Harley Davidson CEO Forced To Resign.

[70 copo]

Originally Posted by William

That's funny! For decades Harley's core demographic has been fat old white guys. Everyone in any room there knows they have to 'distance' themselves from that group. I saw many marketing presentations demonstrating their efforts to reach not only a younger crowd but women, minorities, even LGBTs. I believe they re-designed the Sportster frame to better accommodate women, who are typically shorter. They are also making a big effort to develop ridership in Europe and China but tariffs, the exchange rate and antiquated laws are a challenge.

Another popular whine is that Harley has priced themselves out of the market. The 2020 Sportster has an msrp under $10,000. For the most part, Harley final-assembles bikes right here in the USA. The plants are unionized, workers are well-paid and have good benefits. You cannot have it both ways. I spent my entire career in manufacturing operations; it is very difficult to compete with countries that do not treat workers as well. The manufacturing plant I spent 20 years of my career in is now mostly empty; everything moved to Mexico for $3/hr.

Another reason for high cost is the exclusivity Harley buyers demand. Special models, trim, paint. Very easy to amortize tooling expense over 500,000 units, less so over 5,000.

I truly hope they find a way through this.

Agreed.

They are looking for a new CEO right now. Best of luck to HD.

[70 copo]

Originally Posted by markinnaples

You might be seeing Mary Barra going through the same thing in a few years, just saying.

That is my greatest fear. As of now Matt Levatich could stand a pretty good chance of being hired at GM.

[NorCam]

I was like that, but was learning how to ride a clutched 5 speed Kawasaki Enduro at 10 years old after stepping up from a Z50 mini bike. Later went on to ride motocross before buying my first small street bike at age 17. I wanted a Harley back then but no way could I afford one even back in the 80's. It wasn't until I turned 40 that I could afford to buy a Harley outright and since then have bought a number of them.

Kids today see a hopped up HD bagger and more than a few have said "I wish I could afford one" with many of them knowing it's priced out of their income bracket while in their 20's and 30's. Hence the reason Harley created their own finance division. Their bike's are still over priced and to many, it's a statement to ride a Harley or most wouldn't even bother at the prices they cost today. As a matter of fact, I bought another bagger last year and this time chose a bone stock used 2014 FLHXS to customize. A lot cheaper to spend 14K on a gently used 5 year old stock bike than it was to buy the new one at nearly twice that amount.

I agree that Harley's used market is their biggest competitor. Doubt I'd ever ride an electric. Ever!

Even my kids are riding 2 strokes and hopped up 2 stroke scooters. I suppose they might ride an electric in their lifetime. I'm considering buying my son his first Harley in a couple years so he can ride with me on US road trips. Just to spend time with his old man and forge some adult memories while his face is in the wind.

[Xplantdad]

Originally Posted by William

I worked at Harley in Parts & Accessories, Supply Chain, 2012-2015. Easily, the best working experience I had in 44 years.

The problems they are having have little to do with leadership and everything to do with the rapidly shrinking motorcycle customer pie. Had Matt not made the move into electric bikes, that would be touted as a reason for the decline. Previous leadership got them into 500 & 750 cc bikes built in India. Those haven't done much either.

They are smart and sophisticated at marketing their products; chased every market segment there was. Try as they might, the bulk of their customer base has remained aging baby boomers that could afford the product. That group is aging out, selling their bikes and moving on. When I was there, the #1 competitor for a new Harley was a gently used Harley. Supply has exceeded demand.

Next time you are at a car show, take a look around. Do not ask for whom the bell tolls.

As to what William said-when I was going to SEMA- I was able to attend some marketing classes that were run by some of the HD marketing folks. It were very interesting as to how they viewed their customers-and how they ran their marketing campaigns. In fact one of the recent (a few years ago) ads that they had on TV epitomized how they did what they did...it in effect said, "When our competition turns right, we go left!" So many commercials are all alike, so to capture a customers attention, you have to be different. That in effect is Harley. They march to the beat of their own drum.



Also keep in mind, H-D's motor clothes/parts and accessories make lots of money as well. Finally their branding is off the hook. H.O.G (Harley Owners Groups) are very strong and nationwide. The import folks owners groups can only wish that they could be one tenth as successful. The company I worked with spent thousands of dollars every year emulating our Harley stores owners groups to try to get the Import owners "clubs" to get more involved. It never worked.



You don't see too many folks with Honda/Kawasaki/Suzuki tattooed on their arm or back, but their are plenty of skin examples of the Harley logo everywhere you look at any motorcycle event. That's a marketing persons dream...free advertising and liking the product so much that they permanently put it on their skin


I really enjoyed those classes at SEMA.

[NorCam]

Some good points there Bruce. This thread must have gotten my juices flowing a bit today. I had just put new custom seats on my putter last week and it was near 50 degrees when I got home this afternoon. With that said, I quickly took the bike off the charger and pulled it outside to fire it up and knock the dust off of it. It still sounds like nothing else when you fire up a V-twin with big cams and a good pipe on it. Still need to melt some more snow up here and clear the pea gravel off the pavement before I'm riding in 2020.

[HawkX66]

Originally Posted by Xplantdad

You don't see too many folks with Honda/Kawasaki/Suzuki tattooed on their arm or back, but their are plenty of skin examples of the Harley logo everywhere you look at any motorcycle event. That's a marketing persons dream...free advertising and liking the product so much that they permanently put it on their skin

Originally Posted by NorCam

It still sounds like nothing else when you fire up a V-twin with big cams and a good pipe on it.

Both of these comments are so true. "Harley" is a big part of peoples lives and even a lifestyle for a good portion of the buyers. It's not just a bike to put around on.
It may sound like I'm down on Harley, but I love Harleys. They will charge what the market will bare and I can't fault them for that. It doesn't mean I have to like it though.

[70 copo]

Originally Posted by Xplantdad

As to what William said-when I was going to SEMA- I was able to attend some marketing classes that were run by some of the HD marketing folks. It were very interesting as to how they viewed their customers-and how they ran their marketing campaigns. In fact one of the recent (a few years ago) ads that they had on TV epitomized how they did what they did...it in effect said, "When our competition turns right, we go left!" So many commercials are all alike, so to capture a customers attention, you have to be different. That in effect is Harley. They march to the beat of their own drum.



Also keep in mind, H-D's motor clothes/parts and accessories make lots of money as well. Finally their branding is off the hook. H.O.G (Harley Owners Groups) are very strong and nationwide. The import folks owners groups can only wish that they could be one tenth as successful. The company I worked with spent thousands of dollars every year emulating our Harley stores owners groups to try to get the Import owners "clubs" to get more involved. It never worked.



You don't see too many folks with Honda/Kawasaki/Suzuki tattooed on their arm or back, but their are plenty of skin examples of the Harley logo everywhere you look at any motorcycle event. That's a marketing persons dream...free advertising and liking the product so much that they permanently put it on their skin


I really enjoyed those classes at SEMA.

You really can take the brand with you.

Sometimes the entire bike. https://gawker.com/dead-biker-buried...-ca-1513561570

[TimG]

I bought a new Sportster 48 model a few years ago and I like it for what it is. Also, the new Harley museum in Milwaukee is worth seeing.

[70 copo]

My local HD dealer here had some vintage bikes on display in addition to the show room and the separate brand and accessory sales building. The policies put in place by Harley last year forced them to surrender the franchise due to new requirements to build a brand new dealership facility- an edict coming directly from HD.

The dealer now sells Royal Enfield and lawn equipment. Sad but true.

I do not understand how making it harder for people to access your product in a regional area, to see it and buy it can actually increases sales?

[Crush]

Like many on this site I have had a few Harleys, currently have one left. I was going to purchase a new one about a year and a half a go and visited a few dealerships. I found the culture of sales tactics, border line arrogance was less than desirable. Now I can negotiate with the best of them but these guys left me feeling like my business doesn’t matter, take it or leave it .The days of standing in line virtually for an HD are long gone and I suspect their market segment will continue to shrink.