Harley Initiative Plans Pan America ADV Bike and LiveWire Electric Motorcycle Launches (Video)
When Harley-Davidson released its second-quarter financial report, The Motor Company briefly mentioned some key points to its “accelerated strategy” for future growth.
The key points – all designed to engage with various types of future riders – were:
- New products: Keep current riders engaged and inspire a new generation of Harley-Davidson riders. These include the company’s first-ever Adventure bike, Custom Streetfighter, and LiveWire electric motorcycles.
- Broader access: Meet customers where they are and how they want to engage with a multi-channel retail experience.
- Stronger dealers: Drive a performance framework to improve our dealer financial strength and the Harley-Davidson customer experience.
Harley-Davidson expanded on the accelerated strategy Monday by releasing additional details on what it calls a “More Roads to Harley-Davidson” growth plan that runs through 2022.
Harley-Davidson New Products Initiative
The highlights of the new products plan are new motorcycles that will appeal to a much wider audience, including:
- Harley-Davidson Pan America 1250: Harley’s first adventure touring motorcycle set to launch in 2020.
- Harley-Davidson Streetfighter: A naked 975cc Streetfighter to launch in 2020.
- Harley-Davidson Custom: a custom-styled 1250cc also to launch in 2020.
- Harley-Davidson LiveWire: Harley’s first electric bike to launch in 2019.
“The bold actions we are announcing today leverage Harley-Davidson’s vast capabilities and competitive firepower – our excellence in product development and manufacturing, the global appeal of the brand and of course, our great dealer network,” said Matt Levatich, president and chief executive officer, Harley-Davidson, Inc.
“Alongside our existing loyal riders, we will lead the next revolution of two-wheeled freedom to inspire future riders who have yet to even think about the thrill of riding.
“We expect this plan will result in an engaged, expanded Harley-Davidson community with a more diverse rider base, along with industry-leading margins and cash flow.”
Harley-Davidson Broader Access Initiative
This initiative is all about creating stronger customer engagement and experiences across all retail channels, including integrating the online Harley-Davidson.com experience with dealer retail experiences for new and existing customers.
The initiative also:
- Outlines strategic alliances with global e-commerce providers to reach “millions of potential customers”.
- Develop new retail formats, such as urban storefronts to expose brand to urban populations
- Expand international apparel distribution.
Stronger Dealers Initiative
Harley says it will implement a performance framework to significantly enhance the strength of the dealer network and the customer experience, enabling the best-performing and most entrepreneurial dealers to drive innovation and success for themselves and Harley-Davidson – while providing the premium customer experience the brand is known for across an increasingly diverse product and customer base.
“Harley-Davidson is iconic because we’ve never been static,” said Levatich. “In moving forward, we are tapping into the spirit that drove our founders back in 1903 and every one of the employees and dealers who rose to the challenges faced along the way.
“Our plan will redefine existing boundaries of our brand – reaching more customers in a way that reinforces all we stand for as a brand and as a company and we can’t wait to kick it into gear.”
In regards to financial outlook, Harley expects the ” More Roads to Harley-Davidson” strategy to generate more than $1 billion of incremental annual revenue in 2022 as compared to 2017.
The company believes its accelerated strategy is in line with and reinforces its objectives to drive revenue growth and expand operating margins. The company expects to fund strategic opportunities while maintaining its current investment and return profile and capital allocation strategy.