Harley-Davidson has released its second quarter sales numbers, and they indicate a slip in sales in both the global market, and the home market in the US.
According to Harley-Davidson’s numbers, the company’s Q2 second-quarter motorcycle sales were down 9.3 per cent in the US. Globally, the MoCo saw a 6.7 per cent decrease in motorcycle sales, and retail sales also dropped 2.3 per cent. The company’s profits and revenues also dropped in Q2.
(In Canada, the 2017 Q2 sales were 3,827 units, up 14 bikes from the same quarter in 2016, so sales were steady here).
There was immediate fallout from the bad news. The revelation hit Harley-Davidson’s stock prices, which took a slide; the company’s CEO Matt Levatich said there would be cutbacks in the company’s workforce, but didn’t elaborate. Management and the company’s unions haven’t been on the best of terms lately, and this news won’t help matters.
As a result of the sales slide, Harley-Davidson is also going to lower its planned shipments and margins for the rest of the year.
Looking forward, we’re wondering the long-term implications. Will this move Harley-Davidson’s foreign production forward, as the company tries to build overseas markets? Will shrinking profits see made-in-India bikes shipped to the US, to boost the company’s coffers? No matter what, interesting times are ahead for the manufacturer.