During October of 2020, a lot of things happened at the quarter’s HOG earning report meeting. Zeitz drove in some coffin nails on large chunks of Harley Davidson. He turned their focus to the network of owners, who want profits.
Really, this could go either way. Riders in America, you are getting the focus of the entire company. They are coming back to try and rebuild. Most of the world is losing out, for the US.
Harley Davidson has left 40 world markets. They are bringing those resources home. All that extra money will be spent here, on dealerships, and other things that will only turn a profit.
This will be pretty decent, if you use Harley for service. They will be speeding the process up, and improving turn around times. It is pretty good to see some positive focus on the riders, but everything comes at a price.
Zeitz goes on to talk about that price. A new Harley comes at a hefty price. They have come to notice the value of their used bikes. Harley will now turn their focus on this market.
A big blow to riders, do not expect to see any more premonitions, or discounts. You wont be getting anything else for the cheap. You will pay full price for everything you buy from them.
They plan to increase the value of used motorcycles. If you own a Harley, this is an awesome deal for you. If this works, your bikes’ resale value will go up.
What will future prospective Harley buyers see? Well, it is obvious that the price of used Harleys will go up. The price of new bikes will follow. Over the last three months, HOG gained 22% back to their market value. They did it with used bikes. The future better have a deep pocket.
The plan to drive up that price, it is simpler than you think. 30% of Harley Davidson’s line-up will be cut. See, when you are Harley Davidson, and you can control the market, you do just that. By limiting the styles and numbers of bikes being produced, the value of a used Harleys will go up. I think that is going to push people to Indian or metric bikes, who do not make many dash for cash moves.
Next, they might have given the name for use to Hero in India, but a lot of others are going to lose it. HOG parts will now be made by HOG. The shirts and other merchandise will come directly from Harley. I mean, just now?
Another big change, the fiscal year. Harley will now release new bikes before their best quarter
This will be near the end of winter, when the new riders start buying in. I have been unable to find the exact release date. Of course, ill write about it when I do.
Next up was the change to E-Bike. The bike will be changed to the “Series 1” powered by Harley. Series one will now build these bikes. These resources will be put back into motorcycles.
The market is a fun ride, just like the bikes! Thanks for reading! Stop by and give my group a like, or stay where you are, ill be around! Keep your elbows pointed to the sky!