Harley plans smaller motorcycles to woo young riders
Wider product line aimed at new customers in U.S. and emerging markets
Harley-Davidson Inc. on Monday said it will add smaller, more-versatile motorcycles to its lineup as it tries to attract the younger riders it needs to grow sales.
The company’s U.S. retail sales dropped 6.4% in the second quarter from a year earlier, as motorcycle sales in the U.S. have been steadily falling in recent years.
Harley’s development of motorcycles smaller than its traditional models shows the company’s “vast capabilities and competitive firepower,” Chief Executive Matt Levatich said Monday.
Milwaukee-based Harley will introduce a line of middleweight motorcycles starting in 2020, including the manufacturer’s first attempt at a socalled adventure bike that can be used on streets as well as unpaved trails. Harley also plans to add small motorcycles for the Asian market that will be built with an undisclosed partner.
These motorcycles, which will feature small engines, will fortify Harley’s lineup of motorcycles for customers in fast-growing foreign markets, particularly India. The company said an electric motorcycle that it is planning is on course to be released next year.
Harley-Davidson’s share of the U.S. market for big motorcycles slipped to 48.4% in the sec- ond quarter from 50.4% during the first quarter.
Harley has told investors that its future depends on getting new customers. The company hopes that adding up to100 new and updated models can help attract 2 million U.S. riders over the next decade, while also boosting international sales to 50% of Harley’s total, from 38% now.
Harley in June said it would shift production of motorcycles sold in Europe to overseas factories in an effort to avoid European Union tariffs. The EU tariffs came in response to U.S. duties on imported steel and aluminum.
President Donald Trumpcriticized Harley’s decision to shift production. Mr. Levatich said earlier this month the move was necessary to keep costs down for customers in Europe.
The company also vowed to expand its marketing by establishing alliances with e-commerce retailers and opening smaller-size dealerships in urban centers.
The company said it will pay for the cost of new models and additional marketing through “comprehensive cost reduction and reallocation of previously planned investment and resources.”