Financial blogger Saj Karsan, writing at Seeking Alpha analyzes Harley CEO Jim Zeimer’s comments during the most recent conference call.
Karsan believes that Zeimer’s comments indicate that Harley has taken a different approach to such competitors as BMW, Honda. etc.
They have cut prices and offered financing in order to clear their inventory. Rather than follow suit, management at Harley believes they are taking the better long term approach for their premium product,
Karsan’s blog includes an interesting graph that shows Harley’s US market share dropping from approx. 49% in 2004 to just over 44% in the first six months of this year.
By refusing to cut prices, Harley is looking at the long term value of the brand (to say nothing of customer’s bikes.) But as Karsan says at the end of his article:
Whether this was the right decision is open to debate, but clearly HOG is focused on maintaining its image as a premium product, and is willing to forego a few extra bucks to do so.
