I suspect that much of this is inventory management. The motor trade runs on manufactures financing bikes/cars whilst it's on dealers shop floors for up to 90 days. After that, the dealer will be expected to pay the manufacturer and get their floor stock financed through a bank or other credit facility (a stocking facility). Whilst interest rates are low, not too much of an issue but with the Fed signalling a potential rate rise in the coming quarters, dealers do not want to be stuck with a large stocking facility and see their debt servicing costs go up.
The big challenge for Harley is that their core franchise is getting older and less is being spent on P&A. The Street is clearly a response to that, but will harley be able to move first time Harley buyers up their value chain to the larger engined models and spending on 'customization'. I think the x-wire is a side show, a good one which they can spin off into their twin models, for example, the brakes on a Chevy now are far better because they developed electric powered cars that had no engine breaking, so brakes had to last longer and be more powerful. Good trickle down technology to more traditional vehicles.
Harley still have the time to make the required changes, Rushmore part of that granted. The brand and whole lifestyle is an incredibly valuable asset as I am sure that Polaris is understanding and with over 50% of the US market, Harley have a delicate balancing act to on board the next generation without alienating the cash flow attached to their legacy market place.
Which is why CEO's (good ones anyway) deserve to b rewarded for making long term strategic decisions rather than short term revenue generation to keep the scribblers (analysts and investors) happy.
Just my 2 cents worth to an interesting debate.
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Topic: Harley reducing production (Read 8623 times)