Harley-Davidson Announces Layoffs. Sales are Down

[MineralMan]

https://www.bizjournals.com/milwaukee/news/2017/07/20/harley-davidson-laying-off-83-employees-in-the.html

So, one of Trump's darlings of USA-made products, Harley-Davidson, is laying off over 80 employees. Sales of their expensive motorcycles are down, it seems. Why would that be, you ask?

Harley-Davidson motorcycles appeal primarily to baby-boomer types, frankly, and not to other, younger motorcycle buyers. Their purchasers can be seen on highways and roadways all across America (only in good weather, of course), as they attempt to put off the aging process and recapture the adventurous youthful spirit that seems to be fleeing them more and more rapidly each year.

And therein lies the reason that H-D motorcycle sales are down. Here's why: A high proportion of those folks who have spent what they once spent for a modest home back in the 70s for a motorcycle soon figure out that a bike can't restore their youth. Oh, they ride them for a while, a couple of years or so, but infrequently. Usually it's in some group ride or a long road trip to prove something that is difficult to define.

But then, their costly purchase tends to sit idle most of the time, ridden only once or twice a season, and then, soon, not at all. So they list it for sale on Craigslist, along with hundreds of similar bikes for sale on Craigslist in every major population center. Harley-Davidson motorcycles sell slowly, though, on Craigslist, and the prices get lower and lower over time. Why? Because the next wave of baby boomers generally doesn't want someone's old, used Harley. They want a brand new one. But, some of those used bikes do sell to bargain-conscious new owners. In any case, there is a glut of perfectly good, late model Harleys for sale on Craigslist for far lower prices than a brand new one. It's a glut, as anyone can see by searching for Harley-Davidson on their own local Craigslist.

Harleys are a concept, rather than a modern, efficient motorcycle. They're a memory in the making or a memory remade. The market is limited and getting older and older each year. There are still baby boomers, like myself, who might be interested in owning one, but Craigslist demonstrates that most people who buy them end up wearying of them and selling them fairly soon. So, there's a glut.

Will Harley-Davidson survive? Maybe. But, their target customer base is dwindling in size and many who wanted a Harley have already bought (and sold) their dream bike. On the other hand, if you're a boomer looking for a Harley for a short trip back in time, check Craigslist. There's one there waiting for you. It's been gently used and well maintained, for the most part. You can get a really nice one for less than half what a new one will cost. Sorry, Harley-Davidson...

[LisaM]

1. Wow, a jab at the buyers. Who wrote this article?

I'm assuming you quoted from the actual article, which I find really snarky (no offense to you!)

[MineralMan]

2. No. The writing is mine. The link is just

to a news story about the layoffs. I'm one of those baby boomers. I've resisted the urge, and really prefer a different sort of motorcycle anyhow, so I'm not in the market for a Harley. Maybe a BSA or Triumph, but probably not.

If it comes off snarky, there it is. I recognize the draw of recapturing my youth, and know why Harley-Davidson is having trouble selling new bikes. Go look on Craigslist where you are. There are hundreds of late model Harleys for sale on the Craigslist here in the Twin Cities. Hundreds. They were all a dream bike for some old guy like me. The dream didn't live up to its billing, though, so the bikes are on Craigslist now.

It's not a jab at the buyers. I know them. I am them. It's about why Harley-Davidson is having trouble right now. Their product targets a demographic that is limited and that is pretty well saturated already. The company shows little sign of shifting to a different target demographic, so it's likely that their troubles will increase over time.

[LisaM]

3. I frequently read what you write (and enjoy it) but to me, this doesn't sound like you.

I can take or leave Harleys (my friends who ride them are all women and range from the 30s to 50s in age) and maybe they are going the way of the muscle car, but I still think that if you're going to take pot shots, take it at the new generations who don't have the ability to dream about taking to the road and the forces that are killing that dream, not the people who did and do buy them. Just my 2 cents.

[MineralMan]

6. I know a lot of younger guys who ride. None of them ride Harleys.

They're riding Yamahas and Suzukis and other bikes designed to match their aspirations and concept of what a motorcycle should be. Harleys are old-fashioned motorcycles, really. That's part of their appeal, but that appeal is lost on most younger guys, really.

A lot of guys my age are into old cars and hot rods that also echo their youth. Now, they have the time to fix up a car to their liking and display it on weekends at the many gatherings of old cars and the people who love them that take place almost everywhere. I don't have one of those, either, although I might if I had the funds and time. I've owned a couple dozen motorcycles in my life, and many more cars that are now classics. Would I like to relive those days? You bet, but I have other things that have a higher priority in my life.

My brother and brother-in-law are into old cars, but I'm not, really. I loved my cars and my bikes, but I know that doing it again would just be a nostalgia trip, and wouldn't really take me back in time, so I don't bother with all that. A lot of guys my age and even younger have to discover that reality on their own. So, more power to them, but it's not going to help Harley-Davidson survive. Nostalgia is a tough market to sell into, and regularly dies out and is replaced with a different sort of nostalgia.

I'm just reflecting, you see.

[yallerdawg]

4. I remember in my misspent youth...

we had Suzuki and Kawasaki 350's. Go anywhere, do anything.

Ended up with a classic blue Electra Glide 1200 - got married - stopped riding - sold it for college and a Tandy computer.

Still have 'Motorcycle' on drivers license - haven't been on one since '80's. Look at them now and all I see is 'DEATH.'

"What a drag it is getting old."

[MineralMan]

8. Yeah. I still have a motorcycle endorsement, too.

Every once in a while I think about buying an old Yamaha RD-350 and restoring it, or buying one already restored. But, then I think about it and realize I'd only ride it on nice warm Summer days, which are rare here in Minnesota. So, never mind. I'll just remember that and keep that motorcycle endorsement, you know, just in case...

[HipChick]

5. Branding...

There are better bikes for lower cost..

[MineralMan]

9. Yes, there are, although they're all pretty damned pricey.

Harleys are for a special person in a special demographic. I'm not that guy, I guess. Anyhow there are lots of them listed on Craigslist, if you have a hankering to own one.

[HipChick]

10. Ex-Owner...I traded a Sportster

for high end German performance car...It's a good thing, I don't have any kids to put through college...

[gratuitous]

7. President Trump will fix this!

The program's working name is the Motorcycle Mandate.

[Ron Green]

11. If it'll make our communities a lot less noisy,

that's a good thing.