Why Harley-Davidson Dealerships Are Closing Nationwide
Across the United States, Harley-Davidson dealerships are shutting down, marking a troubling trend for the iconic brand. From San Francisco to Titusville, Florida, several long-standing dealerships have closed, with some offering no explanations for their demise. Others attributed their closures to poor management, a declining economy, and lower sales figures.
Reasons Behind the Dealership Closures
One prominent family-owned dealership in San Francisco unexpectedly shut its doors in 2024. This business had changed management just six years prior, yet it struggled to meet corporate standards. Similarly, a well-known dealership in New York City, which operated for nearly 30 years, succumbed to economic pressures, offering steep discounts of up to 75% in its final days.
Overall, as Harley-Davidson’s dealership network contracts, concern grows over the brand’s longevity. Despite over 650 dealerships remaining active nationwide, the trend indicates a significant thinning, especially in smaller markets. Dealership owners have reported decreasing profit margins and challenges posed by a rigid corporate structure limiting business independence.
Changing Consumer Preferences
Harley-Davidson faces an evolving consumer landscape, as riders increasingly turn to more affordable, technologically advanced motorcycles like those offered by CFMoto. Although the company’s profits have soared, the community around its sales continues to diminish.
The Impact of the Pandemic
The wave of dealership closures can be traced back to the disruptions caused by the COVID-19 pandemic. During this period, supply constraints coincided with rising demand, resulting in dealerships earning substantial profits. However, as the pandemic subsided, rising interest rates led to a decrease in demand. Manufacturers, anticipating a sustained sales boom, continued to push surplus inventory to dealers who then struggled with significant “floor plan” interest costs.
Increased Financial Burdens
Many dealerships also faced financial strain due to investments in large, elaborate buildings during profitable times. These investments have led to increased fixed costs, which are now burdensome amid declining sales. Coupled with Harley-Davidson’s expanded e-commerce efforts, local dealerships have lost significant market share.
Profit Margins vs. Sales Decline
In the third quarter of 2025, Harley-Davidson reported a profit of $377 million, a significant increase compared to the previous year. However, this profit masks a troubling reality: the company faced a 6% decline in global motorcycle sales and a 5% decrease in North American sales. This trend indicates a troubling pattern where fewer motorcycles are sold, jeopardizing dealership viability.
New CEO Artie Starrs, who assumed leadership in August 2025, shed light on the company’s financial boost attributed to the sale of its financial services division, netting $1.25 billion. While this helped alleviate some debt, the long-term sustainability of dealership operations remains in question, as shipments have dropped by 45% over the last decade.
Although the Harley-Davidson Motor Company appears financially stable, its once strong presence on America’s roads and in communities continues to diminish as dealerships close across the nation.
