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Author Topic: Harley reducing production  (Read 8634 times)

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Puma

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    • CVO1: 2014 FLHRSE Dragula 2, SESTP, C&C Fastback
Re: Harley reducing production
« Reply #30 on: June 01, 2015, 01:56:44 PM »



Please remember that the Annual Dealer meeting usually takes place in late July to early August.
 This is where the new models are rolled out and shipments start the following week or two. Of course CVO's may or may not show up in the initial shipments.
SO, to reduce production now means that there really is only 1 more 2015 production quarter remaining. So, slowing down is really a normal process every year. They will start changing over the production line in early July to start making 2016's and staging them for shipping.

Clearing out inventory is a normal process too. How many of us went into our dealers and saw $2,000 or at least $1,500 discounts on the 2014's last year after the 2015's hit the floor?

The "spread" is still large enough to allow the dealers to make a good profit even with that kind of discount.

I think the important thing is that Harley realizes that it is better to closely match production to dealer inventory and customer demand than it is to continue making as many motorcycles as they can, jamming them down the dealers preverbial throats only to see lots and lots of last years models sitting on the floor and not selling.

Jerry
Right there is the truth. Totally normal and nothing new.
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2014 CVO Road King: Titianium/Black, Dragula 2 (2-1), SESTP, C&C Fastback

J-Carr

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Re: Harley reducing production
« Reply #31 on: June 01, 2015, 04:01:53 PM »

This isn't a CEO move.  This is an accounting move.  The CEO is listening to the accountants while ignoring the customers.  Harley's entire business model is outdated.  And until they get a visionary CEO who can strong arm the suits to change it, Harley will continue to slide.  Is it permanent as suggested earlier?  Who knows.  Know one saw the resurgence and buy back in 1979 and at the end of the next decade they could do no wrong.

Here's an idea:  Eliminate all the models.   :'(  :o  >:(

Make a touring bike, a dyna, a sporty, a softtail, a v-rod and the street.

Make it so you order it with the parts you want.  Just like you do at a car dealer.  I go order a touring bike.  Add Fixed Fairing, lower fairings, and water cooled head engine in a 110 configuration please.  Add the gee whiz line of heated grips and matching controls.  Pick the sliceyourarmoffinator wheels in a 22 front and 18 back.  And I'd like the fully loaded BT headset protocol supporting infotainment system please.  Add it all up and it would cost a little more than what a limited costs  now, but it would be the bike I want, just the way I want it and it would be cheaper than trying to turn an existing Road Glide into a Road Glide Custom with Ultra DNA.

MoCo can work out how to channel that with the dealers... who does what as prep and what comes from the factory.  It would get buyers because your not buying the chit you take off and throw away.  They get market share to make up for the lack of P&A up front.  And guess what.  People would change their minds and still go back later and add more P&A stuff.  It might hurt the dealers a little on the outrageous mark up accessories, but they'd get customers to come in for service and sell more bikes.

Of course you'd have to have product that worked and really did address what people are looking for.  Not package a turd and call it the greatest infotainment when you can get better than that on the lowest end cars on the market.

Letting bean counters who only see numbers run the business is a sure way for a CEO to look good for a year or two and then watch a company slip away.  Having a true visionary who can radically change the market, define the demand, meet it and steer it while balancing the bean counters advice... that's a guy who might just save Harley.  Is the new guy going to be that guy?  Hey... I'm just an idea guy.  I don't do fortune telling.
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