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HD closing their Kansas City plant


fourteenfour

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HD announces layoffs, plant closure

 

there have been persistent rumors for years that HD was going to reduce the number of frames used across the lines and this might move them towards that. That net income drop is staggering. So KC will close and positions will open in York. While I can see the Street line continued to be made overseas I am not so sure if they would import it. I expect a new Sportster line since it has to move to York if KC is gone.

 

Interesting in that they plan to launch an electric bike within 18 months

Edited by CommuterChris
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Harley-Davidson is a victim of its own greed. Once they started making more bikes than they could sell, the market no longer sees what they cannot have. Which of course is what made them want one even more! Used to be you had to wait months on new Harley. Price didn't matter, you could ride it a year and get nearly what you paid for it.

 

In my opinion, Harley should have kept production lower, prices higher on their classic series. Where they should have gone for volume was by developing another model line that was likely easier to afford, but maybe would reach additional buyers. Who might just step up to the classics over time. Back when the V-rod project came out I think HD missed a real opportunity to build a competitor to Japanese and German touring bikes. Even a UJM competitor perhaps. The Buell experiment failed the first day one hit the showrooms. Dealers didn't know what they were or how to sell them.

 

I want Harley-Davidson to succeed. They have been pronounced dead before and yet they still sell about half the bikes sold in the US.

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With continued erosion on the top line, a move like this was inevitable. The canary in the coal mine was when corporate was making deals with the dealer network to pack unsold inventory to their rafters a few years back. On the surface it is a simple overcapacity issue. As has been brought up here and in other threads on these forums, it might be that part of HD's problem is too little differentiation. To me it seemed so many of their bikes are virtually the same just accessorized differently. It will be interesting to see if BMW's strategy works with offering significantly different choices across their range. You might liken it to what Honda has done, but I prefer to call it the Baskin Robbins 31 flavors approach which had this business model well before Honda. I think it is a better strategy but will it work for Motorcycles in the long run. Time will tell.

 

Digging deeper, all the global M/C manufacturers face the same trends in demographics, consumer tastes, and the emergence of the so called emerging markets which are fast becoming the target market for these companies. It is logical that the 31 flavor approach better serves the global market dynamics, but these markets will very likely repeat history. As incomes increase in these markets there will be a shift to four wheels from two. I have wondered if we are somewhere close to the end of what will be called a golden age of motorcycles. Hope not!

 

 

Edited by Paul De
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.

 

I want Harley-Davidson to succeed. They have been pronounced dead before and yet they still sell about half the bikes sold in the US.

 

+1

 

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I would gladly buy a HD - if they offered a product I would have a desire to buy. I remain convinced that their insistence in refusing to innovate, of simply rebranding the same overweight/overpriced/underpowered product year after year, will ultimately drive them under.

 

I recently completed their new rider class, which was excellent BTY (I just needed it to get my endorsement which I had let expire), and honestly looked over and sat on a bunch of the bikes in the showroom thinking it would be cool to get one. I did the same thing 15 years ago and was left with the same impression now that I had then: their bikes are too heavy, too expensive for what they are, and underpowered (as evidenced by their "upgraded" engine offerings where, for thousands of dollars more, you too could have a HD that, though still underpowered for its weight, at least had more of it). I really would hate to see them go but until they realize that their demographic is rapidly disappearing, it seems to me to be almost inevitable.

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Dennis Andress

Every time my ears hurt from a Screaming Eagle exhaust blasting by I scream after it; "Damn, I wish they'd gone bankrupt". I wish Harley success. I wish they made a bike that would attract me away from BMW. But, frankly, I no longer give a damn.

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Most of us here are likely baby boomers, some even older.

 

We've observed millennials and those younger ...

Observed many interested in low tech?

Observed many obsessed with nostalgia?

Observed many interested in emulating 1950s juvenile delinquents?

 

Know who has the younger generations covered? Subaru. Watch their ads. Are these potential HD owners?

 

HD may have run its course.

 

 

Edited by lkchris
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...Observed many interested in emulating 1950s juvenile delinquents?

 

Now THAT'S hysterical. I never thought of them like that but with those costumes they like to wear it's quite true.

 

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Hard for Harly to 'sell the sizzle instead of the steak' anymore..it's just not the typical millennial 'lifestyle'. Kids I know are going for ducati scramblers, they like the R9T etc..Harley is not in their vocabulary.

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Good points, and a few good laughs. My buddy Donnie - we all started riding in our mid to late teens (Asian bikes) - got tired of not being able to keep up with The Clean Living Hoosiers on his HD. He'd been talking about getting a beemer for about a year. Once on the way home from a ride, I offered to trade bikes with him - told him to take mine home and ride it for a week. Ride it like you stole it (and no doubt he did). Two points:

 

1) Donnie fell in love and could not believe the handling, stopping and acceleration. He's also one of those guys who constantly has excess energy to burn, and with 3 little kids, he's up at 5am and going to the gym. Now he could ride his bike to the gym and not wake up the neighborhood. He bought a RTW, still has the HD, all dusty now. And now he could ride in wet weather and not have to spend hours polishing.

 

2) I came home on the HD and Mrs WTA was outside and was wondering WTF!? She said I looked like I was on a circus bike - undersized for the rider. And the noise! But ok, I ask MRs WTA to go around the 'hood with me. Heyyy . . . I can see over your shoulder - this is kinda nice! So while Yours Truly might have been very cramped, the elevated passenger seat worked well for the Mrs.

 

As others have said, the stifling of R&D and perennial stagnate product is bewildering. It's the Avanti of the bike world.

 

 

Edited by workin' them angels
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The MC industry is suffering all over. HD has never made a bike that did what I wanted, but I never begrudged those who like them. Mostly, I feel bad for the workers at the plant. I hope they're able to get some severance pay to help soften the transition to other work.

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...but I never begrudged those who like them. Mostly, I feel bad for the workers at the plant. I hope they're able to get some severance pay to help soften the transition to other work.

 

Totally agree. It's a damned shame all those people will lose their jobs. That's why I sincerely wish they'd make a bike I would want to buy. I'm a big believer in buying American but not the extent that I'd throw away money buying a substandard product to do it. I've been driving Japanese cars from 1986 (when I finally gave up on the American-made POS I first owned) to last year when an American car company finally evolved to the point that I would buy one (a Dodge Durango in this case though I'm sure they are all pretty darned good now).

 

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I would gladly buy a HD - if they offered a product I would have a desire to buy. I remain convinced that their insistence in refusing to innovate, of simply rebranding the same overweight/overpriced/underpowered product year after year, will ultimately drive them under.

 

I recently completed their new rider class, which was excellent BTY (I just needed it to get my endorsement which I had let expire), and honestly looked over and sat on a bunch of the bikes in the showroom thinking it would be cool to get one. I did the same thing 15 years ago and was left with the same impression now that I had then: their bikes are too heavy, too expensive for what they are, and underpowered (as evidenced by their "upgraded" engine offerings where, for thousands of dollars more, you too could have a HD that, though still underpowered for its weight, at least had more of it). I really would hate to see them go but until they realize that their demographic is rapidly disappearing, it seems to me to be almost inevitable.

 

I was soooo looking forward to the development of the V-Rod motor in a real sport touring chassis.

 

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Lone_RT_rider
I can't believe the price of some of those Harleys. I think I saw an ad for one in a magazine for $42, 000.

 

That's a CVO bike with custom paint (you pay for that as the paint is subbed out to a custom shop). I'd never buy that either. The top end (standard paint) Road Glide Ultra is 27K. You can get into a touring bike without a Tourpak (top case) for about 19-22K.

 

Shawn

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I can't believe the price of some of those Harleys. I think I saw an ad for one in a magazine for $42, 000.

 

That's a CVO bike with custom paint (you pay for that as the paint is subbed out to a custom shop). I'd never buy that either. The top end (standard paint) Road Glide Ultra is 27K. You can get into a touring bike without a Tourpak (top case) for about 19-22K.

 

Shawn

 

Exactly! There are Harleys just like BMW's for $10K or less just like there are BMW's for under $10K of now even under $5K but folks still think a BMW like a Harley costs $25K. I have never owned a Harley but man they are truly the king or marketing and brand recognition and in the end isn't that what business and capitalism is about? Not saying I agree but they did a great job of selling the image even when the AMF bikes sat leaking oil. And the paint and quality is top notch. I was in the York plant when they first opened the new Paint facility which the public could not see. We were told it was far better than even what GM had at the time. Not surprising the KC plant is closing as it was originally opened when times were good and it was a Sportster only plant. In addition you can't beat their dealer network. Over the past 10 years I have rented a Harley about 8 times in my desire to ride all lower 48 and while still working. I would fly to the mid-west and rent and ride 6 or 8 states covering about 4,000 miles in 2 weeks, sometimes longer. The dealers were great and treated us very well and while the bikes were big and heavy and did not handle like my RT of GS they were probably the most comfortable bike I have ever ridden ... with a STOCK SEAT! And for the size they handled well. We rode all through Colorado, WY, UT and ID on a Harley and never had an issue. They are having the same issue that the motorcycle industry faces with shrinking interest of younger riders only Harley has it even worse since their primary rider is the baby boomer and their line of bikes is one dimensional. I think their decision to build the electric bike is a great one. Think about it .... with the limited range who better to make the electric work that Harley with a dealer on every corner and in some cities multiple dealers all ready to supply a charge! I wish them well and look forward to seeing what their final production electric will look like. They still sell 230,000 bikes a year and the majority in the US. Those are numbers most companies would love to have and with riders as loyal as the day is long!

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