American Motorcycle Dealer AMD 189 April 2015

™ OUR NOW IN 3rd 2YEAR 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 Latest AMD/Baird dealer survey shows domestic US sales decline continuing HE results of the latest AMD/Baird quarterly Harley-Davidson authorized dealer survey shows a continuing issue for Harley in terms of domestic sales. Their 2014 annual results released in January showed that by the final quarter of the year their domestic US sales of new models had gone into reverse, and that trend is showing up in the responses to the February AMD/Baird survey. Indeed, the keyword there is "trend" - the dealers surveyed were reporting retail new unit sales down by between three and four percent for the first two months of the year. Because of the strength of March, generally delivering at least 50 percent of first quarter sales, Robert W. Baird and Co. have maintained their full quarter US retail estimate of +2 percent (some 36,400 bikes), but it will have to have been a very good March in T Taking inspiration from the Diggers of the '70s, Paul Milbourn built Nut Cracker and with it placed 5th at the AMD World Championship of Custom Bike Building. Pages 55-56 order for that to have happened. Dealers reported slight declines in PG&A and service income, as well as new bike retail, but positive used bike retail trends should "help dealers work through used bike inventory - and help protect used bike values", according to Baird. While dealers are managing to sell all the Tourers, CVOs and Trikes they can get hold of, Sportsters, 60% selling below MSRP Dynas, Softails, V-Rods and Street models are trending negative. A lot of dealers referenced weather issues as being a factor in the first two months of the year, but the survey revealed considerable anecdotal evidence that HarleyDavidson could be facing product mix issues. Baird asked dealers to rate the impact of key factors on retail demand in the period, and while new products were rated positively all other demand factors contributed negatively to the retail environment. Notably, dealers cited a "sequential deterioration in weather and indicated that this was by far the largest demand headwind quarter-to-date" with trade-in values, government action/inaction and local economy issues" also cited as negatives. In terms of inventory and promotions, dealers indicated that new bike inventory is "balanced for this time of year" with 77 percent of dealers indicating that inventory is "about right". Despite positive used bike retail trends on a volume-weighted basis, dealers consider used bike inventory to be too high - likely a result of more frequent trades associated with new bike retail sales. Continues on page 8 >>> APR 2015 ISSUE #189 NEWS Ken’s Factory opens in US Rivera Primo gives HedLED P.O.P. to dealers PRODUCTS NUT CRACKER BOLT ON 17% INCR EAS ED HOR SEP OWE R AIR IN TAKE MAN IFOLD EXT ENS ION FOR EFI SPORTSTERS COMPATABLE WITH ELECTRONIC FUEL INJECTION 883 & 1200 SPORTSTERS 2007 - 2014 WHIPLASH INDUSTRIES IS AN INDEPENDENT PRODUCT DEVELOPMENT COMPANY AND OUR MISSION IS TO MAKE YOU GO FASTER. Made in Canada www.whiplashindustries.com