Issue link: https://read.dmtmag.com/i/303681
36 • May 5, 2014 • Powersports Business MOTORCYCLE www.PowersportsBusiness.com PSB: What have you seen in terms of demand and volume of pre-owned floor planning? SG: It's been consistent. It grew well for us last year and it's growing well again this year, up about 30 percent in volume Q1 vs. Q1 2103, which includes auction, and up almost 50 per- cent in outstandings. If you look at the value proposition for our customer base, it's impor- tant. Those pre-owned units offer higher mar- gin, faster turns and makes the dealer healthier. As a stakeholder in the industry and being vested in its success, we want to help that kind of pull-through happen. It's an important part of what we offer. We spent a good amount of time last year improving how our dealers apply for pre-owned lines on our online inventory manamement system COMS, so it's a lot more user-friendly and seamless. We've simplified the process for the dealers and turnaround time is a lot faster in terms of getting funded. We also provide an auction line, which has gotten a lot of momentum. PSB: What's driving the auction floorplan- ning growth? SG: The ease of doing business. We connect to the auction sites. From a dealer's perspective, there's a lot more you can do online, and ahead of the auction itself. There's quite a bit of adop- tion online and it's a good way for dealers to enhance their pre-owned inventory mix with- out having to wait for trade-ins. PSB: GE Capital has talked a lot about the Middle Market in its partnership with the National Center for the Middle Market at Ohio State University. Will that continue to be an area of focus? SG: The middle market (businesses between $10 million and $1 billion in revenue) is a segment of the market that's really impor- tant as an engine, and it fits well with GE Capital, as that is who many of our custom- ers are, across the business. The data from Q4 2013 shows that middle market compa- nies grew revenue by 5 percent compared to Q4 2012, with the S&P 500 growing by 1 per- cent in that same time. That's why it's a very important segment of the American economy. Also, with respect to employment, 35 percent of middle market companies are saying that they're adding employees. On the investment side, 64 percent of middle market companies say that they would spend money rather than hold on to it. That's a return to levels last seen in Q2 2013, and it's the highest level in the past five quarters. PSB: What else is GE Capital doing to help its customers be successful? SG: We want dealers and customers to be able to capitalize on our Access GE platform, which brings a number of sources and tools to build their business, ranging from healthcare reform issues to succession planning. We work with our customers on targeting growth and opera- tional resources. We are and always want to be a much broader partner to our customers, both dealers and manufacturers. CDF is a stake- holder in the industry, whether it's investing in the people or systems to make life easier for our customers. PSB GE CONTINUED FROM PAGE 30 Earnings, retail bike sales increase in Q1 for H-D Harley-Davidson, Inc. first-quarter 2014 diluted earnings per share of $1.21 grew 22.2 percent from the year-ago period on higher motorcycle shipments and continued improve- ment in operating efficiencies. First-quarter net income was $265.9 million on consoli- dated revenue of $1.73 billion, compared to net income of $224.1 million in the year-ago period on consolidated revenue of $1.57 billion. "Harley-Davidson delivered gains on many fronts in the first quarter, with shipments up 7.3 percent, strong margin improvement and solid growth in dealer new motorcycle sales," said Keith Wandell, chairman, president and chief executive officer of Harley-Davidson, Inc. "Thanks to the great contributions of our employees, dealers and suppliers, we con- tinue to lead at delivering exceptional cus- tomer experiences in 89 countries. Our Project Rushmore motorcycles were in high demand in the quarter, and we began shipping the Harley-Davidson Street 750 and 500 into select markets. These motorcycles, together with continuous improvement in our operations at every level, underscore the momentum we've established as a customer-led company." U.S. RETAIL SALES UP 3 PERCENT Dealers worldwide sold 57,415 new Harley- Davidson motorcycles in the first quarter of 2014 compared to 54,254 motorcycles in the year-ago quarter. In the U.S., dealers sold 35,730 new Harley-Davidson motorcycles in the quarter, up 3.0 percent compared to sales of 34,706 motorcycles in the year-ago period. In international markets, dealers sold 21,685 new Harley-Davidson motorcycles during the first quarter, up 10.9 percent compared to 19,548 motorcycles in the year-ago period, with sales up 20.5 percent in the Asia Pacific region, 8.2 percent in the EMEA region and 8.9 percent in the Latin America region, and down 2.4 per- cent in Canada. "Our dealers had a solid quarter of retail motorcycle sales. Sales in the Asia Pacific region were up strongly, and we are encouraged by the continued growth of new Harley-Davidson motorcycle sales in Europe. We're also excited to be entering the heart of the retail selling sea- son in the U.S., having achieved first-quarter retail growth of 3.0 percent in the midst of a long, cold winter," said Wandell. PSB Harley-Davidson began shipping its new Street 750 (above) and 500 models to select markets in Q1. P30x36-PSB6-Cycle.indd 36 4/23/14 10:59 AM