Harley-Davidson revs up rebound
Motorcycle maker plans to innovate while staying true to its heritage in bid to boost sales
In the face of declining profits, Harley-Davidson has a clear plan to try to inspire its die-hard customers — and new, young riders — to plunk down cash for a new motorcycle.
It’s all about product. Harley arrives in the motorcycle market this year with what CEO Matt Levatich says is “the most significant new product investment in our 115-year history.”
For many, the image of a Harley-Davidson conjures memories of the hog from the 1960s film Easy Rider or the Electra Glide, the heavy motorcycle that has long been a mainstay of police departments. But today’s Harley-Davidson has a broad array of bikes.
For 2018, Harley says it has redesigned its large cruisers. The Softail line, a design that incorporates a subtle rear suspension, will have a new look that Levatich says will give them a custom appearance.
Altogether, there are 14 new models.
They couldn’t come at a better time. Harley motorcycle sales are falling, down nearly 7% in the third fiscal quarter worldwide due in large part to a downturn in the U.S.
The company is caught between the aging of its most devoted customers and the need to excite a new generation of new ones.
The generational issue is show- ing up in the bottom line. Profits in the third quarter were down about 40% to $68.2 million. Harley says it has been striving to maintain the basic aspects of its motorcycles to keep them true to what riders expect. But Levatich says the company is also trying to stay on the cutting edge of technology.
With that in mind, here are five things to know now about how Harley expects to keep delivering profits:1. The Street Glide is Harley’s top-selling model in the U.S., but the maker doesn’t disclose sales by model. The goal is to build sales around the broad array of models in the lineup.
2.
Expect to see heavy promotion around the Softail line, with eight new versions. Two new cruisers, three new CVOs and a new Sportster round out the upgrades for 2018. 3. It will innovate while staying true to its heritage. That sound of the exhaust? It will be, as it always has been, like someone saying “potato-potato-potato” over and over. Yet Harley is cutting weight out of frames and producing smoother-running engines.
4. Harley will aggressively seek out younger customers, trying to interest Millennials even if its motorcycles haven’t yet become cultural touchstones for them as they have for past generations. 5. The sales slump won’t be over soon, and Harley will have to find a way to manage. “The continued weakness in the U.S. motorcycle industry only heightens our resolve and the intensity we are bringing to the quest to build the next generation of Harley-Davidson riders,” Levatich said in a statement.