Harley to pursue new markets, new riders

Harley-Davidson has announced it is set to embark upon a major 'reinvigoration' of the brand, with a slew of new models in the pipeline that will push the Motor Co into virgin territory and attract a new generation of riders.

Rolled out overnight under the banner of 'More Roads to Harley-Davidson', the initiative will see the American firm tackle its biggest transition in decades, as it seeks to broaden its appeal well beyond its traditional core markets of heavyweight cruisers and tourers.

The growth plan, which will take Harley-Davidson through to 2022, features three main tenets: new products, with the development of a raft of all-new machines already well underway; broader access, which will see the firm engage customers via a fresh, multi-channel retail experience; and stronger dealers, which will see the firm lay down a 'peformance framework' to help strengthen Harley-Davidson's global dealer network.

While Harley-Davidson says it will continue to further the company's strengths in the touring and cruising segments, it will introduce a new modular 500cc to 1250cc 'middleweight' platform to appeal to new markets, with imminent models including Harley's first adventure tourer, the all-new Pan America 1250, along with a 1250cc Custom and a 975cc Streetfighter.

As such, the new platform will span three distinct product spaces and a total of four displacements, with several other new models to arrive in due course.

Meanwhile the firm will pursue the development of a small-capacity (250cc to 500cc) motorcycle for emerging Asian markets, which it aims to realise through a strategic partnership with an Asia-based manufacturer.

Furthermore, Harley has announced it will officially launch its long-awaited electric bike, the LiveWire, in August 2019 – and that it's also hard at work on a range of other electric two-wheelers, which will help it pursue its aim of leading the EV two-wheeler market.

According to Matt Levatich, President and Chief Executive Officer of Harley-Davidson, the 'More Roads' campaign will set the firm up for the next generation of riders, and see Harley-Davidson cement its place in a rapidly changing world.

"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," he said.

"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."

Under the theme of 'broader access', Harley-Davidson says it will expand the company's global digital capabilities, establish strategic alliances with global leading e-commerce providers, and explore new retail formats, including the roll-out of smaller, urban storefronts to appeal to urban populations.

Harley-Davidson says it will fund this company-wide evolution via a comprehensive program of cost reduction and fund reallocation, including operating investment of $US450-$US550 million and capital investment through to 2022 of $US225-$US275 million. All up, it expects the 'More Roads' program to generate over $US1 billion of incremental annual revenue in 2022, compared to 2017.

This latest announcement provides significantly more details after Harley-Davidson said in 2017 that it planned to deliver 100 new models over the next decade.

Last May, the then CEO of Harley-Davidson Australia, Nigel Keough, hinted that the upcoming renewal of the brand would include a focus on segments not previously considered.

"The 100 new models are going to include spaces we haven't been in yet, and that will include some things that people won't expect," he said at the time, at the culmination of the 100 Years Anniversary Ride, which celebrated Harley-Davidson chalking up 100 years of operations in Australia.

How Harley-Davidson will reshape its corporate message to welcome new riders in new segments without alienating its traditional core market remains to be seen, but it certainly looks like an interesting road ahead for one of the world's oldest and indeed most resilient motorcycle manufacturers…