Thanks for posting that. It is interesting, but not for what the very misleading title tries to make us think. It should have been titled "Why MoCo Can't Sell All The Bikes It's Making," and then added some more info about the overall ownership cost of an HD compared to other makes. Of course, that would have made it a hit piece, and a shiite-storm would have sprung up.
IMO, the author either has no knowledge of bike ownership and accepted the premise of the MoCo statement about the percentage of HDs still running, or he's in collusion with HD to hide the structural problems that the previous CEO left for Levatich (primarily, low quality of engineering and reliability, with the twin goals of boosting initial sales' profit margins and increasing the amount spent on replacing inferior quality parts).
There's an important message about the used/repo market that is glossed over: customers are selling, or walking away from, their bikes to get out from under the cost. Most of those customers aren't buying a new replacement. Many others compare cost of new vs. used...and go used. My "home" dealer has figured that out: they actively attend the auctions to buy repos, and they sell 3 times as many used as new. Their initial profits are higher on used bikes' sales, and they can count on plenty of repeat business for maintenance and repairs. It worked well for them, and they expanded greatly, even during the past 8 or 9 years of a poor economy. Meanwhile, many other dealers changed hands or went under.
If more dealers realize they can do better in the used market, MoCo will have a harder time selling their inventory, at least until (1) used inventory is drawn down and dealer's margins approach those of new bikes, and/or (2) MoCo reduces the price they charge to dealers. And even if all that happens, people who who have "income insecurity" due to the overall-poor economy will tend to buy used just for the lower entry cost.
IMO, CEO Levatich inherited a flaming sack of dog-doo from the previous CEO, who got out in the nick of time. It's going to take some fancy dancing to keep HD as profitable as it has been, and I would sell my stock if I had any.
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Topic: Are Harley-Davidsons Too Reliable? (Read 9170 times)