The Motor Company – Jeff Maddox

There’s plenty of talk the last couple of years about Harley-Davidson. Most recently with the CEO Jochen Zeitz, stepping down, the internet has had plenty of posts and comments from those who want to weigh in on what H-D has done wrong. Disclaimer; I don’t have the answers.

I’m mostly writing this from my experience, and basic knowledge of being a Harley enthusiast and owner of many Harley-Davidsons. I’ve work in the motorcycle industry for over 16 years and have had my share of long conversations about the Motor Company and what appears to be, a business in decline. So here are some of my thoughts on the matter and since my phone isn’t ringing, apparently nobody is asking me.

Social media can be quite the venue for opinions and observations. I have spent more time than I really should reading comments from many fellow riders who feel passionate about what is going on behind the Motor Company’s shrinking dealer network, seemingly higher prices, aging core customer base and the reason H-D is where they are.

I sold new Harley-Davidson’s for 10 years and I admit, I like the brand and what it represents. At that time I felt that it truly was a lifestyle – at least that’s how I sold them. But honestly, I also believed it, and perhaps I still do. But motorcycles, regardless of the badge on the tank, is a lifestyle. The difference is the Motor Company took it all to another level. From the history of Harley-Davidson and their compelling story, to where they were assembled and how it all ends up at a major rally near you is fascinating. It was easy to get the potential buyer excited and sold on the dream. Whether the customer never went further than to a HOG meeting at their local dealership or decided to go coast to coast, the picture would get painted and all that was left to decide on was what accessories to add and get them to finance. The Customer Path was almost complete. Then came the casual clothing, leather riding gear, poker chips and all sorts of gifts and collectables. The Bar and Shield appeal is strong, and for many years this loyal customer was happy to be a part of a much larger association of riders.

I haven’t sold a brand new Harley since the fall of 2017 but I’m still in the powersports business. We do sell used Harley-Davidsons and have great success with it. In recent years, I’ve been somewhat surprised how values of used Harley’s have fallen. Just to be clear, the wholesale market on used inventory is fluid for all makes, but even I have been surprised with the low values and the plethora of used Harley’s for sale both in the market and at auction.

So I believe the answer to the question of why Harley-Davidson is struggling is in how you are answering this serious question: If you are in the market for a new motorcycle, are you considering a Harley? If not, then why? Are you aging out? Does Harley-Davidson not offer what you’re in the market for? Retail pricing of a new Harley? Dealer location? Politics? All of the above?

I’m a soon-to-be 63 year old average consumer/enthusiast and I can’t see myself not owning a motorcycle. I currently ride a 10 year old BMW F700GS and usually trade about every two years. The nearest BMW dealer to me is 145 miles away. The nearest H-D dealer is 65 miles. I also own a Harley-Davidson Low Rider but it’s not my daily. Retail pricing? I don’t see any reason to buy a new motorcycle of any brand as there are plenty of low-mileage used inventory available. Oh, and I’ve owned nine Harley-Davidsons (only one brand new), I work at a Kawasaki dealership, and have ridden to the largest motorcycle rally in South Dakota for 17 years. Hmm, maybe the problem isn’t Harley-Davidson.

I believe all brands have the same issues. The big difference is most other brands offer something for the whole family. Youth dirt bikes and ATV’s, personal watercraft, side x sides for work and play, dual sports and street bikes. Poker chips? Not so much. Perhaps, Harley-Davidson should open the door for dealers to have the opportunity to be multi-line. Let dealers run their business how they see fit. If you want to remain exclusive H-D, so be it. But if a dealer can offer up solutions to an active family, build potential customers from an early age, fill the service department with more work and give their customers a chance to grow into a Harley-Davidson motorcycle, it might make a difference.

The Harley-Davidson lifestyle is just their version of the powersports lifestyle. There isn’t anything in the rule book of riding that says you can only own one brand at a time, and you must only ride on the street and in groups of more than five. We ride, we race, we raise a family and make friends out of strangers because of these damn things. Again, I don’t claim to have the answers. But I’ve seen those great customers fade into the lifestyle of recreational SxS’s, toy-haulers and grandkids and then come in for another motorcycle.

I believe Harley-Davidson has it’s place in this world. Maybe their vision has been clouded by the smoky burnouts, but with the right person behind the handlebars maybe there is hope. I’ll ask once more; If you’re in the market for a new motorcycle are you considering a new Harley-Davidson? And if not, why? The Motor Company might want to know.

The struggle is real. I can only imagine walking the hallowed halls of the Harley-Davidson Motor Company in 2019, the weight of a legacy built by Harley and Davidson brothers pressing down on you. With over 115 years of constructing this legendary icon and searching for the ways and means to continue this brand for another 115 years, must be stressful. A brand that has survived through literally generations is quite a feat, all-the-while forecasting the future wants and needs of their customers and trying to remain relevant in a ever changing landscape. It’s not easy living in the present and the pressure must be tremendous.

I have to hand it to The Motor Company. The last few years they have made a commitment to bring a plethora of new models to market and contrary to what we see about the LiveWire, not all of them are electric. The new Pan America and the Bronx are classic examples of a more forward thinking company. I, for one, have traded my off my Harley-Davidson Road King for a BMW GS. After logging several hundred-thousand miles on Harley’s tying to find myself, I’ve come to realize I may be hiding down some lonely gravel road or cow trail. And a Gravel Road King it was not.

I, for one, have traded my off my Harley-Davidson Road King for a BMW GS. After several hundred-thousand miles on Harley’s tying to find myself, I’ve come to realize I may be hiding down some lonely gravel road or cow trail. And a Gravel Road King it was not.

But these challenges aren’t exclusive to Harley-Davidson. This modern day dilemma finds a cell phone in every hand instead of a throttle. It’s easier to watch a few internet sensations on YouTube doing what we all should be doing – getting out and experiencing life the way it should be. I applaud Harley-Davidson for taking a leap into other segments, and the development of the Pan America and Bronx are a great start. Looking back, maybe the relationship between Buell and The MoCo came at the wrong time. And before you comment under your breath, the Buell Ulysses was a good motorcycle. And let’s not forget the Sportster XR1200. This is a classic example of Harley actually stepping up their game with a model and a market that wasn’t ready. With all the hoopla surrounding the Indian FTR1200, one would think the XR1200 would be a success on today’s showroom floors. We get excited about new models, but if customers don’t make the purchase, plugs get pulled. Another good bike lost to lack of sales.

Just as the Founding Fathers would never fully see the success of the motorcycles they built, they could truly see the effect their motorcycles had on riders of the day. Besides basic transportation, their motorcycles were a part of the social piece that Harley-Davidson is known for. Rides, races and gatherings brought those with this common bond together – and the sights, sounds and smells were the glue that kept it going. With all this social media we have now, I believe something is missing. Maybe it’s the social part.

…their motorcycles were a part of the social piece that Harley-Davidson is known for. Rides, races and gatherings brought those with this common bond together – and the sights, sounds and smells were the glue that kept it going.

I consider myself an average guy. As a Harley-Davidson enthusiast maybe I’m part of the Motor Company’s problem. As I get older, I’m finding I still love all things motorcycle, but my interests are changing and my desire to see the same roads differently are high. Let’s throw in a random dirt road or trail in for good measure. My last three Harley’s were touring bikes and right now I don’t need another one. I need something that takes me back to when I first started riding and the joy I felt. A dirt bike? No. Because I still need to commute and have the ability to travel. When selling motorcycles over the years I’ve always said “any of these bikes will take you wherever you want to go, but is that how you want to get there?” And at this moment in my life, my Road King isn’t how I want to get there.

As I get older, I’m finding I still love all things motorcycle, but my interests are changing and my desire to see the same roads differently are high. Let’s throw in a random dirt track or trail in for good measure.

Had the Pan America’s release been a few years ago, I would have been riding one. I like it. I also like the direction Harley is going but with it comes the struggle of bringing it’s customers along for the ride. To build excitement for new and old riders alike can be difficult, but not impossible. It can be harder for a company like Harley as they are continuing their legacy. When rumors of the Rushmore Project came out for the 2014 model year, before the Twin-Cooling was introduced, I said in a previous blog post if they build a liquid-cooled bike the masses will buy it. I hope the same for the Pan America and the Bronx.