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Posts Tagged ‘POTUS’

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

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Digging Through Saddlebags

Digging Through Saddlebags

Yeah, it may well happen if you come across a motorcycle-only checkpoint.

I’ve written previously about how motorcycle safety outweighs individual liberty as state and local governments have begun to implement motorcycle-only checkpoints that unfairly target motorcyclists for inspection by law enforcement officers.

Specifically it’s called the “Motorcycle Law Enforcement Demonstration Grant” (DTNH22-10-R-00386) and the motorcycle-only checkpoints are funded by grants given out by the federal government, through the National Highway Traffic Safety Administration (NHTSA).  That’s correct.  The National Highway Traffic Safety Administration (NHTSA) is offering federal funds to expand the practice of creating motorcycle-only checkpoints by law enforcement agencies.

Initially started in New York State, the process involves setting-up checkpoints where only motorcycles are pulled over. Law enforcement officers will check for U.S. DOT-compliant helmets, legal exhaust systems, and compliance with licensing, registration and inspection regulations.  And they may decide to dig through your saddlebags!

What can you do?

Petition-PhotoSign this petition which calls for the cessation of the NHTSA’s direct and indirect funding of the motorcycle-only checkpoints through its grants and other measures, and asks that the laws for vehicle conformity and passenger safety be applied equally to motorcycles and automobiles alike.

Why This Petition Site?  The White House’s “We the People” website is the only one that sends a message directly to the president.  Once 25,000 signatures are reach, the petition is put in front of President Barack Obama, where he has to officially respond to the petition, which could include directing the NHTSA from funding motorcycle-only checkpoints.

I Live In A State With-Out Motorcycle-Only Check Points, Why Should I Bother To Sign?  Because there are a large number of motorcyclists in the U.S., yet overall our passion is shared by only a small portion of the population. This makes it relatively easy for laws, and those who enforce those laws, to target motorcyclists unfairly.  The motorcycling community needs to come together, regardless of how this one issue affects you, in order to ensure that the basic rights of motorcyclists everywhere are assured.

This Won’t Change Anything, So I’m Not Going To Waste My Time.  You might be right, but putting the issue in front of The President of the U.S. might do something, and if nothing else, it shows that the motorcycle-riding community is an active participant in what occurs in Washington D.C. and in the local legislatures. Doing nothing truly means that nothing will change.

Crap, I Have To Register To Sign This.  Are You Kidding Me?  The White House’s “We the People” website is the only site that sends a message directly to the president, and if there are enough signatures, the president has to formally respond to the petition.

I Don’t Want The Government To Have My Email Address.  Ahh… right, like they don’t already know where you live…

Please take the time and consider signing the petition.

Photos courtesy of Baggers Magazine and The White House “We The People” website.

All Rights Reserved © Northwest Harley Blog

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