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Harley-Davidson

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Indian’s war machine continues to gain momentum, and the challenger to Harley-Davidson’s throne continues to impress. A new video comes our way, this time building on the heritage of the American brand through Burt Munro. One of just many stories around the historic marques, it probably helps that Burt Munro’s name was vaulted into the public consciousness by Hollywood’s The World’s Fastest Indian.

Building an all-metal tribute to Munro’s streamliner, we can find a few flaws that gnaw away at us as we watch this otherwise perfect video campaign (salt veterans know what we’re talking about). Still, Indian is bringing a good fight to Harley-Davidson’s doorstop with marketing promos like these. If you are in the legacy cruiser market, you might have a tougher decisions to make than usual when picking a favorite ride.

It is a fact that isn’t often discussed in the motorcycle industry, but roughly 50% of all on-road motorcycles sold in the United States come from a little company called Harley-Davidson. In 2012 for instance, the Bar & Shield brand sold 161,678 units here in the US, while for the same year the MIC reports 318,105 on-road units were sold nationwide, across all manufacturers.

In a way, the statistic is unfair. A cynical observer would say that Harley-Davidison is in the t-shirts, beanies, and trinkets business…and also happens to sell motorcycles as well. The more accurate critique is that Harley-Davidson sells a carefully curated lifestyle to its owners. A turnkey admittance to Club Cool and a subculture that breaks out of the doldrums of the suburban lifestyle.

You can hate the twenty-something flavors of the same machine that Harley-Davidson panders to dentists and accountants, and you can call the company’s products a number of nasty names, but the simple truth is that they sell, and even when sales aren’t that good, they still sell well. In 2011, the low-point in Harley-Davidson’s five-year sales tailspin, the Milwaukee company still accounted for 48% of on-road motorcycles sold in the US. Chewy.

It is easy to be critical of Harley-Davidson, and there are plenty of things to be critical about (I have had no problem in the past ), but one cannot deny the fact that if Harley-Davidson is responsible for the lion’s share of what we call in passing the motorcycle industry. For Polaris Industries CEO Scott Wine though, Harley-Davidson’s motorcycle dynasty is seen as a market opportunity, though a risky one.

In its May issue, Consumer Reports dives into the topic of motorcycle reliability, and confirms what many of us already knew: bikes from BMW and Harley-Davidson were reported to be less reliable than those from the Japanese OEMs.

Interestingly enough however, BMW and Harley-Davidson owners were also far more likely to make a repeat-purchase with their chosen brand than were owners of Japanese motorcycles, sans those of Hondas, which scored just slightly lower than BMW and Harley-Davidson on customer retention.

Looking at customer complaints of “major” mechanical problems from the last four years, the report from over 4,000 motorcycle owners confirms the high-water mark set by the Japanese OEMs on motorcycle reliability, but also shows the power of good branding as it translates into brand loyalty and customer retention.

While Kawasaki, Suzuki, and Yamaha may be winning the minds of riders with their production prowess, they are losing the hearts of consumers, which is interesting since any salesman will tell you it is easier to keep a current customer, than to make a new one.

Something we missed when it was published, Harley-Davidson has remained on the 2012 Interbrand 100, and even made a 10% gain in value according to Interbrand’s brand valuation. The 76th most valuable brand worldwide in 2009, Harley-Davidson fell to 98th on the list in 2010, and threatened to fall off this list in 2011 when it was ranked as the 100th most valuable brand.

For 2012 however, Harley-Davidson’s brand value seems to mimic its unit sales, finding its rock-bottom value and then making some gains with the slowly recovering economy. After getting a 10% boost in brand value over its 2011 figure, Harley-Davidson ranks 96th amongst the world’s most valuable brands — a far cry from its position several years ago, but a step in the right direction for the venerable motorcycle brand.

Now finished with its BOTT XR1 project, Spanish design and engineering house Bottpower has taken its American-powered street-tracker to Albaida, Spain for a little track time. A custom one-off build for a client, Bottpower has created the machine that Harley-Davidson should have envisioned with the Buell brand.

The BOTT XR1 looks genuinely fun to ride, and is more than eye-catching to our critical eye for design. We hope Bottpower’s plans for a do-it-yourself kit come to fruition, as we could use more of these beasts on the street.

Helped by a strong fourth quarter, Harley-Davidson is reporting signs of growth for 2012, with the company’s global sales again up 6.2% over the figures from last year. With sales up 6.6% in the United States, and 5.6% abroad, Harley-Davidson sold 249,849 motorcycles in 2012, and those sales figures translated onto the balance sheet into a 6% growth in revenue ($4.9 billion) and a 4% increase in net income ($623 million).

“Thanks to the outstanding efforts of our employees, dealers and suppliers, Harley-Davidson achieved its growth and restructuring goals in 2012,” said CEO Keith Wandell. “The ambitious restructuring of our manufacturing operations, aimed at delivering better responsiveness for customers and greater operating efficiency, is now largely behind us.”

According to the folks at Indian auto site Zigwheels, Harley-Davidson is finally ready to get serious about the Indian market, and plans on developing and selling a made-for-India model. The entry-level machine would slot in below the current 883cc Sportsters, and be ground-up manufactured locally in India as well.

Zigwheels goes on to say that its sources peg Harley-Davidson executives from the US and India as meeting with Indian vendors and dealers in order to setup distribution of the new model(s). Expected to debut at the 2014 New Delhi show, the India-specific line will arrive in the 400cc-500cc range, feature a v-twin motor, and cost Rs 3.5 lakh ($6,381).

Slap on your skinny jeans, and get on a hog, because Harley-Davidson is pitching motorcycles to America’s favorite disgruntled demographic: the hipster. For pursuing today’s young and ironically image-oriented subculture, you can’t really fault a company like Harley-Davidson for this move, seeing as it markets its brand around this notion of conformity through non-conformity.

Copying the vintage art house film style of that we see so often on Vimeo (frame borders, sepia tones, and all), I will steal a line from AutoBlog‘s Jonathon Ramsey and say that Harley-Davidson has nailed the Instagram style on its head with this one…right down to its guitar-string audio track and percolating coffee pot cameo appearance.

Thousands of miles from its home in Japan, a Harley-Davidson FXSTB Softail Night Train was found washed up along the coast in British Columbia. Earlier this year, the motorcycle had floated all the way across the Pacific Ocean in a container that had once been part of a box truck.

The truck had broken apart after it had been washed out to sea during the tsunami that followed the T?hoku earthquake, and the arrival of the Harley-Davidson, along with countless other pieces of debris, was a stark reminder to the devastation that had occurred along the Japanese coast just a year prior, in 2011.

Bearing a license plate from the Miyagi Prefecture in Japan, many feared that the motorcycle’s owner had perished in the earthquake or tidal wave, and that the Harley-Davidson would serve as yet another story of loss from the tragic event.

However, through the works of numerous parties, including Harley-Davidson and the Japanese consulate in Canada, the bike was identified as belonging to Ikuo Yokoyama. Found to be living in temporary housing in the Miyagi Prefecture, Yokoyama-san seemed set to be reunited with his Harley-Davidson, until something unexpected happened — the Japanese man refused to have the motorcycle returned to him.

Harley-Davidson is in Italy this week, gearing up for the company’s 110th Anniversary event that’s being held in Rome in June 2013. Apparently part of the pre-party planning involved having Pope Benedict XVI bless two fuel tanks today, with brand ambassador Willie G. Davidson present. This is of course a practice run for the full-bike blessing that will take place next year in St. Peter’s square.

We were going to write a tongue-in-cheek article about how we have never seen a company get as excited about a 110th anniversary celebration (though, there should be some sort of record for making the same motorcycle for that long of a time period), and maybe lace it with some choice idealogical wordplay, but honestly the press release from Harley-Davidson provides ample fodder for the cynics without our help. And here we thought the Pope was more of a Ducati guy