Harley-Davidson sales continues to dip for 3rd quarter

Founded in Milwaukee, Wisconsin, the venerable motorcycle manufacturer released in a report that its worldwide sales fell by nearly 7% in the 3rd quarter of 2017, in comparison with last year. This is mainly due to a drop of U.S. motorcycle sales, forecasted to continue in the near future. In fact, the overall U.S. industry is currently suffering as well, due to a natural disaster - hurricanes.

 

(Image: 7 Themes)

To add on, in the first quarter and second quarter of 2017, US sales slumped 9.3% and 5.7% respectively. Global retail motorcycle sales suffered too – it dropped 4.6% as compared to 3rd quarter in 2016. Similarly, revenue declined 9% to $1.2 billion. The company mentioned that it grossed $68.2 million, down substantially from $114.1 million in the same period last year.

(Image: Destination Harley)

 

“The continued weakness in the U.S. motorcycle industry only heightens our resolve and the intensity we are bringing to the quest to build the next generation of Harley-Davidson riders”

“Launching 100 new high-impact motorcycles is a critical part of our 10-year journey, and the all new Softail lineup is a significant statement of our commitment.”

“Our investments in new product and marketing are targeted to drive ridership growth.” "We have the strategies, plans and people to make it happen.”-Matt Levatich, Harley-Davidson’s CEO and President

It is heartwarming to note the determination of the company to plough through the recession. In July, the company had planned to remove 180 production jobs at its plants, including the Menomonee Falls factory, due to deteriorating sales.

(Image: Motorcycle USA)

 

Young adults not inclined to take up motorcycling, as well as an aging customer base, are increasingly prevalent in the U.S.. Nevertheless, Harley Davidson still strives to expand its customer base by 2 million in the next 10 years.  On a positive note, the market share of the company in the U.S. was 53.1%, a 0.8% increase. Internationally, Harley Davidson’s performance isn’t impressive either, despite 15 new dealerships in countries such as Russia and South Korea. In the next four years, the company also has plans to establish more than a hundred stores in Asia. The company is projected to ship a total of 240,000+ motorcycles to dealers globally this year.