Harley-Davidson By The Numbers

On July 18th, during a conference call after announcing Harley-Davidson very disappointing 2nd quarter 2017 results, Harley’s CEO Matt Levatich tried to reassure the financial markets by stating “we are going to build bikers first, add 2 million new Harley-Davidson riders and launch 100 brand mew models during the next 10 years while growing the international business by 50%. Of course, most of financial analysts smiled after hearing such wishful thinking, and personally I don’t know any motorcycle industry expert believing in such an over-optimistic prediction. To form your own point of view, a few numbers to know.

– During 2nd quarter 2017, Harley-Davidson net income dropped 7.7%. Sales in the US were down 9.3 percent inand 6.7 percent worldwide.

– Harley-Davidson now expects to ship 241,000 to 246,000 motorcycles to dealers worldwide in 2017, which is down approximately 6 percent to 8 percent from 2016.

– 180 US based manufacturing jobs will be cut this fall in Menomonee Falls and Kansas City. Temporary furloughs are also expected. Last year Harley-Davidson cut 200 jobs, and in April of this year, another 118 workers were axed at the York plant with those positions to be shifted to Kansas City.

– With approximately 6,000 employees, previous and current cuts amount to about 10 percent of the workforce in one year’s time. Since the great recession of 2008 Harley-Davidson lost 25 percent of its workforce, .

– As of today, year to date, HOG shares have dropped 16.95%. The stock is down 12.77% for last month.

– Despite the downturn in the company’s business prospects, CEO Matt Levatich got a base pay increase of 15 percent in 2016. The rest of his compensation is based on results.

25 Responses to “Harley-Davidson By The Numbers”

  1. 1 WhatThe? Jul 25th, 2017 at 8:17 am

    So let me get this straight , Sales are down , Employees are being laid off left and right , Even more manufacturing is being sourced overseas , Stock prices are down . Yet the CEO who’s ‘ compensation’ is supposedly based on performance gets a 15% increase in salary ?

    Begging the question : in what alternative reality does that make a bit of sense as corporate cronyism across the land continues to make America great for the .1% ?

    Now where did I put that BMW order form ?

  2. 2 highrpm Jul 25th, 2017 at 8:34 am

    magical thinking. matt levatich sounds like a t.v. prosperity evangelist spouting the gospel of law-of-attraction. since when did harley-davidson change their corporate mission from building motorcycles to building people?. matt has a career in psych-therapy waiting.

  3. 3 BobS Jul 25th, 2017 at 9:04 am

    Must be nice to get a 15% raise while sucking. I haven’t called in sick, been late, had a reprimand or write up, etc in over ten years and I’m still not making 15% more than I did back then. That may sound like I’m bitching, no, I take care of myself. Just pointing out the absurdity of someone already making millions getting a 15% raise while performing poorly. Next up let’s give him a tax cut and use my social security to pay for it. That’ll make America great again won’t it.

  4. 4 Joe Jul 25th, 2017 at 9:20 am

    There will be a dip in numbers while generations transition but I see so many “millennials” on used Harley’s that I think these numbers will come around. H-D needs to try and hold the line as much as possible, keep itself relevant as a brand and not fall into the Polaris trap of “EVERYTHINGS ON SALE, ALWAYS” just to hit numbers.

    Hopefully they can remain patient.

  5. 5 seymour Jul 25th, 2017 at 10:47 am

    Lots of people make an obscene amount of money for doing one simple thing – telling people what they want to hear.

  6. 6 rebel Jul 25th, 2017 at 10:49 am

    sounds like a democrat talking about Trump, nothin’ good to say no matter what is going right

  7. 7 bd Jul 25th, 2017 at 11:36 am

    Can this guy even begin a truthful statement What a complete crock of bull shyt

  8. 8 dildol swaggins Jul 25th, 2017 at 12:28 pm

    Y’all sound like whining millennials.
    Work harder, do you.
    F the rest.

  9. 9 richards Jul 25th, 2017 at 1:05 pm

    Cyril, You weren’t this “direct” when polaris dumped the entire victory line. What’s up there?

  10. 10 Jul 25th, 2017 at 1:44 pm

    Richards. As a matter of fact I agreed when Polaris decided to drop the losing money Victory brand. Long before that decision (about 2 years), I suggested to some of their people to turn Victory into the Bagger brand of Polaris. Would it have been enough to make Victory a financially successful brand? I don’t know for sure. But I was convinced that Victory would never be able to compete against Harley in the cruisers segment. It’s Indian job.

  11. 11 WhatThe? Jul 25th, 2017 at 3:12 pm

    Not to be contentious or anything Rebel but what exactly in your mind is going ‘ right ‘ Are you completely ignoring the implications of this news as well as major manufacturing news across the spectrum including Ford taking all Focus production to Mexico and Asia , GM closing several plants and discontinuing eight models , the above moving even more of its manufacturing overseas , IBM laying off thousands , Boeing laying off in the tens of thousands etc etc etc ? Seriously Rebel . What is going right ?

  12. 12 BadMonkeyMW Jul 25th, 2017 at 4:53 pm

    Regardless of the CEO and his 100 new models in 10 years nonsense, it’s business as usual otherwise. H-D has to change with the times and respond to customer demand, or lack thereof, by cutting workforce.

    The reality is that the baby boomers that pushed Harley to become so big and prosperous through the 90’s and early 2000’s are dying off or at the very least not riding/buying new motorcycles anymore. Younger generations just aren’t flocking to buy new Harleys like their parents did. I’m a 43 year old Gen X kid and I can tell you for a fact I won’t ever buy a new H-D. They just don’t interest me compared to the two older Harleys I have. H-D is making the adjustments necessary to sustain their company.

    I mean honestly, who commenting on this article and ripping on H-D for cutting jobs has bought a brand new bike from a dealer in the last 5 years? Speak up if you have.

  13. 13 Mike Jul 26th, 2017 at 7:11 am

    I have purchased 5 new Harley’s in the past 16 years. The 10 is my last new Harley. They have gone from supporting the rider to building bikes that have progressively become less reliable. Each bike I have purchased has required progressively more money and parts to make it run as well as the previous version. The current bike I have has required maintenance that can only be done at a harley shop (bleeding abs brakes) which goes against my grain. The shops are only interested in collecting money. Twice on U.S. Tours, I had to go into a shop and both times I was told, yep it’s needs work, yes it is warranty issue, but we have to order parts, parts are three weeks out. I had to limp home. And they charged me 100 dollars to tell me, yep it’s broken. I much prefer going to an independent shop but he does not have the tech to plug into the ABS to do that. The dealerships have gone from being willing to help out a fellow rider to high pressure joints to sell bikes. I still have another 15 years of riding (I hope) and it will just be on a bike that I will rebuild instead of buying this new “stuff.”

  14. 14 Jul 26th, 2017 at 8:17 am

    Joe, you nailed it w/seeing the millenials on used HD’s. I see it constantly as a service shop. They’re not interested in bling bling/new new. They just want their bikes to run properly for the most part.

    BadMonkey- agree. I’ve been riding for over 40 years. I’m a lil’ older than you (10) and have NEVER purchased a new bike. They’re just not all that appealing when new. Mine are a ’76 and ’90.

  15. 15 Mdkuder Jul 26th, 2017 at 9:07 am

    WhatThe? Profits are profit and how many millions of dollars did HD make? Hell let’s lay some people off so we can give executives, who are already over compensated, a huge raise and that big bonus or is that bone us!

  16. 16 Bobby G. Athey Jr. Jul 26th, 2017 at 10:22 am

    As far as buying a NEW Harley in the last 5 years, I did buy a new 2016 Lowrider S last March. I will admit that I didn’t buy a new Harley since my 84 Softail, and that was a direct result of the direction the MoCo went in.
    They abandoned all of their core customers and clamored for the credit card bikers, and turned the dealerships into boutiques rather than motorcycle shops. I get it. but it was still a bitter pill to swallow.
    Now with that being said, I really dig my 2016 Lowrider S, it has great suspension, brakes and power, and most importantly it doesn’t disappoint.
    Now full disclosure, I’m one of those “baby boomers” who is 59 years young and was looking at Baggers
    until that Lowrider S was announced, so I just can’t get those drag bars out of my life yet.

  17. 17 Xenu Jul 26th, 2017 at 11:24 am

    I agree that younger riders have the pick of a huge used market and the good sense to avoid debt. Some older riders like me can afford to pay cash for whatever and not suffer for it, but resist due to habitual frugality. As a young guy I rode bikes that were considered trash such as BSA and Triumphs that sold for near nothing. The used market for the new smaller Harleys might bond even more newbies and get HD to put effort into parts and service instead of boutique jewelry and clothing.

    America’s CEOs are…they, the leaders are what made this country great.They are entitled. This country’s workers owe it to them for bringing …people tell me,very smart people by the way..

  18. 18 Pop Jul 27th, 2017 at 4:35 am

    Yeah boy. I quit buying new HD’s when their business plan included shuttering many of the dealerships that had floated the brand through the AMF years and literally kept the brand’s heart beating when the factory was teetering on bankruptcy.
    Now I buy used and that’s about as easy as falling off a truck.
    Lifestyle is not riding. Supporting a bunch of corporate sleazeballs with my hard earned cash is not my style. I don’t vote that way either.

  19. 19 economessed Jul 27th, 2017 at 10:27 am

    Maybe they should invite Elton John back to do the soundtrack for some of those new bikes they are going to release….

  20. 20 hark Jul 31st, 2017 at 9:34 am

    Toward the end of last year Harley-Davidson let around 500 salaried employees go…some of them were with the company for a real long time…some worked strictly for HOG…one actually was in charge of HOG for awhile. I know he did not have his time in when let go…not sure what he got if anything.

    Harley-Davidson takes money earned from their riding club HOG and ads it to shares given out to stock holders…HOG numbers have dropped 500,000 over the past 6 years…all new riders get membership free for one year…I understand not many re-join HOG after the Free Year! That is like $40 bucks a year…multiply that by the 500,000 HOG lost and that is a whole lot of money…the question is why? I say it is all the fault of the Motor Companies brilliant idea to cut back on those working for HOG…They have cut back so much in HOG that when it comes right down to it as a member there is really little reason to re-join…many a upset because they did away with State Rallies and went to Regional Rallies thinking the numbers that turned out would be a substantial gain…as it turns out this is not happening…rally’s are weekend events…if a person has to ride over 1000 miles for a weekender it is not going to happen.

    As for selling 2 million more bikes…I have to see it before I believe it…the Baby Boomers are gone…most of us are pushing 70…our next bike might be a Trike or Side Car…depends on health mostly . Last but not least…by building more bikes….the markets are flooded even more with used bikes that dealerships can’t more. Ours has hundreds in a warehouse. Bottom line is this…the only one the Motor Company can blame for the problems they have is themselves. I see no future in HOG Stock…sold mine years ago.

  21. 21 Batterycap Jul 31st, 2017 at 12:23 pm

    Whatever raise the CEO got is inconsequential. It doesn’t matter.

    Down times are always on the horizon. It’s the massive health insurance costs that are suppressing wages for the little guy that is killing the ability to buy a Harley. I bought a 2002 Electra Glide Standard back in 2002 for $12,500. New. The new bikes have to include all of the increased health insurance premiums and costs that have come along since then. Now, over $25000 is pretty much standard for many Harley’s. It’s not going to happen.

    The guys that sell the most expensive bikes feel the crunch first. That would definitely include Harley.

  22. 22 Hilton McConnell Jul 31st, 2017 at 10:18 pm

    I had a 883 and loved it but costs were too much, when I was looking they told me the belt would last 100 thousand miles when it broke at 50 thousand k they told me that i was lucky a lot broke at less than 20 and some less than 10. The new belt cost $250 you can get a same size gates but a diff. pitch for $80 both made in the same factory.
    cost $500 for new seat back rest $250 without a pad and had to get brackets for another $250 to fit it.
    ordered the back rest for $50 It was made in tiwan and looked like it should of cost less than $5.00 Got the extra warenty and when the tack went had to prove that I got it when I bough the bike. need road side when the belt broke waited over 2 hr. and they keep giving me different times and at the end said they could not tell me when they could get there. Called CAA and they were there in 5 min.
    I put 39, 000 on it the first year but got tired of having to look for gas stations the tank was way too small and the front fender dumped water wright on you feet in the rain.
    If I could get the 883 with a bigger gas tank and bigger front fender and a good seat, and a belt that would last like the told me when buying the bike I would consider buying another. I do 90 % back roads that are 80 K per hr so do not need a bike that can do 200 K per hr.
    also the hard bags that they sold looked great but when I got them the cut out for the spring was 2 times bigger that needed so cut into the amount I could carry
    A friend got a newer one and the power was cut for the rubber mounted engine, did not like that as they could of had just a little more when riding into a heavy head wind.

  23. 23 Tony C Aug 2nd, 2017 at 2:18 am

    I’m more worried about the mess in Washington. HD will be alright, they always survive. The White House – I’m not confident at all.

  24. 24 Janice Aug 16th, 2017 at 8:01 pm

    Hopefully they’ll sell out to the Japanese and start making actual reliable motorcycles.

    Maybe AMC could be exhumed to take over…

    They might even keep some of the workforce!

  25. 25 GregC Aug 28th, 2017 at 3:59 pm

    This new is no different than every other company in the world. CEO’s etc., always have huge paychecks/bonuses and that will never stop until people stop buying the product!

    Granted CEO’s are responsible for everything and every move the company makes, however, when you compare the pay of those guys to the rest of the workers it is completely unwarranted!
    A CEO makes 2-300,00 and more per year and workers get what, < $30/hr.,,maybe!

    Top level pay will NEVER change, they just change CEO's. Look at the stock market. CEO's of companies in the market (HD too obviously) also get a zillion stocks/options, and those are worth big money too.. So let's just give them even more $$ while some of their workers can't afford health insurance.

    Sorry..but a Harley isn't worth $22k and up! You can buy 2 cars for the same price! TWO I said!!!
    You throw in a new motor add some ABS or a new stereo and add $10K to the price..I lol at that.

    I ride a 2007 FLSTC purchased used so I guess I'll be riding it for a long time, just like my 2001 F150 I bought new in 2001.. Runs like a champ!

    Also, someone mentioned baby boomers are 70?? Not sure where you got your info from, but the last baby boomers were 1964 (me) or 1965, so we're no where near 70! Hell we ain't made it to 55 yet lol

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