Harley-Davidson's shares plunged after the iconic motorcycle manufacturer reported a drop in profits and plans to cut jobs. Bobbi Rebell reports.
Harley-Davidson hitting the skids. Shares dropping sharply after the iconic motorcycle company reported a drop in profit, and cut it's outlook for 2015. Harley is now chopping jobs and boosting spending on marketing and product development. The company is trying to compete with foreign rivals by slashing prices, which has put pressure on margins already hurt by the strong dollar. They are competing for market share in a shrinking business. According to the Motorcycle Industry Council, overall motorcycle and scooter sales have fallen about 47 percent in the ten years since 2014. Demographic trends are also working against the company. Rommel Dionisio of Wunderlich Securities. (SOUNDBITE) ROMMEL DIONISIO, MANAGING DIRECTOR, WUNDERLICH SECURITIES (ENGLISH) SAYING: "Millennials, people in their twenties and thirties just aren't riding motorcycles the way today's fifty and sixty-year-olds used to when they were in their twenties and thirties, and, so, they are not really capturing that younger demographic. " Dionisio adds that, while Harley sales are suffering in the United States, the company does have more opportunity in emerging markets like China.