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Harley-Davidson’s gross sales fall once more in Q2 of 2020, at the same time as the corporate continues to chop prices and reorient its enterprise round fewer fashions.
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Harley-Davidson gross sales take a beating within the second quarter of 2020
Harley-Davidson is reeling beneath slowing bike gross sales, which had been dealt one other blow by the COVID-19 pandemic. For the quarter ended June 30 (April – June, 2020), the enduring American bike model stated it would now trim its product line-up and in addition exit some international markets the place gross sales have been slowing down alarmingly. For the second quarter of 2020, Harley-Davidson reported a lack of $92 milliion within the three-month interval, in comparison with a revenue of $195.6 million in the identical quarter a yr earlier.
Also Read: Harley-Davidson Removed From S&P 500 Index
In the house market of US, Harley-Davidson’s retail bike gross sales fell 27 per cent within the April-June quarter. It’s the steepest gross sales decline within the final six years, and based on Harley-Davidson the slowing gross sales had been aggravated by COVID-19 manufacturing cutbacks and non permanent closures of dealerships because the pandemic raged on. In truth, Harley-Davidson suspended manufacturing in its factories within the US in March because of the COVID-19 disaster. Sales in Latin America fell 51 per cent, and declined 30 per cent in Europe, Middle East and Africa area. Revenue from bikes and associated merchandise fell 53 per cent and Harley’s share of the US heavyweight bike market was 38.5 per cent, down eight per cent from a yr earlier and down considerably from earlier years.
“A total rewire is necessary to make Harley-Davidson a high-performance company,” Jochen Zeitz, chairman, president and CEO of Harley-Davidson stated throughout a convention name with analysts, referring to the Rewire plan he had outlined to revive the model after he took over as CEO.
Also Read: Harley-Davidson To Cut Hundreds Of Jobs As Part Of Turnaround Strategy
With slowing gross sales in sure abroad markets, Harley-Davidson now goals to exit worldwide markets the place gross sales and profitability didn’t assist continued funding. The firm additionally plans to chop its bike line-up by about 30 per cent, in a transparent departure from its earlier imaginative and prescient of including new bikes and even branching into new classes. However, Harley-Davidson stated that it’s going to launch its first journey-touring bike, the Harley-Davidson Pan America 1250 in 2021, however nonetheless stays cautious on adopting an aggressive product plan.
Also Read: Harley-Davidson Rethinks Product Plan
“We don’t want to just launch into every category at once. We want to be very focussed on the ones that are true to Harley,” Zeitz stated.
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Earlier in July, Harley-Davidson stated that it’s going to lay of lots of of workers as a part of Zeitz’s efforts to revive the struggling bike model. The Rewire technique outlined by Zeitz, is aimed toward making Harley-Davidson a leaner and extra nimble organisation, searching for to reset product traces, and concentrate on the corporate’s core strengths and prioritise worthwhile markets. However, many observers really feel that Harley-Davidson may have a tough street forward to restoration.
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