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Wednesday 1 November 2017

Harley-Davidson

Harley-Davidson

Kumbier appointed COO

Michelle Kumbier has been appointed Chief Operating Officer of Harley-Davidson Motor Company with “responsibility for planning and delivering the company’s global business results.” Effective immediately, Kumbier will have oversight of the company’s U.S. and international markets in addition to her current responsibilities leading product and operations.
Kumbier joined Harley in 1997 in operations purchasing, and has since taken on roles with increasing responsibility in purchasing, strategic planning, new business development and parts & accessories. She most recently served as Senior Vice President, Motor Company Product & Operations, leading a team of more than 4,500 employees worldwide.
Domestic U.S. Managing Director Mike Kennedy and Sean Cummings, Senior VP Global Demand, have left the company.


The dust having now settled on the excitement that greeted Harley’s rumored appointment of Goldman Sachs to explore Ducati acquisition options, in a rare outbreak of “Unions do something useful, shock,” Volkswagen’s hopes of selling Ducati have been scuppered by the powerful German unions (who account for half of the seats on the auto giant’s advisory board) being united in opposition to the sale.

It has emerged that while several serious bids were indeed received for Ducati in response to Volkswagen’s preliminary Offer for Sale, Bajaj Auto and the Italian Benneton investment fund were believed to have been favorites to win the bidding war. Some reports suggest that Royal Enfield (and Polaris joint venture partner Eicher Motors) increased its initial par bid of around $1.5Bn to $2.0Bn.

Talking of Unions, as has been widely reported, but probably not really noticed much as such, the United Steelworkers and International Association of Machinists and Aerospace Workers have terminated their 22-year old agreements with Harley, claiming that the company has been “systematically dismantling its hourly workforce” for some seven years. Harley spokesperson Pat Sweeney is reported to have stated that the decision will not affect how Harley deals with workplace issues.

As at August 2017 Harley-Davidson was in 6th spot in motorcycle market share terms in Germany, having sold 7,666 units for an 8.93 percent share; down from 9,252 units/10.09 percent for the first eight months of 2016.

Harley’s top-seller in Germany Jan-Aug 2017, and the 25th best-selling motorcycle in Germany for the first eight months, was the XL 1200 X (884 units); the Breakout was the 31st best-seller in Germany (804 units); Dyna Street Bob 34th (787 units); and XL 883 Iron 43rd (597 units).

In other German market news, Harley has done a deal with guarantee provider CG to extend its standard two-year warranty on new bike sales to four years.
Rick’s Motorcycles of Baden-Baden hosted its latest ‘Rick’s Harley Days’ open-house weekend at the end of September. In addition to showing the new Softails, hosting ride-outs, demo rides and all the usual features of the popular annual event, Rick’s, one of Europe’s largest aftermarket parts and accessories manufacturers, threw open the doors of its CNC machinery equipped manufacturing halls where their noted custom bikes and wheels programs are built and made.

In Switzerland Harley took 3rd spot in motorcycle market share terms for the first nine months of 2017, selling 2,675 units (a tad down on Jan-Sept 2017) behind Yamaha and BMW, but ahead of Kawasaki, Honda, Triumph, KTM, Ducati, Suzuki, Aprilia and Indian Motorcycle (294 units in what, in European terms, is their Head Office home market). Harley’s top-seller there was the XL 1200 X Forty-Eight (270 units), followed by the Breakout (231 units).

In Austria Harley has dropped to 7th spot in motorcycle market share terms (Jan-Sept 2017, from 6th in 2016), selling 923 units YTD; their top-seller there was the XL 1200 X, followed by the XL 1200 X, FLHXS and FXDB.

In an Australian total market that is down by -7.8 percent (73,141 units) for the period January to September 2017, Harley are in fourth spot in market share terms behind Honda, Yamaha and Kawasaki, having sold 6,526 units YTD for an 8.9% share. However, in the road bike market (the largest motorcycle sector in Australia, worth 40.5 percent of the overall market there/29,625 units YTD - net of scooters, small cc bikes and off-road units etc), Harley is top dog, ahead of Honda and Yamaha; its top-seller in Australia is the FXSB, followed by the XG500.

The sectors of the Brammo electric vehicle business that were not bought by Polaris five years ago, which includes the ‘Empulse RR’ e-bike of IOM and Pikes Peak derring do fame, has been bought by Diesel engine manufacturer Cummins. What has this to do with Harley? Cummins’ CEO and Chairman Tom Lineberger is a non-executive Director on the board of Harley-Davidson. With ex-CEO Keith Wandell still engaged to work his magic at previously struggling battery maker Exide, are we witnessing the emergence of a Bar & Shield ‘E-Nostra’ as the production of Project Livewire (hopefully) draws ever nearer?

With it widely expected (indeed hoped) that the remaining 84 new bike models to be launched by Harley in the next nine years will include Off-Road and/or Adventure Tourer platforms, might it be timely for Harley to look again at what ATK Motorcycles, the USA’s only off-road motorcycle manufacturer, could bring to the party?

Harley’s ‘Millennial’ outreach initiatives will include being the motorcycle brand ‘de jour’ for gamers when Ubisoft’s “Crew 2”, and “Open Road Racing Adventure” is launched in spring 2018. The first iteration of the game is said to have amassed 12 million players; subsequent upgrades to the game are expected to see additional Harley models added.