HARLEY-Davidson’s boss has predicted another tough year after multiple dealerships were axed to save money.
However, he was positive about the major American motorcycle manufacturer’s ability to cope with market fluctuations.
Harley-Davidson on Wednesday reported a fourth quarter loss of $117 million.
This compared with a profit of $26 million 12 months earlier.
Its total revenue for the quarter ending December 31 was $688 million, down 35% from the same period 2023.
But an upbeat Jochen Zeitz, CEO of Harley-Davidson, indicated that the iconic brand would thrive.
He said today: “The industry has faced many challenges over the past couple of years, impacting at all levels.
“But we believe we are best-positioned to take advantage of any uptick in consumption.”
This positive stance comes after multiple motorcyclist dealerships took drastic – and sometimes painful – action.
For example, HD slashed production because of lower demand from motorcycle buyers.
Less than 150,000 bikes were shipped last year – which represented a 17% drop from 2023.
There are more than 650 Harley-Davidson dealerships across America.
However, multiple stores closed for various reasons throughout 2024.
HUGE COSTS
According to Mark Sheffield, a powersports industry insider, this shuttering was likely due to spiralling running costs.
He was quoted in Road Dirt TV last October as saying: “Over the last decade, many of these dealers have constructed what we powersports guys refer to as ‘Taj-Mahals’.
“Those big facilities cost a lot of money to heat, cool, and clean, and as they start to age, they are also expensive to maintain.”
Sheffield said that with “most HD dealers” experiencing a “reduction in unit margins and sales volume, those big buildings are consuming a larger and larger share of the dealership profits.”
He added: “For some, it looks like the pendulum dipped too far in the opposite direction, and shutting the doors is the best exit strategy.”
Harley-Davidson closures in 2024
There are over 650 Harley-Davidson dealerships across America.
However, multiple stores closed for various reasons throughout 2024 – if they gave any explanation at all.
Below is a list of just some Harley-Davidson locations that shuttered last year and why they closed their doors:
The San Francisco location closed in June after 110 years due to ‘chaos’ brought by new management.
Miracle City Harley-Davidson in Titusville, Florida, closed in September with no reason given.
Harley-Davidson’s legacy location in New York City closed shop on September 28, with the owner citing problems with the economy.
Reiman’s Harley-Davidson dealership in Kewanee, Illinois, closed its doors in October after the owners sold the business to the Walter Brothers Harley Davidson dealership in Peoria, Illinois.
Windy City Motorcycle Company opened a two-story dealer in Parkway Bank Park in Rosemont, Illinois, in 2019, but revealed last November that it was closing due to a drop in sales.
Plus, a HD dealership in West Bend, Wisconsin, temporarily closed for the season from November 2 until April 1, 2025.
The Wall Street Journal reported today: “Harley-Davidson had a rough 2024… the company projected motorcycle-sales revenue and per-share earnings in 2025 could fall as much as 5%.
“Chief Executive Jochen Zeitz said Harley has been hurt by high interest rates and low consumer confidence.”
The WSJ reported a “bright spot” for the firm’s lending arm whose “revenue and profit both grew last year due to higher interest rates.”
Analysts said they expected motorcycle revenue to rise 1.5% in 2025, according to data compiled by LSEG, which analyzes financial data.
LUXURY COSTS
Reuters reported that demand for leisure vehicles has dropped since the Covid pandemic.
The news agency added that “cash-tight Americans” have been prioritizing spending on necessities rather than luxuries.
It said that HD “has also struggled to gain traction with younger riders, who are choosing modern, feature-packed and affordable bikes from other manufacturers instead.”
But it’s not just Harley-Davidson that has been hit by lower demand during a time of “sticky inflation and steep borrowing costs” in the US.
Reuters added: “Rival Polaris, maker of motorcycle brand ‘Indian’, also reported a lower fourth-quarter income in January, and said it anticipated ‘challenging headwinds’ to carry forward into 2025.”
2025 LINEUP
Harley-Davidson, based in Milwaukee, recently revealed its all-new and refreshed motorcycles for its 2025 model lineup.
It includes the new Street Glide Ultra long-haul touring model and Pan America 1250 ST adventure sport motorcycle, plus a collection of six revamped 2025 Cruisers.
This year also sees the powerful Sportster S model updated with revised suspension, along with a collection of four limited-production Custom Vehicle Operation (CVO) bikes.
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