American Motorcycle Dealer AMD 214 May 2017

™ R OU NOW IN 2 Y 5 EA t R h T H E # 1 B U S I N E S S M A G A Z I N E F O R T H E A M E R I C A N V- T W I N A N D C U S T O M M O T O R C Y C L E PA R T S I N D U S T RY First quarter market share and stock price gains in the U.S. as reduced shipments help dealers move MY 2016 carry-over inventory arley-Davidson’s first quarter 2017 results paint a mixed picture of the company’s fortunes. Overall, their performance to March 31 was no worse than the factory had been forecasting when reacting to the “new reality” that their 2016 annual results represented back in January, with “First quarter U.S. retail sales in line with our projections,” according to CEO Matt Levatich. “We remain confident in our full-year plan despite international retail sales being down in the first quarter. We are very pleased with our continued growth in U.S. market share and the progress our U.S. dealers made in reducing their inventory of 2016 motorcycles in the quarter.” Harley-Davidson retail motorcycle sales in the U.S. were down -5.7 percent compared to the year-ago quarter, driven by soft industry sales and the company’s decision to reduce shipments of model year 2017 H motorcycles - a decision that appears to have succeeded in helping dealers focus on selling down their model year 2016 retail inventory. Harley’s U.S. market share for the quarter was 51.3 percent in the 601cc- plus segment, up compared to the first quarter in 2016. Overall, international retail sales decreased -1.8 percent compared to the same quarter in 2016, resulting in worldwide Harley retail motorcycle grow international to 50 percent of sales sales being down -4.2 percent compared to the same period in 2016. International retail sales were down behind weak sales in Asia Pacific (in particular, but partially offset by strong growth in percentage terms in Latin America). Retail sales in EMEA and Canada were both down as they competed against strong prior year first This is 'El Lunes', a 2004 Sportster based 6th placed Freestyle entry at the 2016 AMD World Championship by Racz Arpad Dorin (Anarchy-Custom) from Cluj, Romania - see more on pages 32 and 33 ... TERM IN El Lunes quarter growth of +8.8 percent and +16.3 percent respectively. However, at just -0.4 percent down, their EMEA (mostly European) sales have actually held up well in the context of poor official “new model” first quarter registration statistics in Europe. Triggered by a rush in the final quarter of 2016 to pre-register held-over Euro 3 compliant inventory (in advance of the January 1 deadline for Euro 4 new model compliance), reported first quarter demand in Europe is being artificially supressed as tens of thousands of zero mileage pre- registered motorcycles (from all manufacturers) sat in dealer showrooms with massive discounts and incentives. Following their 2016 fiscals, the company started to cast its “long-term strategy” as a ten-year plan – citing the objectives it has set itself as achievements to be realized through 2027. In doing so Harley has reiterated the plans unveiled in January this year, now adding more detail to the bones of Continues on page 8 >>> 6th P lace MAY 2017 ISSUE #214 2017 SHOW REVIEW JOHN PARHAM RIP