Owning a chromed or custom Harley-Davidson is “not about transportation; it’s about an experience,” says the company’s chief executive, James Ziemer.
That’s clear even to most nonmotorcycle fans, who on any given day are likely to see T-shirts, leathers, window decals, cigarette lighters, bandannas and other paraphernalia emblazoned with the company’s trademark bar and shield.
But there’s one Harley-Davidson Motor Co. item that hasn’t been selling as well in the U.S. recently: the motorcycle itself.
Sales of the heavyweight bikes were down 10.2 percent in the first six months of this year, and the Milwaukee company is cutting back production as much as 40 percent to whittle its inventory.
“For 15 years, Harley-Davidson couldn’t make enough motorcycles for middle- class guys,” said leisure-industry analyst Robert Simonson of William Blair & Co. “They couldn’t make enough of what was making them a lot of money, so they didn’t design product or market to other groups. Now they need to.”
Many dealers are also feeling the pain, as the economy weakens, credit tightens and the motorcycle market becomes increasingly transportation-oriented. Some are even starting to offer products that would have been sacrilege in better economic times: They’re selling fuel-efficient, foreign-made — even electric — scooters on the same floor as Harley’s flag-waving, thunderous internal-combustion cruisers, affectionately known as Hogs.
It is, to be sure, a culture clash, but desperate times are calling for desperate measures at some dealerships, especially in California and Florida, the top two motorcycle markets, and other areas that have been more severely affected by the down economy.
At the Harley outlet in Glendale, Calif., sales are off about 20 percent this year, with high-priced touring models — “usually our lead products” — particularly hard hit, said Emily Vindeni, controller of the shop.
