Jean Turner | September 15, 2018
Rymer Reason
A brand in trouble? The view from inside one of H-D’s most prominent dealerships paints a different picture. Terry Rymer of Black Hills Harley-Davidson gives a frontline perspective on the effects of a brewing trade war.
When a company sits in the crossfire of international trade wars, continues to draw the ire of the President of the United States, and is threatened with boycotts, it’s logical to assume that company is facing a tough time. A news search of the name “Harley-Davidson” would reinforce that assumption with a slew of headlines indicating, “declining sales,” “H-D shares fall,” “Harley riders divided,” and “CEO pushes back on criticism.” But a look beyond the dire headlines to the front line of the iconic American motorcycle company—its hearty dealer network—reveals a different picture, one where business is seemingly unaffected by the flurry of political turmoil surrounding the brand.
Terry Rymer is the General Manager and Co-Owner of Black Hills Harley-Davidson in Rapid City, South Dakota, the dealership that serves as a major hub of the Sturgis Motorcycle Rally. The meet, which recently took place in early August, was depicted in national headlines as a politically charged gathering, where riders faced the agonizing task of choosing sides between the president and the Bar-and-Shield brand. But Rymer recalls a different Sturgis Motorcycle Rally, one that was centered on the same familiar tenet—a pure love of motorcycling.
“I’ve been riding motorcycles my whole life,” said Rymer. “We all got into this because we love to ride motorcycles. And come hell or high water I’m going to ride motorcycles. That’s all there is to it. I’m going to support racing. I’m going to go to motorcycle events, I’m going to promote the culture. I’m going to embrace people and try to get more people to ride motorcycles, period. That’s what it’s all about.”
As for any negative effect on business due to the tariff issue and the President’s tweets about a boycott, Rymer maintains there hasn’t been any. In fact, “we’ve had one of the most successful years so far. Not just the Sturgis Motorcycle Rally, which was very successful, but our 2018 in general. We’ve seen good buyer sentiment, our sales are good. It’s a little bit of a conversation on Saturdays, but for the most part people aren’t bringing it up. They’re not saying, ‘Oh gosh, these things aren’t made in America any more.’ Some people are a little bit confused on what the motivation is behind Harley-Davidson’s announcement, but for the most part, the brand Harley-Davidson, to us, has not been tarnished whatsoever. And that’s just because it’s all for one, it’s one for all.”
It’s business as usual, according to the 58-year-old who recently celebrated his 35th year working at Black Hills Harley-Davidson, where the political discussion is mere background noise easily drowned out by the rumble of a V-twin.
“The Harley-Davidson brand represents something that no other company that I know of has,” said Rymer. “And that’s personal freedom. That’s kind of a culture of who you are through what you ride, and you don’t see a lot of that in other brands. I’ve sold Yamahas in the past, I’ve sold Suzukis, we’ve had BMW, I’ve been involved with Kawasaki and lots of different brands, and I love all the products—don’t get me wrong. But what’s phenomenal about Harley-Davidson is the culture that it has created over time.
“I have no doubt, I’m confident, that we’ll get through this, easy enough. It’s a little hiccup, for sure. But it’s continuously the oldest motorcycle company in America, obviously, and there’s always been different situations over the years, and this is just history repeating itself in a different way, but all in all, I think we’re good. I think we’re solid.
“Certainly, this year’s Sturgis Rally was proof that people love the brand and are going to be behind it and are going to want new and more exciting products from the Motor Company. That’s what we’re excited to see.”
Thousands of representatives from the nation’s 800+ dealerships recently attended the Harley-Davidson Dealer Show in San Diego, California (August 21-24), where the company took the wraps off its all-new FXDR 114—a drag-racing-inspired Softail motorcycle. The FXDR represents a marked departure from the prototypical cruiser-style Harley, which is precisely the goal. On top of being caught in the crosshairs of an escalating trade war, the Motor Company is facing its own challenge of attracting new riders. The same $40,000 land yachts that defined the boomer generation fail to entice the younger audience, something Harley-Davidson is seeking to remedy with drastically new product. Other recently announced 2019 models include the Pan America adventure bike, and the all-electric LiveWire.
“We’re excited about anything new that they want to bring out, but a new category of bikes that appeal to a broader range of customers—not just your classic cruiser or bagger—is exciting for us,” said Rymer.
Harley-Davidson CEO Matt Levatich promises the brand will deliver dozens new models in the coming years. The embattled CEO has also had the task of enduring continued attacks from President Trump, but has not wavered in the company’s decision to shift production overseas to supply its growing European market. It’s not a favorable idea in the eyes of dealers, but one Rymer understands as a necessary business decision.
“They have to take a look at different markets. When 40% of their market is Euro, and it’s going to cost them $100 million a year, they gotta look at something to alleviate that. Now maybe this tariff issue is a temporary thing. We’ve seen it before. I remember seeing it in the 80s when they put a tariff on import motorcycles and all of a sudden we were riding 700cc Yamahas or Suzukis or whatever. There are things that happen and evolve because of decisions made politically. However, we’re still going to ride motorcycles.”
Rymer doesn’t overlook the loss of American jobs at the Harley-Davidson factories, but points out that the great American workforce behind the brand is not limited to those on the production lines.
“I employ 80 full time and almost 500 during the [Sturgis] rally,” said Rymer. “And the impact we have on our economy—just us as a dealer—is substantial. There’re Harley-Davidson dealerships all over. It’s a great dealer network and they do a great job. It’s a force to be reckoned with. I understand they could shift some jobs and there may be a few people losing jobs if they decide to build or assemble in Europe. I get that. But it still generates huge amounts of revenue for Americans.
“I happen to think that the Harley-Davidson brand, and the dealers around the world are the best dealers there are, that do the most to support riding. And I don’t think we’re going anywhere. I think we got a little hiccup. I think we got a little banter going back and forth, politically. Harley-Davidson’s going to make sound business decisions; they always have. However, we’re still going to ride motorcycles. It’s the best way to travel. As a motorcycle enthusiast, as a dealer and as someone who has a huge passion for the sport, I think we’re fine. I really do.” CN