The economic outlook for Harley-Davidson right now is not looking good. Just last year, the Bar & Shield brand cut 118 jobs from its plant in York, citing the need to cut production costs, and to reduce factory capacity so that it was more inline with consumer demand.
That demand has seemingly dropped even further though, as Harley-Davidson will cut 260 jobs from its production ranks, losing roughly 800 positions in Kansas City, but adding 450 positions back to its York facility, where it is consolidating.
The news comes as part of Harley-Davidson’s recounting of its rough go at 2017. The American brand saw its sales in the United States down 8.5% (down 6.7% worldwide), with the fourth quarter of the year taking a particular beating: down 11.1% in the USA (9.6% worldwide).
If you haven’t heard of Moto Guild yet, don’t worry, you soon will. The concept is pretty simple, motorcycle-friendly workshops where enthusiasts can work on their own machines with the standard and special tools that are readily available.
Moto Guild has been slowly expanding beyond its Californian borders (locations in San Francisco and San Jose) the past couple of years, opening first a new shop in Chicago, and today a new location in Philadelphia has been announced.
I will admit my own bias to this project, as I am friends with Moto Guild’s founders, and was a regular user of their San Francisco location when I lived in the SF Bay Area. Needless to say then, I am excited to see their concept expanding across the country.
The speculation about RevZilla and Cycle Gear can stop now, as the brands are finally talking about their plans together for the future.
In a letter posted to RevZilla’s in-house publication, Common Tread, RevZilla CEO Anthony Bucci announces that RevZilla will be acquired by a new holding company, which will also own Cycle Gear.
The holding company’s board of directors will include Bucci, and his fellow RevZilla founders Nick Auger and Matthew Kull, as well as the private equity firm J.W. Childs, which bought Cycle Gear back in 2015.
While Bucci’s letter to RevZilla customers states that the two brands will only be “sister companies” that will operate independently of each other, his FAQ on the subject leaves the door open for collaborations between the two brands, which would be the obvious benefit of their new ownership structure.
Respected newswire Reuters is reporting that Cycle Gear is close to finalizing the purchase of motorcycling e-commerce giant RevZilla. Citing a source “familiar with the matter” at hand, Reuters suggests that the deal could close in the next coming days, with the new venture worth between $400 million and $500 million.
If true, this acquisition would mark a titanic shift in the motorcycle retail space, with America’s largest brick and mortar chain combining with the industry’s most prominent online parts and apparel purveyor.
Before I make my customary offensive remarks about states that aren’t California, it should be noted that we here at Asphalt & Rubber are eternally grateful for the fine Commonwealth of Pennsylvania, the birthplace of our humble motorcycle news blog. That being said, it’s also good to see that the Keystone State has pulled its head out of its ass long enough to pass a bill (passed in the Senate, with the House still to vote) that would allow motorcycle dealers to sell motorcycles on Sundays, though car dealers will still have to abide by the current legislation.
“I’m not sure why it was ever done,” said State Representative Eugene DePasquale (York County). “I’ll leave it to legislators who were alive when that passed to answer that one.” Talking of keeping the status quo for car dealers, State Senator Richard Alloway II (Adams, Franklin, and York Counties), the bill’s co-sponsor, said, “I have heard a lot of car dealers like to be closed, so it’s a day people can walk lots with no pressure from anyone and window shop.”
Fresh on the heels of Wisconsin’s Harley-Davidson branded license plates, the Keystone State is set to make Harley-Davidson the official motorcycle of Pennsylvania. An honor already bestowed by Wisconsin this past February, Pennsylvania also has a bill in the state’s House of Representatives that would give special status to the Bar & Shield.
Sponsored by Representative William Kortz (D-Allegheny County), the Pennsylvania law would pay homage to the “thousands of Harley-Davidson enthusiasts [who] have trekked to York to witness firsthand the living legacy of Harley-Davidson USA.” The bill continues on with some feel-good patriotic sentiment, saying that “the Harley-Davidson motorcycle is a true-blue American iron horse manufactured in Pennsylvania by American workers using American steel.”
Harley-Davidson is looking to slash costs wherever they may be, and that includes its assembly/manufacturing line labor costs. HD and Milwaukee go together like peas and carrots, but Harley-Davidson has warned that if it doesn’t see lowering labor costs, it could walk away from Wisconsin all-together. At issue is nearlt $54 million in what Harley calls “costs gaps”, which the company attributes to the high cost of manufacturing at its Menomonee Falls and Tomahawk facilities.