Harley-Davidson Accelerates to Build Next Generation of Riders Globally


 
 
09:41 08/12/2018

To inspire even more people around the world to experience the exhilaration of riding a motorcycle, Harley-Davidson HOG  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.

"The bold actions we are announcing 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.”

The result of a comprehensive, top-to-bottom assessment incorporating a "customer first" perspective, the More Roads to Harley-Davidson plan includes, New Products, Broader Access, and Stronger Dealers.

"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.

Leveraging its industry-leading design and strong manufacturing capabilities, Harley-Davidson HOG  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.

Part of the plan is 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.

Also 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.

Harley-Davidson HOG  will advance its market delivery approach and meet today's customer needs by, Establishing strategic alliances with global leading e-commerce providers to extend access to Harley-Davidson to a pool of millions of potential new customers, and 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.

"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.”

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

Harley-Davidson (NYSE:HOG) HOG  international retail motorcycle sales were up 0.7 percent in the second quarter of 2018 compared to 2017 and U.S. retail sales were down 6.4 percent. Worldwide retail sales decreased 3.6 percent.

"Our results in the second quarter reflect business performance that is in line with our expectations. With the focus of every employee and dealer, we are making progress building the next generation of Harley-Davidson riders in line with our long-term objectives. Our manufacturing optimization, demand-driving investments and commitment to manage supply in line with demand remain on target and continue to strengthen our business," said Matt Levatich, president and chief executive officer, Harley-Davidson, Inc. 

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.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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