The Powersports Industry & M/C Roadracing

The Arai to PU has happened, dealer home page is full of them.

 

Yup, lotsa Tucker dealers snagging up the clearance Arai too.

 

Yeah we are looking like end of the year to get our first big container of helmets in, we will have a small shipment coming in about a month though that was built for the previous distributor.

 

I think we'll see some big changes over the next 4 months stay tuned

 

Harley-Davidson Q3 retail sales drop 5% in North America

3rd quarter results summary

• Global motorcycle shipments grew 19% in Q3 vs prior year as production largely recovered from the previously announced unexpected production suspension in Q2
• HDMC Revenue grew 24% behind this profitable unit growth and global pricing
• HDMC Operating Income margin of 17.9% was up 9.5 points
• HDFS Operating Income declined 24% as the credit environment normalizes
• GAAP diluted EPS of $1.78 was up 70%
• The company reaffirms its full-year 2022 outlook on HDMC Revenue, HDMC Margin and HDFS performance
• Merger transaction between LiveWire and AEA-Bridges Impact Corporation was completed on Sept. 26, the first day of fiscal Q4

Consolidated revenue was up 21% in the third quarter versus Q3 2021 driven primarily by HDMC revenue up 24%. The increase in HDMC revenue was driven by a strong recovery in global motorcycle shipments after being adversely impacted by an unexpected production suspension in Q2. Consolidated operating income growth of 66%, reflected 164% growth at HDMC and a decline of 24% at HDFS. In line with expectations, the HDFS decline was a result of a higher provision for credit losses as the credit environment normalizes, and higher interest expense.

Global motorcycle shipments recovered strongly in Q3. HDMC Revenue was up 24% primarily driven by a 19% increase in wholesale shipments, favorable unit mix and continued global pricing strength. Parts & Accessories was down 2% driven by lower retail motorcycle volumes and offset by growth in Apparel & Licensing behind seasonal product growth.

Third quarter gross margin was up 7.4 points compared to Q3 prior year. Global pricing and mix contributed approximately 5 points of margin benefit and more than offset cost inflation. In addition, greater manufacturing leverage and lower tariffs contributed positively and more than offset existing foreign exchange headwinds. Third quarter operating margin improved to 17.9% from 8.4% in Q3 prior year due to the factors noted above. Total operating expenses were $20 million higher compared to Q3 prior year, due in part to the increased spend on LiveWire.

Global retail motorcycle sales in the third quarter were down 2% versus prior year. Growth in Asia Pacific was driven by strong demand and a quick refill of dealer inventory coming out of the production suspension. North America retail performance (down 5%) continued to be adversely impacted by lower dealer inventories. Retail performance strengthened during the quarter as dealer inventories replenished.

 

I keep trying to find Pan America global sales numbers to see how it actually fared vs KTM/BMW/etc, all I can find is some NA or US numbers.

 

This just in, and WTH
Marc McAllister, president and CEO of Tucker, held an online Town Hall Meeting with about 50 Tucker suppliers on Thursday, Oct. 27. He addressed several topics, including Tucker's strategy, the current market situation, the importance of powersports dealers and the company's preparation for AIMExpo. He opened with some prepared remarks then did an extended Q&A to wrap up the meeting.

McAllister reiterated company strategy in his initial comments saying he sees “a blending of what we used to consider pure powersports, motorcycles and side-by-sides, combined with new lifestyle choices of getting outdoors and participating in powered adventures. With the growth of e-bikes and electric motorcycles, we don't think that consumers are as discerning as we are about how that experience happens and where that experience starts. We see a blended future with plenty of space for what we do, whether it's internal combustion-powered, EV-powered or human-powered. We are looking to serve all of those customers."

Addressing the current market conditions, he commented that "Today's market is not what last year's market was. The market has been tightening and that is likely to continue into Q1.” He said the company's data indicates a bottoming out during that quarter and a recovery starting at the end of Q1 and into Q2.

“Our plan is to weather the winter and look forward to Spring." He said Tucker is not doing as well as he had hoped but is on solid footing while they are working some inventory out of their system to free up cash and capital.

He cited some notable successes for Tucker, such as the announcement of an exclusive distribution agreement with high-tech helmet company Forcite, E-power brands that are selling through to dealers rapidly, as well as certain products from the suppliers on the call that are moving rapidly.

McAllister confirmed to suppliers that he sees a multi-channel future and is not moving away from dealers, saying "the dealer channel is critical to our industry, the dealer today continues to drive a significant amount of our sales and your sales. Our industry still needs a clubhouse, a gathering point, where people can feel engaged, a place where questions can be answered and to ensure they get the sales and service that they need. So, we continue to invest in dealers, and that brings me to AIMExpo. In our mind it's critical that AIME exists. It's a time for our industry to get together, it's a time for our industry to celebrate who we are, and a platform for us to present a cohesive version of our industry to our dealers, who are, at the end of the day, our primary customers."

Continuing on AIME, Tucker expects the show to be "significantly larger than last year" and mentioned that Tucker's investment is much higher than the previous show, including the company's plan to bring all of its sales reps to the show to support their dealers. McAllister closed the meeting by thanking the attendees for their support and encouraging participation in AIMExpo.

 

And this post makes me crack up over and over again, and especially now in 2022

 

Central Powersports Distribution | Motorcycles Importer & Distributor – CPD

Carrying Rekluse, IMS, Motion Pro, Rethnal, etc, etc? Interesting and things are changing eh?

 

And now Vance & Hines a company that was making sport bike exhausts and products, then huge in the Harley exhaust market is now expanding into exhaust systems for the American truck market? WOW!

"Vance & Hines has revealed its line of performance exhaust systems for popular American-made truck models. Bearing the name Vance & Hines HoleShot Series Cat-Back Performance Exhaust Systems, this new line has been developed and will be manufactured at the company's headquarters in California.

Drawing from the most recognized Vance & Hines designs, the HoleShot Series will feature options including its classic Twin Slash cut, as well as the race-inspired Eliminator tip. The initial lineup from the company includes systems designed for late-model, half-ton, crew cab, V8, Ford F150, Ram 1500 and Chevrolet Silverado trucks. Each exhaust system in the HoleShot Series is designed to replace stock exhaust systems after the catalytic converter (Cat Back) to the exhaust tips. The systems keep all emissions-control equipment in place, while delivering a deeper exhaust note thanks to a turbo-chambered muffler design that has also been engineered to eliminate unpleasant in-cabin "drone."

The initial lineup from the company includes systems designed for late-model, half-ton, crew cab, V8, Ford F150, Ram 1500 and Chevrolet Silverado trucks. With nearly 30 million late model pickups on the road today, SEMA Market Research estimates that pickups account for over 30% of all accessory retail sales. All HoleShot Series Cat-Back Performance Exhaust Systems will be manufactured using high-grade 304 stainless steel with CNC mandrel bending at the company's manufacturing facility in Santa Fe Springs, California.

 

As an owner of a manufacturing and sales company once told me, “You gotta’ keep trying things if you want to expand your business. If you’re not tying things, you’re a stagnant business. A stagnant business is a dying business.”

 

Or when your core Harley exhaust business takes a shit

 

So it's OK for a manufacturer to discount to online retailers so heavily that the local dealer cannot buy the product from a distributor at the same price as the consumer?
So the dealer pays more than the consumer... Yeah that's called smart business...It also keeps consumers from, coming into the dealership to look and see new products,
Thats called "as long and I meet my sales numbers and keep my boss off my ass and keep my job I am good"
Business being conducted like that is why we see smaller dealers going out of business and being bought by larger groups.. This trend will continue...

 

3 questions please
Can a silver level PU dealer get the same discounts as a gold or platinum PU dealer?
If Home Depot buys and sells more GE light bulbs than Lowes, does Lowes get to buy GE light bulbs for the same price?
If Tucker is discounting Arai helmets because they are no longer an Arai distributor and they run out of a size/style does PU, the new Arai distributer have to match Tucker’s price?

 

LiveWire Loses Almost $370 Million as Investors Flee, Forcing Harley-Davidson to Pick Up the Tab

https://jalopnik.com/livewire-loses-almost-370-million-as-investors-flee-f-1849739338

 

I can answer that one, no. I guess that's the whole point of the level system but it screws us little guys. There's no way for me to have the volume to get gold, I can usually stay at silver but they adjust every 6 months I think. Have a slow stretch and you get demoted.

 

It is a rolling 12 month program for levels so it can average out the year. Really the only differences between the levels once you hit silver is the amount of brands you can pick for discounts. With the cumulative programs for pretty much all the high volume products (tires, brakes, oil, apparel, batteries etc) the 'picks' are becoming less important. It also allows a smaller dealer to get the same discount on say oil as the big guys as the threshold to get the top discount is pretty reasonable. Most categories is only $4500 a year for the max and the discounts are great even at $500 a year.

 

Jeff,

That's just silly and you know it....If the manufacturers discount structure is that fucked up then they probably need to do a better job on evaluating their business plan...

There should be no way with the size and scope of the motorcycle tire industry (very small) that a 4 to 5 line franchise dealer pays more for tires than the consumer does online..

Pricing structures like this show no pride in the products and no loyalty to anything other than the dollar in the current month

 

Blame companies bowing to investors who dictate the business.

It’s simple, money talks. Once the money gets high enough on the scale, people tend to no longer care about ethics. Happens all the time, won’t change until people change.

 

And yet again you miss the point on how business is done. Whether you like it or not (and I don't) the NA wholesaler to retailer to consumer model that's around says a retailer is rewarded by the more you can buy the more you...

And yet local hardware, auto parts, furniture, etc., etc, and even m/c businesses sell and manage to make a buck because they have figured it out and C.R. do you know why?