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Archive for October, 2020

Good afternoon.

Election Day is a week away. There’s new evidence of water on the moon. Amy Coney Barrett is a Supreme Court justice, the fire hose of information continues to overwhelm even the most devout COVID-19 science junkies and Harley-Davidson shares soared 27% to $36.82 earlier in the day after reporting third-quarter net income of $120.2 million and post its best Q3 result since 2015.

A striking result after Harley-Davidson put a German environmentalist in charge and recorded a worldwide sales decline of 8%, which is the 15th consecutive quarterly decline.

Wall Street is reviving optimism about Harley’s future at a time when motorcycle sales are in decline. Talk about exaggerating your perspective.

Jochen Zeitz’s (CEO) “ReWire” (yes, a play on the LiveWire electric motorcycle) strategy cut 30% of the models in the lineup, exited 39 markets, eliminated 10% of its workforce including product teams developing new motorcycle models — were executed to manage down motorcycle volume and reduce its global presence due to low sales.  

The actions helped to stop discounting and drive dealership prices higher to MSRP in Q3.  It’s also a tacit acknowledgement that the motor company’s smaller scope and scale is the only way forward after multiple abandoned growth plans and over a decade long quest to appeal and reach new types of riders.

Abandoning affordable, youth-oriented motorcycles is a staggering reversal given Mr. Zeitz’s experience at Puma in connecting with the youth culture and claiming ownership of that generation in Europe. Remember “Puma chic” streetwear fashion?

Harley-Davidson Inc. is back!  Back, to making big, expensive motorcycles for its most devoted customers.

UPDATE: October 27 at 5:13PM PacificFull Disclosure: I don’t currently own or have plans to purchase HOG stock.

Photos courtesy of Bloomberg and Harley-Davidson

All Rights Reserved (C) Northwest Harley Blog

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Harley-Davidson has learned that the software in the Onboard Charging (OBC) System of the LiveWire (ELW) model motorcycles built between 3/18/2019 and 8/20/2020 may initiate a shutdown of the electric vehicle powertrain, without providing reasonable indication to the rider that a shutdown sequence has been initiated.

In some cases, the vehicle may not be able to be restarted or, if restarted, may shortly thereafter shut down again. Unexpected loss of propulsion of the vehicle while in motion without the ability to restart or remain restarted may increase the risk of a crash.

In addition, prior to loss of propulsion indicator lamps may illuminate to include: the Traction Control (TC) lamp, the Anti-lock Brake System (ABS) lamp, and the Failure Indicator Lamp (FIL).

Details of the recall are as follows:

NHTSA Campaign Number 20V624000 — Harley-Davidson Motor Company Components ELECTRICAL SYSTEM

Loss of Propulsion: An unexpected loss of propulsion without the ability to restart may increase the risk of a crash.
Potential Number of Units Affected 1012

Summary
Harley-Davidson Motor Company (Harley-Davidson) is recalling certain 2020 LiveWire (ELW) motorcycles. The electric vehicle powertrain may unexpectedly shut down and not restart, due to a software issue in the Onboard Charging (OBC) system.

Remedy
Harley-Davidson will notify owners, and dealers will update the OBC software, free of charge. The recall began October 19, 2020. Owners may contact Harley-Davidson customer service at 1-800-258-2464. Harley-Davidson’s number for this recall is 0176.

The Service Bulletin is: M1519: RECALL 0176 – LIVEWIRE – SOFTWARE UPDATES

Photo courtesy of Harley-Davidson

All Rights Reserved (C) Northwest Harley Blog

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