International Dealer News IDN 148 April/May 2019 | Page 30
THE AMERICAN REPORT
Domestic US Harley
sales lowest since 1998
No doubt in an effort to distract
attention from a disappointing 2018
full year and final quarter, one that saw
the company undershoot its 4Q and
original 2018 forecasts when
reporting its 4Q and 2018 FY (January
29th, 2019), Harley-Davidson sought
to focus on the limited positives, the
value it says it is continuing to return
to shareholders and the "milestones"
it says it has already met in pursuit of
its 'More Roads' strategy document.
In reality, the headline news was of
worldwide retail sales of Harley-
Davidson units down by -6.1%
(228,051 units), the lowest since 2010
(the only year that has been lower
since 2001), with 4Q at -6.7%
(39,311 units).
International retail sales were flat for
the year at +0.4% (95,183 units) and
have been essentially flat for five years,
but with domestic 2018 retail sales
down to 132,868 units (-10.2%), their
lowest since 1998, international sales
were 41.74% of the total (as Harley
continues to pursue a 50/50
international/domestic sales split).
In other news, President and CEO Matt
Levatich has now confirmed that, as
widely trailed, production of models
for Europe and selected other
international markets (such as China
and the ASEAN markets) will be based
out of the new Thailand plant that
came on stream in 3Q 2018 (capacity
expansion is already underway there).
On a full-year basis, the U.S. 601+cc
industry was down -8.7 percent and
Harley-Davidson held market share of
49.7 percent. Harley-Davidson's full-
year European market share was up
Harley will launch its 'LiveWire' electric motorcycle later in 2019 before
entering other markets such as Streetfighter style bikes, the middleweight
and lightweight markets, and the Adventure Touring segment with its 'Pan
America' in 2022
0.5 percentage points to 10.3 percent.
In its ongoing drive to further improve
its manufacturing operations and cost
structure, in the first quarter of 2018
the company commenced its multi-
year manufacturing optimisation
initiative anchored by the
consolidation of its U.S. motorcycle
assembly operations into its plant in
York, Pa.
During the quarter, Harley-Davidson
says it continued to make progress on
the initiatives included in its May 2018
'More Roads' "accelerated plan for
growth". Among its strategic aims are
to develop a stronger dealer network,
to train two million new riders in the
U.S., grow international business to 50
percent of annual volume, launch 100
new high impact motorcycles and do
so profitably and sustainably.
Matt Levatich, CEO, Harley-Davidson
Inc: "In 2018 we delivered value to
our shareholders through improved
earnings and cash from operations.
The challenges we experienced
during the year reinforced the
commitment we have for our 'More
Roads to Harley-Davidson'
accelerated plan for growth"
The Milwaukee headquartered company has confirmed that European
inventory will be assembled in Thailand as they seek to avoid tariffs.
Harley wants to see 50% of sales coming from "international markets"
by the mid-2020s
SBS racing brake pads win big at Daytona
Danish specialist SBS hit two
'home runs' at Daytona in
March with their brake pads
equipping the Daytona 200 and
Daytona TT American Flat Track
winners.
Kyle Wyman won the Daytona
200 riding a Yamaha R6
equipped with SBS 634DS-1
Dual Sinter brake pads. One of
the legendary road races, the
Daytona 200 places a premium
on braking response and
modulation with 57 laps on
Daytona's infamous and famous
2.5 mile/4.0 km tri-oval with its
31 degrees of banking in the
turns (18 degrees even at the
start/finish line!) and a 3,800
feet/1,200 m front straight and
3,000 ft/910 m long "super
stretch" back straight.
30
In the fast-growing AFT Twins
Presented by Vance & Hines
class of the Daytona TT, Indian
'Wrecking Crew' rider Briar
Bauman won using SBS 841-DC
Dual Carbon front and SBS730-
RQ Carbon Tech rear brake pads
on his Indian FTR750. Briar said
after the race: "The front brake
INTERNATIONAL DEALER NEWS - APRIL/MAY 2019
felt exactly the same at the first
and last round lap - no fade
problems at all!"
Chris Jensen, SBS North
American Brand Manager, said:
"SBS has worked with Kyle
Wyman and his KWR race team
in MotoAmerica for a few years,
so it was a great pleasure to
help him
attain his
goal of a
Daytona 200
win. He used one set of DS-1
pads all weekend, and the pads
looked like they were ready to
do it again.
"Similarly, with Briar Bauman in
AFT, the DC compound pads and
their superior feel are perfect
for the unique challenges of
stopping the fast 750 cc
machines in the dirt. Besides
these winners, top riders in the
Daytona 200 like Geoff May,
Josh Hayes, Cory West, Brandon
Paasch and Tyler O`Hara also
chose SBS brake pads."
www.sbs.dk
www.idnmag.com