Harley Davidson 2011 Annual Report Download - page 4

changes in seasonal demand. We also expect
to have significantly greater flexibility to
adjust product mix based on retail demand.
Similar changes are underway in the
operating structure at our manufacturing
facilities in Kansas City, Milwaukee and
Tomahawk, Wis. Harley-Davidson
employees in our Complete Knock-Down
(CKD) production facilities in Manaus,
Brazil, and Bawal, India, are implementing
the same common operating system as
well. And in Manaus, we moved into larger
space to provide the capacity to meet the
needs of that growing market.
In short, every aspect of our approach to
manufacturing centers on one thing: getting
the right motorcycle to the right customer
at the right time.
Shorter Product Development Times
When it comes to creating remarkable
motorcycles, we have re-engineered
our entire product development approach
with a focus on three key elements:
1) a laser focus on the best product opportunities;
2) reduced time-to-market; and
3) increased product development capacity
through e≈ciencies.
While Harley-Davidson has an
outstanding lineup of products, and they are
clearly a driving force behind our success
at retail, what we are the most excited about
is that the best is yet to come!
Today in product development, there are
30 percent more projects in development
than there were just two years ago. We are
devoting 25 percent more engineering
resources to innovation. Over the coming
years, customers will see a remarkable
stream of new products: motorcycles for our
core market, our outreach markets and
international markets.
A Premium Customer Experience…
the World Over
At retail, Harley-Davidson and its
worldwide dealer network are creating the
vision and implementing the strategy to
keep us great—not just as the best motorcycle
dealer network, but as one of the world’s
best retailers.
We have come a long way from where we
began just over two years ago, and our 2011
results reflect this progress. Income from
continuing operations more than doubled
to $548.1 million on a 9.3 percent increase
in revenue, compared to 2010.
At retail, the Harley-Davidson brand
showed its continued power and appeal,
with sales of new Harley-Davidson
motorcycles up 5.9 percent globally for
the full year compared to the prior year.
In the fourth quarter alone, new Harley-
Davidson motorcycle retail sales grew
10.9 percent globally year over year,
including an 11.8 percent increase in the
U.S.—our largest market.
Our share of the U.S. heavyweight
market stood at a record 55.7 percent in 2011.
We were also number one or number two in
heavyweight motorcycle market share in
nine countries across Europe. We generated
strong growth in Latin America as the
result of a significant number of new dealers.
And new Harley-Davidson motorcycle
sales in the Asia Pacific region grew, despite
the effects of the natural disaster early
in the year in Japan—our largest market
in the region.
While we celebrate these and other
2011 successes, our focus remains clearly
on the road ahead and the continued
execution of our transformation strategy.
We expect the changes underway
in our approach to product development,
manufacturing and the retail experience
will enable Harley-Davidson to be
world-class and customer-led in everything
we do, and we are pursuing this work
with a relentless drive.
Flexible Manufacturing
In 2011, we made great strides in the
transformation of our York operations.
All Touring, Softail® and Tri Glide®
motorcycles are now built under one roof,
on one assembly line. Even more powerful
than the bricks-and-mortar change is the
change in the culture, where the employees
on the line are creating and implementing
operating improvements on a daily basis.
Beginning in early 2013, we expect to
have surge capability at York, enabling us to
more closely match production to
In 2011, Harley-Davidson’s journey of transformation gained
great momentum. It is a multifaceted journey to make us more
agile and more effective at exceeding customer expectations,
and, in doing so, to create growth opportunities and sustain
our business for all stakeholders far into the future.
02 Harley-Davidson, Inc. 2011 Annual Report