Harley-Davidsons Just Got More Expensive
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- čas přidán 31. 07. 2024
- Harley-Davidsons Just Got More Expensive. Milwaukee IAM Local 78 Members at Harley-Davidson Ratify Strong New Agreement.
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Link to the article: www.goiam.org/news/territorie...
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00:25 www.goiam.org/news/territorie...
01:40 @harleydavidson
02:36 Outro
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They can save a lot of money by firing that overpaid CEO
100% He has to go.
Amen
Just like the UAW's recent "gains" These idiots are pricing themselves right out of jobs!
Get a raise then get layed off, it's happened to me
That's right! They should work for $5 an hour and thank the good lord they get that much!
I suspect the MoCo was on the rears with their union contract. It is my guess. This hefty increase was long overdue.
Incorrect; they're pricing poor customers out of their products. Get over it. If you can't afford Harleys then get a better job.
@@A1i3N337 The fewer Harleys they sell, the fewer factory workers they will need.
I think this comes down to how Harley approaches it. If you take all their union workers, total up the increases here then divide that over 1000's of bikes annually as well as the OEM parts they're making for sale to dealer and consumer you're probably looking around $50 a bike or less. Now Harley could absorb that with a minor impact to profits, or increase the bikes by $100 and no one will care, OR claim that this is forcing them to add thousands to the price tag. Guess we'll see soon enough
Ford recently went through this. It raised the price of vehicles on average $850 to $2,000. We shall see what the future holds for HD. Thanks for stopping by, Ben.
@@KrakensGarageandAdventures Fords still cost less than a Harley. Selling a Harley for 50 thousand plus with the same tired motor technology from the last 100 years, they should be making a killing. They should make 35-40k per bike in profit.
25%? Who’s getting a 25% cola per year? That’s crazy. 4K ratification bonus, is that to pay for the celebration party?
He said 25% over the life of the contract, don't be spouting off shit till you know what your talking about
I suspect HD was in the rears on udating their union contracts. So this round was pretty hefty.
That's why I have never been a fan of unions...even when I had union jobs. I know someone that worked up north at the Chrysler plant in Kenosha, WI that was shut down because of the union. The union rep was lying to the employees and still had HIS over paid job, when over 30,000 people were either directly affected, or subsequently affected when the plant shut down. I think if that union rep would have showed his face around there after that, he might not have made it home again, if you know what I mean.
Yep, it's good to get a raise and a increase in benefits, but your right, Harley isn't going to just eat it on that one, incoming cost increase.
100%, Matt. 💩 rolls down hill!
I'm glad for the Union employees. Happy employees equals jobs well done with pride.
They are already pricing themselves out of the market. Competition from others has been passed them and is cheaper, this will be the nail in the sales coffin for them.
It's always a hard balance between providing appropriate compensation to the workers and providing completive market commerce, has the company got this right? stock transfers will tell the truth of it all in the end.
You are so right, Roland. To my knowledge, HD's stock has been dropping, and folks are selling off their shares.
Well not much we can do about it except sit back and grab the popcorn 🍿
Ha! You got that right! Good to hear from you, Pete.
Happy for the workers but this is a bad situation for Harley. Lower sales higher interest rates consumers debt is at an all time high with defaults rising. If we weren’t printing 1 trillion every 100 days we would be in a recession right now
As beautiful and iconic as HD bikes are, I lost my faith in the corporation a number of years ago. Being on SSDI, there is no way that I can afford another one. My last was stolen. I had to go to Honda to stay on 2 wheels. Do I regret it? NO! Do I wish I was still on an HD? Yes. But, it is not worth the price to me. And to be honest, the service at my local HD dealer is pathetic' from the purchase to the annual service. prices. My doctors took me off of two wheels but, to be honest, I would buy a Can Am Skyder before I would buy even an HD Freewheeler. My last experience with my local HD dealer made me leave with anger. And, don't get me wrong, I love the HD line of bikes. I have ridden them for almost 50 years. Their current attitude is to only make as much money as they can while claiming the "all American" moniker with a lot of Chinese made parts and then jacking up the prices due to the HD brand. An HD trike would have to be gifted to me to own another.
We agree. Our bikes in Australia are built in Thailand. Parts are supplied from various countries but predominantly Asia. Manufacturing ie car building is dead in Australia. We have no locally produced cars any more.
It’s already here for us. HD Bikes are so overpriced here.
I commend the union for reaching this substantial agreement but without disrespect, some benefits and/or perks seem to be excessive. As you noted Eric, prices will go up which will continue to reduce HD’s competitive advantage, which will eventually reach the breaking point. (25% raise of zero = zero) Just my 5 pesos. Cheers amigo.
This is not limited to HD. It's happening to all industries.
I suppose one could say, "it's the sign of the times" . Cheers
It's reaching tje breaking point for many companies, not just Harley. By the size of this increase. I would wager Harley was way overdue. Thanks for watching.
Bidenomics
Paying someone a living wage isn't the problem, the problem is that in America we are the highest cost of living on earth, and if everyone got all there goods and services for free, we still can't compete spending 80% of our income on Finance, Insurance, and real estate, that is of course if you can still get home owners insurance
You'll also probably see corners being cut and cheap parts being source to cut down on manufacturing cost. 😢
I've ridden Harley's all my life but at this point I don't need or care about HD or their dealerships, but I'll still be riding.
I kind of feel the same way after 45 years of riding them. I try to have faith that they will turn it around. Thanks for commenting.
Harley needs to restructure to compete in these times. You can purchase two brand new metric cruisers for the cost of one Harley.
You really can. Johan said up front, fewer bikes, more expensive, more profit. For good or bad, he has kept his word. Thanks for commenting.
@@KrakensGarageandAdventures This may be true but it is only more profit in the short term. The majority of the demographic into Harleys got into the brand when the bikes were much more affordable. This demographic is shrinking every year. The up and coming motorcycle demographic (people age 19 to 30) are currently priced out of Harley Davidson. This will cause them to develop loyalty to other brands.
@@Magnarmis HD also didnt have much competition before, Indian is outperforming them, as is BMW and Honda. Hell Yamaha has a good Bagger now. I went with a K1600b over the HD due to cost/performance. Spent 30K less and got got more HP and a lot more features.
Love the ship on the white board. Big complaines have been cutting skilled labor for years. They brought it to the point where most younger people do not think of it as an option. Now those jobs are back in demand, and the companys will have to pay. Maybe boards and stockholdheres will start to looking at excetutives now and think about thier worth. Circle of life. Great info.
Jerry, I think the MoCo needs a new broom and sweep out all the top brass and start over with some fresh minds. Great comment!
Unless HD can sell more units, and/or "successfully" increase revenue per unit (expecting that customers will gladly pay more, yeah right 😵💫), then the result is likely to be reduced production, leading to layoffs, and as that snowball grows, excess capacity, eventually leading to facility closures. This contract will be embraced by other unions to obtain similar results in their contract negotiations. This is certainly a sweet contract for the workers.
I agree that Harleys will only get more expensive because of the union thing. My experience with unions (including being an arbitrator once) made me realize just how bad (for business) they can be. I get the whole safety and quality of work life benefits that they gave us, but that was long, long ago. If Harley survives all of the bad decisions they have been making it will be a miracle. Great video today. Great to hear from you again!
Just a short one sharing the news as it unfolds. Thanks for commenting Stan. BTW, I have an offer for you. Email me at krakensgarage@gmail.com
having been forced to join a Union years ago at TWA, i despise them… they take money and do nothing except cause issues and problems. So, as a Harley owner and Indian owner I am expecting the recent 2024 models to remain the same price till July, then they will get a price bump of maybe $850 then starting in 2025 look for an additional $2000 bump in cost. The only thing that this did was SCREW the buyers of the product and force every other associated supplier of Harley to raise prices. Look for Layoffs as Harley continues to bleed sales.
We in the West are already unable to compete with the far east, stuff like this just makes that worse. I get it though, people have been getting skrewed by inflation for years but still...down we go.🙄
It us my belief we are reaching the breaking point. Something has to give here, and soon! Thanks for stopping by, Duncan.
@@KrakensGarageandAdventures All you boomers think every economic recession will lead to the collapse of society. Keep dreaming. America will endure just fine without it's beloved 900lb scooter company.
Not sure what to say. 😮
Glad I’m at the age that a new bike every year to impress my friends is behind me 😎👍
I mean I'm glad they got a good deal for the workers... But HD prices are already pretty damn high as it is. Let's see if they can keep selling enough new bikes to offset the newest cost. Great topic and a great video my friend.
I wonder if Harley will be replacing a lot more full time positions with non union contract shift workers in the future 🤔
I'm not even really sure what to comment haha. I'll keep trying to keep my FXDL on the road for life. I'd LOVE to have a second bike someday, but it would most likely be something quieter and lower cc than the Bug Smasher. Ain't gonna happen anytime soon though, as my family already scrapes the bottom of the barrel living here in the Boston area.
There's nothingnerong with that. I'm just reporting the news. Times are changing. It is up to the viewer to decide if it's good or bad.
Hopefully, balance in all things can be found for the mutual benefit of workers security, business viability and customer wishes. Not an easy terrain.
I have no skin in the game. I just traded in one of my bikes and purchased a Can-Am Spyder!
Congratulations on the CanAm! Enjoy that beautiful bike.
Lifelong Harley rider. Currently own 2 harleys and one indian. My next bike will be the Yamaha tenere
I just past up HD for my purchase due to price. Selling that new Road Glide CVO ST for 25+K over what its worth is just crazy. A Bagger with no passenger seat for 50 plus Thousand is just nuts. My new K1600b beats in every way.
Thats a very bad sign about the inflation… In order to secure business as usual they have to keep workers happy by paying more for having said workers… Skilled workers are becoming a rarity like an older model Harley per se. People would pay more to have one. Thanks for sharing this Eric maybe its time to sell??🙄🙄😂
I'm not banging on HD. I'm just reporting the moto news as it unfolds. I sincerely hope they turn things around.
Hello Mate, wow great for the workers but this will be handed onto the consumer as you mentioned, which may lead to lower sales, I fear.
That large od a pay increase for the union workers tells me two things. 1. HD was in the rears playing catchup. 2. This coat will be passed onto the customer. Thanks for watching.
Harley-Davidson knew coming into negotiations that they were going to have to pay their workers more. Rising inflation and stagnant wages had to be addressed as pretty much every industry has had to do. And it will undoubtably add to the cost of a motorcycle.
After the recent UAW contract was ratified with some hefty wage increases Ford predicted the average cost of a new vehicle would rise $850 to $900. Considering they sell lots of cars and trucks much more expensive than a Harley the average cost of a motorcycle should rise much less. Particularly since the HD wage increases weren't as big.
And there may be enough space in the existing prices to absorb some of that as Tesla has done in the past. And market conditions have a dramatic effect on prices. During the pandemic new car prices rose 30 percent just because of availability. And a depressed market can just as suddenly lower prices.
When I stop in a Harley dealership and look at the machines and the men looking at them I find it hard to imagine them staying in business. They seem to be stuck between a ridership absolutely unwilling to accept anything other than some variation of the same old motorcycle and the old, solvent buyers dying off.
Hopefully someone at Harley will figure out something before it's too late.
Whenever costs go up, so does prices. Our suppliers at work raised prices and we had to offset the increase by raising our prices. Simple economics. Just like McDonalds. Long gone are the $1 deals at fast food restaurants now that they are paying $15/hour to order takers. Tough on a company like HD, who is already showing signs of struggling. Their next quarterly report should be interesting. Good for the workers though who I'm sure well deserved it.
Streetglide and Roadglide price reduction...
wow some pretty good contract negotiation happened there.
Wow. I’m retired. Can I negotiate a 25% over the next 5?
Would be nice Rich. But you know that's not going to happen lol. They'll give you a 2% raise. Retired people don''t do anything but sit at home and eat very little food. "Let them eat cake"! At least that's the opinion of the elite politicians. Plus, how can they pay the people who don't work or criminally came to this country if they give you a raise?
Right! I have never seen that high of an increase in working for over 50 years. HD must have been way behind on an update.
@@KrakensGarageandAdventures GM strike last fall resulted in a 26% over 5 years plus a trend towards a 4 day work week.
I’m not a union fan because it rewards everyone even though not everyone is working as hard as their neighbor on the production line
Let the layouts begin.
I sure hope not. But I fear you're correct.
I have 2 bikes and one is '04 and the other '96. I do all my own work and have no plans to buy anything new.
But they needs to get into more vehicles like side by sides and dirt bikes. IMHO they can't stand on one thing in this day and age.
I was in unions and they are good and bad like anything else.
Many factors are at play.
I pray it all works out.
That’s a golden handshake in this economic climate. But the MoFoCo would have raised prices anyway, on principle. Workers doing a bit better than before is a justification many can live with. Teachers here, who bargain collectively with the provincial government, were just offered 3, 3, and 2% over three years. They shoulda had Craig “the ass-kicker” bargaining for them. Thanks for the information.
Just a short take on the news and the economic impact it will jave on the industry. 3% doesn't cover the cost of almost everything going up 30%. Somethings got to give here.
@@KrakensGarageandAdventures Got your email today explaining the story behind the gift. Thanks for taking the time. Cheers!
It will be like the McDonalds/Walmart employees who “deserved” $15+/ hour, then complain when their job is taken by a machine …
Becuase for $15 an hour and can't make change for a $20 bill. It's scary watching this all happen.
Oh boy oh boy, time to buy the bike before they jack up the price!
Seriously, though... good on the workers for getting more for themselves. Now we watch and see what happens. FWIW, the dealers around me are moving a lot of bikes [at least, *I* think it's a lot of bikes], and it's been more and more Softails, which is good to see. Still selling tons of Glides, though.
I'm glad to hear sakes are strong in your neck of the woods. Thanks for watching, John.
Can we get a update on the Binelli tnt 135? Pleaseee 😆I’d love to see how the bike is doing!
I am glad to see workers get a big piece of the pie, but that also comes with consequences
I am so glad I love the Harleys that I am currently riding because …. It is the last Harley I will be owning.
I am not in the top 1% wage earners in North America and I can’t afford the new prices to buy, the service $$ and the price of T shirts.
I will keep my current Harley till it no longer can roll.
My next purchase will be a Barley
Say good bye to the middle class I'm a U.A.W worker I work for one of the supply company's. I make parts for a truck I can't afford to buy my last truck is my last truck I have been price out of the market for good.
This is such a sad and profound statement. Thr used bike market is going to be flooding. It will be a buyer's market for quite some time if you're in the market. Thanks for commenting.
Yes ..... agreed
The pendulum is starting to swing the other way. 👀
I’m glad these American workers are getting more for their skills, but I do have to wonder how this will push Harley. If the economy keeps going this way as well as many other factors, dare I say Harley might look at building these bikes in other countries like most other car manufacturers, then leading to Americans losing their jobs but Harley still making money without raising prices? Isn’t the current CEO all about making more money on each bike instead of selling more bikes?
My 59 flh and 80 fxwg is very cost effective motorcycles
You are a very wise man, sir!
When I was working at the shipyard when the company was doing well we got a good contract. When they were not we didn't. So i don't think HD is doing bad !!
Accept lower but consistent revenue numbers and all would stay the same.
No shot, in my opinion. I agree with the mindset, though. Due to the huge pay increase, it leads me to believe HD was in the rears and playing catchup. Thanks for stopping by.
@@KrakensGarageandAdventures Need to appease the almighty board deities.
Harleys have always been outside of my personal price range, but I do appreciate them as a US made machine and a thing of beauty...My hat is off to the folks that are in a similar economic situation to mine that make the sacrifices to own a piece of Americana... Sorry to hear that they are getting even harder to obtain...
I have one payment to go on my 2019 FLSB.
Thats a good contract for the workers though.
I am watching (from my work)
Awww, naughty girl! 🤙
Nothing is Black or White, but I AGREE with what you pointed out. There has to be a balance between worker & company. USA doesn't want to loose it only in house Motorcycle Brand.
So we like our Harley's because they are made in the USA and are an icon of freedom and the ride. As we age out from riding, the new Harley won't be affordable UNTIL more efficient production is incorporated, as well as less expensive parts manufacturing (IE Asian built). Harley has to compete in the marketplace, at some point it will result in fewer jobs building the bikes, as well as a decrease of the number of highly profitable bikes being sold...once you go down that rabbit hole, VERY hard to get out. Tread lightly!
Another plant will be closing soon and manufacturing will be done in some other country.
Poor ole HOG. One more circle around the drain , losing market share every day.
Indeed , they are.
👋👋👍🇺🇸🫡
First! Winner, winner, chicken 🐓dinner!
I guess I will never again own a new Harley Davidson. Hopefully my 2003 Dyna I got in 2002 will last me the rest of my life. Who am I kidding, after 2021 most people have not been able to afford a new Harley Davidson. LOL After that bit of news that was just given it's most likely also going to be hard to afford a used one as well, because the use used ones that have been selling at reasonable prices are going to jump up soon. Funny thing is I have noticed the prices already going up lately. I don't know how people are buying new bikes now with financing rates as high as hell. I guess union workers are buying them because they are the only people who have gotten pay raises in the past four years. 😢
🇺🇸🇺🇸BIDENOMICS AT ITS FINEST ! 🇺🇸🇺🇸
The hole just keeps getting deeper.
Just because they belong to a Union doesn't mean they vote Democrat. There are probably more people that vote Republican at the steel mill I work at and we belong to the same union as the Harley workers do. The UAW and the USW unions may not vote blue. Just because you see Brandon doing press conferences with the heads of those union don't mean the majority of the workers are voting blue. One of our steel mills closed recently cause Biden and company didn't put tariffs on cheap tin, aluminum, and steel coming into our country. Over 900 of my fellow co-workers in another state lost their jobs cause of Branden. But now he wants to put on a front and put a 25% tariff on steel coming into the country. He had 3 1/2 years to do it. Six months before an election is way to late to put tariffs on now. Biden is a joke all the way around. Sorry kind of long winded comment there. LOL
@@davidsizemore2745 Correct... I'm a retired TEAMSTER... that wasn't what I was saying. I was saying thanks to the way our economy is slipping into a cesspool... THEY NEED A raise like that
Get that 401k cash and maximize the time value of money! Congratulations to the union.
That’s great news to the workers. I am keeping my 2012 wide glide. Future owners might want to buy used.
Unions are why companies go off shore. It WILL happen to Harley eventually. Little at a time.
It’s still 25% a year. I work under contracts too, most unions do. It’s still a huge figure-numbnuts
Harley Davidson has suffered from management since AMF days. All Harley offered was the look & the sound. There was no quality on these bikes. My 1st was in 1966 it was a 65 sporster. You couldn't kill this bike last was 73 (AMF) exhaust fell off 5 miles from dealer. You lean into a curve at night lights would go out. Disc brake tubes leak oil seat was like concrete block. 1st check up they set timing and on 90 mile trip back home it burnt the top out of my pistons. Guess what union benifits had noting to do with any of these problem. It was MANAGEMENT!
This is the same thing the auto union workers did and look what happened to them, massive layoffs and operations moving out of the country. Good luck to them. Harley will be forced to go out of the country, this is a no brainer. They are hurting themselves.
I have to agree. They have been slowly moving production globally.
Unions are bad for companies
I can't really comment on this as I'm not educated on both sides of the discussion. One thing is for sure, American's are split on this topic. Thanks for commenting.
Won't stop anyone from buying them though .... Would have loved to have those benefits working for the nonprofit I worked for...😅
That's one heck of a bump for the union. Wow!
@@KrakensGarageandAdventures yep great for them. Wonder what they got for benefit's. insurance, bonus ect....
Yes! @@KrakensGarageandAdventures
I don't want to see prices go up, but the employees need to be taken care of too.
May I suggest decreasing the salaries of the BOD & CEO to help offset the cost of these labor cost increases they approved? 25% increase over five years...that's really generous. I suggest you get out there and purchase the 2024 models because the 2025, 26, 27... models will be going up to cover these cost increases. The BOD will never cut their own salaries but they have no problem increasing the bike costs to the dealer who will just pass the increase on to the consumer.
Thanks again JZ and the HD BOD. You folks must really hate your middle class customer base.
All this will come at a cost. When you price your product out of the market the market goes away.. FJB
Union here. Some contracts you eat it, some you win. It’s all part of the gig. It’s a negotiation from both sides. 🤘⚡️🤘✨✨
I belong to the same Union local IAM 1943 I am a steel mill worker in Middletown, Ohio. Good for them, they was probably way over do for a raise and better benefits. I also have two Harley's one Tri Glide and one 2018 BreakOut in the blue denim 115th anniversary editon. I am a die hard Harley guy have owned other brands but there's nothing like a Harley. Knowing they are in the same Union I am in that makes me even more of a die hard Harley guy now.
I guarantee the MoCo was way overdue for the union pay increase of this magnitude. Thank you for what you do for America, sir.
@@KrakensGarageandAdventures Your welcome Sir. Keep up the great content Brother.
If you don’t look after your employees they won’t look after you. HD looks like they haven’t been doing their bit…it also sounds self gratifying which in turn means that the consumer should I say should be thankful for the increase of the cost of bikes…but it don’t work that way…another example of HD losing touch with reality across the board.
Yep a lot like government they are loosing touch yea everyone should look after employees but again without the consumers you have no employees like I’ve always said even if you own your own business you still are working for someone your customers and they r first without customers you have nothing
I doubt they had a good contract on the previous 5 years .
There may be some truth to this. Not just HD - but many companies negotiated roll backs and concessions over the past few years with their Unions (COVID et al), and now, given inflation and cost of living increases combined with profits picking up, the Unions are trying to catch back up with what they lost. I understand the shock of looking at this HD/Union settlement in isolation, but I do believe seeing the bigger picture may put it into context. IMO, companies need to be willing to eat some of these increases instead of passing every single penny of increase on to the consumer. I for one do not believe that they are in actual dire straits financially despite their complaining. I also believe that many Unions are just going over the top with their requests. 😐
I’m happy to see skilled labor get good benefits. Don’t know the history here but, I’m sure it’s welcomed by the hard working employees. I’m sure HD will get its “pound of flesh” regardless. Let’s just hope we see a change in our economy soon.
I agree, Sean. And by the size of this increase, I would eager Harley was way overdue. We need our economy to came back.
how much longer till harley goes bankrupt?
I don't think they're at the BK point. But they need to turn it around in a hurry. I just see them digging the hole deeper and deeper. Thanks for commenting.
Work less, make more. Company losing money. Stock worth less than 5 years ago. This is not sustainable. The company will ultimately cut heads, and produce less.
About the the money goes to the labor.Guess the CEO and shareholders turn to get squeezed a little
Way to fight for your benefits. Union strong. 💪 makes me proud to ride a Harley!
Harley davidson will be done in five years
Well they lowered the price of the 2024 models by 2000. This is how negotiating works. Good for those guys.
Good for the employees getting what they wanted, but I believe you’re right, that cost will be on the shoulders of the consumers. If the bikes keep selling, then all is good, but if the bikes stop selling due to cost, then bad for everyone…..
Nothing wrong with the people that build those bikes getting paid more. You have no idea how much this is gonna raise the price of there bikes.
LIVE BETTER, WORK UNION. F Jochen.
Everything has gone up exponentially in just 5 years except most wages, the rich get richer..
First off, gotta say good for them for getting what they could out of a new contract. People will no doubt continue to buy Harleys though.
I agree. I would wager that Harley was way overdue by the look of this increase. It's getting to the point most folks cantafford to live, let alone buy an HD. Thanks for stopping by.