Harley-Davidson opens new ways to tap market

The ever-increasing fuel price and the possible introduction of a new luxury tax is not standing in the way of the love affair Jakarta's nouveau rich have with big bikes.
Distributor of the U.S.-made Harley-Davidson motorbike Mabua Harley-Davidson (MHD) said that big-time lawyers, politicians and government officials were among the new rich who were lining up to get the latest model of the legendary steel horse.
As a result, the local distributor of Harley-Davidson motorcycles has registered a dramatic increase in the sales of customized bikes in the past three years.
""In 2004, we registered the sale of 242 bikes, an increase from 222 in 2003. For 2005, we expect a rosy year, as by August we had sold 261 bikes, an increase of 73 percent,"" president of MHD Jonnie Rahmat said.
Of the sales, Jonnie said that between 65 percent to 70 percent of buyers were residents of Jakarta. ""And of those up to 65 percent are residents of South Jakarta,"" he said.
As part of its service to the bulk of Harley-Davidson riders and potential buyers in the southern part of Jakarta, MHD recently opened a shop at the newly-constructed Pondok Indah Mall 2 (PIM 2), the extension of the plush Pondok Indah Mall, that serves to sell accessories and gimmicks for one of American's most famous brands.
The retail outlet, the fourth in Jakarta and fifth in the country, sells Harley paraphernalia ranging from apparel such as T-shirts, children's wear and caps to cigarette lighters, all authorized by the U.S. brand owner.
MHD has the goal to operate 20 outlets by the year 2009.
Interested buyers could also place their orders at the shop and in no less than a month a brand new Harley Davidson, which is shipped from a plant in Singapore, could be in their possession.
To evade an extremely high luxury tax for a built-up Harley, the Indonesian distributor ships completely knocked-down bikes from the Singapore plant.
After receiving an order, the U.S. Harley manufacturer in Milwaukee dispatches a completely built-up bike to the Singaporean plant before being disassembled.
Under the present tax regulation, a completely built-up Harley will be a subject to 60 percent customs tax, 70 percent luxury tax, 10 percent value-added tax and 2.5 percent income tax.
Before owners can ride their bikes on the street, they have to pay a 10 percent registration fee to the police.
The government mulled raising value-added tax for luxury goods, cars and big bikes in June. The plan has been met with resistance from car distributors as it will dissuade consumers from buying new vehicles.
The move was to come into effect in tandem with a policy to persuade car owners to shift from low-cost fuel to Pertamax.
The opening of the new retail shop is one among many strategies developed by MHD to broaden the appeal of the Harley Davidson motorbike.
In recent years, MHD has started renting used Harley-Davidson motorcycles for customers interested in riding the famed bike.
""Currently there are five bikes on stand-by for customers who are interested in having a test ride,"" Willy A. Tjondrodiputero, General Manager of MHD said, adding that renting a Harley was similar to a test drive.
The cost of renting a used Harley-Davidson bike ranges between Rp 800,000 and Rp 1.7 million per day, depending on its type.
In the future, MHD will also hold more tours for Harley owners, including trips in the U.S.
The Harley-Davidson enterprise started in Milwaukee in 1901 when William S. Harley, aged 21, drew up plans for a small engine that displaced 7.07 cubic inches (116cc) and had tiny 4-inch flywheels. It was designed for use in a regular pedal-bicycle frame.
Thanks to the World War I, the small enterprise turned into the largest motorcycle manufacturer in the world in 1920, after it provided 20,000 machines to the military forces during the war.
World War I was the first time the motorcycle had been broadly adopted for combat service.

Motorcycle Officer Killed in Crash

The name of a motorcycle officer who died in an accident while escorting a funeral is expected to be released today.

Police say the officer lost control of his motorcycle and crashed while he was escorting a funeral procession headed north on Indiana 67 in Morgan County. No word yet on why the officer lost control, but police said no other vehicle was involved.

All-American Harleys Take Off in Mideast

It may seem incongruous, but in a region rife with anti-American sentiment, the all-American symbol has found a home: Harley-Davidsons are on the rise in the Middle East, even in conservative countries like Saudi Arabia. The hogs’ popularity was marked this month by Lebanon’s first-ever Harley-Davidson tour, which saw some 130 bikers from across the Mideast gather to cruise through the country—women and children included, the Los Angeles Times reports.

“Once you get on a Harley you feel that you are really free and that your spirit is always up high and you're going through the wind,” says one local biker. Most Harley fans in the region have links to America, having lived or studied there, for example, says a dealer. “It’s a part of American culture,” he notes, but in Lebanon, most seem perfectly tolerant of the bikes and their leather-clad riders.

Harley Davidson and Pierce Raise Money for Fallen Firefighters' Families

Given the global recession, everybody is short of money these days but this shouldn't be an impediment for donating a few bucks to charity and thus, sign up in the race for a custom Harley Davidson Fat Boy Firefighter Special Edition motorcycle.

Harley Davidson Motor Company and Pierce Manufacturing have joined forces in a charitable campaign to support the National Fallen Firefighters Foundation (NFFF), an organization dedicated to assisting firefighter families.

The NFFF Full Throttle Support campaign, that has already found 2,000 supporters, allows participants to donate money on NFFF.

FullThrottleSupport.com. By making a donation of at least $10, participants are automatically entered into the race to win a custom Harley Davidson Fat Boy Firefighter Special Edition motorcycle.

Equally, visitors will find special NFFF Full Throttle Support gear including jackets, hats and t-shirts on the Web site that they can purchase.

“We are encouraged by the tremendous response we’ve had during the first part of our campaign,” said Wilson Jones, Oshkosh Corporation executive vice president of Fire & Emergency and president of Pierce Manufacturing.

“It is remarkable to see so many extraordinary people who are willing to support the families of fallen firefighters, many of whom are dependent upon the NFFF for emotional and financial support.”

All the proceeds, including those coming from the sales, will go to the NFFF survivor programs that help families of fallen firefighters make a new life.

Such programs contain education scholarships and/or job training for children and spouses of firefighters as well as trips to the annual firefighter memorial weekend in Emmitsburg, MD.

“The money from this campaign will help us create more and larger scholarships – something we’ve hoped to do for many years,” said Ron Siarnicki, executive director of the National Fallen Firefighters Foundation.

“We owe a lot of thanks to Pierce and Harley-Davidson whose commitment to give back to the firefighting community has gone above and beyond the call of corporate philanthropy.”

So far $59,232 have been raised but the campaign is not over yet.

It was launched in January and will run through April 26. The lucky winner of the custom HD motorbike will be announced in May 2009.

Frank and Sharon’s Cross Country Trip and 2009 Harley-Davidson Touring Bikes

It sounds like Frank and Sharon are having a great time on their cross-country trip even though the weather hasn’t always cooperated. They are keeping us updated by sharing their experiences with daily posts on Frank’s blog along with pictures of their trip.

They have arrived in Las Vegas and really enjoyed their visit to Hoover Dam. Follow along on the rest of their trip by clicking here!

2009 Harley-Davidson Touring Bikes

It would be difficult to exaggerate the importance of the touring market to Harley-Davidson. According to Harley’s statistics, the touring models have led the industry in market share for the touring category 14 consecutive years.

The 2009 Harley-Davidson touring family includes the Road King, Road King Classic, Street Glide, Road Glide, Electra Glide, Electra Glide Classic and Ultra Classic Electra Glide. These bikes appear very similar to the 2008 models, but the changes are actually quite massive.