Aiming to tap into the strong used motorcycle market, Harley-Davidson has created H-D1 Marketplace, which will allow potential customers to search the used inventory at all Harley-Davidson dealers in the country.
Customers can use the search tool to look for specific models or browse inventory. This follows the launch this spring of Harley-Davidson Certified, a program in which dealers sell used Harleys that come with a warranty. One option is to search only for certified pre-owned models.
Supply chain disruptions and a strong rebound in sales have left dealer inventories uneven, with many dealers relying on sales of used motorcycles.
"We really need to get our hands around the used Harley-Davidson bike market," Harley-Davidson CEO Jochen Zeitz said in the quarterly conference call. "It's a significant market. Those are all very valued Harley customers.
"We are offering that listing service for free because we believe scale is critical and it's a service for our dealers at this point. We're very pleased that we'll be starting H-D1 Marketplace with over 18,000 bikes as of today, which is quite extraordinary considering that this is a new initiative. All our Harley-Davidson dealers have signed up."
Helping dealers sell used motorcycles can benefit the mother company by leading to more sales of general merchandise and bringing more business to Harley-Davidson Financial Services, the arm that provides financing for motorcycles.
The announcement of the new H-D1 Marketplace came today alongside the company's quarterly financial report. Harley executives also announced that they had raised prices two percent effective July 1 on select new Harley-Davidson models to try to counteract inflation, which is hurting the company's profits and is expected to continue to be a headwind. Prices of commodities such as aluminum and steel have soared and shipping costs have also gone up.
Harley-Davidson reported a 43 percent increase in sales in North America compared to the second quarter of 2020, when sales were disrupted by shutdowns, but this year's sales are still below 2019 levels. And while sales were up in North America, they declined in the rest of the world, especially in Latin America, where the company pulled out of many markets, and in Europe, where the Street and Sportster lines were discontinued and the company was hit with a retaliatory tariff. The company's stock dropped seven percent on the day after the news.