Harley-Davidson, Inc. at a Glance

Uppers

  • Strong brand recognition and customer loyalty
  • Employee discounts on Harley-Davidson motorcycles and merchandise

Downers

  • Recent layoffs and restructuring
  • Pressure to cut costs

The Bottom Line

  • Harley-Davidson is an iconic American brand, a strong company, and a unique place to work.

About Harley-Davidson, Inc.

Harley-Davidson is a major US maker of motorcycles and seller of heavyweight cruisers. The company offers touring and custom Harleys through a worldwide network of more than 1,460 dealers. The company manufactures and markets six families of motorcycles: Touring, Dyna, Softail, Street, Sportster, and V-Rod. It also makes three-wheeled motorcycles. Harley-Davidson sells attitude with its brand-name products, which include a line of clothing and accessories (MotorClothes). Harley-Davidson Financial Services (HDFS) offers financing to dealers and consumers in the US and Canada.

Operations

The company operates through two segments. Its core motorcycle manufacturing operations generate around 90% of its revenue each year; Harley-Davidson Financial Services contributes the remainder of revenue.

Harley-Davidson's Touring, Dyna, Softail, Street, and Sportster are equipped with air-cooled, twin-cylinder engines (in a 45-degree "V" configuration), while its V-Rod sports a 60-degree "V" configuration twin-cylinder engine that is liquid cooled.

The company also makes special editions for peace officers and firefighters. Its products and related lifestyle are supported by H.O.G. (Harley Owners Group). Harley also supports a rental and tour program market, and a rider training program known as Riders Edge.

Geographic Reach

Harley-Davidson generates 60% of its total sales from the US. Its operations are located in the Asia/Pacific, Europe, the Middle East, Africa, Latin America, and the US. Manufacturing and regional offices reside in Brazil, India, Australia, New Zealand, Singapore, and the UK.

Sales and Marketing

Harley-Davidson's motorcycles are sold to customers through a network of independent distributors. The company spends around $130 million each year on advertising. Its products are marketed to retail customers worldwide primarily through advertising and promotional activities via various broadcast, print, and electronic channels. The company targets young adults ages 18-34, women, African-Americans and Hispanics, as well as Caucasian men ages 35-plus.

Financial Performance

Harley-Davidson's revenues remained static for both 2015 and 2016, hovering around the $6 billion mark for both years. The company's profits also fell 8% from $752 million in 2015 to $692 million in 2016. Cash flow from operations increased from $1.1 billion to $1.17 billion during that same time period due to lower net cash outflows from wholesale lending and favorable changes in working capital driven by a reduction in inventory.

Wholesale shipments of Harley-Davidson motorcycles were down 2% in 2016 compared to the prior year; this was in line with a 2% decrease in dealer retail sales of new Harley-Davidson motorcycles. Its motorcycles segment was also affected by unfavorable manufacturing costs and unfavorable foreign currency exchange rates. In addition, its Financial Services segment experienced decreased sales primarily due to a higher provision for credit losses.

Strategy

In the midst of a soft US industry driven by weak oil-dependent region sales, Harley-Davidson is focused on growing internationally. To support this initiative, it has two CKD (complete knock down) assembly plants, which assemble motorcycles from component kits produced by its US plants and by its suppliers. Its first CKD plant is located in Brazil and has been in operation since 1999, and its second CKD resides in India and has been in operation since 2011.

As a primary means of growth, the company adds new dealerships to its network each year. In 2016 it added 40 new international dealerships, and it plans to add a total of 150 to 200 from 2016 through 2020.

Tapping an important new market, Harley-Davidson has introduced its prototype Livewire electric bike and has plans to launch it to the market within the next five years. In total, the company plans to introduce 100 new motorcycles over the next 10 years, including an entire range of electric vehicles.

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Harley-Davidson, Inc.

3700 W Juneau Ave
Milwaukee, WI 53208-2865
Phone: 1 (414) 342-4680
Fax: 1 (414) 343-4977

Stats

  • Employer Type: Public
  • Stock Symbol: HOG
  • Stock Exchange: NYSE
  • President and CEO: Matthew S. Levatich
  • SVP Motor Company Product and Operations: Michelle A. Kumbier
  • President and CEO: Matthew S. Levatich
  • 2016 Employees: 6,000

Major Office Locations

  • Milwaukee, WI

Other Locations

  • Yucca, AZ
  • Kansas City, MO
  • El Paso, TX
  • Menomonee Falls, WI
  • Tomahawk, WI
  • Wauwatosa, WI
  • Cajamar, Brazil
  • Sao Paulo, Brazil
  • Brackley, England
  • Rewari, India
  • Milano, Italy
  • Akishima, Japan
  • Yokohama, Japan
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