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Posts Tagged ‘Paul Jones (VP General Counsel)’

Purpose-2012With a cocktail of high-strength steel, aluminum, magnesium, rubber and plastic Harley-Davidson adds flexibility, functionality and refreshed paint schemes to their model lineup each year.

By the numbers, 2012 was a pivotal year for Harley-Davidson.  Earnings per share up 16.7%, revenue growth up 6%, $280M annual savings from restructuring, sales outreach with the 18-34 demographic grew at twice the rate of core customers, but in the first ever Consumer Reports’ motorcycle reliability survey, conducted by the Consumer Reports National Research Center about 1-in-4 owners of Harley-Davidson motorcycles reported experiencing a major problem with the motorcycle in the previous four years.

Twenty-five percent had a major problem!

H-D Executive Leadership Team

H-D Executive Leadership Team

It turns out that BMW motorcycles were even less reliable than a Harley-Davidson with about 1-in-3 owners reporting problems in the previous four years.  How did the Japanese manufactures perform?  Only about 1-in-10 Yamaha owners experienced issues during that time, followed closely by Kawasaki and Honda.

However, reliability problems don’t seem to affect the satisfaction scores of owners and their bikes.  When asked whether, considering everything, they would buy their bike again if they had to do it over, 75% of Harley-Davidson owners said definitely yes, closely followed by 74% of BMW owners and 72% of Honda owners.  In contrast, only 63 and 60% of Yamaha and Kawasaki owners, respectively, would buy their bike again.

Both BMW and Harley-Davidson riders have segments that skew more toward the enthusiast and hardcore, meaning they tend to keep bikes longer and I wonder if this says something about the riders than the bikes.  Could H-D riders be more critical about problems?

AZ Proving Grounds Video

AZ Proving Grounds Video

In 2012, the average U.S. retail purchaser of a new Harley-Davidson motorcycle had a median household income of approximately $89,500. The Company defined its U.S. core customer base as Caucasian men over the age of 35 and its U.S. outreach customers as women, young adults, African-American adults, and Latino adults. (Sources: 2012 Company 10K and 2012 Annual Review)  The motor company no longer provides data on age demographics which had been rising in recent years.

Reliability is only one of several factors buyers consider when purchasing a Harley-Davidson motorcycle.  Among the bikes that needed repairs, survey respondents reporting having the most trouble with accessories, such as lights, instruments, switches, and radios (21 percent), brakes (20 percent), the electrical system (16 percent), and the fuel system (15 percent).  Most of the repairs were fairly inexpensive, but for a company whose reputation relies heavily on the quality of its products the 1-in-4 number is perplexing.

The survey results can be viewed by subscribers at the ConsumerReports.org web site and in the May issue of Consumer Reports.

Photos courtesy of H-D.  

H-D Executive Leadership Team photo: (Left to Right — Tonit Calaway (VP, Human Resources); John Olin (Sr. VP and CFO); Keith Wandell (Chairman, President and CEO); Lawrence Hund (President and COO HDFS); John Baker (GM, Corp Strategy and Business Development); Joanne Bischmann (VP, Communications); Paul Jones (VP, General Counsel))

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