12:41 PM EDT, 08/13/2024 (MT Newswires) -- A Harley-Davidson ( HOG ) dealers association said that the company increased its profit margins at their expense, the Wall Street Journal reported Tuesday, citing a letter to members and Harley leadership.

The Harley-Davidson Dealer Council of the National Powersports Dealer Association accused Harley of oversupplying bikes during a period of sluggish sales, forcing dealers to invest heavily in dealership upgrades that diminishes their profitability, the WSJ reported.

A Harley-Davidson ( HOG ) spokesperson told WSJ that the Council represents only a small portion of the dealer network and profitability is largely dependent on their individual performance. But, the company has suspended the requirement for upgrade at dealerships in 2025.

The Dealer Council suggests that the number of Harley dealerships in the US requires further consolidation, despite falling by about 100 dealerships under CEO Jochen Zeitz, according to the media report. Harley-Davidson ( HOG ) also plans to reduce motorcycle shipments in H2 to align with retail demand.

Neither Harley-Davidson ( HOG ) nor the National Powersports Dealer Association immediately responded to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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