What’s Old Could Be Bad News for Harley

In February, Harley-Davidson CEO Matt Levatich promised that the V-twin bike maker would release 100 new models within the next 10 years. It was an ambitious claim that many critics didn’t think would be possible, then August came around. Harley has released a lineup of 17 new motorcycles for 2018, but will there be a market for these new bikes?

Why Old Harley Could Be Hurting New Harley

The second quarter this year was not kind to Harley-Davidson. The company’s sales slipped 9.3 percent when compared to the same time period in 2016. This was a blow to the company, but nobody can say it was unexpected.

Right now, the motorcycle industry is suffering. It has been one of the few areas of the national economy that hasn’t bounced back from the Great Recession in 2008. This has been blamed on several factors from riders aging out of the market to young riders not taking up the habit of riding. However, some of these factors are having a particular effect on Harley’s business, and it may be the company’s own fault.

The Baby Boomers are aging out of the sport of motorcycle riding, and instead of keeping and passing on their beloved bikes to their children, they are selling them instead. This has flooded the used motorcycle market with new Harley-Davidsons. Currently, it’s estimated that there are 2.5 times more used Harley’s available on the market then there are new ones. Worse yet, the glut of new Hogs available has also lowered the price for these bikes.

Right now, analysts are recommending that Harley produce more less expensive bikes to tempt buyers away from the used market. But with Harley’s new lineup and an eBike in development, the moto maker may already be on the task. Do you think Harley will conquer the new motorcycle market? The motorcycling attorneys at Metier Law Firm can’t wait to find out.

Tom Metier

Tom Metier

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