As motorcycle manufacturers report their 2016 numbers, we see the continued trend that last year was a tough year for OEMs in the USA. Harley-Davidson reports that its sales dropped 1.6% overall (262,221 units) in 2016, but that number doesn’t paint the full picture for the Bar & Shield brand.
Harley-Davidson sales were down 3.9% in the USA for the 2016 sales cycle (161,658 units), which is a stark contrast to the 2.3% growth Harley-Davidson saw abroad with its international sales.
These losses translated to Harley-Davidson’s balance sheet, with the company posting an 8% decrease in net income, making $692.2 million in 2016. Consolidated revenue remained steady however, at $6 billion.
It’s not all doom and gloom though. Harley-Davidson says that it grew its market share position in the USA (still #1), as well as in the European market. Sales abroad were bolstered by the addition of 40 new dealerships, with Harley-Davidson showing very strong sales in the Asian Pacific / EMEA markets.
“Our long-term strategy is all about growing ridership in the U.S., growing reach and impact internationally, and growing share and profit in every market we serve,” said Harley-Davidson CEO and President Matt Levatich. “Our goal over the next 10 years is to build the next generation of Harley-Davidson riders worldwide.”
Looking ahead, Harley-Davidson sees another tough year ahead of it. The company expects 2017 to be a flat year for sales (maybe even a modest decline), with earning expectations roughly the same as they were in 2016.
That would seem to be in line with sales expectations in the United States for 2017, but also seems to factor in Harley-Davidson’s aging ownership demographic.
To combat its slow decline, Harley-Davidson says it will release 50 new motorcycles over the next 5 years, with the goal of growing ridership in the US market and attracting riders from all demographics.
Growth abroad will likely lead the company though, with Harley-Davidson looking to open 150-200 dealerships internationally by 2020.
Source: Harley-Davidson
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