon Wormer (John Vernon).

The movie’s Delta House was an early-20th-century Eugene residence that served as the home of the Phi Sigma Kappa fraternity from 1959 to 1967. Although it was demolished in 1986 and replaced by a suite of doctors’ offices, a large building outside the new building bears a plaque that commemorates the Delta House location.  Many of the interior scenes were filmed within the adjacent Sigma Nu house, which still stands today on East 11th Avenue; the exterior of the frat house was cast as a sorority house through whose window Belushi peered at half-naked coeds.

The movie’s climactic parade scene, featuring actor Kevin Bacon’s film debut, took place in downtown Cottage Grove, Oregon.

Did you know, Harley-Davidson has multiple manufacturing plants in Asia?

The motor company announced plans to build a manufacturing plant in Thailand where motorcycles will be assembled from parts manufactured and shipped from the U.S. The company said the plant will cater to the Asia-Pacific market, particularly China and Southeast Asia with plans to begin production in Thailand in 2018.  The factory is being erected in the Rayong province, Thailand which is geographically located southeast of Bangkok. This will allow the Harley-Davidson to circumvent Thailand’s tariffs of up to 60 per cent on imported motorbikes.

The Thailand plant is the second factory in Asia as Harley Davidson has a plant in Bawal, India, where the Street 750 model and Street Rod is produced. In addition, Harley-Davidson manufactures motorcycles at a plant in Brazil and has a wheel factory in Australia.

Tri-Hawk, Inc.

Did you know, Harley-Davidson sold a no-doors, no-roof, no-regrets, Polaris Slingshot knockoff back in the 1980’s?

Called the Tri-Hawk it was viewed as a semi-automobile.  Harley-Davidson acquired the company in 1984 and the cost for a Tri-Hawk was nearly $12,000.  Jeffrey L. Bleustein — who had a long tenure at Harley-Davidson, served at Brunswick Corp and was President of Tri-Hawk, Inc., a subsidiary of Harley-Davidson, 1984 to1985. Mr. Bleustein was also a technology consultant with AMF.

For many years Harley-Davidson made three-wheelers in the form of utility and police “trikes,” but they were not like the svelte looking Tri-Hawk’s.  They product appeared only briefly in Harley-Davidson showrooms as it was determined to be a marketing miscalculation and they were quickly pulled from the motor company line-up.  The two-passenger Tri-Hawk had already been in limited production before Harley-Davidson decided to take it on to fill some niche. In 1983, prior to acquiring Tri-Hawk, Harley-Davidson made a deal with an Austrian Rotax company for engine-gearbox racing units destined for 500 cc short track racing, but the Tri-Hawk was powered by a French-built Citroen four-cylinder motor.

Tri-Hawk

The Tri-Hawk design was developed by race car engineer Robert McKee with deep pockets by millionaire sportsman Lou Richards who was underwriting the project . The Trip-Hawk was assembled in a small plant located in the beachside town of Dana Point, CA. The 1299 cubic inch flat four air-cooled engine rode up front while the frame and suspension echoed McKee’s racecar experience. Borrowing even more from French technology, the builders incorporated a hydraulic braking system manufactured by Renault.  Weighing over 1300 lbs., and powered by 80 horsepower through a 5-speed transaxle transmission, theTri-Hawk had what marketing called, “exhilarating performance characteristics.”

The product had appeal, but the motor company decided not to sell them through their dealers, leaving only the factory in Dana Point and three other franchise locations to sell all the Tri-Hawk’s.  With limited availability and about eleven Tri-Hawks leaving the factory per month they became a sales failure.  Not from design flaws, but from management and company neglect.

Photos courtesy of Harley-Davidson; Harley-Davidson perfume photo courtesy of Sofie Lindberg; photo of Bruce McGill courtesy of IMBD, photo of Ted Gilbert on his Sport Model on top of Larch Mountain courtesy of Motorcycle Enthusiast;

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Lewis And Clark Touring Rally – 2017

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.

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Harley-Davidson Q2 2016 Financial Results

I’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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Burning Through The Pacific Northwest

The 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

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

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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75th Sturgis Rally – The Numbers

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.

And 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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Harley-Davidson Q2 2015 Earnings

I’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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Harley-Davidson Earnings Report: Q4 2014

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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Harley-Davidson Events At 74th Sturgis Rally

Many 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 Lineup – Check 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 3^rd and Lazelle St. to watch pre-selected finalists compete in a cook-off!
• Tuesday, August 5 – The 6^th 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 3^rd 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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