Whether the rest of the economy is doing better or not, Harley Davidson is having problems selling new motorcycles and, as a result, they’re consolidating manufacturing with the closure of the Kansas City plant in 2019 and moving production to York, PA.
Harley-Davidson worldwide retail motorcycle sales fell 6.7% in 2017 compared to 2016. The company’s U.S. sales fell 8.5% and international sales were down 3.9%.
A number of factors were cited for the downturn in sales, but one that figures prominently is how dependent they are on Baby Boomers.
As safety becomes a concern for aging baby boomers, domestic sales for the heavyweight motorcycle industry should slow.
The Motor Company has often steered the conversation away from demographics when discussing the future of their product line, but it may be that the years are finally catching up to their customer base and unless they can find a way to attract younger riders, the future isn’t going to be bright. Motorcycles have been a tough sell for some years now as the young have more options for entertainment and less money to spend while at the same time, Harley’s competitors have always been focused on a younger demographic. Can Harley change direction? Do they want to? Only the Motor Company can answer that question. Stay tuned.
Mike says
For years Harley focused on the bad ass image while better bikes were all around them. The Harley riders answer to all other bikes was to laugh at and demean other riders. Harley quietly endorsed that behavior. Now the riders are getting old. Younger riders aren’t buying into that persona.
JP Kalishek says
A cafe, and scrambler version of the Street models would help them as well as a Tracker that isn’t the heavy 1200, colors only.
A light 500 tracker would make a great commuter for me. But, since killing Buell they have nothing that appeals to me, though I am out of their needed demographic, now a few years North of 50, with a sport touring bent (I own two Honda ST1100s)
Charlie Beard says
I guess I’m from the right era as I’m 62. I’ve owned and ridden Harley’s back in the day. I always preferred British bikes. Right now I’m riding a ’68 BSA Lightning, that I never plan to part with. If Harley wants to sell to older boomers and such, they need to change the styling. The mag wheels are damned ugly. I like wire spokes. I don’t like the pipes, seats etc. Also they are just too heavy. Don’t they understand anything about power to weight ratios?. I think the older Harley’s were classy good looking bikes even if they were too heavy. I owned a ’57 panhead in the 70’s, at the same time I had a Triumph TR6 that was a lot more fun to ride. Harley could take a lesson from the new Triumphs they have recently introduced. The ones that look like old street bikes with the wire wheels and even the Cafe Racer models. Even those have onboard computers, electronic ignition yadda, yadda that are impossible for average joes to maintain. You have to take everthing to a ridiculously expensive dealer for everything. If they built bikes that people could maintain easily it would help. For me, I’ll stick to the vintage British bikes.
Thomas Whatley says
Harley like the rest of manufactures has bike that are too heavy and too complicated to maintain. I long for the lightweight tourer like the old airheads.
george says
If Honda could build a handful of watercooled twins at 410lbs, think Harley could match them? Apparently not, yet that is exactly what I want! or a V7 Guzzi at 420lbs!
Nortley says
That picture looks like a caricature of a motorcycle an aging boomer might buy.
Drive the Wheels Off says
How much of that decrease in sales went to Indian?
New or young bikers don’t typically buy the big twins, right?
Paul Crowe says
Some might have gone to Indian, but some sales might not have taken place at all. If the demographic is buying fewer bikes, they’re simply not buying.
Younger buyers aren’t buying the big twins, but that’s the point, Harley has no alternative in the lineup.
Drive the Wheels Off says
The 750 & Sportster were not included in the context of my Big Twin reference. So, It would be interesting to see the sales figures for those 2 models from ‘16 & ‘17 as well as whether the # of students enrolled in motorcycle safety courses YoY has declined.
Someone commented on the custom scene taking its toll. This could have a bigger impact than one might think. If the #s of interested new riders are down to start with, then how much of that lower number wants to jump into something with patina & fit in now?
Jason says
I believe there past success is coming back to haunt them. There is a huge influx of used Harleys coming onto the market as Boomers hang up the helmet. Most of those motorcycles aren’t much different than what is in the showroom today. Take the Sportster. Harley rubber mounted the engine in 2004, added EFI in 2008, and ABS in 2014. If I don’t want ABS why would I buy a new 2018 Sportster 1200 for $11,000 when I can buy essentially the same bike used with less than 10K miles for half that price?
scritch says
2017 HD XL 883 Iron: 38 hp, 565 lb
1972 BSA A65 Lightning: 49 hp, 397 lb
’nuff said
Paul Crowe says
I think the HP is actually in the high 40s, still nothing to write home about, but the Yamaha Bolt, which is designed to be a Sportster competitor is right around the same number so for that kind of engine, that’s pretty much what you get. It’s not a racer, but if you remember our write up about what happened to the Sportster when the Honda CB750 was introduced, they just decided to give up the fight and become a bar hopper instead of a performance machine.
Bob says
Could well be wrong, but I can’t help but wonder if this is just a wind-up for a lot of pre-fab drama involving a comeback with electric motorcycle production at that plant….
Paul Crowe says
They say they are on track to begin producing electric motorcycles within 18 months or thereabouts, but haven’t said, or I have not seen, where they’ll be built, so you may be right.
Will electrics be the key to younger riders getting on a Harley? It will be an all new customer base, that’s for sure, it’s hard to see much crossover from the cruiser crowd, so it might be just what they need.
I give them a lot of credit for trying this and I’m looking forward to seeing the production version of their LiveWire e-bike.
Brum says
They’ll build the electric models in Thailand at the new plant outside Bangkok.
Paul Crowe says
That’s very interesting, … and, if it’s true, disappointing.
LeonS says
I heard somewhere that KIA owns Harley Davidson, is that true?