NOW
IN OUR
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27 EA th
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T H E L E A D I N G B U S I N E S S M A G A Z I N E F O R T H E I N T E R N AT I O N A L C U S T O M M O T O R C Y C L E A N D PA RT S I N D U S T RY
Harley Q2 U.S. Sales -8.5%, International
Sales -8.9%; Thailand EU Softail/XL
Production Delayed to October 2019
Harley-Davidson worldwide retail
sales decreased -8.4% in the
second quarter, while U.S. retail
sales were down -8.0% in the
quarter driven largely by
continued weak industry sales
with international retail sales
down -8.9%.
The U.S. 601+ cc industry was down -
4.9% in the second quarter compared
to the same period in 2018. Harley-
Davidson's second quarter U.S. market
share was 46.6%. Harley-Davidson's
year-to-date European market share
was 8.8% through June.
"In the second quarter we achieved
significant advancements under our
'More Roads' plan, and we continued
to lay a solid foundation for future
growth," said Matt Levatich, President
and Chief Executive Officer, Harley-
Davidson, Inc. "The decisions and
investments we're making, within a
highly dynamic and competitive global
marketplace, demonstrate our intense
focus to build the next generation of
riders and maximize shareholder
value."
Harley-Davidson says it continues to
inspire diverse new riders around the
globe. Harley-Davidson ridership in the
U.S. has been up each year since 2001
and was at an all-time high of over
three million riders in 2018. The
company increased its reach and
impact in the second quarter and
delivered more younger riders - U.S.
rider training participation was up, with
the greatest increase among 18-34
year-olds.
Of total U.S. new retail sales in Q2, the
43-48,000 Q3
shipments
mix of 18-34 year-olds was up +2.7%.
Emerging market year-over-year retail
sales growth of +7.6% was aided by
more accessible pricing from local
manufacturing in Thailand.
In which connection, European Union
regulatory approval for Thai production
to qualify for tariff relief was delayed,
with production of European destined
Softails and Sportsters now slated to
start in October this year. Tariff relief
approval has now been received by
Harley, meaning that the units shipped
to Europe from Harley's Thailand plant
will be at the standard WTO 6% rate
rather than the punitive increase to
31% on domestic U.S. produced
models imposed by the European
Union a year ago.
Non-Trike Touring model tariff relief is
expected to be approved later in 2019.
Without the agreed exemptions and
ramp-up of production in Thailand, U.S.
built Harley inventory could have
otherwise been facing even higher
tariffs in the future - a ramp-up to
around 56% is slated for 2021 under
current plans.
As a result of the timing of these
approvals and softer than expected
European retail sales as key drivers, the
company has adjusted its 2019 outlook
and now expects motorcycle shipments
to be approximately 212,000 to
217,000 for the full year. In the third
quarter, the company expects to ship
approximately 43,000 to 48,000
motorcycles.
During the second quarter, Harley
announced a collaboration with
Continues on page 8 >>>
PAN-O-MANNAIA
'Flying Marla' from Italy, 6th place in the Avon
Freestyle Class at the 2018 AMD World Championship
of Custom Bike Building - see pages 32 & 33
AUG 2019
ISSUE #241
TUCKER'S
NEW PRESIDENT
PRO-GUIDE EXTRAS