Opinion/Editorial

Is the Presidential Election Hurting Harley-Davidson’s Sales?

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No matter your political leanings, you cannot deny that the upcoming presidential election is grabbing a lot of headlines, and dominating our social discourse – and that is perhaps the way it should be, as electing the leader of the free world is no trivial matter.

Whoever leads the United States of America after January 20th will have a dramatic affect, not only on the American public sector, but also on the American private sector. The daily business and life of America are intrinsically linked to this country’s politics.

It is therefore not that uncommon to hear of American business leaders voicing their opinions, and endorsing political candidates for office – sometimes they themselves even run for office – so, maybe we shouldn’t be that surprised to hear that Harley-Davidson CEO Matthew Levatich weighed in on the 2016 election cycle.

It is a bit surprising to hear what he has to say though…

Talking to financial blog The Street, Levatich didn’t hold back his thoughts about the 2016 election cycle, and how the discourse among the candidates is affecting his company.

Levatich accused both sides of the aisle for failing to engage the public in intellectual discourse, but he saved some choice words for the Republican party, saying that “quite frankly they seem to be leading the crazy parade.”

In the interview, Levatich explains that Harley-Davidson sells motorcycle across the world (in over 90 countries abroad); and in foreign markets, part of the allure in buying a Harley-Davidson is its representation of being quintessentially American.

If America the brand gets tarnished by the politics playing out for our election, then Levatich explains, Harley-Davidson the brand suffers as well.

This is of course an interesting comment coming from the company that has used its own style of Americana to hawk motorcycles for the last 30 years or more – most of those campaigns cheapening the ideas of “freedom” and “independence” to sell out-dated motorcycles and over-priced foreign-made t-shirts.

There is also a certain irony to Levatich’s comments, considering the decidedly conservative leanings of the motorcycle industry, which is anchored by Harley-Davidson’s appeal with “red” voters. Best not to bite the hand that feeds you.

However, the reality of course is that beyond the election cycle we are watching the politics of motorcycling subtly play out as well.

Just as the 2016 election process is a response to the changing socio-economic conditions in the United States (disenfranchised white voters who are watching the American dream leave what was once the middle class), so too is the American motorcycle industry struggling with its own demographic sea change.

The fact that Harley-Davidson sales are down over 5% in the USA so far this year could be just as much a result of the current turmoil in our country as it is a bellwether of what is happening within the microcosm of our industry.

As someone who pores over industry financial reports and sales statistics each quarter, I can tell you that the “red” motorcycle brands seem to be struggling, while “blue” motorcycle brands seem to be having record sales years, year-over-year.

This shouldn’t be new information to anyone paying attention, though the division of brands along a political spectrum might be a new construct to use when assessing the health of the motorcycle industry.

Without the details and special circumstances that affect each motorcycle brand individually, perhaps this political division between motorcycle brands is a reflection on the precarious state and juxtposition, of these two divergent groups of motorcycle buyers. It’s something to chew on.

Source: The Street via PowerSports Business

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