Has the iconic American motorcycle manufacturer finally lost the support from their most trusted followers? Have they crested the wave and surfed the good times for too long? Have they now just lost the trust from fans and their desire to spend big money on H-D products?
For every detracting statement there is a counter and in recent months there has been much of both. The company’s motorcycles have been lambasted for being way too expensive for the average owner rider and this is reflected in a drop in sales, albeit the company is still increasing profits mainly due to higher unit profit margins and better returns on current interest rates.
H-D Motor Company has just celebrated its 120th anniversary where the company and followers alike have been revelling like it’s 1999 and have released well received Icon & Enthusiast Bikes as well as the CVOs which appear to sell out as soon as they hit the showroom floors.
The company have recently launched in China with the X350 and X500 with undefined success but have also released the X440 in India and have already gained 25,000 pre orders for the single cylinder engined bike.
The argument against Harley Davidson’s future success was that they did not produce entry level motorcycles…but now they do albeit in collaboration with other motorcycle brands. However these smaller bikes are not being made available to European or American markets, so the mainstay of the brand is left to fend for itself and fight against a growing number of potential customers either choosing not to upgrade from their existing Harley Davidson or simply choosing other brands entirely…the sale numbers do not lie it would seem!
In a year when there is much to celebrate for the brand, it is hard to think that the company is indeed struggling but away from the strobes and fireworks, the Q1 & Q2 financial results have beckoned probing questions and more scrutiny than the company had ever envisaged.
The EV offshoot that is LiveWire has been losing money hand over fist and failing where competitors and excelling. Amongst H-D followers it has become somewhat of a joke, with the LiveWire project now being tagged with ‘DeadWire’ nickname.
The company has introduced new technology in the CVOs with variable valve timing but regardless, most people look at the bikes as unfinished even when new. Whether it is lighting, engine performance, handlebars or seating…owners naturally levitate to wanting to change and improve their bikes as soon as they buy them.
However as these bikes are so expensive now, the dissenting voices would argue why would they spend even more money to get the bikes running correctly when really this should be the case from the factory?
There is no counter argument for the high prices, but do the products still hold their value and are they as premium as the company would like you to believe? Well perhaps that still holds water, but there has been a further backlash with motorcycles that have not been assembled in the USA and more are finding out their rides were actually made in Thailand. The quality control should be the same, but the perception is that an American motorcycle should be made in that country, so when it isn’t…more questions arise as to their authenticity. Notwithstanding that many of the components and raw materials are sources from foreign lands and has been the case for many years.
Whilst the “agida” continues to be present it is probably too early to write off the brand as yet, but there is a trend which the company needs to address and time is running out. If other brands are able to produce cheaper bikes but still retain quality or produced with much more advanced technology and are perceived to be the finished article so that customers can simply get on and ride without the need to spend even more money to improve the bikes, then this competition could really impact on the company going forward.
If they can match what other brands offer and fend off the allure of cheaper manufacturers whilst convincing riders in their heartlands that bikes do not have to be linked so conclusively with a national pride and patriotism but rather just be deemed as a good product with great value, then they might rest easier in the future…
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