More Harley-Davidson management changes
- Thread starter TK4
- Start date
Dirty Frank
Well-known member
Lots of doom and gloom about the future of the industry and sport.
Just the new CEO making their changes. Why not, I don't think they could do much damage.
I think what HD enthusiasts really have to worry about is the company being taken over by private equity in 2-3 years
I think what HD enthusiasts really have to worry about is the company being taken over by private equity in 2-3 years
“As we reimagine our future, we are returning to what makes Harley-Davidson uniquely powerful. These changes set us up to deepen our connection to riders and dealers, accelerate data-led and tech-enabled engagement, and unlock the full potential of our operations.”
Blah blah blah blah
Blah blah blah blah
As a small miracle, he didn't toss AI into his word salad.
TK4
Well-known member
Nothing about 'synergy' ?
I just checked, HD market cap is currently $2.55B.
Polaris' market cap is $3.83B...!
damn.
Only two periods during the last quarter-century where their share price has dipped so low was the Dotcom bubble bust in 2000 and the GFC in 2008, where the falling tide lowered everyone's valuations.
I'd say $2.55B is still a pretty big swing for any kind of leveraged buyout, but maybe not for a larger outfit such as an automotive (American?) company looking to get into the motorcycle business on the cheap, or just to get rich selling T-shirts and mugs and cosplay branded pirate gear...
But to your point, if the share price continues to plummet and the valuation reaches $1B or less? Then yeah, I can totally see the vultures swooping down to pick at the bones!
Definitely not AI, otherwise the press release would have generated the text as Harley—Davidson...
IYKYK
I can see a link. Where are people spending their money today?
A generation or two ago purchases were pragmatic. Now there is a huge shift to spending on entertainment, YOLO etc. Dining out is mostly entertainment. Huge bucks for sports live events at $$$ a seat. Full spectrum cable would insure a couple of bikes.
Going out for a coffee and snack @ $10 a head instead of home brewed Folgers and a cookie at $1.00.
Few people ride because it's practical. It's usually just a more entertaining way to get somewhere you really don't need to be.
The psychology of selling entertainment is different from selling industrial equipment where the bottom line is the cost of producing a widget.
Harley's problem is exacerbated by their technology issues. Retro isn't for everyone.
Having a Cadillac luxury barge used to be the sign of success. Now it's a sports sedan or pickup.
The rah, rah, rah, built in the USA, even with Trump rhetoric, doesn't carry the weight it once did. Production costs can be reduced by getting stuff made, sorry, more stuff made in China. HD becomes Charley Davidson.
Good luck Mr H-D CEO. What is the more gut wrenching task?
Changing H-D or changing the clientele?
Harley-Davidson uniquely powerful.
I guess if you want a really loud, powerful, expensive paperweight.
Dirty Frank
Well-known member
I agree with him that the bushing is WAAAAY overpriced and it IS gouging.
But....
The price is set using a number of factors.
I doubt very much that they made "millions" of them. As he said, it's likely a unique to HD sportsters part. At some point in the lifecycle of the model, HD likely determined that demand for this part was relatively low, and as we all know that MOST HD's don't rack up a lot of miles over their life. So Harley probably didn't create a huge inventory of them. That's probably why the dealer he talked about had to source them from multiple places.
Harley likely uses a formula that identifies the part as low demand, low inventory and adds a premium to the price. On top of that, I get the feeling that the MoCo isn't a fan of the do-it-yourselfer's and non-dealer repairs, so they add another premium to the part price to discourage it some more.
Still there isn't really a justification for such high pricing. As a comparrison, a cam bushing for my Norton Commando is 19.11 (CDN) from Walridge Motors.
TK4
Well-known member
There was a time while Mr. Honda was alive that he promised to have replacement parts available forever, even if it meant remanufacturing them. Sadly, about 20 years ago that policy came to a grinding halt.
Neil Graham writes an excellent column about the MoCo. I listened to the podcast, but the article articulates the idea better.
The chance of it happening is absolute zero, but it doesn't mean it's wrong.
The chance of it happening is absolute zero, but it doesn't mean it's wrong.
410001661
Well-known member
Not sure what other industries, and the laws governing them, are like but in the electrical manufacturing realm (in the US) we will support OEM equipment up to 7 years after equipment enters obsolescence - application/tech support, spart parts and service. After 7 years it is a hard stop and we will stop all manufacturing of OEM spare parts and once we sell out they are gone forever.
This created a large aftermarket of new and refurbished parts and assemblies.
This created a large aftermarket of new and refurbished parts and assemblies.
I wonder if in HD's case the fact that the company still exists limits the aftermarkets' ability to produce proprietary engine parts like the bushings in question. They could be a size and/or dimension unique to the evo sportster engines and that might preclude aftermarket production.
Whereas with my Norton, old Triumphs, BSA's etc. since the original company is (long) gone production and availability is only governed by demand.
AFJ
Well-known member
A pair of new camshaft bushes for my 1938 v-twin British motorcycle are available for about $66 (Canadian $), plus postage.
This on a motorcycle engine model not made since 1940.
($735 for a new camshaft.)
The "available parts list" for this long-ago (1920-1940) make is 18 pages long,
This on a motorcycle engine model not made since 1940.
($735 for a new camshaft.)
The "available parts list" for this long-ago (1920-1940) make is 18 pages long,
I think it would be hard for HD to win a copyright suit on a brass top hat with only a few critical dimensions. Whoever wanted to make them would have to be careful that they didn't get dinged for using the brand name. None of that precludes HD from threatening a small shop that doesn't make enough to bother fighting.
At $57 each, you would be way ahead to bang them out of a piece of brass barstock. Obviously a lathe makes that easier but I suspect you could get close enough with a drill press to rotate the stock and portable bandsaw as the rough cutting tool. Finish with a file.
