UPDATE: Harley-Davidson Offers Rebates to Dealers

Harley-Davidson Inc. is offering its dealers rebates, an unusual move for the iconic motorcycle maker, to help clear out stocks of unsold 2016-model bikes.

The backlog reflects the effect of increased competition and the aging of its primary Baby Boomer market, whose members are beginning to move into their 70s.

Harley has periodically offered customer incentives in the form of low-cost financing or extended warranties. But dealers say rebates directly to retailers is extremely rare. The company isn’t commenting. But dealers tell Reuters they’re being offered discounts as great as $1,000 on bikes ranging from the $8,500 Sportster SuperLow to the $18,700 Road King.

The rebate program is scheduled to end on April 30. Harley previously forecast its shipments in the first quarter of 2017 would be at least 15% below year-ago volumes.

The company reports its first-quarter shipments dropped 15% to 70,800 units. Revenue was flat at $1.5 billion, but operating income plunged 28% to $239 million. Net income fell 26% to $186 million, according to the company.