International Dealer News IDN 148 April/May 2019 | Page 30

THE AMERICAN REPORT Domestic US Harley sales lowest since 1998 No doubt in an effort to distract attention from a disappointing 2018 full year and final quarter, one that saw the company undershoot its 4Q and original 2018 forecasts when reporting its 4Q and 2018 FY (January 29th, 2019), Harley-Davidson sought to focus on the limited positives, the value it says it is continuing to return to shareholders and the "milestones" it says it has already met in pursuit of its 'More Roads' strategy document. In reality, the headline news was of worldwide retail sales of Harley- Davidson units down by -6.1% (228,051 units), the lowest since 2010 (the only year that has been lower since 2001), with 4Q at -6.7% (39,311 units). International retail sales were flat for the year at +0.4% (95,183 units) and have been essentially flat for five years, but with domestic 2018 retail sales down to 132,868 units (-10.2%), their lowest since 1998, international sales were 41.74% of the total (as Harley continues to pursue a 50/50 international/domestic sales split). In other news, President and CEO Matt Levatich has now confirmed that, as widely trailed, production of models for Europe and selected other international markets (such as China and the ASEAN markets) will be based out of the new Thailand plant that came on stream in 3Q 2018 (capacity expansion is already underway there). On a full-year basis, the U.S. 601+cc industry was down -8.7 percent and Harley-Davidson held market share of 49.7 percent. Harley-Davidson's full- year European market share was up Harley will launch its 'LiveWire' electric motorcycle later in 2019 before entering other markets such as Streetfighter style bikes, the middleweight and lightweight markets, and the Adventure Touring segment with its 'Pan America' in 2022 0.5 percentage points to 10.3 percent. In its ongoing drive to further improve its manufacturing operations and cost structure, in the first quarter of 2018 the company commenced its multi- year manufacturing optimisation initiative anchored by the consolidation of its U.S. motorcycle assembly operations into its plant in York, Pa. During the quarter, Harley-Davidson says it continued to make progress on the initiatives included in its May 2018 'More Roads' "accelerated plan for growth". Among its strategic aims are to develop a stronger dealer network, to train two million new riders in the U.S., grow international business to 50 percent of annual volume, launch 100 new high impact motorcycles and do so profitably and sustainably. Matt Levatich, CEO, Harley-Davidson Inc: "In 2018 we delivered value to our shareholders through improved earnings and cash from operations. The challenges we experienced during the year reinforced the commitment we have for our 'More Roads to Harley-Davidson' accelerated plan for growth" The Milwaukee headquartered company has confirmed that European inventory will be assembled in Thailand as they seek to avoid tariffs. Harley wants to see 50% of sales coming from "international markets" by the mid-2020s SBS racing brake pads win big at Daytona Danish specialist SBS hit two 'home runs' at Daytona in March with their brake pads equipping the Daytona 200 and Daytona TT American Flat Track winners. Kyle Wyman won the Daytona 200 riding a Yamaha R6 equipped with SBS 634DS-1 Dual Sinter brake pads. One of the legendary road races, the Daytona 200 places a premium on braking response and modulation with 57 laps on Daytona's infamous and famous 2.5 mile/4.0 km tri-oval with its 31 degrees of banking in the turns (18 degrees even at the start/finish line!) and a 3,800 feet/1,200 m front straight and 3,000 ft/910 m long "super stretch" back straight. 30 In the fast-growing AFT Twins Presented by Vance & Hines class of the Daytona TT, Indian 'Wrecking Crew' rider Briar Bauman won using SBS 841-DC Dual Carbon front and SBS730- RQ Carbon Tech rear brake pads on his Indian FTR750. Briar said after the race: "The front brake INTERNATIONAL DEALER NEWS - APRIL/MAY 2019 felt exactly the same at the first and last round lap - no fade problems at all!" Chris Jensen, SBS North American Brand Manager, said: "SBS has worked with Kyle Wyman and his KWR race team in MotoAmerica for a few years, so it was a great pleasure to help him attain his goal of a Daytona 200 win. He used one set of DS-1 pads all weekend, and the pads looked like they were ready to do it again. "Similarly, with Briar Bauman in AFT, the DC compound pads and their superior feel are perfect for the unique challenges of stopping the fast 750 cc machines in the dirt. Besides these winners, top riders in the Daytona 200 like Geoff May, Josh Hayes, Cory West, Brandon Paasch and Tyler O`Hara also chose SBS brake pads." www.sbs.dk www.idnmag.com