Is Harley-Davidson going out of business? That question has gained traction in recent months as the company grapples with declining sales, shifting market dynamics, and rising operational costs.
Harley-davidson’s latest earnings reports paint a sobering picture. Retail motorcycle sales plunged by 21% in the first quarter of the year, following a 35% revenue drop in the final quarter of 2024.
As Harley-Davidson closes some dealerships and rethinks its strategy, questions remain about whether the company can stabilise its brand and financial future.
In this article, we examine the challenges Harley faces, what its recent performance signals, and whether this iconic brand can chart a new path forward.
Key Takeaways
- Harley-Davidson’s retail sales have sharply declined, signalling deep market challenges.
- Rising tariffs and operational costs are putting additional strain on profitability.
- Dealer closures and an ageing customer base threaten long-term brand relevance.
- The company’s future hinges on attracting new riders and successfully diversifying its product range.
Harley-Davidson Brand Overview
Harley-Davidson is one of the most recognisable names in the global motorcycle industry. For over a century, it has built a powerful brand around American freedom, rugged design, and a loyal community of riders.
However, the brand’s future is now under scrutiny as it contends with falling sales, a shifting customer base, dealership closures, and financial uncertainty.
Below is a quick snapshot of the Harley-Davidson’s brand:
| Attribute | Details |
|---|---|
| Founded | 1903 |
| Founders | William S. Harley, Arthur Davidson, Walter Davidson, William A. Davidson |
| Headquarters | Milwaukee, Wisconsin, USA |
| Public Listing | New York Stock Exchange (Ticker: HOG) |
| Global Reach | Sales in over 100 countries; strong brand presence in the US and Europe |
| Core Products | Heavyweight cruiser and touring motorcycles, trikes, electric motorcycles (LiveWire) |
| Brand Position | Premium lifestyle brand with strong heritage appeal |
| Revenue (2024) | Approx. $5.3 billion; 35% Q4 sales decline vs. prior year |
| Recent Sales Trend | Q1 2025 retail motorcycle sales down by 21% year-on-year |
| Customer Demographic | Historically older, male riders; struggling to attract younger, more diverse riders |
| Official Website | https://www.harley-davidson.com |
Is Harley-Davidson Going Out Of Business? Harley-Davidson’s Current Financial Position
While Harley-Davidson is not going out of business today, Harley-Davidson financial performance has shown worrying signs of strain. Once a consistent profit generator, the company is now facing declining revenues, shrinking margins, and volatile earnings.
While management is pursuing cost-saving measures and product strategy shifts, these efforts are yet to reverse the Harley-Davidson sales decline.
The company’s most recent earnings reports reveal a sharp drop in revenue and retail sales, driven by weaker consumer demand, higher tariffs, and an ageing customer base.
The loss of market momentum is particularly visible in North America, Harley’s largest and historically most loyal market
Revenue and Profitability Trends
Harley-Davidson’s total revenue has fallen significantly. Its core motorcycle business, which once generated stable cash flow, is now experiencing double-digit sales declines.
At the same time, Harley posted a sizeable net loss recently, as reduced shipment volumes and weaker consumer demand weighed heavily on results.
| Financial Indicator | Recent Reported Result | Year-on-Year Change |
|---|---|---|
| Total Revenue | $688 million | –35% (compared to same quarter prior year) |
| Motorcycle Sales Revenue | $420 million | –47% (compared to same quarter prior year) |
| Net Income | –$117 million (net loss) | profit turned to loss |
| Earnings per Share (EPS) | –$0.93 | profit turned to loss |
The company’s move into loss-making territory is a sharp reversal from previous years of profitability. This signals deeper structural issues beyond temporary cost pressures.
Global Sales Volumes Are Shrinking
The more concerning trend is that Harley-Davidson is selling fewer motorcycles worldwide. In key markets such as North America, which traditionally accounts for the bulk of the company’s sales, demand is falling at an alarming pace.
Other global markets are showing similar signs of weakness, driven by economic uncertainty, changing consumer preferences, and increased competition from rival brands.
| Market Region | Sales Decline |
|---|---|
| North America | –24% |
| Europe, Middle East & Africa | –2% |
| Asia-Pacific | –28% |
| Latin America | –6% |
| Global Total | –21% |
North America remains the hardest hit, a worrying sign given Harley’s dependence on this market for revenue and brand strength. Asia-Pacific is also seeing a steep decline, undermining hopes of strong growth in international markets.
Rising Tariff Costs Add to the Pressure
As if falling sales were not enough, Harley-Davidson is now facing significant new costs from global tariffs. The company expects tariffs to add between $130 million and $175 million to its expenses this year, a substantial blow to an already fragile bottom line.
In response to this volatility, Harley-Davidson took the unusual step of withdrawing its earnings forecast. This signals that leadership is bracing for more unpredictable quarters ahead.
In Summary, Harley-Davidson’s financial health is under serious strain. With its earnings forecast withdrawn, Harley’s future looks uncertain unless it can quickly stabilise sales and manage rising expenses.
Why Harley-Davidson Is Struggling
Harley-Davidson’s financial decline is not caused by a single factor, it is the result of several long-running challenges that the company is now struggling to overcome.
From an ageing customer base to rising costs and increased competition, the brand is facing pressure on multiple fronts.
Below are the key reasons behind Harley-Davidson sales decline and financial difficulties.
| Challenge | Impact on Business |
|---|---|
| Ageing Customer Base | Core customers (Boomers, Gen X) ageing out of the market while younger buyers are less engaged. |
| Declining Global Sales | Global motorcycle sales down 21% and severe drops in key markets like North America and Asia. |
| Rising Prices & Tariffs | Tariffs adding $130M–$175M in costs, thereby making retail prices rise and reducing affordability. |
| Dealer Closures | Dealer network shrinking, reducing physical sales presence and showroom traffic. |
| Competition from Rivals | Strong competition from Indian, BMW, Japanese brands, and new electric motorcycle startups. |
| Weak EV Market Penetration | LiveWire EV division operating at a loss as electric bikes are not yet driving meaningful growth. |
| Brand Relevance Challenges | Younger consumers see Harley as expensive, old-fashioned making the brand’s appeal fade. |
Harley-Davidson’s Response to the Crisis
Harley-Davidson is not standing still. Management is actively pursuing several strategies to reverse the company’s declining fortunes.
However, the success of these efforts remains uncertain , and in some cases, they may not be moving fast enough to address the brand’s core challenges.
Below is a clear overview of the actions Harley-Davidson is taking, with a strategic look at how each one is intended to improve the company’s outlook.
| Response Strategy | Objective & Impact |
|---|---|
| Focus on High-Margin Touring Bikes | Harley is prioritising premium touring and custom bikes to protect margins amid falling sales volumes. While profitable, this strategy still targets an ageing customer base. |
| Expansion into Smaller Models | To attract younger riders, Harley is launching smaller, more affordable models like the Nightster 440. Success in this segment is critical to reversing the Harley-Davidson sales decline. |
| Streamlining Dealer Network | The company is consolidating its dealer network to cut costs and maintain stronger partnerships. However, Harley-Davidson dealer closures may reduce brand accessibility in some regions. |
| Growth of Electric Motorcycles (LiveWire) | Harley is investing in its LiveWire electric motorcycle division, seeking to modernise its brand image and tap into future demand. So far, this effort has yet to deliver meaningful profits. |
| International Market Focus | With US sales shrinking, Harley is targeting growth in Europe and Asia. However, Harley-Davidson market trends show that international sales are also under pressure. |
| Aggressive Cost Management | The company is implementing strict cost controls to preserve profitability. This helped generate a recent short-term profit, but does not address underlying demand weakness. |
| Brand Revitalisation Efforts | Marketing campaigns are trying to refresh the Harley-Davidson brand and appeal to younger, more diverse consumers. The results so far remain mixed. |
Consumer Sentiment and Brand Perception
Harley-Davidson remains a legendary name in motorcycling, but its public image is increasingly under strain.
Long-time fans have voiced growing frustration over rising bike prices and Harley-Davidson dealer closures, which are making it harder for many riders to purchase or maintain their motorcycles.
Meanwhile, younger consumers are often put off by the brand’s ageing image and the perception that its large, expensive cruisers no longer fit modern lifestyles.
On social media and across motorcycle forums, a common refrain is emerging: Harley-Davidson feels out of step with today’s market. Many potential buyers see the company’s bikes as unaffordable, while others question whether Harley’s electric efforts, led by the niche and costly LiveWire, can meaningfully attract new customers.
Some enthusiasts and analysts are now openly asking: Is Harley-Davidson failing?, citing Harley-Davidson brand challenges and a lack of cultural relevance among Millennials and Gen Z.
That said, Harley-Davidson’s deep brand loyalty remains a crucial asset. For older riders and dedicated fans, the Harley name still carries powerful emotional weight.
However, unless the company successfully broadens its appeal, this loyalty alone will not be enough to reverse the Harley-Davidson sales decline or secure the brand’s long-term future in an increasingly competitive motorcycle market.
How Competition Is Reshaping Harley-Davidson’s Market Position
Harley-Davidson is facing intense competition from both traditional motorcycle brands and emerging players in the electric space.
Below is a summary of the main competitors and their impact on Harley’s position in the market:
| Competitor | Key Strengths | Impact on Harley-Davidson |
|---|---|---|
| Indian Motorcycles | Modern cruisers with competitive pricing, advanced tech, strong US market presence. | Directly stealing market share in Harley’s core cruiser and touring segments. |
| BMW Motorrad | Premium bikes with advanced technology and strong global brand appeal. | Attracting younger premium buyers that Harley is struggling to reach. |
| Honda & Yamaha | Reliable, affordable motorcycles with broad appeal and strong dealer networks. | Dominating entry-level and mid-range markets where Harley is late and less competitive. |
| Zero Motorcycles & EV startups | Well-established in electric motorcycle segment, with affordable models and growing brand loyalty. | Threatening Harley’s efforts to build traction with its LiveWire brand. |
| Other Japanese brands (Kawasaki, Suzuki) | Affordable, lightweight motorcycles with excellent value and wide global reach. | Pulling younger riders and first-time buyers away from Harley’s larger, more expensive models. |
Future Scenarios: What Is Next for Harley-Davidson?
Harley-Davidson’s future is far from certain. The brand’s leadership faces mounting pressure to stabilise sales, rebuild market relevance, and navigate a complex competitive landscape.
How these efforts play out in the coming years will determine whether Harley-Davidson can stage a successful turnaround, or face further decline.
Here are three potential scenarios that outline what the company’s business future could
| Scenario | What Happens | Implications for Harley-Davidson |
|---|---|---|
| Revival Through Reinvention | Harley successfully expands into smaller bikes and EVs, attracting younger buyers and global growth resumes. | Sales stabilise, profitability improves, brand relevance is restored. |
| Survival Through Cost-Cutting and Core Focus | Sales remain under pressure in core markets. Cost-cutting supports short-term profits, but market share erodes. | Revenue growth slows, Harley-Davidson brand challenges persist, future uncertain. |
| Decline and Irrelevance | Sales continue falling sharply. Dealer closures accelerate, brand loses loyalty and relevance among all demographics. | Company risks severe downsizing or acquisition, possibly exits key global markets. |
What Will Make or Break Harley-Davidson’s Business Future
Harley-Davidson’s future success will depend on how well it navigates a series of critical challenges over the next few years.
These are the factors that will ultimately determine whether the company can return to growth, or slip further into decline.
| Key Factor | Why It Matters |
|---|---|
| Attracting Younger Riders | Without strong appeal to Millennials and Gen Z, Harley cannot offset the natural decline of its ageing customer base. New models must resonate with younger consumers’ preferences and budgets. |
| Expanding Entry-Level and Mid-Range Bikes | To drive volume, Harley needs affordable, lightweight bikes that compete with Japanese and European rivals. Success here could slow or reverse the Harley-Davidson sales decline. |
| Growing a Profitable EV Business (LiveWire) | The motorcycle industry is shifting toward electric. If Harley fails to build a competitive EV portfolio, it risks irrelevance in future growth markets. |
| Managing Dealer Network Effectively | Dealer closures are shrinking Harley’s retail footprint. Preserving a strong, customer-friendly dealer network is vital for brand experience and sales. |
| Rebuilding Brand Relevance | The Harley-Davidson brand challenge is about more than product, the brand must feel modern and culturally connected to younger, more diverse riders. |
| Navigating Tariff and Cost Pressures | Rising input costs and tariffs are eroding margins. Harley must manage these effectively to protect profitability and pricing power. |
Lessons Entrepreneurs Can Learn from Harley-Davidson’s Struggles
Harley-Davidson’s recent struggles offer valuable lessons for entrepreneurs across all industries. Whether you run a young startup or an established business, these key insights can help you stay competitive in a rapidly changing market.
Do not Rely Solely on Legacy Customers
Harley depended too heavily on its ageing Baby Boomer and Gen X rider base. As those customers aged out of the market, Harley struggled to attract younger buyers.
Entrepreneurs must consistently engage new audiences and diversify their customer base. Do not assume yesterday’s customers will sustain tomorrow’s growth.
Align Innovation With Market Needs
Harley’s electric motorcycle push with LiveWire arrived late and targeted a narrow premium segment. Competitors moved faster and launched more affordable, practical EVs that resonated better with younger riders.
Innovation must be timely, relevant, and customer-focused. Listen to your market and build products that meet evolving needs, not just products that fit your brand legacy.
Stay Ahead of Shifting Market Trends
Harley underestimated how quickly Harley-Davidson market trends were changing, both in terms of competitive dynamics and consumer preferences.
New brands, lighter bikes, and alternative transportation options gained ground while Harley remained too focused on its core segments.
Entrepreneurs should regularly monitor trends, competitors, and cultural shifts. React fast or risk becoming irrelevant.
Maintain Pricing Power Through Value
Harley’s rising prices contributed to the Harley-Davidson sales decline, especially among younger and budget-conscious consumers. At the same time, many competing brands offered more perceived value at lower price points.
Entrepreneurs must balance pricing and value. If you raise prices, ensure that customers clearly see the added value, or risk losing them to better-positioned competitors.
Conclusion
Harley-Davidson is not going out of business yet, but its future is far from guaranteed. Sales are declining, costs are rising, and competition is eroding its once-dominant market position. Without bold action, the company risks slipping further into irrelevance.
To survive, Harley must modernise its brand, attract younger riders, and offer products that reflect today’s consumer expectations.
For entrepreneurs, Harley’s story is a powerful reminder: no brand is too big to fail, and no market position is permanent. Success belongs to businesses that listen to their customers, adapt quickly, and continually reinvent themselves for the future.
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Frequently Asked Questions
Is Harley-Davidson struggling?
Yes, Harley-Davidson is currently facing serious challenges. The company is experiencing declining global sales, rising operational costs, and intense competition from both traditional rivals and electric motorcycle startups.
Is Harley-Davidson going out of business?
No, Harley-Davidson is not currently going out of business. However, the company is facing serious financial and strategic challenges.
Is Harley in financial trouble?
Harley-Davidson is not bankrupt, but it is under financial pressure. The company recently reported a net loss and withdrew its earnings forecast due to rising tariffs and declining sales volumes.
Why is Harley-Davidson being “cancelled”?
The phrase “Harley-Davidson being cancelled” reflects growing consumer criticism and cultural shifts. Some younger riders see Harley as a brand that represents an outdated image of motorcycling, large, expensive, gas-powered bikes that do not align with modern values like sustainability and affordability.
Is Harley-Davidson discontinued?
No, Harley-Davidson is not being discontinued. However, the company has scaled back some model lines and closed dealerships in certain markets as part of its restructuring efforts.
Are Harley-Davidson dealerships closing?
Yes, Harley-Davidson has been consolidating its dealer network, particularly in the US and UK. This is part of a strategy to cut costs and improve dealer profitability.
However, Harley-Davidson dealer closures are reducing the brand’s retail footprint, which may make it harder for some customers to access and experience the brand.
What is Harley-Davidson doing about declining sales?
The company is pursuing several strategies to address the Harley-Davidson sales decline: launching smaller, more affordable models; investing in electric motorcycles (via its LiveWire division); expanding in international markets; and attempting to refresh its brand image to appeal to younger riders.
Will Harley-Davidson survive?
Harley-Davidson still has strong brand loyalty and global recognition, but survival will depend on its ability to execute a bold transformation.
Without meaningful progress in attracting younger customers, competing in the EV space, and modernising its brand, Harley risks further decline. The next few years will be critical.
