Harley's Overseas 'Americana'
According to Wedbush analyst James Hardiman, many people willing to buy motorcycles are opting for used ones, sold at lower prices.
"(Harley) sell Americana, essentially," Hardiman said. Currently, Harley locates a small amount of production outside the U.S., as well as facilities in India and Brazil that assemble bikes from components manufactured in the U.S.
"They have been big advocates of free trade," he continued. "But at the same time the last thing you want to do is get in a Twitter war with the president of the United States, whose support base clearly overlaps with their customer base."
New Bikes Riding To The Rescue?
Last month, Harley said it would unleash several new bikes, slash costs and unveiled smaller-format retail stores to beat back a ridership decline. The iconic motorcycle maker hopes to lure new and international riders with smaller bikes and its first electric motorcycle, as U.S. growth stalls in the U.S.
The Milwaukee-based company will produce a 250cc-500cc motorcycle aimed primarily at India. It plans its first electric motorcycle in 2019 to woo new riders, with several more lighter and smaller models set to follow through 2022. It also will continue to improve traditional heavyweight motorcycles, such as the Cruiser, and introduce a modular 500cc-1250cc middleweight platform.
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