5 Interesting Facts from Harley-Davidson’s Annual Report
 

Posted Friday, February 25th, 2011 @ 5:19 pm, by Jensen Beeler
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5 Interesting Facts from Harley Davidsons Annual Report Harley Davidson Marissa Miller American Bombshell 635x508

While we’re still poring over Harley-Davidson‘s annual report, making Excel spreadsheets, and winning at bullshit bingo, a couple interesting facts have struck us about the company and some of the trends it is experiencing. While it’s been mostly doom and gloom around Harley-Davidson in 2010, the Milwaukee-based company does appear to be solely in business because of the strong cost-cutting CEO Keith Wandell has been able to achieve during his tenure. Despite the moaning and groaning from the Bar & Shield loyal about Wandell’s non-motorcycle riding lifestyle, the CEO knows how to trim the fat, which is exactly what this HOG needed. Find five interesting facts for you to mull over this weekend after the jump.

* Over a third (37.4%) of all new Harley-Davidson motorcycles sold, were sold outside of the United States.
* If trends continue, Harley-Davidson could be selling more motorcycles abroad than domestically within two years. This is not because international sales are booming (international sales were only up 3% in 2010 compared to sales in 2006), but instead because domestic sales are crashing (sales in the United States were down 52% over the same time period).
* Harley-Davidson sold 49% fewer motorcycles in 2010 than it did in 2006. By model family those sales decreases are as follows: 36% (Sportster), 46% (Custom), & 34%.
* 2010 is the first year since 2006 that Harley-Davidson’s sales figures dropped by a single digit factor (8.9%). Sales have decreased by 11.6% (2007), 14.6% (2008), 30% (2009) over the past four years.
* 66% of Harley-Davidson purchasers in 2010 did not have a college degree
* Harley-Davidson Financial Services financed 47.9% of all new Harley-Davidson purchases in the United States for 2010.

Source: Harley-Davidson & Google Finance


http://www.asphaltandrubber.com/bant...rt/#more-19189

Sounds like their business model based around a single 'type' of biker might not have been the greatest business model choice. I don't see them going out of business anytime soon, but the bad years they had where quality went to shit seems like it has a good chance of surfacing again (based on cost cutting).

Yeh it also seems like they might have started to depend a little too much on financing expensive bikes to dirt bag white trash trailer park folk instead of maintaining a long term sustainable plan.They sold the image to everyone under the son, including folks that couldnt afford the image. And the tshirts and bandanas that cost way too much, they are just too expensive when nobody has money

They also jumped on the bad financing band wagon like every company did in the last 5 years. They lost their asses on bad loans. Further, we all know luxuries like bikes are painfully the first to go when times are tuff. Let alone new bikes.

Further they mistakingly so, stuck to their middle aged white biker. More recently they have aimed their advertising dollars at the younger generations, especially with new sportsters that are cheaper than even many sportbikes (sub $7k). Knowing its a foot step in.

I don't believe their quality will suffer anytime soon. I have seen a huge step forward on many of their bikes, parts, and aftermarket in the last few years. Hell even advanced technologies like led lighting, and led head/fog lights.

But in order for them to stay competitive they have to succeed abroad. And in the last year they have taken steps with that in india and brazil.

However, they have also made poor decisions as well. This year they made a big to do about the release of a new entry level bike. Did they make a completely new cool bike design? No. Did they make a touring bike off the vrod platform (done very well via non-hd aftermarket)? Nope! Instead a (while very nice) stripped down softail. Mega fail in many eyes.

They are the american cult bike and I don't think they'll ever go out of biz. They just need to keep adjusting and get in the front of technology.

I think thye got all they could out of the baby boomers/mid life crisis type of people. At the factory tour they were saying how they were gearing more towards new to motorcycling people and the younger crowd, yet they were hyping their 25k dollar bikes more than anything else.

I guess so long as they can keep hawking 80 dollar t-shirst they will be ok.

Hd financing wont be making much off me anyway since I will have the loan for my buell paid off over 3 years early LOL

Their business model (domestic) appears to be based more on brand loyalty than evolution. The thing is, while brand loyalty still exists to some extent, it isn't nearly the same as in years past. Hell, how many people just on this board have switched brands just because they found either a bike better suited to their needs or just a plain ol' better deal?

Riding these days is about more than just a logo and matching gear (and shirts, and pants, and underwear...etc). The message is still somewhat the same (do your own thing), it's just allowed to actually be unique to the individual.

In order to survive, HD has to evolve. True, motorcycles are really toys that are the first to go in a crunch, but they can also be a cheaper alternative to big elaborate vacations and such (snowmobile sales were up in this area in January for that reason). They need to break back into that space. They need to go back to selling (and focusing on) motorcycles, not a lifestyle; they need to stop living in the past.

Would anyone here buy an old CRT display just because it's a favorite brand name? I know I wouldn't. Why? Because there are better ones out there (and taking the parallel even further, at a cheaper or even MUCH cheaper price). The people buying TV's and stuff these days are the same ones buying motorcycles.

i think the metric cruisers forced harley to step it up some, they def lost some sales to the jappanese on that, but it seems theyre still catering to their old market. They say they want to start attracting new customers but I just dont seem to see them doing that and still pushing the uber expensive bikes and all the accessories you need for them

I'm still waiting for them to start shifting production towards the VROD engines and ditching their traditional Vtwin. Its something they will have to do eventually (maybe a long time from now), and the platform is a good platform with more potential than they give it credit.



I agree, but I do see them making bad design choices and loosing much more of the market than they need to, especially to the japanese cruisers who are managing to sell the same style and lifestyle ideas while doing it at 1/2 the price (see honda fury). Also if they loose too much money and need to cut too much costs, eventually it will effect their quality, and we will see a re-do of the AMF years

Many of the things above are stated and from me being a HD insider (one who owns), is still off base and obviously stated from somebody that doesn't own one. I don't mean that as an insult.

As far as the jap cruisers... I tell ya, even when compared to a Victory. They all come up short on many things. Honestly. Overall quality feel, cheaper componants, lack of factory aftermarket support, lack of options, less than great paint (I honestly don't know any MC company that does better paint than HD, hell not even cars), lack of dealership support/network... and I can list exact examples if needed. Remember I work on all of them, and have rode most. The overall feel isn't there on many other brands. You can honestly tell that my HD was designed/built by people who ride. I'm just saying there is more to it than just the sticker price.

Per Willie G, the head designer and family of HD. There will be nothing done with the vrod platform other than how it stands now. No touring, no crossing the motor over to other frames, nothing. I read that somewhere... don't remember where.

And honestly, Tommy, they haven't been pushing the 25k bikes. They been pushing sportsters and softtails... $7k-$17k.

You will never see HD stray far from it's current setup. They don't have to. Many, myself included, like the constant, the stability, and the heritage of it's designs.

Further, I honestly think that HD is similar to BMW in many ways. Trip and I discussed this before. Their markets are obviously different, but their price points are similar as well as their brand loyality. They both have a great factory aftermarket, and when you purchase one of their aftermarket pieces you know you bought quality. Both have a solid feel of quality and re-assurance that the bike was designed well. But both are priced slightly higher than their competition, and for good reason IMO.

Really, what point did the article make? Sales are down and keep on decreasing? Of course, the economy is as well. I bet HD downturn matches the economies downturn.

you'd look good on a Harley Geoff.

:chopper::whistle:

Fuck Keith Wandell. I hope he dies in a fiery crash.

HD will find itself in a different market in a few decades. Sorry GM, you live in a bubble. The rest of the country doesn't care about the "American" brand like you Michigan people do. That's ya'll shit. In Tennessee, we build VWs, Toyotas, and a lot of other "imports." These are more American to us than your Michigan built Fords, because they put food on our tables and our region benefits from them.

I doubt the cult will ever put HD in a spot where they have to close, but I see it shrinking as the boomers start dying off.

Typical for car and bike companies to hire senior leadership from non-automotive companies. It's a sign they don't think it's necessary to have people in place who actually understand the product. Mega fail.

HD's only hope is with smaller bikes. Sorry but full-dress cruisers are a dying market. Only middle-aged white men buy them, and white people are declining.

That is also why you will continue to see HD doing things like building that factory in, if I'm remembering correctly, India. There is a lot of uncertainty about the American market while in places like India and China there seems to be more sustained interest in American nostalgia combined with a steadily increasing number of people over there who can afford it.

Thanks.


I won't lie, it has crossed my mind to get a cruiser (probably wouldn't be a HD) of some sort just for cruising around. I'd keep the TL.

Yeah, HD will definitely need to go outside the US to keep it's market share.

As would any potential new american motorcycle company.

Do we really need one. I am fine with what we have to choose from in the foreign market.

Not everyone wants a foreign bike.

Want and Need are two very different things. We don't need one, we have plenty of options without any more brands on the market. Where it is built won't effect most people's decision, it wouldn't even be a consideration for me.

Foreign bikes aren't a consideration for me.

I don't live in a bubble. And I have said many times. Last time in thomo's want to buy a car thread. If you're in a state that has a honda plant or something. Then by all means buy a honda. It's what supports your community. You won't see me buying one but that's not what supports my economy and my family.

And I don't see HD shrinking in one bit. I see them growing even bigger as their global markets increase. Which they are doing HUGE in central & southern america and now india.


Oh yeah in india. They are assembling the bikes there to avoid the crazy taxes. They ship all the parts there and assemble the bike. The crazy part is... they actually want it to be american parts. Cause it's the "american cult" bike. And that is what they call it if you watch videos (news feeds and other) from those foreign countries. Like said... American nostalgia. Hell even in Japan... there is a huge HD following. Another forum just had a guy post pics of a big motorcycle show over in japan. I couldn't believe the number of HDs in it... and big time customized.

True... and for any auto companies. You have to be global so that the downturns of any one economy doesn't kill you.

Good man! ;)

Don't get it twisted. I like all kinds of bikes. My second favorite bike brand is probably BMW or maybe Vic. They would have to battle it out.

The way you were talking about how you get harassed driving import brands up there, that doesn't happen around here even though we have plants. People just don't plain care about what brand you drive. That's what I meant by a bubble. You got to admit you guys take it to another notch up there because of ya'll proximity to Detroit. It is a bubble of it's own.

In this country I see them shrinking unless they adjust with the trends. Especially if there isn't a big economic turn around.

OIC... if you say so

I dont see the turn around happening much if at all now with all this BS in libya. Gas is going through the roof, speculators are going nuts thinking the sky is falling and they think that the growth we were seeing will slow or even stop if things continue the way they are.

Imported from Detroit.

Yeah, what I think we could see a rise in is high gas efficient bike sales. Stuff that gets 50+mpg. Scooter sales shot through the roof last time.

My shit gets 50+ mpg.

Agreed, may be good since we will be looking to get a new suv or pickup in a few months.

Your shit doesn't exist anymore cause of HD. :lol:

Hence my original post in this thread.

just got back from a ride with crazy2sin and his retardedly fast vrod. that bike attracts more penis than any thing ive ever seen that doesnt have tits. fast as fuck though

:lmao:

dude anytime its stopped for more that thirty seconds dudes come over and rub their dicks on it lol. or talk...whichever :lol:

just dont stand too close then :lol:

WD-40 will take the marks off :lol:

I believe he uses pig snot

Its ok its like college football helmets with their lil stickers for touchdown, sacks, etc lol. And after yesterday my vrod even pulls other vrods.

Dave's Not kidding. His Vrod pulls more dick that a 2 Dollar Hooker on the Strip.

I keep telling him to get a custom plate for it...

CKBLK or NOHMO since Jersey's only allowed Five letters...

Anyway...This fucker is LOUD. and fast

I couldn't believe he pulled another vrod in five minutes of being at wawa :lol:

Be carefull saying tt. I got in all kinds of trouble saying such things.

lol why is that?

And You lost me.

i think we jumped him once for claiming vrods were the fastest things on the planet...

I wouldnt go that far. It's fast. But theres alot of things faster out there.

I havent ridden with him since he got more work done but I walked him from 3rd gear on...It might be like 4th now...Lol

But it's def a nice bike

I didn't say it was the fastest... but I said it was fast. Willing to bet it would give some smaller cc sportbikes a good run in a drag race.

Haters will hate. It's just life.

On the actual topic...

Harley reported a $146.5 million profit in 2010, compared with a $55.1 million loss in 2009.

Its easy to test lol. Scott have u run ur bike at the track?

I ran my 636 a number of years ago. Best was a 10.5 at 130mph, after a LOT of trying and learning proper launch technique.

Yea so far my best is 11.22@117 but prob have a 10 sec pass in it.

And the best I would get out of the same bike is a 13 second pass. LOL

Not an equal comparison unless same rider or determined equal in ability.

Yeah...We ran next to each other on like 4 Runs one night...Lol

Bonestock and Not knowing how to launch right...11.5 @ 11X

It gives my 6R a good run...I have more RPM's and a higher top speed. But all in all it's a good race.

Yeah but tell em he has to make turns then its game over :lol:

Lol...I dunno there was a V rod at the last rally...Allibet he was scraping hard parts like a Mofo.

Plus we live in jersey...What turns?? LMAO

Plus I learned the new trick of drifting turns, bad bad idea. Ask tom jones, scared him and he wasn't even on the bike lol

The singer?

the rider. :lol: he was gixxer1k on here when he found the time to post. his ass is always either working, at the track, or trying to get married these days.

Friend of mine is sales mgr for a hd and jap bike shop, he claims hd sales have been steady if not increasing whereas jap bike sales have plummeted since early last yr.

That actually was just quoted on national numbers on cyrils blog. The numbers were insane.