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To inspire even more people around the world to experience the exhilaration of riding a motorcycle, in July 2018, Harley-Davidson shared details of its “More Roads to Harley-Davidson” accelerated plan for growth 2018 - 2022.
In a fast-changing world with new customer demands, these accelerated actions support Harley-Davidson’s 2017 - 2027 objectives with increased focus and strategic investment to reinvigorate the U.S. business while accelerating the pace of international growth.
The result of a comprehensive, top-to-bottom assessment incorporating a “customer first” perspective, the “More Roads to Harley-Davidson” plan includes:
New Products -
- Keeping riders inspired by extending our leadership in the market segments we’ve shaped and defined while unlocking new market opportunities
Broader Access -
- Creating new pathways to Harley-Davidson, expanding access and appeal to more people around the world
Stronger Dealers -
- Working side-by-side with our global dealers to build stronger capabilities that lead to improved channel performance, greater profitability and a H-D experience that exceeds riders’ expectations
Amplify Brand -
- Enhancing the Harley-Davidson experience to inspire interest in riding, foster moto-culture and build an even bigger, more passionate community of Harley-Davidson riders
New Products
Leveraging its industry-leading design and strong manufacturing capabilities, Harley-Davidson 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. Highlights include:
- Advancing our market leadership in Touring and Cruiser segments.
- Launching multiple Harley-Davidson Middleweight Adventure Touring, Streetfighter and High-Performance Custom models through 2022.
Harley-Davidson™ Pan America™ 1250 cc - Planned to launch 2020(Prototype model shown. Production model features may vary. Not yet available for sale. All future models shown may not be available in all markets.)
Harley-Davidson Streetfighter Model - Planned to launch in 2020
Harley-Davidson High-Performance Custom Model - Planned to launch in 2021(Prototype model shown. Production model features may vary. Not yet available for sale. All future models shown may not be available in all markets.)
- Developing more accessible, small-displacement (250cc to 500cc) motorcycles for Asia markets through a planned alliance with a manufacturer in Asia. These new products are intended to fuel Harley-Davidson’s customer access and growth in some of the largest, fastest growing markets in the world.
- Leading the electrification of motorcycles by launching Harley-Davidson’s first electric motorcycle LiveWire™, in 2019 -- the first in a broad, no-clutch “twist and go” portfolio of electric two-wheelers designed to establish the company as the leader in the electrification of the sport. LiveWire will be followed by additional models through 2022 to broaden the portfolio with lighter, smaller and even more accessible product options to inspire new riders with new ways to ride.
Harley-Davidson LiveWire™ - Launching in 2019
Future Electric Harley-Davidson Model
Future Electric Harley-Davidson Model
Broader Access
Harley-Davidson will advance its market delivery approach and meet today’s customer needs by:
- Creating high-engagement customer experiences across all retail channels – including improving and expanding the company’s global digital capabilities by evolving the Harley-Davidson.com experience to integrate with and enhance the dealership retail experience for existing and new customers.
- Establishing strategic alliances with global leading e-commerce providers to extend access to Harley-Davidson to a pool of millions of potential new customers.
- Flexible distribution points -- 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.
Stronger Dealers
Harley-Davidson’s 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.
Amplify Brand
Underpinning our strategy is a meaningful opportunity to amplify and leverage the power of the Harley-Davidson brand. We are enhancing the Harley-Davidson experience to inspire interest in riding, foster moto-culture and build an even bigger, more passionate community of Harley-Davidson riders.
Watch a video highlighting key elements of Harley-Davidson’s More Roads to Harley-Davidson plan here:
Funding & Financials
In addition to building riders, the company expects More Roads to Harley-Davidson to create more value, stabilize and strengthen the existing business, improve Harley-Davidson Motor Company Return on Invested Capital (ROIC), increase revenue and earnings, and allow the company to return more cash to shareholders.
The accelerated strategy will require significant investment to change the trajectory of the business globally, and the company plans to fund it entirely through comprehensive cost reduction and reallocation of previously planned investment and resources including operating investment through 2022 of $450 to $550 million and capital investment through 2022 of $225 to $275 million. In total, the company plans More Roads to Harley-Davidson to generate more than $1 billion of incremental annual revenue in 2022 as compared to 2017.
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.
Harley-Davidson’s funding principles will focus on stabilizing and strengthening the existing business, enhancing the premium brand, and investments in profitable, growth-oriented projects. We expect these principles, along with a disciplined capital allocation focus, will allow Harley-Davidson to execute with improved cost competitiveness and overhead efficiencies.
The source and all additional information you can read here:Investor Relations
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