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Harley-Davidson Accelerates Strategy to Build Next Generation of Riders Globally 2018.08.01

Milwaukee, USA - July 30, 2018 - To inspire even more people around the world to experience the exhilaration of riding a motorcycle, Harley-Davidson today shared details of its "More Roads to Harley-Davidson" growth plan through 2022. In a fast-changing world with new consumer demands, these accelerated actions support Harley-Davidson's 2027 objectives with increased focus and strategic investment to reinvigorate the U.S. business while accelerating the pace of international growth.

Photo courtesy of Harley-Davidson
 

Milwaukee, USA - July 30, 2018

• “More Roads to Harley-Davidson” Includes New Products in Additional Motorcycle Segments, Broader Access and Commitment to Strengthen Dealers

To inspire even more people around the world to experience the exhilaration of riding a motorcycle, Harley-Davidson today shared details of its “More Roads to Harley-Davidson” growth plan through 2022.

https://www.harley-davidson.com/us/en/about-us/more-roads.html  


Photo courtesy of Harley-Davidson
 
In a fast-changing world with new consumer demands, these accelerated actions support Harley-Davidson’s 2027 objectives with increased focus and strategic investment to reinvigorate the U.S. business while accelerating the pace of international growth.

Matt Levatich, president and chief executive officer, Harley-Davidson, Inc.
Photo courtesy of Harley-Davidson
 
“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.”

Photo courtesy of Harley-Davidson
 
The result of a comprehensive, top-to-bottom assessment incorporating a “customer first” perspective, the More Roads to Harley-Davidson plan includes:


• New Products – keep current riders engaged and inspire new riders by extending heavyweight leadership and unlocking new markets and segments

• 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 dealer financial strength and the Harley-Davidson customer experience

Photo courtesy of Harley-Davidson
 

“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,” said Levatich.


Photo courtesy of Harley-Davidson
 

New Products

Leveraging its industry-leading design and strong manufacturing capabilities, Harley-Davidson plans to offer its most comprehensive lineup of motorcycles, competing in many of the largest and fastest growing segments with a full portfolio of motorcycles across a broad spectrum of price points, power sources, displacements, riding styles and global markets.

Photo courtesy of Harley-Davidson
 
Highlights include:

• Extending the company’s leadership in heavyweight motorcycles by continuing to develop improved, more technologically-advanced Touring and Cruiser motorcycles that will keep existing Harley-Davidson riders engaged and riding longer.

• Introducing a new modular 500cc to 1250cc middleweight platform of motorcycles that spans three distinct product spaces and four displacements, starting with the company’s first Adventure Touring motorcycle, the Harley-Davidson™ Pan America™ 1250, a 1250cc Custom model and a 975cc Streetfighter model, all of which are planned to launch beginning in 2020.
Additional models to broaden coverage in these product spaces will follow through 2022.

• Developing a more accessible, small-displacement (250cc to 500cc) motorcycle for Asia emerging markets through a planned strategic alliance with a manufacturer in Asia.
This new product and broader distribution is intended to fuel Harley-Davidson’s customer access and growth in India, one of the largest, fastest growing markets in the world, and other Asia markets.

• Leading the electric motorcycle market by launching Harley-Davidson’s first electric motorcycle, LiveWire™, in 2019 - the first in a broad, no-clutch “twist and go” portfolio of electric two-wheelers designed to establish the company as the leader in the electrification of the sport.
LiveWire will be followed by additional models through 2022 to broaden the portfolio with lighter, smaller and even more accessible product options to inspire new riders with new ways to ride.

Photo courtesy of Harley-Davidson
 

Photo courtesy of Harley-Davidson
 

https://www.harley-davidson.com/us/en/motorcycles/future-vehicles/pan-america.html  

https://www.harley-davidson.com/us/en/motorcycles/future-vehicles/custom.html  

https://www.harley-davidson.com/us/en/motorcycles/future-vehicles/streetfighter.html  

https://www.harley-davidson.com/us/en/motorcycles/future-vehicles/livewire.html  


Photo courtesy of Harley-Davidson
 

Photo courtesy of Harley-Davidson
 

Broader Access

Harley-Davidson will advance its market delivery approach and meet today’s customer needs by:

• Creating high-engagement customer experiences across all retail channels – including improving and expanding the company’s global digital capabilities by evolving the Harley-Davidson.com experience to integrate with and enhance the dealership retail experience for existing and new customers.

• Establishing strategic alliances with global leading e-commerce providers to extend access to Harley-Davidson to a pool of millions of potential new customers.

• New retail formats -- including smaller, urban storefronts globally to expose the brand to urban populations and drive sales of the expanded Harley-Davidson product portfolio and expand international apparel distribution.

https://www.harley-davidson.com/us/en/index.html  


Photo courtesy of Harley-Davidson
 

Photo courtesy of Harley-Davidson
 

Stronger Dealers

Harley-Davidson’s world-class dealer network is an integral part of the company’s accelerated strategy and critical to overall success.

Photo courtesy of Harley-Davidson
 
The company 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.

Matt Levatich, president and chief executive officer, Harley-Davidson, Inc.
Photo courtesy of Harley-Davidson
 
“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.”

Photo courtesy of Harley-Davidson
 
Watch a video highlighting key elements of Harley-Davidson’s More Roads to Harley-Davidson plan here.

https://www.harley-davidson.com/us/en/about-us/more-roads.html  


Photo courtesy of Harley-Davidson
 

Funding & Financials

In addition to building riders, the company expects More Roads to Harley-Davidson to create more value, stabilize and strengthen the existing business, improve Harley-Davidson Motor Company Return on Invested Capital (ROIC), increase revenue and earnings, and allow the company to return more cash to shareholders.

Photo courtesy of Harley-Davidson
 
The accelerated strategy will require significant investment to change the trajectory of the business globally, and the company plans to fund it entirely through comprehensive cost reduction and reallocation of previously planned investment and resources including operating investment through 2022 of $450 to $550 million and capital investment through 2022 of $225 to $275 million.

Photo courtesy of Harley-Davidson
 
In total, the company plans More Roads to Harley-Davidson to generate more than
$1 billion of incremental annual revenue in 2022 as compared to 2017
.

Photo courtesy of Harley-Davidson
 
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.

Photo courtesy of Harley-Davidson
 
Harley-Davidson’s funding principles will focus on stabilizing and strengthening the existing business, enhancing the premium brand, and investments in profitable, growth-oriented projects.

We expect these principles, along with a disciplined capital allocation focus, will allow Harley-Davidson to execute with improved cost competitiveness and overhead efficiencies.

Photo courtesy of Harley-Davidson
 

Company Background

Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services.

Photo courtesy of Harley-Davidson
 
Since 1903, Harley-Davidson Motor Company has fulfilled dreams of personal freedom with custom, cruiser and touring motorcycles, riding experiences and events and a complete line of Harley-Davidson motorcycle parts, accessories, general merchandise, riding gear and apparel.

Photo courtesy of Harley-Davidson
 
Harley-Davidson Financial Services provides wholesale and retail financing, insurance, extended service and other protection plans and credit card programs to Harley-Davidson dealers and riders in the U.S., Canada and other select international markets.

For more information, visit Harley-Davidson's Web site
at www.harley-davidson.com  


Photo courtesy of Harley-Davidson
 

Source: Harley-Davidson, Inc.

https://www.harley-davidson.com/us/en/index.html  



ASTROMAN Magazine - 2018.07.29

Volkswagen's all-electric I.D. R race car sets a new standard at the world's highest road race at the 2018 Pikes Peak International Hill Climb

https://www.astroman.com.pl/index.php?mod=magazine&a=read&id=2555  


ASTROMAN Magazine - 2018.03.20

The 2018 Geneva International Motor Show: Satisfied exhibitors, delighted visitors - negative claims repudiated!

https://www.astroman.com.pl/index.php?mod=magazine&a=read&id=2464  


ASTROMAN Magazine - 2018.03.17

Jaguar I-Pace at Geneva International Motor Show 2018

https://www.astroman.com.pl/index.php?mod=magazine&a=read&id=2462  


ASTROMAN Magazine - 2017.11.07

EICMA 2017: How Bosch is taking the motorcycle into the future. Bosch's two-wheeler and powersports business is growing twice as fast as the market

https://www.astroman.com.pl/index.php?mod=magazine&a=read&id=2379  



Editor-in-Chief of ASTROMAN magazine: Roman Wojtala, Ph.D.


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