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Archive for the ‘Harley-Davidson’ Category

Michelle Kumbier

When handled well, conflict resolution can save a company time and money and help maintain a healthy work environment. Unfortunately, conflict management at Harley-Davidson in the executive staff is imperfect, as they have lost hundreds of thousands of dollars due to workplace disputes.

The latest example is Michelle Kumbier.  

In October 2017, Michelle Kumbier was appointed senior vice president and chief operating officer (COO) of Harley-Davidson Motor Co. with responsibility for overseeing the Milwaukee-based motorcycle manufacturer’s U.S. and international markets in addition to her current responsibilities leading product and operations. Previously, Kumbier served as senior vice president, Motor Company product and operations. In that role, she led a team of more than 4,500 employees worldwide to bring Harley-Davidson motorcycles, parts and accessories and general merchandise to market.

$HOG 10-Q Filing

Obviously she was a failure…  for the new Chief Executive Jochen Zeitz, and wouldn’t be part of getting the company on “a path to winning” —  the ‘scarcity strategy’ called ReWire — so, Kumbier departed Harley-Davidson on April 3, 2020.  In the filing with the U.S. Securities and Exchange Commission, Harley-Davidson did not disclose a reason for her departure.

However, earlier his week, Harley-Davidson Inc. paid the former high-profile executive a settlement of $660,000 after she threatened litigation connected to unspecified events related to her departure, the company stated in a regulatory filing.  I’m not a workplace dispute solutionist, but the reason people sue is often not rooted in money as much as the person does not feel they are being treated fairly.

10-Q Filing Section 10.2

Kumbier, who had been a Harley-Davidson employee since 1997, and the company “have disputes over events that allegedly occurred relative to her resignation from the company,” the Milwaukee-based motorcycle manufacturer said in exhibit 10.2 included in its 10-Q quarterly financial report filed Nov. 5 with the U.S. Securities and Exchange Commission.  

Harley-Davidson said it “has denied and continues to deny Kumbier’s allegations” and also denies that it has any liability to Kumbier on any of her “disputed claims.”

But, went ahead and paid her $660,000 for the general denial of those allegations.

The company will make a lump-sum payment to Kumbier after she signed the settlement agreement that was dated Aug. 14, 2020. The document also states that Kumbier acknowledged the settlement amount is more than she would otherwise be entitled to under the company’s normal policies and procedures and that Kumbier released the company, its executives and its board “from all claims, charges, demands, and liabilities of any kind.”  Kumbier also signed a noncompete clause that prohibits her from working for or consulting with a large list of Harley competitors or potential competitors.

It might be appropriate that Harley-Davidson devise a “conflict calculator” to augment their environmental profit-and-loss accounting method to put a figure on how much the company spends on conflict resolution and executive termination each year.

Harley-Davidson CEO Jochen Zeitz Background

Photos courtesy of Harley-Davidson, Michelle Kumbier and US SECURITIES AND EXCHANGE COMMISSION — FORM 10-Q (November 5, 2020) Filing

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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

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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

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In August 2016, Harley-Davidson agreed to pay a $12 million civil fine and stop selling engine “Pro Super Tuners” deemed illegal after-market devices that caused its motorcycles to emit too much pollution.  I previously posted about this topic HERE.

The motor company also agreed to spend about $3 million to retrofit or replace wood-burning appliances with cleaner stoves to offset excess emissions from the sale of “tuners.”

It’s important to note that the EPA legal action had a significant chilling effect on the performance parts market at Harley-Davidson dealers and many other after-market manufactures.

As previously disclosed, the settlement resolved allegations with the EPA, that the company sold about 340,000 “tuners” enabling motorcycles since 2008 to pollute the air at levels greater than what the company certified. Harley-Davidson did not admit liability and has always maintained that it disagreed with the government, arguing that the tuners were designed and sold to be used in “competition only.”

Even though the settlement had not yet taken effect, a U.S. judge this week approved a revised settlement with Harley-Davidson and dropped the requirement that it spend $3 million to retrofit or replace wood-burning appliances with cleaner stoves to offset excess emissions.

Multiple environmental groups along with a group of 10 states sharply objected to the revised settlement by U.S. District Judge Emmet Sullivan.

Photo courtesy of Harley-Davidson

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1916 Indian Powerplus

Let’s start with a bit of history… on America’s first motorcycle company.

In 1897, George M. Hendee founded a bicycle production company called Hendee Manufacturing. Hendee Manufacturing would eventually come to be called the Indian Motocycle Company (without the “r”), shortened to simply “Indian” and became Hendee’s primary brand name due to a need for recognition in foreign markets as an American product.

1916 Indian Powerplus

In 1901, bicycle manufacturer, racing promoter, and former bicycle racing champion George Hendee hired Oscar Hedstrom to build gasoline engine-powered bikes to pace bicycle races. The machine he created proved to be powerful and reliable, establishing the company’s reputation for outstanding performance. Later that year the company’s first factory was established in downtown Springfield, Massachusetts.  The first Indian Motorcycle was sold to a retail customer in 1902, and later that year an Indian Motorcycle won an endurance race from Boston to New York City in its public racing debut.

This activity predates Harley-Davidson by two years.

Indian Motocycles Porcelain Signage

I’m not disparaging or trying to exploit Native Americans. The “wokerati” will undoubtedly object and fan the flames of hysteria on the signage reference, but the first half of the 1900s is when Indian Motocycle featured depictions of Native Americans on their products, signage and in their advertisements.

In 1916, co-founder George Hendee resigned as company president.  It was the same year that the United States was embroiled in a conflict with the Mexican revolutionary Pancho Villa, as he repeatedly made raids into the U.S.  It was also the first year of a new 61ci (990cc) ‘flat head’ (Gustafson side-valve) V-twin – the Powerplus, which replaced the F-head (inlet over exhaust) type.

1916 Indian Powerplus

The Powerplus motor was designed by Swedish immigrant Charles Gustafson. He was spurred on by Indian’s defeat at the 300-mile board-track race in 1915 by Harley-Davidson.  He knew a side-valve motor could be made more reliable than the F-head design and could be tuned for speed more reliably than Indian’s 8-valve racer.  The motorcycle oil consumption was stated at 30 mph, 400 miles/qt.; at 50 mph, 100 miles/qt. with an estimated top speed of 60 mph.

Then in 1917 the United States entered into WWI. Indian Motorcycle dedicated much of its production to the war effort. As a result, dealers had limited inventory and retail sales dropped significantly. The company provided the U.S. military with nearly 50,000 motorcycles from 1917-1919, most of them based on the Indian Powerplus model.

1916 Indian Powerplus

In 1923, the company changed its name from The Hendee Manufacturing Company to The Indian Motocycle Company—no “r” in motocycle when the word was used with the name Indian. Indian Motorcycle Manufacturing Company ceased operations and discontinued production of all models in 1953. In 1955, Brockhouse Engineering purchased the rights to the Indian Motorcycle name and sold imported Royal Enfield models branded as Indian Motorcycle models until 1960.  More Indian Motorcycle history is HERE.

In 1999, Indian Motorcycle Company of America (IMCA) emerged. America is at a crossroads … they opened and started operations in a different social climate than that of the original Indian Motocycle Company. IMCA was sued in 2000 by the Cow Creek Umpqua of Oregon under the Indian Arts and Crafts Act of 1990 for their use of “Indian”. Today, the company is now a subsidiary of Polaris Inc. as Indian Motorcycle International, LLC, having refocused its branding with far less focus on Native American imagery.

Edison-Splitdorf Magneto

You might recall that I previously posted articles on “Bob”… a remarkable motorcycle restorer and his vintage motorcycle collection in the northwest.

This original motorcycle is from that collection and shows an aged patina as one of the first-year Indian Powerplus V-twin’s from 1916.  It is in excellent running condition and was ridden and showcased regularly at vintage events. The Powerplus is a 61ci (997.6cc) ‘flat head’ (Gustafson sidevalve) 42-degree V-twin. The bore and stroke is 3 1/8 x 3 31/32 (18HP), the primary drive was a single-row chain under stamped metal dust cover, the suspension in front was cradle spring front fork with a single multi-leaf spring; the rear had an optional swinging arm and leaf spring, or the rare rigid version.  The transmission is a three-speed, hand-change gearbox and foot-operated clutch.. The Powerplus was an influential design of sidevalve engines and encouraged rivals such as Harley-Davidson to follow suit.

1916 Indian Powerplus

This Indian Powerplus is the rare “hard-tail” configuration, which implies to have been manufactured in Toronto Canada and made for the export market.  At the time, it was approx $25 less than the rear suspension model.  It was purchased in somewhat of a dismantled state and restored using Indian original components. Refurbishment included a complete reconditioning of main-shafts, bearing, cylinders, valve seats and various springs and gearbox bearing/pinions along with spokes and tires.  Bob also reconditioned the carburetor, but had to replace the original magneto with an Edison-Splitdorf magneto from the 1930s.

This motorcycle is a fantastic older restoration of a desirable early Indian in original patina condition. It might even be ready for use in an upcoming Motorcycle Cannonball!

1916 Indian Powerplus idling video:

UPDATED — Another post on this vintage motorcycle collection is a deep dive on a restored 1937 Harley-Davidson Model UL Flathead (HERE).

UPDATED — Another post on this vintage motorcycle collection is at: Every Restored Motorcycle Has A Story — The 1913 Single

Photos and video taken by the author.

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UPDATE September 10, 2020:
Scrutiny, then disagreement of methodology and then harsh criticism of the academic modelers from San Diego State University’s Center for Health Economics & Policy Studies arrived quickly after they published their findings in a 63-page report. The researchers sought to quantify the Sturgis Rally COVID-19 impact in South Dakota and nationwide by analyzing the (anonymous) cell-phone data of attendees.

South Dakota Gov. Kristi Noem said the study was “fiction,” and criticized journalists who reported on it.  “Under the guise of academic research, this report is nothing short of an attack on those who exercised their personal freedom to attend Sturgis,” Noem said in the statement. “Predictably, some in the media breathlessly report on this non-peer reviewed model, built on incredibly faulty assumptions that do not reflect the actual facts and data here in South Dakota.”

Media References:
USA Today
WSJ (paywall)

The Associated Press as of last week identified 290 cases from 12 states tied to the rally. Instead of looking at contact tracing and trying to identify specific people who had the disease and passed it onto others, the San Diego researchers looked at the areas that sent the most people to the rally and how case trends changed after the event.

*****

A scientific “Discussion Paper” (dp13670) was recently released referencing preliminary work, which documents the spread of COVID-19 due to a mass gathering conducted during a pandemic against the guidance of the CDC.

The document explicitly refers to the Sturgis Motorcycle Rally and how a single superspreading event can be leveraged to impose restrictions on future mass gatherings.

Discussion Paper Highlights:

  • The per 1,000 case rate increased by 10.7 percent after 24 days following the onset of Sturgis Pre-Rally Events.
  • A total of 263,708 additional cases due to the Sturgis Motorcycle Rally.
    These cases represent a cost of over $12.2 billion, based on the statistical cost of a COVID-19 case of $46,000 estimated by Kniesner and Sullivan (2020).
  • The cost is enough to have paid each of the estimated 462,182 rally attendees $26,553.64 not to attend.

The document concludes that the spread of the virus due to the Sturgis Rally was large. The authors provide descriptive evidence and suggest stricter mitigation policies to limit exposure due to the behavior of non-compliant events and those who travel to them.

Photo courtesy of IZA Institute of Labor Economics Document.

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Montana Border on Highway 200

Last month I posted about plans to ride through Glacier National Park.

I started making plans a couple of months prior to the ride looking for the slowest, curving roads with mountains and throwback motel stopping points to minimize pandemic exposure.

The reopening of Montana’s tourism amenities and services started in early June, which meant they were open a couple months prior to our arrival, with the exception of the Blackfeet Indian Reservation which was closed “until further notice.”  Canada also blocked all non-essential travel into the country so any mini-tour loop into BC or Alberta was off limits this trip.

It turns out that 2020 was a record-breaking year for the fact that there were NO forest fires during the days we visited the park to disrupt the spectacular views. There has been a fire in Glacier National Park almost every year of its existence with the exception of 1964 as the only year with no fires on record. Fires are a naturally recurring part of the forest lifecycle, but seeing Glacier with pristine clear air was an exceptional gift this time.

We traveled northeast crabwise across Washington state and spent a night in Sandpoint, on the northern tip of Idaho. It’s located on the magnificent 43-mile-long Lake Pend Oreille, surrounded by the Selkirk and Cabinet mountains. The next morning we traveled east on Highway 200 alongside the lake, then alongside the Clark Fork River.  We made a breakfast stop at a terrific family owned bakery in Clark Fork, called The Pantry.

Once we crossed over into Montana, we took a short detour to the remote end of Sanders County and traveled over the new $13.5 millon Heron Bridge.  It replaced a 95-year-old, one-lane bridge connecting Montana Highway 200 to the community of Heron. The original bridge had the ribbon cut on Nov. 23, 1952, but was originally fabricated in California and was already 32 years old when first installed across the river.  It had been deemed insufficient for growing traffic across the Pend Oreille River near Metaline Falls, Washington when it was moved and re-constructed at Heron.

“Sun Road” Glacier NP

After the bridge tour we rode north on Highway 56, Bull Lake Road, which is about 36 miles long and dead ends at Highway 2 just west of Libby. The landscape in the area is very diverse from low elevation timber and lakes to the outstanding peaks in the Cabinet Mountains and Scotchman Peak area.  We rode along the Kootenay River on Highway 2 to Kalispell then north on Highway 93.  We overnighted in Whitefish, MT a gateway to Glacier and a nice resort town. With a mixed array of shops, coffee houses and restaurants it reminded me of Jackson, WY charm.  There are plenty of places to enjoy a Going-to-the-Sun IPA with a great view of the mountains.

Glacier National Park, MT

The Blackfeet Indian Reservation closure created an impediment to traveling the Going-to-the-Sun road through the park and then looping back on Highway 2.

The road/gate entrance to the park was closed at St Mary. An optional route from Glacier north across the Canadian border to visit the Waterton-Glacier International Peace Park was a barrier as well since the Canadian border was closed.

At any rate, we began at West Glacier for a slow out-and-back ride on the 50-mile-long road.  There were incredible views of glacial-carved valleys, jagged peaks and pristine wilderness. A benefit of the pandemic was those famous red busses which departed from Lake McDonald Lodge were shut down and not running on the roads this year.

The Going-to-the-Sun Road was the National Park Service’s first to cross the trans-continental divide. It’s a landscape impossible to adequately describe in words or capture in photos when riding into that ‘big sky’ that Montana is famous for.

The west tunnel–a 197-foot long tunnel features two arched openings that let you look out to Heaven’s Peak and the Upper McDonald Creek valley while behind the handlebars. The Alpine section–is a six percent climb between the Loop and 6,646-foot high Logan Pass. There’s a section of the road called The Weeping Wall. A waterfall cascades 100 feet down, over the rocks and onto part of the road and down the other side of a 4500 foot cliff drop-off.

The Posse

The views! The curves! It’s like a real life painting.

For all its scenic wonders, the “Sun Road” is not without a few negatives: overall, the roads were in good shape and well-maintained, but there were a couple of rehabilitation projects and construction delays can be a major buzz-kill with all the crowds. The speed limit is slow-to-stop with much of the ride quality depending on the crowds and RVs.

The end of our round trip ride took us back into touristy West Glacier, town. Afterward we headed back to a Whitefish pub (via a motel shuttle) to try out a flight of their whiskeys and celebrate the completion of a beautiful ride.

Glacier is a place to be savored and a place to come back to again and again. It was great to get a break from the relentless protest, COVID-19 media drum beat and to reconnect with the land by motorcycle.

Photos taken by the author. 

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Riding the Going To The Sun Road – Glacier National Park

From Acadia to Zion our country’s most spectacular landscape treasures are protected inside the parks.

No map or brochure can prepare you for that first motorcycle ride and peering out over a guardrail at snowy mountain peaks, waterfalls that flow down the valley through the forests, and end in a clear blue lake carved out by glaciers. The mountain mornings always have a bite of cold as the sun takes its time to wake, while meandering through the incredible scenery.

I’m talking about National Parks in general and specifically Glacier National Park, Montana which in my view shines above the rest.

Glacier National Park – Going The Sun Road

It never gets old and I plan to ride through the million-acre paradise later this month and take a COVID-19 mental diversion through the park. Montana has plenty of mountain roads where motorcyclists can ride and absorb the landscape, but the crown jewel is the Going-to-the-Sun Road. It crosses the Continental Divide carves through the steep grade of rock and forest with roughly 50 miles of sweeping curves and hairpin switchbacks along with an occasional tunnel passage through the mountain.

The national parks are such a gift, one we’ve given to each other. One we’ve inherited and, with luck, will pass down to the generations that follow us.

Speaking of paying it forward…

Going To The Sun Road

The National Park System comprises 419 national park sites, but only 62 of them have the “National Park” designation in their names. The other sites fall into different National Park System categories like National Historic Sites, National Monuments, National Seashores, National Recreation Areas, and others.

You might be surprised to learn that the National Park Service accounts for 84 million acres of land at more than 400 different sites, but as of 2019, they were due for $11.9 billion (that’s a B!) in deferred maintenance and repairs. Fortunately, the current administration recently signed a bipartisan bill (Great American Outdoors Act) that will pay for repairs at national parks, permanently finance the Land and Water Conservation Fund (LWCF) and in addition will create a lot of jobs.  The bill directs up to $6.65 billion to priority fixes and up to $3 billion for agencies such as the Fish and Wildlife Service. In addition, the bill will allocate $900 million each year to the conservation fund. The program – which has existed for half a century – has historically been plagued by funding shortfalls.

Lake McDonald

The Great American Outdoors Act enacted last week is clearly the most consequential funding for national parks, wildlife refuges, and public recreation facilities in U.S. history since the conservation legacy of President Theodore Roosevelt in the early 1900s.

As motorcycle enthusiasts, we can take heart that there’s always going to be those historic chalets, lodges, and miles of tarmac with beautiful landscapes that meander their way through the firs, aspen, and stone.

Photos taken by author.

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Jason Momoa (i.e. “Aquaman”) collaborates with Harley-Davidson

How often have we recently heard… “We continue to face challenges during these unprecedented times.” — Harley-Davidson CEO Jochen Zeitz opening statement during the July 28, 2020 financial call.

I’m not a grammar nerd, but “unprecedented times” is a tiresome word.  Stop saying it Mr. Zeitz – and it’s also inaccurate!

We are not in an “unprecedented” time.

This isn’t the 1930’s Great Depression, the worst economic downturn in the history of the industrialized world. There’s been no dot-com bubble (i.e. Internet bubble) that was caused by excessive speculation in Internet-related companies in the late 1990s. It’s not the real estate bubble of 2008 and the follow-on market crash, recession and unemployment that was linked to the “subprime mortgage crisis.” There is no automotive industry crisis of 2008–2010 where declining automobile sales and scarce availability of credit led to General Motors, Chrysler, and Ford facing insolvency without major government intervention. It’s not the 1918 flu pandemic, which killed 675,000 Americans and the worldwide death toll was estimated at 100 million. One pandemic death is too much, but the COVID-19 deaths are currently nowhere close to that, thankfully.

Q2 2020 HOG Earnings Report

So, stop using these new most-hated sayings: “unprecedented” times, it’s the “new normal” and “we are in this together” mantra.

And, who’s the “we” here? The point is “we” are not all on the same team in this pandemic. Everyone is dealing with it in their own way. The restaurant employee who’s been unemployed for months isn’t in this together with a Fortune 500 CEO.  The nurse on the front-line treating pandemic patients isn’t in this with the marketing manager who can work from home.

It’s not “unprecedented” for me to rant about something while being largely sequestered at home for nearly five months. But it is what it is, I guess.

Back to the Q2’20 financial call… and some key comments made during the call:

  • The Harley-Davidson culture has suffered. The company has seen five consecutive restructuring’s every year in order to basically chase the downward trend in sales.
  • The Rewire” strategic vision is now being replaced by “The Hardwire.” (more on this at the bottom of the post)
  • Extending the 2020 model year through fall (historically launch was late August) and now new bikes will arrive in dealer showrooms early 2021.
  • Used motorcycle pricing increased about 6% throughout Q2, certainly, higher than Harley has seen in any previous quarter.
  • Harley continues to see strong potential in Adventure Touring and will launch Pan America globally in 2021.
  • Harley has streamlined the structure, which now requires approx 700 fewer positions and approximately 500 employees laid off.
  • H-D is not willing to sacrifice the strength of their legacy in a quest for pure volume growth going forward.
  • Increased recognition on the role of digital technology as a critical priority in the future for Harley-Davidson.
  • H-D will focus on roughly 50 primary markets that generate the vast majority of their retail sales and shipments.
  • Surprise!  Planning to add a Sustainability Officer to the team who will further H-D commitment to the planet and to society.
  • New brand building approach and social media campaign directed by “Aquaman” i.e. Jason Momoa (video of Mr. Momoa touring H-D Museum)

Q2’20 Numbers:

  • Harley-Davidson posted a loss of $0.60 per share for Q2’20
  • Worldwide retail sales of new motorcycles were down 26.6% versus prior year and Q2 revenue of $865 million was down 47% year over year.
  • U.S. retail sales in Q2’20 were down 26.7% versus prior year.
  • EMEA declined 29.8%, Asia Pacific was down 10.2%, and Latin America saw declines in Mexico and Brazil and finished the quarter down 51%.
  • U.S. market share of new bike registrations was 38.5%, down 8.1 percentage points
  • Motorcycle mix shifted from touring to cruising versus Q2’19, which reduced average motorcycle revenue per bike.
  • Credit losses were down due to lower delinquencies and lower repossessions helped by H-D offering of payment extensions to certain customers.
  • While Q2 results were again terrible, Harley-Davidson was still able to sell over 31,000 motorcycles in the U.S. during a global health crisis that closed off its retail stores.

During the financial call, Mr. Zeitz announced Harley will have yet another roadmap to follow: “The Hardwire,” the motor company’s third visionary plan in two years.

You might recall “The More Roads to Harley-Davidson” plan unveiled in July 2018 which stated the development of 100 new models over 10 years, giving more attention to international markets than in the U.S. market, and putting a much greater focus on electric vehicles.

That plan was largely abandoned earlier this year when then CEO Matt Levatich abruptly left the company and was replaced by chairman Zeitz. The “More Roads” was replaced by the vague and loosely defined “The Rewire” plan, which incorporated some of Levatich’s plan, but would instead focus more on key markets and products to drive the bike maker’s profitability and growth potential.

Now we can look forward to a new 5-year strategic plan; “The Hardwire,” which will be grounded in enhancing the desirability of Harley’s brand and protecting the value (i.e., keep pricing elevated) of the iconic products.” The Hardwire roadmap is expected to take over in the fourth quarter and serve as the strategic plan for the company to follow through 2025.

Photos courtesy of Asphalt & Rubber and Harley-Davidson

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Some numbers to start your day and it’s not pretty.

The coronavirus pandemic, social unrest, and a scarred economy has created a tipping sentiment toward many jobs NOT coming back.

According to a Harley-Davidson press release, “The ReWire” strategy will now eliminate 700 positions globally of which 500 of the layoffs will occur this year. It will result in a $50 million restructuring charge in 2020, including $42 million in the second quarter. According to new Chief Executive Jochen Zeitz, getting the company on “a path to winning” also includes CFO John Olin leaving the company effective immediately.

Flashback – remember this abrupt CFO departure in 2009?

Some news outlets have reported Mr. Olin’s departure as a “retirement,” but color me skeptical since most retirements have a longer celebratory departure than immediately exit through the door. The current VP Treasurer, Darrell Thomas assumed duties as interim CFO until a successor is appointed.

I’m not sure why, but the CEO press release declaration of “a path to winning” reminded me of that time Charlie Sheen was winning HERE … maybe I just needed some humor?!

Harley-Davidson is not alone on the layoffs.  Below are just a few of the latest examples:

  • Macy’s announced it would lay off about 3,900 and shutter stores
  • AT&T will lay off 3,400 and shut down more than 250 stores.
  • Hilton Hotels announced it would lay off 2,100 corporate employees amounting to 22% of its corporate workforce.
  • Chevron announced it will cut 10% – 15% of its 45,000 global workforce.
  • Boeing announced it would lay off nearly 7,000 employees.
  • Uber announced it is cutting 3,700 jobs (14% of its workforce), then a month later announced they will cut 3,000 additional jobs and close 45 offices.
  • Airbnb announced it is laying off about 25% of its workforce, or 1,900 employees.
  • Virgin Atlantic (now part of Alaska Airlines) announced it would cut 3,150 jobs.
  • Hertz plans to lay off 10,000 employees.
  • Under Armour announced that it will lay off about 6,700 employees.
  • United Airlines will send layoff warnings to 36,000 employees — nearly half its U.S. staff.
  • ZipRecruiter laid off 443 employees.
  • GE announced it will be reducing approximately 10% of its aviation unit’s workforce, amounting to about 2,500 employees.
  • Cirque du Soleil announced it is laying off 95% of its 4,679 person staff.

You get the point.  Sadly, a lot of employees are expected to exit various organizations. In fact, since February, about 4.6 million Americans have stopped actively looking for work, and another 2.2 million are unemployed NOT on layoff.

And, then there are those companies that have taken an extremely tacky and classless route of laying off employees via Zoom.  Looking at you Bird, the electric scooter company, who laid off 30% of its staff via a 2-minute Zoom call.

Talk about a Nobel Prize-winning way to “Put a Bird on It” — From the “Portlandia” TV show.

Photos courtesy of Harley-Davidson, Great Art and IMDb.

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