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volume 9 | issue 01
FEBRUARY 2018
Sprockets
Harley-Davidson Closing Plant
The world’s largest maker of heavyweight motorcycles has struggled to reverse a four-year sales slide, with growth overseas somewhat helping offset a decline in the North American bike market. The company said its net income fell 82% in its fiscal fourth quarter to $8.3 million, compared with a year earlier. The earnings drop came in part because of a charge associated with President Trump’s tax cut and a $29.4 million charge for a voluntary product recall. “Our actions to address the current environment, through disciplined supply and cost management, position us well as we drive to achieve our long-term objectives to build the next generation of Harley-Davidson riders globally,” Matt Levatich, president and CEO, said. The company’s manufacturing consolidation includes plans to shift production from Kansas City, Mo. into its plant in York, Pa. Over 800 jobs in Kansas City will be cut. It expects ongoing annual cash savings of $65 million to $75 million after 2020. “For years, the North American heavyweight motorcycle industry grew at doubledigit rates due to low interest rates, a strong economy, a rising stock market and the baby boomers. However, we expect a much slower growth pattern for the industryin coming years,” said analyst Robin Diedrich with Edward Jones Co. “As safety becomes a concern for aging baby boomers, domestic sales for the heavyweight motorcycle industry should slow. We expect certain international markets, particularly in Asia and South America, to have higher growth rates in heavyweight motorcycles than the U.S.,” Diedrich said. Harley’s foreign competitors have benefited from a strong U.S. dollar, as their overseas operations have made it more profitable to sell bikes in the U.S. at lower prices. In some cases, Diedrich said, prices of Japanese motorcycles have come down 25% and discounts ranged up to $3,000 per bike. “Harley is seeing significant pricing pressure, hurting profitability and sales,” she said.
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Honda Canada is happy to announce that the recently unveiled all-new ‘sport naked’ CB300R will be coming to Canada as a 2019 model. This stylish, stripped-back 300 sport-naked is a great way for new riders to enter into motorcycling in style. The styling of this bike is a deliberate reduction, putting the machine’s blacked-out hardware on display. It’s
2019 Honda CB300R
also brutally neat and brings a new hard-edged attitude to the naked bike scene. The cutaway tail unit is barely there, and supports separate rider and pillion seats plus the nylon rear mudguard mount. Both rider and pillion footpeg hangers are aluminum. Fun to ride, a joy to own and representing a bold new direction for smaller displacement machines, the CB300R has
many of the premium features found on its larger capacity 1000cc sibling. It injects a fresh new style, with a ‘Neo Sports Café’ minimalist, bare-boned attitude shared with its 1000 stablemate. Canada’s new 2019 CB300R sport-naked is the ideal machine for new riders to develop their riding skills and it is also a great introduction to Honda, with the brand’s continued on PG. 03