Harley-Davidson keeps tight rein on production

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://www.chron.com/news/article/Harley-Davidson-keeps-tight-rein-on-production-2144096.php
Harley-Davidson keeps tight rein on production

 MILWAUKEE (AP) — Harley-Davidson Inc. is putting a tight rein on production of its motorcycles to keep inventories lean for dealerships that might have a tough time selling in a difficult economy.
A survey of Harley dealerships by Robert W. Baird & Co. showed an unprecedented response, according to analyst Craig Kennison.
Nearly 60 percent of Harley dealerships said inventories were too low, Kennison said.
"Just one dealer told us inventory was too high," Kennison wrote in the survey.
Harley doesn't want to flood the market with bikes that might not sell and wants to protect the value of the brand. Several dealerships, of 50 surveyed nationwide, reported lost sales because buyers were looking for models that were out of stock. But, Kennison said that's a healthy dynamic for a premium brand.
Milwaukee-area Harley dealers say they're generally satisfied with bike inventories, although some 2012 models are sold out and must be ordered from the factory or other dealerships.
"We have to trade bikes (with other dealers) more than we ever did in the past because it's impossible for us to have every model in every color," said Chaz Hastings, owner of Milwaukee Harley-Davidson.
The dealerships that Baird surveyed sold about 10 percent more motorcycles in recent weeks compared with the same period a year earlier. The survey also showed most dealers liked the 2012 model lineup.
"Dealers seemed pleased with color selections and the elimination of slow-turning models, but a few want something more revolutionary, like a smaller bike," Kennison said.
The lineup includes a Dyna Switchback with detachable saddle bags. It has been popular with riders wanting something lighter and smaller than an 880-pound touring bike, said Richard Kummer, vice president of Route 43 Harley-Davidson in Sheboygan.
"We have lots of women wanting to see the Switchback and sit on it. And we have older riders trading in big touring bikes," Kummer said.
To increase showroom traffic, some dealerships have added more special events and entertainment, according to the Journal Sentinel