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Big Harley News

JayBros

JayBros

Well-known member
An article in today's Wall Street Journal reports new CEO, Jochen Zeitz, hired from Puma, the athletic footwear and clothing firm, is ditching the small displacement bikes, reducing about 30% of the models in its lineup and focusing on the models it can lard up with all kinds of options that he wants core customers to pay full price or more for these most expensive and profitable bikes. He says he aims to cut at least 100 dealerships of the current 700 or so nationwide and is dismantling some overseas operations including the factory in India and will focus on more established markets such as Japan and Europe. The company is paying hundreds of thousands of dollars to close underperforming stores. The company has laid off 500 workers, about 10% of its workforce.
 
Desperate times for the company calls for desperate measures. Although continuing to do what isn't working doesn't seem to be
the wisest road. This may be too little too late.

I'll have to admit I've never understood the attraction for Harley's...underperforming, overweight, illhandling bikes have never
appealed to me.
 
Those are drastic measures gonna cost HD a bundle, but they must change something. Newbie CEOs look at what's working, the products producing the profit line, cut the lard and hope it works. I guess motorcycle biz is tough these days and getting tougher. Seems HD dealers is the only stores that just does one brand, we all know the 'other' stores are loaded with every conceivable recreational vehicle. I don't buy anything, but I go to the Harley store just to look, clean, well organized with shiny motorcycles. Yeah, I look at the price tags too, yikes!
 
Stache said:
It’s not the price of the machine that bothers me, considering the price of my RTL. It’s the $10,000 worth of Harley clothes and gear you have to buy to fit in...
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I'd have to gain 150 lb. too to fit into the gear to fit in with the crowd.
 
JayBros said:
An article in today's Wall Street Journal reports new CEO, Jochen Zeitz, hired from Puma, the athletic footwear and clothing firm, is ditching the small displacement bikes, reducing about 30% of the models in its lineup and focusing on the models it can lard up with all kinds of options that he wants core customers to pay full price or more for these most expensive and profitable bikes. He says he aims to cut at least 100 dealerships of the current 700 or so nationwide and is dismantling some overseas operations including the factory in India and will focus on more established markets such as Japan and Europe. The company is paying hundreds of thousands of dollars to close underperforming stores. The company has laid off 500 workers, about 10% of its workforce.
Click to expand...

Didn't Harley do this already when they were bought by AMF ??
I don't think that worked out very well.

I thought Harley was on to something when they started making smaller less expensive (hopefully entry level) bikes.
This just seems bad on all fronts.
 
The new CEO is 57 and in the article he said he knows he is aging but he feels like riding. I think, however, he underestimates the desire, physical condition and income situations of older American folks. How many middle age Americans want to assume a perpetual loan for a $40K+ motorcycle, turning one over every few years to have the latest doodads on a machine that just gets harder to handle each year unless one spends every waking hour when not riding at a gym to stay strong enough to handle 900 lb. machine. Most younger folks, even it they can afford 'em, are afraid of their own shadows, let alone a big, noisy machine that could kill them.
 
One thing about Harley, they have Dealers, parts, and Tech's to fix them! I never had to wait for one of my harley's to get serviced or repaired! The Dealer didn't have to call the manufacture to get permission to fix it!
In the 3 Spyders I have owned, there has been a wait time to even get BRP to agree to send the parts to repair them! Harley has problems and will have a tough time getting thru them, and may not survive! They have forgot the customers who made them great! Spyder on the other hand, need to work on keeping dealers with so many dropping the Spyder line from their dealerships! Help customers with service and parts, and admit when they have a poor quality part, and get a new supplier with better quality! Spyder has something special if BRP would wake up, promoted it, search for quality dealers, and for God sake get your Spyder back on the road without all the red tape! I on my 3rd Spyder and that is my two cents worth!
 
This one might be HD's last hurrah. Personally, I don't see them succeeding with the "new" strategy. I will give the new CEO about six months before he gets canned. :bbq:

I have had almost 50 assorted bikes since 1965. From 80cc one lunger to 2000 cc Cruiser...with three or four "touring" bikes in between.

Forget about the six Spyders here.

I never drank the Kool-aid when it came to HD. I looked at them twice. Did not like the ergos, the shaking, or even the noise. I even tried to make a deal on the first Tri-Glide in 2010. It was selling for a $5K premium over MSRP. No deals or non-HD trades, that's the way we do it the dealer said. It was easy to walk.

I also do not go for "branded" gear anymore. I have chaps, vests, and leather jackets. They look as "biker" as I care to be. No $10K in that kind of stuff for me. The only thing missing is the HD brand. WC: (who cares). :roflblack:
 
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Watch South Park S13E12. The episode explains a big part of why HD is dying a slow death. I've been riding on & off since 1965 on many different brands. The few folks I know with HDs are 1) old, 2) committed to the 'culture', and 3) quitting riding or moving to 3-wheels because of the fear of having to pick up a half-ton cow. Hard to see the future for HD.
 
HD may well be served to get their leaning reverse trike design up and out of mothballs and consider production. Make an entry-level unit to start, then design a tour model later. Just the opposite of what BRP did, and then beat them at their own game. Hands down HD has it over BRP when it comes to dealerships, parts, and service as mentioned above. Stay with what works and build upon that. JMHO By the way, build something that is customer friendly both financially operationally. Don't send the consumer out the door with something that will generate poor reviews.
 
2dogs said:
HD may well be served to get their leaning reverse trike design up and out of mothballs and consider production. Make an entry-level unit to start, then design a tour model later. Just the opposite of what BRP did, and then beat them at their own game. Hands down HD has it over BRP when it comes to dealerships, parts, and service as mentioned above. Stay with what works and build upon that. JMHO By the way, build something that is customer friendly both financially operationally. Don't send the consumer out the door with something that will generate poor reviews.
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Based on the success that BRP has had with the Ryker, your idea above sounds good. :yes:

Ryker is "plain Jane" but those who have them like them a lot. At a $10K price point, another winner.
 
Looks like they experienced a good quarter - profits up in the 3rd qtr 39% selling 8% fewer bikes than same qtr a year ago. Probably a short term sugar high. Any platform that promotes social distancing is selling like crazy (bicycles, motorcycles etc.) Dropped my Spyder at the dealer last week for service and they were telling me they are having their best year ever. Things will get back to normal after vaccines arrive then Harley will need a broad based product line to survive. Ive owned 2 Harleys and that’s enough- too pricey, too heavy and too polarizing...found it hard to sell both.
 
Stache said:
It’s not the price of the machine that bothers me, considering the price of my RTL. It’s the $10,000 worth of Harley clothes and gear you have to buy to fit in...
Click to expand...

All you need is a big wallet chained to your belt loop.
 
Loved my 2014 Road king. Loved it even more after I had the dealer wire and install an Ultra Touring pack on the back. I had him flip the mounting plate so the backrest for the #2 became the backrest for ME! After lots of pressure from the wife to get me off 2 wheels, I sold it 2 yrs ago to an Exec from my company that was shortly retiring. Lost GOBS of money on the sale. But better to sell it than keep it in storage. :)

I rode the HD for 2 hrs and felt like I was beat to a pulp. NOW.. I can do 3 hrs or more on the Spyder and feel like I am just beginnign! :)
 
JayBros said:
I'd have to gain 150 lb. too to fit into the gear to fit in with the crowd.
Click to expand...

Ahhhhh yes..... but for some of the larger among we Spyder riders, Jaybros, that Harley (and Indian} gear is the only gear that fits us. If you are smaller, you can buy smaller Harley gear, or Spyder gear. If you’re big and tall, you can NOT buy Spyder gear, which is pretty short sighted on BRP’s part. I am certainly not above wearing Harley jackets, pants and tshirts, for just that reason (although I’ll definitely buy Indian gear first). ;) (:thumbup:

Pete
 
Pete, one of the things that attracted me to the Firstgear products is they have gear in long/tall sizes which is what I need, and they go to 4XL and 4XLT. Don't know if you folks can get their gear. I like it too because one can get it in high viz colors. I'm not prone to wearing a brand of gear to make a statement but am 100% focused on protecting my hide and noggin. I've yet to see a piece of Can-Am gear I would consider wearing; am totally unimpressed with it. Were I younger and in the mood for a large two wheeler I'd go Indian first too.
 
Possible said:
I'll have to admit I've never understood the attraction for Harley's...underperforming, overweight, illhandling bikes have never
appealed to me.
Click to expand...

True, but when you pull in the clutch and roll on the throttle, they sound bad a$$........:rolleyes:
 
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