Feeds:
Posts
Comments

Posts Tagged ‘Victory Motorcycles’

2018 CVO Lineup

It’s arrogant at best and obscene at worst.

I’m talking about the CVO pricing that Harley-Davidson management approved for the 2018 models.  Now that we’ve had a couple days to digest the euphoric feeling of the new 2018 models, we’re left with a gnawing and burning sensation in our stomach that even a spoonful of sodium bicarbonate won’t put an end too.

I can’t help but wonder if the new head of design, Brad Richards, who replaced Willie G. after more than 40 years is singing that new Taylor Swift single, “Look What You Made Me Do,” after going full-tilt Goth and dripping black on so many of the new designs.

2018 CVO Street Glide

Unless you’ve won the lotto, you’ll be crunching numbers very late into the night to learn how to squeeze a new Harley CVO into the garage without breaking the discretionary entertainment budget!  They are expensive!  In a small way, we have Polaris to thank for exiting the market with Victory motorcycles and reducing Harley-Davidson pricing pressures.

I’m reminded of the Mylan EpiPen scalping gone wrong in the pharmaceutical industry.  Will we see the motor company deploy industry “experts” to justify the value of overtly expensive models and purport to quantify the net social benefits of belonging to the riding “lifestyle?”  If they do, it’s likely to be based on a complicated economic model and include scholarly speeches, articles, blogs and conferences to lend prestige on the whole “we’re doing everything in manufacturing to keep our prices down” lobbying blitz.

2018 CVO Road Glide

The fact is, Harley-Davidson is a luxury brand cleverly disguised as a blue collar, workin’ man’s brand.

Millions of marketing dollars are spent every year on campaigns to drive home the point that it’s name is synonymous with regular, working class folk.

But, have you seen their luxury price increases on the 2018 CVO models?  Harley-Davidson has exceeded the price range of BMW and Ducati, two brands with a public perception of being expensive toys for the upper-class.

Most of us will never get to experience the CVO results of Harley-Davidson’s labors for ourselves, thanks to prices ranging from $40,000 to $43,000.  Specifically the MSRP pricing is:

2018 CVO Road Glide — $41,399 (not available in 2017)
2018 CVO Street Glide — $39,949 (+$2150 above 2017 price)
2018 CVO Limited — $42,949 (+$1950 above 2017 price)

2018 CVO Limited

I’ve written about Harley-Davidson’s sales and marketing woes.  Much of it outside their control, but we can’t absolve the motor company of any responsibility for these arrogant price hikes.  Harley-Davidson owns this one.  The pricing backlash has already begun across the motorcycle forums and the whole thing leaves a bad taste in consumers’ mouth — of all age groups!

For example, the CVO Limited jumped $1950 from 2017 to 2018.  Beyond paint, there are NO significant upgrades on the 2018 model.  Looking at web pages indicates the only “NEW” item was the addition of a Bluetooth wireless connection module to the stereo.  This may have been as simple as a firmware update to the BOOM stereo system.  Let’s assume it was a hardware addition.  A Cardo bike-to-bike intercom with dual handsfree to connect up multiple bluetooth-enabled mobile phones retail for less than $300.  That would mean the price increased $1650.

Let’s look at the 2018 CVO Street Glide — Harley-Davidson removed the radiator and abandoned water cooled heads as the lowers now have speakers along with another power amp to drive the sound “bubble.”  They’ve provided similarly configured models in the past.  The company added Bluetooth wireless connection to the stereo and created a “NEW” Gun Metal grey paint, however, they jacked the price up over $2100 above the 2017 model.

The CVO Road Glide is a bit trickier to do a price comparison as the last time they offered a similarly stripped down version of the CVO Road Glide was back in 2013 (remember the Cat Whisper paint stripe scheme which was priced at $33,999?) and it was based on the old 110cu.in. engine, old radio and outdated fairing, frame etc.  Harley-Davidson skipped a year and then for 2015 they offered up that behemoth CVO Road Glide Ultra at $36,649 which included all the accouterments which was based on ‘Project Rushmore’ enhancements that other touring bikes received.  It’s not a pure apple-to-apple comparison, but this basically equates to a $7,400 price increase over a 5 model year period.  Which is incredible given the low rate of inflation and manufacturing cost reductions.

Are the financial analysts really scratching their heads wondering why riders don’t line up to lay down these $$ on a motorcycle?

In fairness, Harley-Davidson does make some decent, affordable bikes in their Street lineup.  But they still have a bit of that stigma — which is backed up by most of their current lineup — of putting heritage before innovation and that’s turning some of the riding youth away from the brand.  Harley isn’t as strong a competitor in terms of bang-for-the-dollar with the likes of Triumph, Ducati and the Japanese manufactures.

Even the blue collar, workin’ man who can afford a nice bike will certainly take a look at the local Indian dealer and realize that the competition is making all-American cruisers that indeed have an appeal and nearly every model is priced less than a new Harley-Davidson.

It boggles the mind how according to Harley-Davidson management, the new 2018 motorcycles are less expensive for Harley to manufacture, with simpler frames and more commonality of parts yet they’ve rolled out what looks like an orgy of price scalping.

Photo courtesy of Harley-Davidson

All Rights Reserved (C) Northwest Harley Blog

Advertisements

Read Full Post »

The heavyweight motorcycle market is approximately a $4 billion market.  Harley-Davidson is the market segment share leader with 2010 revenue of $3.14B.

Last week Polaris (CEO – Scott Wine) announced the acquisition of Indian, the nation’s oldest motorcycle brand. Indian’s best-selling model, the Chief, became known for the Red Indian logo on its fuel tank.  After twice filing for bankruptcy the manufacturing of Indian motorcycles restarted three years ago in Kings Mountain, NC.  The terms of the acquisition from British investment firms Stellican Ltd. and Novator Partners LLP were not announced, but given the strong brand portfolio of Indian I’m sure it didn’t come at garage-sale prices!

Polaris entered the heavyweight motorcycle market about 12 years ago and of the Polaris $2B in annual sales, about $82M comes from Victory motorcycles.  The Indian brand will help the company build on the Polaris’ presence in the market and directly compete with Harley-Davidson in the heritage brand sub-segment with its classic style.

Clearly the motorcycle landscape is changing and if you need further evidence just look at the recent announcement by BMW Motorrad who saw a 12.3% growth in the last financial year and sold 110,000 motorcycles.  They announced that Hero Motors (India company), as the sole supplier who will provide gearboxes for BMW’s motorcycles.  Not only are they the supplier, but Hero provided the engineering and developed the advanced technology for all BMW transmissions.

According to this Sioux City Journal article,  the U.S. production of Indian Motorcycles will shift to Polaris Industries’ Spirit Lake plant later this year.  Polaris is based in Medina, Minn., and they will close the existing Indian manufacturing plant in Kings Mountain in the next two to three months.

Photo taken at and courtesy of Indian booth.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

2011 Cross Roads Custom

‘Tis the new model season and earlier in the week Victory Motorcycles provided information on its 2011 line-up at a dealers meeting in Orlando, FL.

The Medina, Minnesota-based company has been busy researching how to attract buyers in this challenging marketplace. They’ve been blacking-out components, beefing up engines, recalibrating transmissions, tuning the exhaust, and made ABS standard on several models.  For 2011 the company brings the introduction of 15 motorcycles.

Most newsworthy, however, was the manufacturer’s decision to use the new “Victory Freedom” 106/6 V-Twin in every model.  The powerplant is a 4-stroke, 50-degree, 106 cubic inch (1731cc) V-Twin (compression ratio 9.4:1).  There are two versions of the 106/6 powerplant. The first is called the “Freedom 106/6 Stage 2 V-Twin,” which has a special Stage 2 cam package that boosts its power numbers to a claimed 97 hp and 113 lb-ft of torque.   All of Victory’s cruiser models (Vegas Jackpot, Hammer, Hammer S, Vegas, Kingpin, all three 8-Ball cruisers, and the Zach Ness Signature Series Vegas 8-Ball) will come with this engine.  The second version is called the “Freedom 106/6 Stage 1 V-Twin” which puts out a claimed 92 hp and 109 lb-ft of torque and will power the remaining 2011 motorcycles, including the Cross Country, Cross Roads, Victory Vision Tour, and Arlen and Cory Ness’ Signature Series.

In addition the motorcycle manufacture updated its transmission to a “100K mile” warranty along with modifications aimed to reduce driveline lash, reduce gear whine and to make it easier for riders to shift into neutral at a stop courtesy of a “Neutral Assist.” It’s also said to improve ride-ability and deliver a more appealing-sounding transmission.

The new Cross Roads Custom touring bike will feature air-adjust rear suspension, dual disk front brakes and inverted forks.  The company also announced a new custom program, which allows a consumer to select the bike color, saddlebag style, highway bar style and possibly a windshield. All totaled, the consumer can select up to 48 possible combinations.

Photo courtesy of Victory Motorcycles.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

%d bloggers like this: