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Harley Davidson Case Analysis

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Even with global volatility, the automotive industry is enjoying considerable gains and profitability while annual sales have reached prerecession levels. Last year, drivers in the U.S. bought more cars than ever before, a remarkable turnaround for an industry on the verge of collapse 5 years ago. The historic free fall in oil prices have fueled car sales with consumers flocking towards gas guzzling SUV’s and trucks. The most immediate challenges that threaten the automotive sales are currency headwinds and wavering demand in emerging markets. From a manufacturing standpoint, the auto industry must evolve with major societal trend to remain relevant including a shift in consumer demand, increasing regulatory requirements and the need to integrate…show more content…
Shipments of the American chopper is expected to be roughly in line with orders shipped in Q4 2014. Harley Davidson has however inccured an additional $30-35 million in expenses from company wide layoffs and corporate restructuring. With sales struggling, Harley has failed to adapt to the changing demographic of motorcycle owners. Today’s motorycle buyer are a younger generation looking for low cost sports bikes rather than lavish v-twin cruisers. Harley Davidson still maintains control in the motorcycle industry with its products representing almost half of all bikes sold in the United…show more content…
The automaker recently revised 2016 guidance, increaseing its full year expectations 25 cents per share. General Motors is the largest of U.S. automakers and generates 35% of its revenue in North America. The company receives the remaining portion of revenues from global markets subject to currency risk from a strong U.S. dollar. This is a concern for GM as they must compete not only with U.S. automakers but also international car makers such as Toyota. That said, the company is positioned to benefit from its investments domestically, new product launches and partnerships. Earlier in 2016, GM invested $500 million in ride sharing company, Lyft, to develop a fleet of self driving cars. Moreover the automaker recorded its highest year of car sales in the U.S. and views emerging markets as huge potential. GM is taking multiple initiatives to make its vehicles more advanced while also maintain fuel efficiency and safety, insisting what should be a positive outlook for consumers and
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