Harley-Davidson is Taking the Motorcycle Market by Storm
Not quite the sales output that we expected from a premiere American motorcycle company that is Harley-Davidson
According to Harley-Davidson, their dealers only got 262,000 motorcycles from them back in 2016 and, in fact, this falls short from their shipping goal which is between 264,000 and 269,000 units. They roughly missed 2,000 units for delivery. That translates to an 8 percent loss in profits from its $6 billion yearly income compared to the fiscal year of 2015.
But is it really a bad thing or not?
Is Harley-Davidson really doomed?
Harley-Davidson CFO, John Olin; however, is not alarmed by these numbers. In fact, he said, there was a reason for the decrease of shipments and it had to do with the overwhelming numbers of 2016 models stuck in retail inventory. He hopes to have the dealers clear them out by 2017 so that the newer models could be shipped expediently.
50 new models to be launched in 5 years
The company also made an astounding announcement at a press conference recently and they’ve stated that they’ll be introducing 50 new motorcycle models in just five years! The decision came about with the sales assurance of lesser competition with previous models from inventory as they all have been cleared out. Harley-Davidson’s Q4 sales seems to prove that assumption was correct.
This move is bold, daring and unprecedented for a company to make, but it seems that the motorcycle maker has a lot of faith in its brand that they are willing to go this far when others wouldn’t even dare to try. And mind you that’s 10 new models per year which will be shipped out non-stop for five years straight!
However, for Harley-Davidson, this is just a matter of breaking their own record. If memory serves right, they also introduced eight brand new motorcycles back in 2014 and market analyst as well as newspapers almost went hysterical over this move. But now they’re raising the stakes even higher proving market analyst wrong with their sales output time and time again.