Sources: AMD, IDN, FT, Reuters, PSB, MPN, BDN, MCN, AP, Bloomberg, MSNW, Electrek, electricmotorcycles. news, RideApart. com, Motor1. com, Cycle World, motorbikewriter. com
NEWS
BRIEFS
The motorcycle industry publishing sector mourns the passing of motorcycle industry magazine and trade show pioneer Larry Hester. As founder of Dealernews and Dealer Expo, those of us who have enjoyed careers in the wake of Hester, Joe Teresi, who also passed recently, must keep the flame of institutional memory alive.
LiveWire e-motorcycles are being made available for training at Bartels ' Harley-Davidson Riding Academy in Marina del Rey, California- the first new rider program in the U. S. to offer certified training on LiveWire ' s all-electric S2 motorcycles.
The MIC says that AIMExpo 2026, taking place January 7-9 in Anaheim, California, has already surpassed 250 exhibiting companies- the fastest pace in show history- " as momentum continues to build around North America ' s premier powersports trade event."
The Motorcycle Industry Council( MIC) is warning that recently imposed and expanded U. S. tariffs could carry serious consequences for the powersports sector. Scott Schloegel, MIC ' s senior vice president of government relations said: " The MIC government relations team remains actively engaged with legislators and policymakers on the issue of tariffs. We continue to monitor the effects that broad-based tariffs may have on the powersports industry and advocate for measures to mitigate these impacts."
Heritage Global Partners( HGP) put the remaining assets of the Erik Buellendorsed, NYC-headquartered Fuell Motorcycles up for sale in an auction that ended in August. Assets included completed and partially built Fuell models, IP( including patents), machinery, inventory, parts and tools.
H-D Q2 North America retail down-17 % global shipments-28 %; HDFS Deal with KKR and PIMCO
Harley ' s embrace of ' other people ' s money ' deepened, in parallel with its ongoing collapse in unit sales in Q2, when it sold some 10 % of its HDFS( Harley-Davidson Financial Services) loan book equity to tow United States investment houses- New York based KKR( Kraus Kohlberg Roberts) and Allianz, Germany subsidiary PIMCO( Pacific Investment Management Company, Newport Beach, California) in a needed cash generation move. HDFS has agreed to sell each of the two investors a 4.9 % common equity interest to investment vehicles managed by KKR and PIMCO with HDFS agreeing to sell approximately two-thirds of HDFS future retail loan originations at a premium on an annual basis for five years. The transaction is projected to unlock $ 1.25bn in discretionary cash, representing approximately 40 % of Harley-Davidson ' s( shockingly low) current market capitalization of around $ 2.9bn. HDFS has agreed to sell over $ 5bn of existing gross consumer retail loan receivables and residual interests in securitized consumer loan receivables at a premium. The KKR and Pimco transaction values the HDFS business at approximately 1.75x post transaction book value. HDFS expects to use a portion of the proceeds to reduce indebtedness to optimize its post transaction capital structure. HDFS operating income margin was 27.1 %. Based on the HDFS transaction, Harley says it now expects HDFS operating income of $ 525-550 million for full year 2025. Meanwhile, back at the day job that is supposed to make such financial gymnastics unnecessary, Q2 saw Harley delivering diluted EPS of $ 0.88 with HDMC operating income margin of 5.9 % on revenue that was down by 23 % year-over-year, with global motorcycle shipments down a massive 28 %- " due primarily to planned dealer inventory reduction and soft demand ". This in a market where Harley reports global motorcycle retail sales down 15 % year-over-year.
Harley ' s global dealer inventories were also down by 28 %, compared to Q2 2024- " as we continued to prioritize reducing global dealer inventory ". The cost of new or increased tariffs implemented in 2025 was put at $ 13m in Q2 of 2025. Despite Q2 revenue coming in ahead of investor fears, Harley ' s profit margins came under pressure with consolidated revenue in the second quarter down 19 % versus prior year. Q2 consolidated operating income was down 53 percent, driven largely by a decline of 69 % at HDMC. At the LiveWire segment, the operating loss ' improved ' by $ 10m, which was 34 % lower than the prior year ' s loss. Consolidated operating income margin in the second quarter of 2025 was 9 % relative to 15 % in the second quarter a year ago. LiveWire revenue for the second quarter decreased by 7 % versus prior year, due to lower electric motorcycle unit sales. LiveWire ' s operating loss of $ 19m, $ 10m less than a year ago, and said to be " in line with expectations ". Outgoing Chairman, President and CEO Jochen Zeitz was quoted as saying that Harley ' s second quarter results " continue to be impacted by a challenging commercial environment for discretionary products, and an uncertain tariff situation." He stated that the cash from the HDFS transaction will be used " to reduce our debt by $ 450m and accelerate the $ 1bn share buyback program announced last year by the purchase of $ 500 million in the second half of ' 25. We also have the flexibility to invest up to $ 300m of additional funds into future growth opportunities." Second quarter global motorcycle shipments decreased 28 % versus the prior year. Revenue was down 23 % driven primarily by the planned decrease in wholesale shipments and partially offset by favorable global pricing and favorable foreign currency.
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