“Is Harley Davidson going out of business?” This question has continued to resound through the minds of motorcycle enthusiasts and investors alike as the legendary brand struggles with various challenges lately.
If you are a lover of Harley-Davidson motorcycles, you will agree that this brand has had a fair share of its tough times lately. With plummeting revenues, fluctuating sales, and an aging customer demographic, the company is at a crossroads that determines its future.
But is Harley Davidson going out of business, really? Or is this just another difficult phase it needs to overcome and come out strong like it has always done? Just keep reading to find all the answers you need about this company.
Is Harley Davidson Going Out of Business?
A drastic $2 billion revenue drop since 2014 and consistently diminishing global sales have painted a bleak financial picture for Harley-Davidson. Yet, amidst these challenges, the brand has managed to keep the wheels turning, demonstrating a resilience that’s been a hallmark since its inception in 1903.
Many iconic brands like this have indeed fizzled out of the market in the past, so it won’t be much of a big deal if Harley-Davidson follows the same trend.
But from the look of things, especially the company’s recent plans that were shared with its customers and loyalists, it doesn’t look like they are waving the white flag yet.
So, is Harley Davidson going out of business? The simple answer is no – at least as of the time of writing this post.
Warren Buffett Has Once Helped Saved Harley-Davidson from Drowning
For people who are concerned that the company might be going down because of its present financial predicament, they should know this is not the first time Harley Davidson will be navigating this kind of water. Warren Buffett, the billionaire entrepreneur, has once saved the company from drowning in the sea of bankruptcy.
In 2009, when bankruptcy loomed ominously over Harley-Davidson amidst the financial crisis, Warren Buffett threw a $300 million lifeline to the struggling motorcycle giant, providing the much-needed financial buffer to navigate through turbulent times.
Buffett’s belief that the brand was “not going out of business” catalyzed a temporary stability that’s remembered even today. So, if Harley is presently facing financial struggles, you can bet it will likely again find its way back up.
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Is Harley-Davidson Closing Plants?
Indeed, people have been asking, ‘Is Harley Davidson going out of business?’ because of the love they have for the company.
However, looking closely at this speculation, one major factor that has fuelled it is the occasional halting of production at Harley’s plant in York, Pennsylvania, which has happened more than once in a short span.
In 2022, the plant unexpectedly shut down due to issues with a brake line part from a supplier. Not much detail was given, but it was enough to raise eyebrows and stir conversations about whether there might be bigger, underlying issues at play. A second production halt happened not long after, once again attributed to parts supply issues, but specifics were not given.
These temporary closures have more than just immediate, tangible effects; they also shake the confidence of investors and possibly even loyal customers. People have now been wondering if perhaps this could be a sign of a future where the company might consider permanently shutting down plants.
But that’s not all of what’s causing fear in the minds of people. Let’s talk about some more in the sections below.
Harley-Davidson Faces a $2 Billion Drop Since 2014
In the past several years, Harley-Davidson has faced a bit of a tough ride. The company has seen a notable dip in its financials, specifically a $2 billion decrease in revenue since 2014. The company went from annual revenue of $6.2bn in 2014 to slightly above $4bn in 2020.
This wasn’t just a quick drop but a gradual slide that caught the attention of folks who watch the business side of things. Many people wonder why this is happening to such a well-known brand. While many factors are responsible for this, it brought a major concern to the minds of people about the company.
The Company’s Sales Take a Global Hit
Harley’s sales are going down, not just in one place but all around the world. That means fewer people are buying their motorcycles in lots of different countries. It’s a bumpy road, with numbers sliding down over recent years and making everyone in the business take a serious pause.
Since 2006, the company’s sales have gone down by approximately 40%. In the U.S. alone, Harley’s sales have been down by about 17%. This sends a strong signal to investors and motorcycle enthusiasts that Harley-Davidson might be in a precarious position that demands strategic evolution.
Harley’s Brand Equity Takes a Dive
Despite being a major player in the US, with a whopping 30% of all motorcycle sales, the world-famous brand is losing its sparkle.
A while ago, in 2009, a group that knows a lot about brands (they’re called Interbrand) said Harley-Davidson was the 73rd-best brand in the world. Fast forward to now, and they’ve slipped down to 99th. That’s a pretty big tumble and a sign that people don’t look at the brand like they used to.
The bigger picture shows the US is just a small part of a huge motorcycle-loving world, and here’s the kicker – the largest market, India, isn’t playing ball with Harley anymore. Harley-Davidson has packed up and left India entirely, despite it being the top spot for loving bikes.
And it’s not just about where they’re selling, but who they’re selling to. The young folks, who are super crucial for keeping a brand alive and kicking, aren’t being wooed by Harley.
The Millennial Effect
Back in 1985, if you bumped into a motorcyclist in the US, chances are they were around 27. But zoom ahead to 2018, and that age leaps up to 50! Harley riders are getting older, too. In 2008, a typical Harley fan in the US was 48 years old.
Now, that’s a big old flag waving at Harley, signaling trouble ahead. Because as their core fans, the affluent baby boomers, ride into the sunset of their biking days, they’re trying to figure out how to charm the younger crowd.
Unfortunately, the millennials, the new kids on the block, look at motorcycles through a different lens. Unlike their predecessors, who saw bikes as a fun hobby, millennials see them as a nifty, practical way to get around. And they want all that without the heavy price tag of a typical Harley, which hovers around $25,000-$30,000.
So unless Harley can turn this journey around and make their heavyweight bikes creep into the hearts of younger riders, they might just keep cruising down this bumpy path, with their aging demographic in the rear-view mirror.
Harley Plugs into the Electric Future
There is no doubt that the world is presently buzzing about electric bikes. Why? They’re eco-friendly, they combat air pollution, and there’s more money pouring into places where you can charge them. In 2019, this market was valued at a cool $30 billion. And it’s predicted to grow by 4% annually till 2026.
So, what’s Harley’s move? They’re dreaming big. They’ve got a mission to entice 2 million young riders in a decade. How? They’re planting riding schools across the nation for starters. But the real show-stealer is their shiny electric motorcycle, the ‘LiveWire’. Sales are amazingly picking up speed, and you can bet this motorcycle is a head-turner. People who might’ve never given Harley a second glance are now stopping to take a closer look.
Is Harley Davidson Going Out of Business – Final Note
Although Harley-Davidson is presently going through turbulent times, there has not been any official statement stating that the iconic band will soon be going out of business. Yes, sales have dipped, and the company is gradually losing grip on its customers, but that doesn’t mean they are calling it quits and shutting its doors.
In fact, the company made some recent moves that showed that they are still very much in the game. With electric ventures and new models on the horizon, it’s obvious Harley isn’t throttling down just yet.
FAQs
Why do people still buy Harley-Davidson?
People continue to buy Harley-Davidson motorcycles because of the brand’s iconic status, its rich history, and the distinct, powerful roar of its engines. The brand embodies a sense of rebellion and freedom that many riders aspire to.
Another important factor is the bikes’ classic designs and the strong, supportive community of Harley riders. All these add to its appeal.
Why are Harleys better than Honda?
Well, we wouldn’t say that Harleys are better than Honda as both brands have their own strengths. Harley-Davidson is often praised for its classic design, distinctive sound, and strong rider community.
On the other hand, Honda is known for its reliability, diverse model lineup, and often, more affordable pricing. The “better” brand largely depends on rider preference and intended use.
Is Yamaha more reliable than Harley?
In various reliability surveys and studies, Yamaha often scores higher than Harley-Davidson in terms of reliability. Yamaha motorcycles tend to have fewer issues and require less maintenance than Harleys. However, it’s essential to note that brand loyalty and design are factors where Harley-Davidson shines, and which might outweigh reliability concerns for some buyers.
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