Iconic Motorcycle Dealership shuts down after 110 YEARS

[JCSR]

I would normally post this in the Motorcycle thread but this is happening all over in the new Woke America.

But there is now concern that even more Harley-Davidson dealerships may close amid a conservative boycott of the storied American company - which they say has gone 'woke' under CEO Jochen Zeitz.
He went on to claim that DEI efforts have changed life inside the company of some 6,400 people.

Some 1,800 employees were trained on how to become an 'LGBTQ+ ally,' he said, while some sessions singled out white men for specific diversity-training.

Motorcycle dealership shuts down after amid 'chaos' over DEI

The San Francisco Harley-Davidson abruptly closed its doors for the last time after 110 years amid some 'chaotic' final days, after it was taken over by new management.

www.dailymail.co.uk

 

[BehindBlueI's]

Harley's troubles may be exacerbated by DEI, but that's just one small hole in an already capsizing ship. In round numbers, if you put $1k in HOG in 2014, you'd have $500 today vs $4,000 if you'd put it in NASDAQ index funds.

A stock that's lost half it's value over the last decade while the market it's listed in has grown to 4x is not a healthy or sustainable business. Total sales peaked nearly 20 years ago and I don't think they can reverse the trend. Their core demographic is literally dying off. Harley was a lifestyle brand that happened to sell motorcycles, and the lifestyle they tried to sell at the price they tried to sell it at never caught on with younger buyers.

 

[Kdf101]

Too expensive. I don’t think they can be saved.

 

[Creedmoor]

Harley's troubles may be exacerbated by DEI, but that's just one small hole in an already capsizing ship. In round numbers, if you put $1k in HOG in 2014, you'd have $500 today vs $4,000 if you'd put it in NASDAQ index funds.

A stock that's lost half it's value over the last decade while the market it's listed in has grown to 4x is not a healthy or sustainable business. Total sales peaked nearly 20 years ago and I don't think they can reverse the trend. Their core demographic is literally dying off. Harley was a lifestyle brand that happened to sell motorcycles, and the lifestyle they tried to sell at the price they tried to sell it at never caught on with younger buyers.

Not necessarily with the Harley, depends on which model. The FX line has always held its value much better than the bagger and upper end lines.
I can sell my Pans and Shovels for much more than I paid for them.
My 2010 FXDC twin cam is worth a few grand more than I paid for it.

 

[BehindBlueI's]

Not necessarily with the Harley, depends on which model. The FX line has always held its value much better than the bagger and upper end lines.

HOG is their stock symbol.

 

[Creedmoor]

HOG is their stock symbol.

I was just making a point as a owner for over 45 years, since 1975, that not all models loose money.

 

[BehindBlueI's]

I was just making a point as a owner for over 45 years, since 1975, that not all models loose money.

Stipulated, but nothing in the conversation was about individual models or retaining value on the used market so I was somewhat confused by you quoting me and offering the info. The post you quoted was about buying stock, not a bike.

 

[Creedmoor]

Stipulated, but nothing in the conversation was about individual models or retaining value on the used market so I was somewhat confused by you quoting me and offering the info. The post you quoted was about buying stock, not a bike.

Yes, I was aware. Stock goes up and stock goes down.
Companies evolve or they die, like Indian has a few times. There is a reason that Honda shut down its American Plant.

 

[armalitesheepdog]

San Fran dudes then
Sand Fran dudes now

Any wonder the HD Dealer in San Francisco is closing…….
Harley will never die all together. It may change ownership or some radical change of some sort but we will see HDs on the road forever

 

[miguel]

I know ZERO about motorcycles, but I am curious to know how many Harley riders are under 40?

It seems like there is always some "old" (not 20/30-something) person on them. Will that hurt their company/business long term?

Would enjoy hearing from someone who knows motorcycles on this topic!

 

[BehindBlueI's]

Yes, I was aware. Stock goes up and stock goes down.

Well, until it stops going up. Which HOG did in November of 2006. It's been some version of down ever since with no signs of turnaround. Harley is withering and has been for quite awhile. They'll probably limp along for the foreseeable future, but I think they are going to be another Kodak. A former powerhouse who is too burdened by their past to pivot into the future successfully. The DEI move will certainly not help.

It seems like there is always some "old" (not 20/30-something) person on them. Will that hurt their company/business long term?

Yes, and it already has. They've not been able to capture the youth demographic for quite awhile. Part of it, I think, was their dealer network which had a reputation for acting like they were doing you a favor by letting you buy one of their bikes. I came home to the US in my mid/late 20s ready to buy a motorcycle. Harley dealers talked me out of a Harley. I ended up with a Goldwing then and a Victory later. And this is someone who was in the core demographic they were chasing, they spent a ton of money advertising on military installations overseas at the time.

 

[foszoe]

Well, until it stops going up. Which HOG did in November of 2006. It's been some version of down ever since with no signs of turnaround. Harley is withering and has been for quite awhile. They'll probably limp along for the foreseeable future, but I think they are going to be another Kodak. A former powerhouse who is too burdened by their past to pivot into the future successfully. The DEI move will certainly not help.

Turn out like Westinghouse or other iconic brands. They get bought and continue to live on but they are not really the company they used to be.

I think of them like hermit crabs.

 

[Creedmoor]

Well, until it stops going up. Which HOG did in November of 2006. It's been some version of down ever since with no signs of turnaround. Harley is withering and has been for quite awhile. They'll probably limp along for the foreseeable future, but I think they are going to be another Kodak. A former powerhouse who is too burdened by their past to pivot into the future successfully. The DEI move will certainly not help.

Well, I've been hearing that since I was a teenage kid and AMF owned Harley Davidson. But yet, 40 years later, they are still in business as a Multi National Company.

Harley Davidson will adapt to today's world and its needs, just like its been doing since 1903.

 

[armalitesheepdog]

Anyone remember this during the heyday of the American Biker

 

[Ark]

Too expensive. I don’t think they can be saved.

When the family Walmart order increases 400%, the first thing to go is Dad's Carbine II class. The second thing to go is Dad's $30,000 Harley he only rides to cookouts at the dealership... which is now closed.

 

[indyblue]

So many younger people that don’t know how to drive clutches it’s no wonder they aren’t buying motorcycles, or they’re green new deal types that want an e-motorcycle.

 

[printcraft]

I think I heard the new guy in charge was scrapping the new hotness smaller water cooled bikes in favor of flagship $40000 bikes, his idea was fewer sales, but more high $$$ sales.
It ain’t gonna work.

 

[BigRed]

Well, until it stops going up. Which HOG did in November of 2006. It's been some version of down ever since with no signs of turnaround. Harley is withering and has been for quite awhile. They'll probably limp along for the foreseeable future, but I think they are going to be another Kodak. A former powerhouse who is too burdened by their past to pivot into the future successfully. The DEI move will certainly not help.



Yes, and it already has. They've not been able to capture the youth demographic for quite awhile. Part of it, I think, was their dealer network which had a reputation for acting like they were doing you a favor by letting you buy one of their bikes. I came home to the US in my mid/late 20s ready to buy a motorcycle. Harley dealers talked me out of a Harley. I ended up with a Goldwing then and a Victory later. And this is someone who was in the core demographic they were chasing, they spent a ton of money advertising on military installations overseas at the time.

Which Victory?

 

[BehindBlueI's]

I think I heard the new guy in charge was scrapping the new hotness smaller water cooled bikes in favor of flagship $40000 bikes, his idea was fewer sales, but more high $$$ sales.
It ain’t gonna work.

Yup. They are accepting that soft sales, rising interest rates, and lack of appeal among younger buyers is a huge hurdle so they are doubling down on Boomer-with-disposable-income sales. Short term bump, maybe, but again why their demographic is literally dying out.

 

[BehindBlueI's]

Which Victory?

Vegas 8-ball.