Sonic Automotive marks milestone with first sale at new Sturgis Harley-Davidson dealership

Sonic Automotive, Inc., a Fortune 300 company and one of the largest automotive and powersports retailers in the United States, has officially completed the first motorcycle sale at its newly opened Sturgis Harley-Davidson dealership, located in the historic heart of Sturgis, South Dakota. The transaction marks a significant milestone not just for Sonic Automotive, but for the Harley-Davidson brand, which for the first time in its 85-year association with the world-renowned Sturgis Motorcycle Rally, now has a dedicated dealership presence within downtown Sturgis itself.

The first buyer at the new dealership, Dan Ostermann of Keystone, South Dakota, purchased a 2024 Harley-Davidson® CVO™ Pan America®—a premium adventure touring model in Harley-Davidson’s CVO lineup. This inaugural sale is a symbolic kickoff for what Sonic Automotive envisions as a landmark entry into the heart of motorcycle culture.

Why Is Sonic’s Presence in Downtown Sturgis So Significant for Harley-Davidson?

Sturgis is internationally regarded as the spiritual home of American motorcycling, hosting hundreds of thousands of riders annually during the Sturgis Motorcycle Rally. Despite this long-standing legacy, Harley-Davidson had not maintained a direct dealership location within the city’s historic downtown until now. Sonic Automotive’s acquisition of Black Hills Harley-Davidson and its associated dealerships in February 2023 positioned the company to capitalize on this opportunity. Following a strong year of retail performance, Harley-Davidson awarded Sonic Automotive the rights to establish a new retail franchise point within downtown Sturgis—an unprecedented move by the manufacturer.

The establishment of this dealership not only deepens Harley-Davidson’s cultural and commercial ties to the city but also aligns with Sonic Automotive‘s broader strategy of penetrating high-value experiential markets. Situated just off the iconic Main Street, Sturgis Harley-Davidson is strategically placed to serve as a year-round destination for motorcycle enthusiasts.

What Is the Sturgis Harley-Davidson Founders Club and How Will It Elevate Brand Loyalty?

To commemorate both the dealership launch and the 85th Annual Sturgis Rally, Sonic Automotive has introduced a highly exclusive membership initiative—the Sturgis Harley-Davidson Founders Club. Only the first 85 customers who purchase motorcycles from the new dealership will be inducted. Each will receive a serialized challenge coin, a commemorative patch, and lifetime VIP access to the Black Hills and Sturgis Harley-Davidson activation zones during annual rallies. Most notably, their names will be permanently displayed at the Sturgis Motorcycle Museum & Hall of Fame, offering a unique blend of brand engagement, historical preservation, and emotional connection.

This marketing initiative is tailored to foster long-term loyalty while adding a layer of prestige and collectability to the Harley-Davidson ownership experience. By combining exclusivity with experiential perks and cultural recognition, Sonic Automotive is effectively redefining what it means to join a dealership community.

How Does This Fit into Sonic Automotive’s National Powersports Strategy?

With its headquarters in Charlotte, North Carolina, Sonic Automotive has steadily expanded its national presence, including ventures into powersports—a sector that has seen renewed interest following the pandemic. The company’s portfolio now includes a growing number of motorcycle dealerships, especially those under the Harley-Davidson brand, which remains a cornerstone of the American powersports identity.

The 2023 acquisition of Black Hills Harley-Davidson marked a pivotal move, giving Sonic control over five key dealerships in the Rapid City area. The addition of the new Sturgis location is a strategic extension of this network, offering direct access to one of the largest and most passionate rider communities in the world. Executives at Sonic have been clear in their vision that powersports—particularly those attached to heritage brands like Harley-Davidson—will be a driver of future growth.

Tim Sutherland, Sales Manager of Sturgis Harley-Davidson, described the debut sale and the dealership’s opening as the beginning of an exciting new chapter. He noted that the entire team is looking forward to welcoming more Harley-Davidson riders into their community, especially during the upcoming rally season.

What Does Leadership at Sonic Say About This Historic Opening?

Sonic Automotive Chairman and CEO David B. Smith highlighted the symbolic value of welcoming the dealership’s first customer in such a storied location. He affirmed the company’s commitment to delivering exceptional experiences and described the downtown Sturgis dealership as a prime example of Sonic’s guest-first strategy. Smith also emphasized how this expansion honors both the company’s retail ambitions and the legacy of the Sturgis Motorcycle Rally.

Jeff Dyke, President of Sonic Automotive, stated that launching a dealership in the heart of Sturgis—especially during the 85th anniversary celebration—is a moment of pride. He pointed to the Founders Club as a tribute to early adopters and a meaningful way to build legacy through ownership.

How Does the Sturgis Location Fit into Harley-Davidson’s Retail Strategy?

For Harley-Davidson, the opening of a dealership inside Sturgis represents more than just a retail footprint; it is an affirmation of brand authenticity. By aligning directly with one of the most iconic motorcycle events in the world, Harley-Davidson is reinforcing its central role in American motorcycle culture. The CVO™ Pan America® model purchased by Ostermann is emblematic of this alignment—a top-tier product built for riders who embrace adventure and innovation.

Harley-Davidson’s decision to grant Sonic Automotive a downtown retail franchise point reflects confidence in Sonic’s operational capabilities and alignment with Harley’s evolving retail goals. This move is also consistent with Harley-Davidson’s recent push to rejuvenate its retail presence and deepen engagement with its core enthusiast base.

What Is the Outlook for Sonic Automotive’s Future Powersports Growth?

Sonic Automotive’s venture into the Sturgis market is part of a larger push into lifestyle-driven automotive and powersports segments. As consumer preferences evolve toward experience-oriented purchasing, Sonic is placing strategic bets on locations and product lines that inspire emotional resonance. With dealership-level innovation such as the Founders Club and legacy-level affiliations like the Sturgis Museum plaque, the company is taking steps to differentiate itself not only through inventory but through storytelling and heritage.

By integrating both traditional automotive operations and dynamic powersports ventures, Sonic Automotive is positioning itself to capture a broader spectrum of the mobility market. This multi-brand, multi-channel strategy is designed to weather cyclical shifts in demand and capitalize on high-margin enthusiast segments.