American Motorcycle Dealer AMD 177 April 2014

™ T H E O N LY M A G A Z I N E F O R T H E W O R L D W I D E V- T W I N PA R T S , A C C E S S O RY A N D P E R F O R M A N C E I N D U S T RY APRIL 2014 AMD/Baird quarterly Harley dealer survey ISSUE #177 reveals weather and promo woes, soft MRSPs, yet strong demand for more new bike inventory NEWS T he quarterly AMD/Baird survey of authorized HarleyDavidson dealers in the United States and internationally has revealed "weak retail and traffic" in most areas of the US during January and February, with only 24 percent of those surveyed saying that consumer showroom traffic was "better than expected". Some 47 percent of dealer surveys said that January and February retail sales were worse than expected (33 percent said sales were better than expected). Though with March generally accounting for around half of Q1 retail sales, Milwaukee based analyst Robert W. Baird & Co. Inc. was modeling an endof-quarter improvement to leave its annual forecast for 2014 worldwide Harley new model sales "unchanged" at +6 percent for the year domestically, and +7 percent internationally. Sales grew by 4.4 percent in the United States in 2013 (compared to 2012) and by 4.3 percent internationally. This forecast is despite the fact that the adverse weather in much of the United States clearly hit not just showroom traffic but also deals written. The US dealers surveyed said that their retail unit sales for January and through mid-February were off by -11 percent compared with their Jan/Feb experience in 2013, with reported used unit sales down by some 9 percent. Internationally, reported retail sales annual forecast "unchanged" at +6 percent were off a massive 25 percent in Canada for the period concerned, but up by some 10 percent elsewhere in the world. Commenting on the effects of the weather, one dealer said "Traffic overall is down considerably. The people who are purchasing have been in the process for a while"; another that "sub-freezing weather is causing fewer people to come into the dealership. Last year was warmer and more people were still riding in January and February"; a third that "door swings are down 40 percent YTD over 2013; sales are down 44 percent." Another said that "Weather has killed us, but Harley hasn't helped either." But proving that the picture was mixed, another said that "Traffic and bike sales have both remained steady in spite of record breaking snowfall and cold temperatures", with another saying that "we expect traffic and sales to continue increasing this spring in response to strong consumer interest in Project Rushmore models and new products introduced by the The Motor Company." Echoing the sentiment with regard to new product, one dealer commented that their dealership was seeing "Lots of new feet coming through the door"; and another that their dealership had "sold better in 2014 vs. 2013", and one even reported being "+150 percent over last year for the year so far". Inventory levels and promotional activity are always subjects that polarize opinion among Harley's dealer community. Most indicated that new bike inventories remained "lean", 86 percent of respondents reported it about right (57 percent) or too low for the time of year; but dealers were rather more Continued on page 6 Tour-spec Sportster and return of the Low Rider PART 2 OF THE 2014 SHOW REVIEW REPORTS OF DEMISE GREATLY EXAGGERATED PROGUIDE The Naughty Gentleman The Naughty Gentleman from Second City Customs in the UK took the win in the Production class at the 2013 World Championship and claimed an S&S engine as the prize VICTORY & INDIAN PRO GUIDE