To encourage much more individuals around the globe to expertise the exhilaration of using a motorbike, Harley-Davidson right now shared particulars of its “Extra Roads to Harley-Davidson” development plan via 2022.
In a fast-changing world with new client calls for, these accelerated actions assist Harley-Davidson’s 2027 aims with elevated focus and strategic funding to reinvigorate the U.S. enterprise whereas accelerating the tempo of worldwide development.
“The daring actions we’re saying right now leverage Harley-Davidson’s huge capabilities and aggressive firepower – our excellence in product growth and manufacturing, the worldwide enchantment of the model and naturally, our nice vendor community,” mentioned Matt Levatich, president and chief govt officer, Harley-Davidson, Inc. “Alongside our present loyal riders, we’ll lead the subsequent revolution of two-wheeled freedom to encourage future riders who’ve but to even take into consideration the fun of using.”
The results of a complete, top-to-bottom evaluation incorporating a “buyer first” perspective, the Extra Roads to Harley-Davidson plan consists of:
• New Merchandise – preserve present riders engaged and encourage new riders by extending heavyweight management and unlocking new markets and segments
• Broader Entry – meet clients the place they’re and the way they need to interact with a multi-channel retail expertise
• Stronger Sellers – drive a efficiency framework to enhance vendor monetary energy and the Harley-Davidson buyer expertise
“We anticipate this plan will end in an engaged, expanded Harley-Davidson neighborhood with a extra numerous rider base, together with industry-leading margins and money circulate,” mentioned Levatich.
Leveraging its industry-leading design and robust manufacturing capabilities, Harley-Davidson plans to supply its most complete lineup of bikes, competing in most of the largest and quickest rising segments with a full portfolio of bikes throughout a broad spectrum of value factors, energy sources, displacements, using kinds and world markets. Highlights embrace:
• Extending the corporate’s management in heavyweight bikes by persevering with to develop improved, extra technologically-advanced Touring and Cruiser bikes that can preserve present Harley-Davidson riders engaged and using longer.
• Introducing a brand new modular 500cc to 1250cc middleweight platform of bikes that spans three distinct product areas and 4 displacements, beginning with the corporate’s first Journey Touring bike, the Harley-Davidson™ Pan America™ 1250, a 1250cc Customized mannequin and a 975cc Streetfighter mannequin, all of that are deliberate to launch starting in 2020. Further fashions to broaden protection in these product areas will observe via 2022.
• Creating a extra accessible, small-displacement (250cc to 500cc) bike for Asia rising markets via a deliberate strategic alliance with a producer in Asia. This new product and broader distribution is meant to gas Harley-Davidson’s buyer entry and development in India, one of many largest, quickest rising markets on the planet, and different Asia markets.
• Main the electrical bike market by launching Harley-Davidson’s first electrical bike, LiveWire™, in 2019 — the primary in a broad, no-clutch “twist and go” portfolio of electrical two-wheelers designed to determine the corporate because the chief within the electrification of the game. LiveWire might be adopted by extra fashions via 2022 to broaden the portfolio with lighter, smaller and much more accessible product choices to encourage new riders with new methods to journey.
Harley-Davidson will advance its market supply method and meet right now’s buyer wants by:
• Creating high-engagement buyer experiences throughout all retail channels – together with enhancing and increasing the corporate’s world digital capabilities by evolving the Harley-Davidson.com expertise to combine with and improve the dealership retail expertise for present and new clients.
• Establishing strategic alliances with world main e-commerce suppliers to increase entry to Harley-Davidson to a pool of tens of millions of potential new clients.
• New retail codecs — together with smaller, city storefronts globally to reveal the model to city populations and drive gross sales of the expanded Harley-Davidson product portfolio and develop worldwide attire distribution.
Harley-Davidson’s world-class vendor community is an integral a part of the corporate’s accelerated technique and significant to general success. The corporate will implement a efficiency framework to considerably improve the energy of the vendor community and the shopper expertise, enabling the best-performing and most entrepreneurial sellers to drive innovation and success for themselves and Harley-Davidson — whereas offering the premium buyer expertise the model is thought for throughout an more and more numerous product and buyer base.
“Harley-Davidson is iconic as a result of we’ve by no means been static,” mentioned Levatich. “In transferring ahead, we’re tapping into the spirit that drove our founders again in 1903 and each one of many staff and sellers who rose to the challenges confronted alongside the way in which. Our plan will redefine present boundaries of our model – reaching extra clients in a means that reinforces all we stand for as a model and as an organization and we will’t wait to kick it into gear.
Funding & Financials
Along with constructing riders, the corporate expects Extra Roads to Harley-Davidson to create extra worth, stabilize and strengthen the prevailing enterprise, enhance Harley-Davidson Motor Firm Return on Invested Capital (ROIC), improve income and earnings, and permit the corporate to return extra cash to shareholders.
The accelerated technique would require vital funding to vary the trajectory of the enterprise globally, and the corporate plans to fund it totally via complete value discount and reallocation of beforehand deliberate funding and assets together with working funding via 2022 of $450 to $550 million and capital funding via 2022 of $225 to $275 million. In whole, the corporate plans Extra Roads to Harley-Davidson to generate greater than $1 billion of incremental annual income in 2022 as in comparison with 2017.
The corporate believes its accelerated technique is according to and reinforces its aims to drive income development and develop working margins. The corporate expects to fund strategic alternatives whereas sustaining its present funding and return profile and capital allocation technique.
Harley-Davidson’s funding ideas will deal with stabilizing and strengthening the prevailing enterprise, enhancing the premium model, and investments in worthwhile, growth-oriented initiatives. We anticipate these ideas, together with a disciplined capital allocation focus, will permit Harley-Davidson to execute with improved value competitiveness and overhead efficiencies.
Harley-Davidson, Inc. is the mother or father firm of Harley-Davidson Motor Firm and Harley-Davidson Monetary Companies. Since 1903, Harley-Davidson Motor Firm has fulfilled desires of non-public freedom with customized, cruiser and touring bikes, using experiences and occasions and an entire line of Harley-Davidson bike components, equipment, common merchandise, using gear and attire. Harley-Davidson Monetary Companies offers wholesale and retail financing, insurance coverage, prolonged service and different safety plans and bank card packages to Harley-Davidson sellers and riders within the U.S., Canada and different choose worldwide markets.