The fans of the roaring engines of Harley-Davidson motorcycles can celebrate since the CEO of the company, Matt Levatich, announced the plan to introduce 50 new bikes in several following years. The new Milwaukee-Eight engine meant a success and the beginning of the new era of the Harley-Davidson brand as well as it represents a modern generation of the motorcycle engine units. All new 50 models will be built around this technology. Levatich also expressed his excitement about the future success of planned 2018 line of the motorcycles which should be a vital addition to the current offer of the company and should further help the sales.
Harley Is Not Only a Bike - It Is a Lifestyle
The company also runs it own Harley-Davidson Riding Academy which aims to teach Americans to ride a motorcycle and introduces them to the secrets of riding the Harley and the whole Harley lifestyle. More than 65,000 people went through the courses in the Riding Academy in 2016, and the company tries to focus not only on middle-aged white men who still compose the highest percentage of riders but wants to attract also women, younger riders, Hispanics or African-Americans. That would help it to expand its business further and sell more products. The company also announced that it would aim to form an entirely new image of the Harley-Davidson brand and that it doesn´t only create the bikes but also their riders.
Another plan which should help Harley-Davidson to grow is a focus on the foreign dealers. As the international sales compose the inconsiderable amount of sales, the company wants to add more than 200 new foreign dealerships all around the world to promote and sell the motorcycles. The company also announced that it shipped a lower number of the bikes to the overseas dealers to help them reduce their inventory, and the trend will continue at the beginning of 2017 as was announced by John Olin, the chief financial officer and the vice president of the company. The steps of the company should help the brand to expand into new markets around the world and to reach a long-term success as far as the sales and growth of the company are concerned.
Revenues Are High, But Sales Could be Better
Harley-Davidson experienced quite a successful year as far as the financial side of the business is concerned. The fourth quarter of 2016 left the company with $47.2 million net income, more than 5 million higher than in the same quarter of 2015. However, sales slightly decreased from $1 billion to $933 million which represented a decline of 3.9%. According to John Olin, the lower sales could be experienced because of the political and economic issues in the United States and all around the world which led to an uncertainness of the potential customers. On the other hand, the international sales experienced a growth of 2.3% over the previous years. Harley-Davidson also extended its net of the dealers of 40 new places.
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