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December 05.2025

2 Minutes Read

Why Harley-Davidson Dealership Closings Reflect a Broader Trend in Business

Harley-Davidson dealership exterior with parked motorcycles.

The Struggles of Harley-Davidson Dealerships Explained

For decades, Harley-Davidson has embodied the spirit of freedom on the open road. However, the iconic motorcycle brand now finds many of its independent dealerships closing their doors. The reasons are multifaceted and stem from a combination of economic challenges and shifting market dynamics.

COVID-19: A Double-Edged Sword

The pandemic initially sparked a sales boom for Harley-Davidson. With government stimulus checks rolling in and interest rates at historic lows, consumers flocked to the dealerships, eager to ride into the sunset on their new motorcycles. This unexpected wave led many owners to invest heavily in showroom upgrades.

But as sales surged, dealers found themselves caught off guard by the subsequent decline. Rising inflation, interest rates, and economic uncertainties forced consumers to reconsider their spending on luxury items like Harley-Davidson motorcycles.

A Sharp Decline in Sales

As reported by motorcycle experts, many dealerships are now struggling with skyrocketing operational costs devoid of sufficient revenue to support them. With over 650 dealerships still open nationwide, the growing number of closures highlights a stark reality: even well-known locations in major cities are not immune.

George Gatto, a second-generation dealer, noted, "I hate to admit this, but there are too many dealers for the number of new vehicles that are being sold today." This oversupply issue clusters with dwindling margins, posing an existential threat to many longstanding dealerships.

The Evolving Marketplace

Another key factor contributing to dealer struggles is the increase in direct-to-consumer sales via Harley’s e-commerce platform. As corporate strategy shifts towards cutting out intermediaries, traditional dealers are facing yet more pressure, driving down their profit margins further.

Despite these challenges, optimism prevails among some small business owners, who recognize the necessity of adapting and innovating. Implementing new business strategies and diversifying offerings can enhance resilience in such a volatile market.

Facing the Future

The fate of Harley-Davidson dealerships serves as a critical reminder for small business owners: staying flexible and responsive to market changes is essential. Whether you're an auto dealer or run a different business, understanding these shifts can empower you to navigate challenges and find new paths to success.

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Why Harley-Davidson Dealership Closings Reflect a Broader Trend in Business

The Struggles of Harley-Davidson Dealerships Explained

COVID-19: A Double-Edged Sword

A Sharp Decline in Sales

The Evolving Marketplace

Facing the Future

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