Tag

sales 2017

Browsing

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).

After yesterday’s news of BMW Motorrad’s modest 1.3% sales drop for 2017, today we have another brand reporting its year sales: Ducati Motor Holding.

Like BMW, Ducati’s sales figures from last year didn’t move the needle much, with the Italian brand showing only 0.7% gain over the previous sales cycle. In total, Ducati delivered 55,871 bikes to customers worldwide, compared to the 55,451 units it sold in 2016.

This marks Ducati’s eighth year of positive sales growth, but over the past two years we have seen that growth crawling almost to a halt, as the Bologna Brand has run out of new markets to develop, and new segments to pursue.

End-of-the-year sales figures are starting to trickle in, now that 2017 is behind us, and BMW Motorrad USA has completed its tally. Selling 13,546 motorcycles in 2017, BMW Motorrad is posting a rare decline in yearly unit sales, down 1.3% last year.

Despite this loss, BMW Motorrad is quick point out that other manufacturers are suffering worse than the German brand, with the industry said to be down 3.2%, while BMW’s relevant competition is said to be down 6.3%.

For those keeping score, that is basically like saying “Yeah sales were bad, but look at how much worse the other guys did” in PR speak.

One should not forget the seven recalls (#1, #2, #3#4, #5#6, and #7 here) that BMW encountered in rapid succession during 2017, including the massive fork recall for the popular R1200GS.

The end of 2017 is here, which means that we will start to see the results from the year’s sales cycle (don’t expect good news).

As such, one of the first companies to report in is Triumph, which shouldn’t be too surprising, considering that the British brand closes its books at the end of June (it’s actually surprising that Triumph waited so long in reporting these numbers).

From July 1, 2016 to June 30 2017, Triumph Motorcycles sold 63,404 motorcycles to its dealerships making £498.5 million in revenue in the process. From that, Triumph was able to make £24.7 million, before taxes.

These numbers mean that Triumph has seen a 12.7% increase in unit sales to dealerships over the past financial period. It also means that on the money side, Triumph has seen increases of 22% (revenue) and 48% (income, pre-tax), which isn’t too shabby.

Yamaha Motor has cause for celebration…just not in the United States, as the Tuning Fork brand posted a 6.6% increase in revenue during the first six months of this year, coupled to a 86.8% increase in net income.

These strong financial figures are due to strong unit sales in emerging markets, like Vietnam, the Philippines, Thailand, and Taiwan. But, they come with the caveat that sales are flat in Europe, and down in the United States.

Yamaha has some good excuses for its performance in these developed markets: blaming environmental regulations for the lackluster sales in Europe (we assume they are referring to the Euro4 emission requirements), and a weak overall demand for motorcycles in the United States.

The motorcycle industry is generally full of doom and gloom this year, but BMW Motorrad continues to post record sales, as it boasts of a record first-half of the year, with 9.5% growth.

In the first six months of 2017, BMW sold 88,389 units to customers, up from the 80,754 units sold in the first-half of 2016. That growth is attributed mostly to progress made on the European continent, says BMW, which is up 12.9% so far this year.

Those European numbers break down as follows: France: 9,447 units (+21%); Italy: 9,099 units (+15%); Spain 5,573 units (+8%); and UK/IE 5,410 units (+14%).

Any hopes of the US motorcycle market making gains in 2017 appear to be going out the window, as Harley-Davidson reports that its Q2 2017 sales are down a whopping 9.3% – prompting the Bar & Shield brand to readjust its delivery numbers to dealers in the United States.

Sales worldwide were equally bleak for the American company, with international figures down 2.3% for the same time period. This means Harley-Davidson’s combined worldwide sales numbers are down 6.7% for Q2 2017.

As a result, Harley-Davidson CEO Matt Levatich said that Harley-Davidson would see a reduction in its workforce, though he would not offer specifics on what that could look like for its mostly union workforce.

Though a couple brands are showing gains, 2017 looks like it will be a tough year for the motorcycle industry – a statement supported by Harley-Davidson’s Q1 2017 sales figures, which are down 4.2% compared to last year, with 70,831 motorcycles sold to consumers.

That figure gets worse when you zero-in on Harley-Davidson’s domestic numbers, with the brand’s motorcycle sales in the United States down 5.7% for Q1 2017. Still, it is important to note that Harley-Davidson maintains a 51.3% marketshare figure in the 601cc-plus category, in the USA.

Compare that to Harley-Davidson’s progress abroad, where on its face things don’t seem to be going too poorly, with sales down only 1.2%.

However, it should be noted that shipments abroad are down considerably, 14.7% to be exact, a sign that bikes aren’t moving as quickly as expected in markets outside of the United States.

Triumph Motorcycles America is reporting today a healthy 15% gain in its sales over Q1 2017, compared to the same time period from last year.

Triumph doesn’t breakout its sales figures by model, but we can expect that most of those gains come from the company’s “heritage” lineup, which has seen the addition of five new post-authentic motorcycles for the 2017 model year.

Of course, anyone who has followed the Triumph brand in the United States will greet this news with an ounce of skepticism, as the British marque has earned itself a reputation for being less than forthright with its sales figures.