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@miguel avatar
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@miguel avatar
2009 GTV250 (Gone), 2003 Inder trailer (also gone), 2001 BMW R1100RT
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This is interesting and probably representative of the plans for most PTW manufacturers. Two thrust areas for HD: smaller motorcycles and electric bikes. I didn't look too closely but I didn't see too much on their plans for bigger bikes other than maintain their market domination by keeping HD riders loyal and tryin to bring in younger riders.

https://investor.harley-davidson.com/static-files/c8df6b5a-0e2b-48a8-a230-15933792f83b

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Miguel
@bill_dog avatar
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eeeee bip
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Gift
I think that too many young riders are buying Triumphs, Indians and BMW's these days as young people don't want to be seen on classic touring bikes as it's perceived as a senior's past time.

Also the above companies have got their marketing spot on where as Harley Davidson are counting on their heritage a bit too much.

See what I did there ?

Bill x
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Thanks for posting Miguel, this is an interesting and comprehensive set.

A bit irrelevant, but from business viewpoint I find their operating profit margin % surprisingly low and even the target is low. The forementioned BMW Motorrad has it hanging between 8-10% (EBIT) which I would say is a healthy, even a good margin for such a business.

HD tackling Asia... that is a very interesting major growth target, taking into account how the "Big Boys" are playing their politics at the moment. A bit same as for Huawei saying that their top growth would come from the USA in the coming years? No more about this, just saying it is a bold statement - if politics won't mess with that and HD is able to take a leap in the small, also small electric range, then why not....
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UTC quote
Thanks for sharing. I see difficult times for HD ahead as they face big risks for the business.
Going international and target young people with narrower chasis and lower price options sounds good from the outside, but international markets require a lot of effort and I will except their historical cohort consumers to shrink faster than the international growth. Also marketing properly to this new consumer it's a Challenge as there will be multiple low cost competitors and profits margins are lower.
Finally the tariffs issue with steel and aluminum along with retaliatory tariffs on exports will affect margins.

If you ask me I will recommend HD not to lose their core clients and brand positioning, remain a cult brand, and establish alliances with manufacturers with more experience on electric, low costs, international where HD can add heritage, design and branding, without too much effort.
@harbinger avatar
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UTC quote
Bill Dog wrote:
I think that too many young riders are buying Triumphs, Indians and BMW's these days as young people don't want to be seen on classic touring bikes as it's perceived as a senior's past time.

Also the above companies have got their marketing spot on where as Harley Davidson are counting on their heritage a bit too much.

See what I did there ?

Bill x
Agree on the points however your first sentence I would change to "I don't think there are too many young riders these days". See what I did there?

Yes, HD is in a heap of trouble. They better hope they take off over there like blue jeans did.
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2009 GTS 250, 2013 Buddy 125, 2014 Triumph Bonneville
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UTC quote
Bill Dog wrote:
I think that too many young riders are buying Triumphs, Indians and BMW's these days as young people don't want to be seen on classic touring bikes as it's perceived as a senior's past time.

Also the above companies have got their marketing spot on where as Harley Davidson are counting on their heritage a bit too much.

See what I did there ?

Bill x
Exactly. When I bought the Triumph Bonneville two years ago from a dealer in New York State, the owner and employees were in a celebratory mood. As I was signing the paperwork I asked what had made them so happy?

They pointed to the latest MC sales figures that said Triumph had become #1 in the state for new registrations. I found that surprising what with all the Harleys seen on the road.

I figured my surprise was due to the Harleys being quickly recognized as a Harley when you see and hear them on the road, and a Triumph kinda 'blends in' more. That, and the fact that it's hard to tell if those Hogs are new or older models since it's hard to tell the difference with regard to the touring models.
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@larrytsg avatar
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I just loved to Pennsylvania from Boston and the motorcycle culture is startlingly different here.

It seems to be all about leather, tattoos, the American flag and Harley. I do see sport bikes from time to time, and there seems to be a gaining popularity in dual sport or dirt bikes on the street, but the road where I live leads out of town into the twisty rural forests, and all I seem to see is pairs or groups of Harley bikes (and a surprising number of trikes!)

Harley has a tough future ahead... to balance innovation along with retaining their traditional long term customers, along with expanding overseas.
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I think the business plan is very well done and stock holders will be impressed enough to stay the course , at least for a while. There was no mention of dealing with the tariff situation that I saw. This could be a factor they should consider.

Their growth potential in the international market seems to be driven by their brand loyalty presence , that's a big factor and will enhance growth .

There ability to stay relevant to their competition and draw new riders is going to be a tough road. Their old image has a lot to do with that thought process in new market buyers minds.

I helped take a US. company in to the international market , our plans were a bit looser than HD's but the challenges were the same. Our product was totally different but the market was there and we still did not hit our goals at times. In the end we became a solid profit side of the overall companies balance sheet. But it was a tough road none the less.

HD looks like they have a decent balance sheet from all I have read , but finding true international partners is much harder than one might think. The new partners/dealers need to be able to withstand the up's and down's of the business cycle . That is often the problem when building a brand.

I wish them luck .
@attila avatar
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@attila avatar
In garage: Yamaha Tricity 155 Urban 2019 - MV Agusta 125 RS 1956
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I say a heresy ... and if they built a scooter? Doing like BMW that has them prepared by other factories.
For Larrytsg: I love the American rural landscape and nothing like an HD is combined with it. I would add that the HDs seem many because they are "recyclable", they have no time and can be updated; for that they seem and they are many.
@larrytsg avatar
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1979 P200e
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@larrytsg avatar
1979 P200e
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UTC quote
Atilla,
You're probably right, the plentiful boom of Harley bikes from the early nineties is probably still shiny and being ridden regularly by the third or fourth owners at this point.
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