Demand for Harley-Davidson motorcycles collapsed last quarter due to the corona crisis. In the United States, by far the largest market for the American company, sales fell sharply in March.
This offset the better performance in the first two months of the year.
Harley sold 23,732 motorcycles in the US in the first quarter. That meant a contraction of 16 percent compared to a year earlier.
The company had not seen such a significant downturn since 2010. The engine manufacturer has been selling fewer engines in its home market for the thirteenth consecutive quarter.
In other countries, Harley Davidson also failed to sell more. The business was worst in Europe, the Middle East and Africa, where sales were more than a quarter lower.
The company’s sales fell by 8 percent to over $ 1 billion. Profits plummeted by nearly half.
Harley-Davidson has dropped all of its financial targets for this year due to the uncertainty surrounding Covid-19. The company will also cut $ 250 million through a hiring freeze, temporary cuts in management salaries, and the scrapping of bonuses.
That money is immediately available for any acute need for payment. Besides, the company postpones the introduction of new products.