Despite showing a rebound for 2011, and several brands posting strong growth over the past six months, industry-wide motorcycle sales in the United States grew only a modest 1.7% over the first six months of 2010. The news comes as Honda, Yamaha, and Kawasaki report continued sales decreases in 2011, and as the Japanese brands constitute a large portion of sales in the US, those losses have more than offset the record sales posted by smaller unit sellers like Ducati and BMW.
Harley-Davidson had some good news to report in its Q2 2011 financial report, as the Milwaukee company reports selling 53,599 units to customers in the US during the three-month period, and total of 83,396 units worldwide (120,642 units worldwide so far this year). These sales figures translate into a 5.6% sales increase worldwide, and an even more impressive 7.5% sales bump in the United States market.
While those increases might seem modest, CEO Keith Wandell’s restructuring efforts have clearly been paying off for the Bar & Shield brand as operating income was up 36.8% for Q2, while revenue was up only 18% to $1.34 billion. This is also the first year-over-year quarterly rise for unit sales that Harley-Davidson has seen since the Q4 2006. Read that last sentence again, but it’s sort of a big deal for Harley-Davidson.
BMW Motorrad continues to post improved sales in 2011, as the German manufactuer is showing a 2.1% increase for last month’s sales compared to June 2010. Selling 11,831 motorcycles in June of this year, BMW has sold 141,913 motorcycles in the first half of 2011, which means 6.3% more Bavarian motorcycles have been sold in Q1 & Q2 of 2011 compared to last year. BMW’s Boxer series is unsurprisingly leading sales for the company, fueled by the best selling big-displacement motorcycle in the world: the R1200GS.
BMW is reporting strong sales from the K1600 series as well though, with 1,255 units sold since its Spring 2011 debut. While BMW says that the new six-cylinder tourer is exceeding expectations, Husqvarna’s paltry 450 units sold last month is perhaps a bit of disappointment. Husky sales were down -57.3% for June, while year-to-date sales were down -24.2% with only 3,530 units sold in the first half of 2011.
Honda is recalling 3,020 VT750 Shadow motorcycles made between June 25, 2009 and March 28, 2011 for a back angle sensor that may have been incorrectly manufactured. Because of this defect, there exists the possibility that an erroneous reading could be taken from the sesnor, causing the engine to stall.
Because of the risk of stalling the motor may cause a crash, Honda is replacing the affected sensors free of charge, with a recall expected to start June 20, 2011. Concerned Honda Shadow owners can contact Honda Motorcycle customer service at 1-866-784-1870, and as always the NHTSA is available at 1-888-327-4236 or safercar.gov.
Source: NHTSA
The BMW Group has reported its monthly and year-to-date (YTD) sales for May 2011, and the results are a mixed bag for the German company. Selling the lion’s share of motorcycles in the group, BMW Motorrad posted a modest 3.5% sales increase last month, over the sales figures from May 2010, and a 7.3% sales increase over YTD sales compared to last year as well.
However, BMW’s other motorcycle subsidiary, Husqvarna, didn’t fare quite as well. The Swedish brand posted a 59.5% drop in sales for May 2011, with that figure helping contribute to a 14.6% drop in YTD figures compared to 2010. The silver lining perhaps in that news is that Husqvarna sold only 537 bikes this may, while BMW Motorrad sold 12,568 (roughly half of what the MINI brand sold last month).
Here’s a type of recall that we’ll begin to see more of in the coming years, Ducati North America is recalling 1,051 Diavel and Multistrada 1200 motorcycles because of a faulty software issue. A certain version of the hands free software package may cause the electronic steering lock to fail to disable during the “key on” process.
The result is that a rider would be unable to move their motorcycle, at least not beyond a small radial path. In the eyes of the NHTSA though, this could mean that a rider could start the motorcycle and attempt to ride off, and then realize they lack the ability to steer (read: not good). While the safety issue here seems fairly benign, the idea that one couldn’t get their bike moving because a 0 should be a 1 would be fairly frustrating to us if we were owners of either machine, hence the recall.
It would seem the motorcycle industry has found the bottom of the recession, with first quarter sales in 2011 showing 7% growth over 2010’s numbers here in the United States. Ducati has already posted strong numbers for Q1 2011, and BMW is posting its best quarterly results ever. Even Harley-Davidson is showing some signs of life with a 3.5% sales increase so far this year. However the good news does not extend to Japanese behemoth Honda Motor Co.’s motorcycle division.
Selling 300,000 more units in the past three months than it did in Q1 of 2010, Honda’s 12.7% sales growth was not enough add more to the top line (and bottom line) compared to last year’s financial figures. Seeing a 3% drop in revenue, one can surmise that while Honda is selling more units in 2011, those units sales are coming from cheaper models, presumably scooters, and not from pricier full size models.
Before the opening bell on the New York Stock Exchange, Harley-Davidson posted its first quarter numbers of 2011 this morning. Despite earnings being up 350% when compared to Q1 of 2010, Harley-Davidson is showing only a modest turnaround compared to its competitors, as worldwide sales are only up 3.5% compared to last year’s. Still, the company has to be pleased with being back in the black, as Harley-Davidson reported over $119 million in profits (Harley-Davidson made $33.3 million in Q1 2010).
The reason for the less enthusiastic news is because these positive numbers were fueled by the company’s financial services division, which is finally posting profits after nearly collapsing the company during the recession, instead of an increase in bike sales. While Harley-Davidson is touting a 155% revenue increase from the HDFS side of accounting books, it goes without saying that when one does barely any financing in 2010, it’s easy to post results like this. Furthermore, future HDFS financial success is pegged to new Harley-Davidson motorcycle sales, which still show a bleak future.
Photo: Yamaha Racing
The BMW Group has released sales information for its motorcycle sales in Q1 of 2011, and the results are impressive. Posting its best quarter ever, BMW Motorrad sold 23,109 motorcycles in the first three months of this year, up nearly 11% from last year’s figures. True to trend, but still interesting enough, March lead the quarter, accounting for nearly half (11,675) of those sales for BMW (January had impressive numbers too though). BMW doesn’t state which models are responsible for this record number of sales, but educated guess would again suggest the hot S1000RR superbike and K16000-series tourer, along with the always well-sold R1200GS.
Ducati North America announced today that sales figures for the first quarter of 2011 are up 68% compared to last year’s numbers. The third month in a row of positive sales growth, Ducati’s North American market is clearly recovering from the recession, with all models in the company’s line showing positive growth. “We have had an outstanding start to the year,” said Cristiano Silei, CEO of Ducati North America. “We expect our growth to continue strong for the rest of the year with our most sought out newest product, the Diavel, just hitting dealer showrooms in late March.”