Harley Davidson to offer American dealers rebates on 2016 motorcycles

Harley Davidson to offer American dealers rebates on 2016 motorcycles

Harley-Davidson Inc. has been heard to have taken the unorthodox path of offering rebates on its 2016 motorcycles to the local (American) dealers with an objective to create incentive to improve sales of its latest models. In fact, the firm will offer rebates up to $1,000 on each sale of its 2016 motorcycle.

The dealers stated that the information is confidential and some other dealers declined to comment on the rebates. Even the firm itself did not comment on it. However, three dealers and two analysts have claimed the promotion to be true. The promotion is likely to last until the end of April and will affect the margins in the first half of the year.

The firm never gives discounts on its bikes in order to maintain its premium-brand image. Despite that, Harley has gone through quite a slump considering its competitors such as Polaris Industries Inc. and Honda Motor Co. Ltd have offered discounts favouring the public.

Chief Financial Officer of Harley-Davidson, John Olin, has stated that the firm will be focusing on selling its 2016 motocycles through the first quarter of this year and would limit shipments of its 2017 models.

According to sources, two of the three dealers were able to clear most of their 2016 inventory, and the third would need another two months at least.

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