Harley-Davidson dealerships across North America are shutting down at an accelerating pace, with industry sources warning the iconic brand’s dealer network is entering an unprecedented crisis.
In August alone, at least 73 motorcycle dealerships permanently closed across the United States and Canada, many of them Harley-Davidson outlets, as mounting inventory costs and collapsing sales made continued operation impossible.
Dealers report paying tens of thousands of dollars each month in interest and carrying costs on unsold motorcycles, with some holding stock for more than a year. Leaked internal documents and dealer communications allege Harley-Davidson and other manufacturers have continued flooding dealers with inventory despite warnings it could not be sold, forcing businesses to discount bikes below cost just to stay afloat.
The closures have hit rural and regional communities hardest, leaving large areas without local sales or servicing options. Critics claim Harley-Davidson is deliberately allowing smaller dealers to fail while consolidating sales through large urban “mega dealers,” a strategy that could eliminate up to 40 percent of the brand’s North American dealers by the end of 2025.
Industry analysts warn hundreds more Harley-Davidson dealerships could close in coming months, marking the largest dealer network contraction in the company’s history.
Business analyst Michael Girdley looked at the company’s problems with on-the-ground observations from Las Vegas. He described walking past a Harley-Davidson retail outlet multiple times over a weekend without seeing a single customer inside, a stark contrast to the brand’s cultural dominance a decade ago when Harley apparel was ubiquitous in major tourist centres.
Girdley argues the brand’s core problem is demographic. Harley-Davidson became hugely popular with suddenly wealthy baby boomers, but that customer base is now ageing out of the market. He notes the average Harley buyer is now over 50, with tricycles becoming the company’s fastest-growing segment as older riders struggle to handle full-size bikes. Attempts to pivot toward younger riders, including electric models, failed due to poor execution, leaving the brand stuck between generations.
He also points to an “innovator’s dilemma,” where Harley focused too heavily on loyal enthusiasts, producing increasingly complex and expensive motorcycles that are unattractive to new buyers. Girdley says many of Harley’s struggles are self-inflicted, driven by inconsistent strategy, management turnover, and brand confusion, even as the company now faces the most severe dealer contraction in its history.
Image credit: Austin Neill
