Harley Davidson CEO Forced To Resign.

[70 copo]

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.

William,

Suffice to say the proof is in the pudding. Take the IRONE for example.

Who in the world thinks this is a great sales hook for HD and a great way to spend R+D? Do you? Explain please. I am very interested.

The fact remains that the Bell has tolled - for Levatich.

Instead of competing for the motorcycle market that exists today He made recommendations to reinvent a portion of the business model that actually distanced HD from its core buying demographic and was justifiably fired because of those actions.

[William]

Originally Posted by 70 copo

Instead of competing for the motorcycle market that exists today He made recommendations to reinvent a portion of the business model that actually distanced HD from its core buying demographic and was justifiably fired because of those actions.

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.

[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.