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Old 01-29-2016, 10:50 AM   #1
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HarleyDavidson experiences drop in bike sales profits

Is under increasing threat from foreign brands

HARLEY-DAVIDSON published its 2015 profits on bike sales this week and the final figure for the year was $1,952,460 - down from $2,025,080 in 2014.

It experienced a 2.3 per cent drop in revenue over the course of the year, down to $6 billion.

The reduction in revenue is down to a drop in worldwide sales during 2015, which fell by 1.3 per cent to 264,627 bikes.

Harley plans to combat this by producing and distributing more bikes in 2016 - it expects to ship up to 274,000 motorcycles this year.

Sales haven't dropped everywhere though; the brand's performance in the Asia Pacific region was strong, with sales up by 7.3 per cent, to 32,258 bikes.

In a lengthly statement summing up its finances over the past 12 months, Harley-Davidson reported that throughout 2015, its sales were adversely affected by heightened competitive pressures from European and Japanese brands and currency fluctuations.

Although Harley’s traditionally strong market position in America is being consistently challenged by foreign brands, it said on Thursday that there was strong demand for its newer models, like the Sportster Iron 883.

Matt Levatich, President and Chief Executive Officer, Harley-Davidson said in a statement:

‘We are focused, with strength and resolve, on growing demand and building on our substantial market leadership position. Although we expect the macro-economic environment to remain challenging, we are confident we’ll continue to lead with our powerful brand – not simply because of our substantial strengths but through our increased demand driving investments and our incredibly talented and passionate employees and dealers.’
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