American Motorcycle Dealer AMD 206 September 2016 | Page 4

Will MY2017 conservatism see Harley fall even further behind their competitors ?

The reveal of the 2017 Indian and Victory line-ups ( several weeks ahead of Harley ’ s MY2017 announcement ) shows Polaris continuing to lay down a solid foundation from which to continue applying the pressure on Milwaukee . The problem , of course , with mid-cycle launches is that they can somewhat reduce the impact of such moments , but seeing the already announced models in the context of an overall “ offer ” continues to join the dots as Polaris fills and expands its footprint in a way in which , at the time of writing , remains the stuff of dreams for Harley dealers . While colourway custom options dominate the collection , much as it has for Harley in recent years , the focus on “ infotainment ” adds contemporary riding value thinking ( though on selected models only ), just as it has also done for Harley . There ’ s nothing wrong with “ creature comforts ” in the 21st century . It is easy to assume that they would be an anathema to the generations of riders who built the “ custom style ” motorcycle market , but don ’ t be so sure . Remember how many thousands of indignant righteous abandoned kick starters when they had the choice , and how many thousands appreciated the oil integrity of Evo cases when they replaced the Shovelhead in 1984 ? All such developments are a child of their time , and in these times of radically different expectations from the riding experience and ownership experience , if anything , both manufacturers ’ initiatives so far actually look lame . Their embracing of ABS , for example , has been lukewarm and incremental at a time when other manufacturers are already populating the premium market with intelligent suspensions , ecall , and much more besides . Much the same happened with EFi and TBW , but such developments are now routine , and both Polaris and Harley-Davidson would benefit from accelerating their use of technology . In connection with which , I ’ m writing this just two weeks before Harley ’ s MY2017 announcement at their dealer convention in Boston , and with so much riding on it , are the new engine rumors driving the current Harley share price rise ? Having fallen back from its July 2nd ‘ blip ’, Harley-Davidson ’ s share price opened this week ( August 8th ) at $ 54.13 , having been as low as $ 42.39 as recently as June 27th . With rumors swirling about what will be seen later in August , the investment community is either responding to the widely accepted undervaluation ( especially relative to returns ) that has plagued the stock price for most of the past 12 months , or the rumors about the new 107 inch ( 1753cc ) Harley-Davidson “ Milwaukee Eight ” engine are having an effect . It is being variously reported as being an air-cooled with pushrod actuation or air / oilcooled ( you pick your blog and you take your choice !), with 114 ” and 131 ” versions also mentioned . The name is said to be derived from it being Harley ’ s 8th engine family in its 113-year history , and reports from Sturgis suggested that the engine was there , with selected dealers and members of the press being given advance new model sneak peaks . The exact configuration is also the subject of considerable speculation , with some even suggesting that it may not even be a 45-degree V-Twin – though the spy shots

will eight be the new twin ?

that have been flying around the internet appear to suggest a very cramped 45- degree layout . This would suggest a shorter stroke and bigger bore ( to get those extra valves in ). Either way , whatever is going on in those cylinders appears to be hidden behind an oversized , butt-ugly air cleaner in which the design has been driven by airflow needs alone , on a day when the stylists weren ’ t watching . most common reports suggest that it is an 8-valve engine ( 4 valves per The cylinder ), with single cam , dual plug heads that will be seen in a new Big Twin

model for 2017 , with it migrating to the Tourers for 2018 . Though if that is the case , expect to see the “ lean machine rapid response ” manufacturing philosophy that is the Gospel according to Matt ( Levatich ) result in mid-cycle additions . It is now some 17 years since Harley superseded the 15 years of Evo with the Twin Cam . Investors are not normally known for sentiment where “ the metal ” is concerned , preferring instead to rely on their algorithms and trigger points – so it may well be that the new model range has little to do with the present share price activity . Besides , it is not unknown for Harley ’ s stock price to drift north at this time of year , in advance of and in anticipation of hoped for good news ahead – the problem is that in most prior years disappointment has set in quickly , reminding all concerned not only that what goes up can and generally always will come back down eventually , but that where technology is concerned , “ conservative ” remains Harley- Davidson ’ s middle name . If these rumors are anywhere near true , then while the announcement will , at least and at last , be one with more beef than paint , it is hardly a “ future facing ” package - overdue and still not speaking to market opportunities will be the likely verdict . With sales still in decline , surely Harley aren ’ t going to be able to continue to hide behind market decline for much longer if they aren ’ t doing something other than spending ever more money on trying to sell “ same old , same old ” at a time when their competitors are doing anything but . Taken holistically , the changes that have been seen in the motorcycle design and production offer landscape since the “ Lehman Apocalypse ” pressed demographic re-set on the market in 2008 are the stuff of legend . Real legend , not the phoney stuff that Harley is peddling , and as we start to eye the 21st century ’ s third decade , it would appear likely that we are doomed for some more time yet to seeing them remain conspicuous among manufacturers in still trying to market product-thinking that hit a brick wall at the start of this one . Unless the “ Smart Manufacturer of the Year ” has some new technology so carefully under wraps still that a month from now we will all be sitting back in admiration and applauding appreciatively from the dress circle ? One can dream I guess !

Robin Bradley Co-owner / Editor-in-Chief robin @ dealer-world . com