Apparently we’re not in the business of selling motorcycles anymore – at least not according to Harley-Davidson CEO Matt Levatich. He says H-D is shifting towards a new norm in North America and will now be in the business of bringing in new riders, not selling hardware. Harley, to be certain, had a tough time selling bikes in the U.S. last year, reporting a 3.9% sales drop compared to 2015. But Levatich said in a press call after announcing the Q4 results that the company trained more than 65,000 new riders in 2016. Not bad.
As an industry, we all need to work towards bringing in new riders before we suffer more significant losses. The economic recession was very rough for most of us in the industry, as I’m sure you all remember. What is happening now is not quite as severe as 2008, but will require some strategic thinking to come up with lasting solutions. If the core of the industry is made up of Baby-Boomers who ride cruisers, then how do you make up those numbers when they age out of the market?
The jury is still out. After talking about this scenario with dealers and manufacturers in Cincinnati at the V-Twin Expo last month, the opinions are all over the map. Some believe that the industry will supplement retiring riders with a more diversified range of riders from young to old, male and female with more products to fit their needs and preferences. Some noted that UTVs seemed to have great potential for sales, as families can ride together and they are less intimidating to operate.
Another bright spot, according to the latest MIC Quarterly Report, was the Off-Road Motorcycle segment. Dirtbike sales were up 13.3% in December and 7.7% for the full-year-to-date in 2016. In fact, it’s the only segment that was up in 2016. However, this does not reflect UTV sales since these numbers are still not officially reported through MIC. We think that could be easily twice the number of ATV sales, which would make it the largest segment in the industry – unofficially, of course.
While improved off-road motorcycle sales are a good sign, there is a dark cloud on the horizon that could gut this growing segment as we head into the selling season. The U.S. beef dispute with the EU threatens to impose harsh tariffs on certain European motorcycle imports. This would include any models in the 50cc-500cc range… basically the sweet spot for many of the Euro-OEMs off-road ranges. AMA identified 15 brands caught in the crosshairs, from Beta and GasGas to Husqvarna and KTM. Editor-At-Large Robin Hartfiel goes more in depth on this issue on page 20.
Many of you submitted your comments concerning the tariff to the U.S. Trade Representative (USTR) before the Jan. 30 deadline. Now Americans for Responsible Recreational Access (ARRA) is asking you to submit comments to Congress. There will be a public hearing on February 15 in Washington, DC in connection with the request of representatives of the U.S. beef industry to reinstate action against the EU and we must make our voices heard loud and clear. Speak out now, or as Matt Levatich suggested, many of us will no longer be in the business of selling motorcycles. For more about this issue, visit www.arra-access.com.
