Harley-Davidson Financial Services reported a 1.7% drop to $483.2 million in its year-over-year origination volume in the fourth quarter of 2015, the company announced today. Full-year origination volume for 2015 was up 6.9%, however, to $3.17 billion.
4Q15 originations were comprised of 80% prime loans and 20% subprime loans, which remains the same as 3Q15’s origination mix. HDFS has previously said that subprime loans are the company’s “bread and butter” financing product, and HDFS feels comfortable with its credit risk.
Harley-Davidson reported that retail motorcycle unit sales were down 3.4% to 26,044 in the 4Q15 versus a year ago, and down 1.7% to 168,240 units sold, year over year. The decrease in unit sales was due to “heightened competitive pressures, including those arising from shifts in world currencies,” according to a company press release.
“We are focused, with strength and resolve, on growing demand and building on our substantial market leadership position,” Matt Levatich, president and chief executive at Harley-Davidson, said in the release. “Although we expect the macro-economic environment to remain challenging, we are confident we’ll continue to lead with our powerful brand – not simply because of our substantial strengths but through our increased demand driving investments and our incredibly talented and passionate employees and dealers.”
Financial services operating income was also down 2.5% in 4Q15, due to “increased provision for loan losses, partially offset by higher net interest income,” according to the release. However, income was up 0.9% for the full year 2015.Like This Article