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Tag: Harley-Davidson

  • Rev Up for the Harley Davidson X440T: Next-Gen Motorcycle Sneak Peek Ahead of Official Debut

    Rev Up for the Harley Davidson X440T: Next-Gen Motorcycle Sneak Peek Ahead of Official Debut

    In December 2024, Hero MotoCorp announced through a Securities and Exchange Board of India (SEBI) filing a continuation of its partnership with Harley-Davidson beyond the X440, revealing plans for new variants. Now, one year later, the first of these new additions, the X440T, is set to make its debut. This new motorcycle retains the familiar features of its X440 predecessor while introducing several key improvements.

    Design Distinctions of the New Harley-Davidson X440T

    Among the noticeable revisions on the X440T is an entirely restyled rear three-quarters section. A longer cowl graces the tail of the X440T, likening its design to that of other commuter motorcycles. While Harley-Davidson has yet to release a front-angle image of the new model, it is anticipated to bear a close resemblance to the original X440. Additional changes include bar-end mirrors and a fresh color palette featuring red, black, blue, and white options.

    Anticipated Advancements in the X440T

    Beyond the aesthetic upgrades, the X440T is expected to unveil several feature enhancements. Among these is the possibility of a ride-by-wire system, which could introduce additional riding modes and switchable traction control, among other advancements.

    As yet, further details remain undisclosed. However, it is predicted that the X440T will share much of its hardware with the X440, such as the chassis, engine, suspension, wheel sizes, and braking setup. For reference, the existing Harley-Davidson X440 is equipped with a 440 cc, oil-cooled, 2-valve SOHC single-cylinder engine that produces 27 bhp at 6,000 rpm and 38 Nm of torque at 4,000 rpm, coupled with a 6-speed transmission.

    History of the Hero-Harley Partnership

    The Hero-Harley alliance was forged in 2020 when the American motorcycle brand joined forces with Indian two-wheeler powerhouse Hero MotoCorp to manage local sales and service networks and co-develop high-end models. The first motorcycle resulting from this collaboration was the H-D X440 introduced in 2023, followed by Hero’s Maverick 440 in early 2024.

    There is yet to be a decision on whether the new X440T will replace the existing X440, or if both models will be sold concurrently. The Hero equivalent on this platform is still listed on the company’s website despite reaching the end of its production run. Currently, only selected dealerships with remaining stock are selling the Maverick 440.

    Questions & Answers

    What are the anticipated feature enhancements of the new X440T?
    The X440T is expected to introduce several feature advancements, such as a ride-by-wire system, potentially offering additional riding modes and switchable traction control.

    What is the current status of the Maverick 440?
    While the Maverick 440 has reached the end of its production run, it is still listed on the company’s website and is available at select dealerships with remaining stock.

    Will the existing X440 be replaced by the new X440T?
    It is not yet decided whether the X440T will replace the X440 or if both models will be sold concurrently.

  • Harley-Davidson Faces $1.4M Fine in Japan for Unfair Dealer Quotas – What This Means for Retailers

    Harley-Davidson Faces $1.4M Fine in Japan for Unfair Dealer Quotas – What This Means for Retailers


    Japan’s antitrust authority is set to impose a significant penalty on Harley-Davidson’s local subsidiary, amounting to JPY200 million (approximately US$1.38 million), for placing unreasonable sales quotas on its dealers.

    The Japan Fair Trade Commission (JFTC) is expected to accompany the fine with a cease-and-desist order aimed at curtailing any future violations. Sources close to the matter indicated that Harley-Davidson has already been informed of the commission’s plans and that their official decision will follow the company’s forthcoming response, as reported by Nikkei.

    According to these sources, Harley-Davidson has been accused of imposing unrealistic sales targets on numerous dealers, terms that could not be met through typical sales efforts. In a move resembling a scene from a high-stakes game of poker, the company reportedly warned dealers that failure to hit these lofty goals could result in the termination of their dealership agreements.

    This contentious practice has allegedly been in place since at least January 2023, if not earlier. Many dealers felt trapped in a bind, forced to purchase motorcycles themselves and subsequently sell them as “registered but unused vehicles,” which are typically resold at lower prices than brand new models.

    Having invested in store renovations and other startup costs to sell these motorcycles, dealers found themselves with little choice but to comply with Harley-Davidson’s demands.

    Under Japan’s antimonopoly law, the abuse of a superior bargaining position to enforce unfair business terms is strictly prohibited. If the JFTC confirms a violation, it can both issue a cease-and-desist order and impose a surcharge of 1% on sales linked to such illicit practices.

    Harley-Davidson, established in 1903 and renowned for its heavyweight motorcycles, sold 151,200 units globally last year, marking a 7% decline compared to 2023 — the second consecutive year of falling sales figures.

    Questions & Answers

    What led to Harley-Davidson being fined in Japan?
    The JFTC found that the motorcycle giant imposed unreasonable sales quotas on its dealers, coupled with threats of contract termination if these targets were not met.

    How has this fine affected Harley-Davidson’s reputation in Japan?
    This incident may tarnish Harley-Davidson’s reputation as a reputable manufacturer, raising serious concerns about its business practices and dealer relationships in the region.

    What measures can dealers take in light of this situation?
    Dealers facing similar pressures may seek legal assistance or report unfair practices to the JFTC, utilizing antimonopoly laws to protect their interests.

  • Harley-Davidson Launches X350 In The Chinese Market

    Harley-Davidson Launches X350 In The Chinese Market

    Harley-Davidson has officially taken the wraps off its highly awaited 353 cc motorcycle for the Chinese market, the X350. The bike has been developed in collaboration with Chinese two-wheeler manufacturer QJMotor.

    The body style of the X350 closely resembles that of a roadster. The round LED headlamps and the sleek, sporty styling make the bike looks very fashionable. Harley-Davidson states that the bike was designed taking inspiration from its 1970 XR Flat Tracker. In order to improve ergonomics, Harley has given the front of the seat and the rear side of the fuel tank a flat shape that they believe will give the rider more grip while braking and turning. The bike gets a combined digital and analog instrument cluster in which the speed is displayed on the analog side while the digital meter shows the time and total distance travelled.

    The bike is powered by a liquid-cooled, in-line twin, 353cc engine that churns out 36 bhp and 31 Nm of torque. The engine is mated to a 6-speed transmission and has a compression ratio of 11.9:1. The claimed mileage figures of the powertrain come to 20.2 kmph. The bike’s suspension setup includes 41 mm inverted rebound adjustable front forks and a preload adjustable shock absorber at the rear. In the brakes department, it gets floating front disc brakes and fixed rear ones. The bike gets 17 inch rims that are shod with Pirelli Angel ST tyres.

    The X350 currently comes with a price tag of 33,388 Yuan (approximately Rs. 3.93 lakh) in the Chinese markets. There is currently no information about if/when the bike will make it to India. However, considering its stylish look and high-revving engine, there is a chance that the bike will do well here. But only time will tell if Harley-Davidson decides to bring it here or not.

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  • Harley-Davidson Will Eventually Become Fully Electric

    Harley-Davidson Will Eventually Become Fully Electric

    According to CEO Jochen Zeitz, Harley-Davidson is transitioning to become an all-electric brand, although the process will likely take decadesis transitioning to become an all-electric brand, although the process will likely take decades, according to CEO Jochen Zeitz. According to Zeitz, iconic American brand Harley-Davidson, known mainly for its big engine, heavyweight cruiser motorcycles, is currently undergoing a long-term transition which will result in the brand transforming into an electric brand. That would mean that Harley-Davidson’s big v-twin engines will become history, at least sometime in the future, and it would take a few decades at least for Harley to become all-electric.

    In an interview, H-D CEO Jochen Zeitz outlined the brand’s growth, saying that electrification is the next logical step in the evolution of one of the oldest motorcycle brands in the world that was established 120 years ago. Harley-Davidson introduced its first electric motorcycle in 2018, called the LiveWire ONE. The LiveWire b-brand has since been expanded to include electric bikes from Harley-Davidson, and the upcoming S2 Del Mar will also be an electric bike under the LiveWire vertical.

    “At some point in time, Harley-Davidson will be all-electric. But that’s a long-term transition that needs to happen. It’s not something you do overnight,” Zeitz was quoted as saying in the interview.

    Electrification of the auto industry is currently in the nascent stage, more so for established two-wheeler brands. While several auto companies, including Volvo, Volkswagen, Audi and Mercedes, have stated much shorter timelines to go fully electric, it is a matter of time when motorcycle brands will also likely take similar steps. Whether future powertrains for motorcycles will be full-electric, hybrid or use other forms of alternate fuels and energy is still an evolving process.

    The establishment of LiveWire is the first small step in this long-term transition of Harley-Davidson, a brand whose big displacement v-twin engines will be consigned to history in the coming decades.

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  • Harley-Davidson Announces 8 New Models For 2022

    Harley-Davidson Announces 8 New Models For 2022

    Harley-Davidson has announced seven new bikes for its 2022 line-up, including a trike, and all these are powered by the Milwaukee Eight 117 engine, with 1,920 cc displacement and 170 Nm of peak torque. The new models feature two new baggers, two new Low Riders, and four updated models in the brand’s Custom Vehicle Operations (CVO) range which includes a trike. The new models for 2002 are the Street Glide ST, Road Glide ST, Low Rider S, Low Rider ST, and three CVO bikes and one CVO trike. As the names suggest, all bikes are evolutions of existing models, with significant updates.

    “As part of our focus on stronghold segments, including Grand American Touring and Cruiser, the 2022 product line is designed for power and performance,” said Jochen Zeitz, Chairman, President, and CEO, Harley-Davidson. “Each of these new models features the unrivaled power of the Milwaukee-Eight 117 for those riders who want nothing but the biggest and the best, building on our position as the most desirable motorcycle brand in the world.”

    The Low Rider S and Low Rider ST both have styling reminiscent of earlier Harleys, but have the more powerful and bigger engines. Suspension duties on both the Low Rider models are handled by a 43 mm upside-down fork and a longer rear mono-shock, and also added rear-wheel travel. The Low Rider ST looks like the most distinctly new model, with a fairing that looks like a neo-retro job, and with hard-case panniers. The Low Rider S also gets the same Milwaukee Eight 117 engine but employs a more stripped-down design.

    The Street Glide ST and Road Glide ST have the same engine but are equipped with Reflex linked Brembo brakes with ABS, Boom! Box GTS infotainment system with color touchscreen and navigation, cruise control, and Daymaker LED headlamps. Harley-Davidson’s Cornering Rider Safety Enhancements are optional, offering cornering traction control with ride modes, cornering ABS with linked braking, hill-hold control and tire pressure monitoring.

    The Street Glide ST and Road Glide ST are new additions in the range, which will sit along with the 2022 Street Glide and Street Glide Special, and the Road Glide and Road Glide Special.

    The 2022 CVO models include a CVO Street Glide, CVO Road Glide, CVO Road Glide Limited, and CVO Tri Glide, which is the trike. All the CVO models come with exclusive hand-crafted paint schemes, premium audio systems and Harley’s Cornering Rider Safety Enhancements as standard. The most touring-oriented model in the 2022 CVO range is the CVO Road Glide Limited. At this point of time, it’s unclear if Harley-Davidson will introduce all of the 2022 range in India, but at least the Low Ride and Street Glide ST and Road Glide ST can be expected to be introduced in limited numbers for India.

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  • Harley-Davidson Sportster S To Be Launched At India Bike Week

    Harley-Davidson Sportster S To Be Launched At India Bike Week

    Harley-Davidson India will launch its second new model based on the new Revolution Max 1250 platform, after the Pan America 1250. The new Sportster S, will make its India debut at the upcoming India Bike Week 2021 at Aamby Valley, Lonavla on December 4-5, 2021. On the Sportster S, the 1,252 cc, v-twin is tuned for more torque lower in the rev range and makes less horsepower. The new Harley-Davidson Sportster S will be the second Harley-Davidson model to be launched in India, after the American motorcycle brand revamped its India business, now in association with Hero MotoCorp.

    The 1,252 cc v-twin puts out 121 bhp, (instead of the 150 odd bhp on the Pan America 1250), but peak torque has been moved down the rev range, with 127 Nm hitting at 6,000 rpm. The redline is quite high too, at 9,500 rpm, and with variable valve timing on both the intake and exhaust ports, the Revolution Max 1250 promises sporty performance across the rev range. The suspension comes from Showa, featuring 43 mm inverted forks and a piggyback reservoir rear shock with remote preload adjustment. But suspension travel is limited, with just 91 mm on the front, and a measly 50 mm travel on the rear monoshock.

    The bike was originally unveiled as the Harley-Davidson 1250 Custom, and looks stocky and muscular, with fat tires that complete the buffed-up look. The short front mudguard is reminiscent of a classic bobber, while the tail section, with the high-mounted exhaust, as well as solo seat are a nod to Harley-Davidson’s XR750 flat tracker. A round, 4-inch TFT screen displays all instrumentation and supports Bluetooth-enabled infotainment. All-LED lighting includes a Daymaker Signature LED headlamp, a similar front headlight from the Harley-Davidson Fat Bob. Once it’s launched in India, we expect the new Sportster S to be priced at around ₹ 14-15 lakh (Ex-showroom).

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  • Harley-Davidson Street Glide Special With Arctic Blast Colours Unveiled

    Harley-Davidson Street Glide Special With Arctic Blast Colours Unveiled

    Harley-Davidson has unveiled a limited edition H-D Street Glide Special, hand-finished in Artic Blast paintwork from Gunslinger Custom Paint, in Golden, Colorado. Only 500 units of the Harley-Davidson Street Glide Special factory custom will be made, each with a serialized individual number displayed on the fuel tank. The Street Glide Special was revealed at the 81st Sturgis Motorcycle Rally and will be available in just one single color, a metallic deep blue with bright blue strokes over a pearlescent white base.

    The attractive paintwork is hand-finished at the Gunslinger Custom Paint facility in Golden, Colorado. The facility is known for supplying CVO and limited-edition paint sets for the Harley-Davidson factory. The Street Glide Special in Arctic Blast has a subtle honeycomb pattern painted into the fairing and front fender. The paint scheme adds an exclusive custom finish to the 2021 Harley-Davidson Street Glide Special.

    Mechanically, the H-D Street Glide Special remains the same, and is powered by the larger 114 Milwaukee-Eight engine, with a higher level of trim. The 1,868 cc v-twin engine makes 161 Nm at 3,000 rpm. The 2021 Street Glide Special also features a long list of tech and gadgets, including Prodigy custom wheels, Daymaker LED headlight, Boom! Box GTS infotainment system with touch screen and Apple CarPlay, as well as Android Auto compatibility, and finished with the iconic batwing fairing with split-stream vent. The Arctic Blast Street Glide Special has been priced at $ 38,495, but it’s unlikely to be available on sale in India.

  • New Harley-Davidson Electric Motorcycle To Be Called LiveWire One

    New Harley-Davidson Electric Motorcycle To Be Called LiveWire One

    It was a few months ago that ‘LiveWire’ was turned into a standalone electric vehicle sub-brand of Harley-Davidson. Now, VIN filings with the National Highway Traffic Safety Administration (NHTSA) have revealed that the next electric motorcycle from Harley-Davidson will be called LiveWire One. It is likely to be revealed on July 8, 2021. The documents also reveal that the LiveWire One will have a power output which is equivalent of 101 bhp. The LiveWire One will have an internal code name, which is ‘XB’ while the model code will be LW1. Another fascinating fact is that the first-ever Harley-Davidson motorcycle was called the Model One. So, the reference to ‘One’ could be a throwback to Harley’s century-old legacy.

    While Harley-Davidson did not update the LiveWire for 2021 in USA, it did so for the model sold in Australia and the power output dropped from 103.5 bhp to 101 bhp, which is similar to the data found in the NHTSA VIN filings. So, in all probability, we will see a slightly updated/restyled version of the original LiveWire electric motorcycle, which was launched in 2019. The documents also reveal that the new Livewire One will be considered a 2021 model, despite being introduced in the middle of 2021.

    The original LiveWire gets Harley-Davidson’s full-electric Revelation powertrain which used to put out 103.5 bhp of power and 116 Nm of instant torque. The LiveWire had claimed acceleration from 0 to 100 kmph in just 3 seconds and roll-on acceleration from 100 kmph to 129 kmph in 1.9 seconds. The LiveWire is loaded with electronics, which includes cornering ABS, cornering enhanced traction control, rear-wheel lift mitigation, as well as a drag-torque slip control system that manages rear wheel slip and prevents rear-wheel lock due to the regenerative braking.

    A 4.3-inch full-color TFT touchscreen panel offers the rider controls to seven riding modes, including four pre-programmed modes – Road, Rain, Sport and Range. Additionally, there are three more fully customizable modes, where the power (maximum rate of acceleration), regeneration (braking effect when off-throttle), throttle response, and traction control settings can be fully customized.

    While we would love to see the new LiveWire One being launched in India, Harley is likely to consider the same next year.

  • Harley-Davidson Reports Positive First Quarter Results For 2021

    Harley-Davidson Reports Positive First Quarter Results For 2021

    Harley-Davidson has reported a positive start to 2021 with the first quarter results of the calendar year showing good results in the crucial home market of North America. Sales in North America grew 30 percent although year-on-year sales in Europe, Middle East, Africa (EMEA) as well as Latin America took a beating. Sales in Asia Pacific remained flat, and from all indications, CEO Jochen Zeitz’s Hardwire strategy to focus on the strengths of the brand, and cut down operations in

    “I am very pleased with the pace of recovery that we have seen across our business, as demonstrated by the strong financial results this quarter. The actions we have taken to reshape the business are having a positive impact on our results, especially for our most important North American region,” said Zeitz, who is the Chairman, President, and CEO of Harley-Davidson.

    “We can see the initial signs of consumer excitement and optimism returning and I am confident Harley-Davidson in 2021 is a significantly leaner, faster, and more efficient organization which is ready to win and successfully deliver on our 5-year Hardwire strategy, as the most desirable motorcycle brand in the world,” added Zeitz.

    Despite global motorcycle sales being affected by the COVID-19 pandemic, Harley-Davidson sold 44,200 units between January and March 2021, a 9 percent increase on the 40,400 units sold in the same period a year ago. North America (32,800 units) remains Harley-Davidson’s strongest market in 2021, followed by Asia Pacific (5,850 units), EMEA (4,900 units) and Latin America (700 units). Revenue for the first quarter in 2021 is reported at $1,423 million, a 10 per cent increase over the same period a year ago, while net income is at $259 million, an increase of 272 percent over just $70 million in the same period a year ago.

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  • Harley-Davidson Pan America Production Begins

    Harley-Davidson Pan America Production Begins

    The Harley-Davidson Pan America has started rolling off the production line from Harley’s York, Pennsylvania Vehicle Operations Plant. And it’s soon to make its way not just across the Atlantic to Europe, but to India and the rest of Asia as well. Back in the US, the action around the Pan America is heating up. A new video released by Harley-Davidson shows the first few bikes rolling off the assembly line at the Pennsylvania plant. So, it may be sooner than the end of the year when we do get to see the Pan America in India, with Harley-Davidson restructuring its India business model with the collaboration with Hero MotoCorp.

    The H-D Pan America is powered by a 1,252 cc Revolution Max V-Twin which is first of its kind from the company. The engine is liquid-cooled and it makes 150 bhp at 9,000 rpm along with 127 Nm of peak torque at 6,750 rpm. The engine is paired to a 6-speed gearbox. Harley claims that the Pan America 1250 has a fuel efficiency of 48 miles per gallon or 20.4 kmpl. The Pan America will be available in two variants, Standard and Special. The Pan America 1250 Special gets semi-active suspension along with vehicle load control, tyre pressure monitoring system, standard centre stand, adjustable rear brake pedal, Aluminium skid-plate, heated hand grips, steering damper, adaptive ride height and tubeless spoked wheels. The colour options are different on both motorcycle variants as well.

    The most significant change on the Pan America Special though is the introduction of Adaptive Ride Height (ARH), which Harley-Davidson says is a first for any motorcycle. The system works by lowering the motorcycle when it comes to a stop. So, when the bike is being ridden, the seat height is normal 890 mm height, with unladen ground clearance of 175 mm. But the Adaptive Ride Height system will lower the seat height to 855 mm when the bike comes to a halt. And the ARH can also be optimised by settings through which the rider to suit his own needs.

    We expect the Harley-Davidson Pan America to be launched in India sometime in the second half of 2021. By our estimates, expect the standard model to be priced at around ₹ 20 lakh (Ex-showroom), while the Special variant will likely be priced upwards of ₹ 22 lakh (Ex-showroom).

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  • Harley-Davidson To Follow Used-Car Model To Woo Young Riders

    Harley-Davidson To Follow Used-Car Model To Woo Young Riders

    Harley-Davidson is looking to increase focus on the used motorcycle market in the United States, in the brand’s latest efforts to increase customer base. And to do this, Harley-Davidson plans to roll out a certified pre-owned bike program, known as H-D Certified, to position well-tended bikes as a substitute for entry-level models.

    The strategy is similar to what carmakers have been following to position well-maintained used vehicles as a substitute for low-margin, “entry-level” new models. The used bikes program is part of a new five-year turnaround strategy outlined by new Harley-Davidson CEO Jochen Zeitz, part of the latest efforts to expand the brand’s appeal beyond middle-aged and affluent riders.

    The 118-year-old American brand has been steadily losing market share in the brand’s domestic US market amid declining retail sales for six years. Harley-Davidson’s latest five-year plan has been dubbed “The Hardwire” and under the new plan, Harley is following a “70-20-10” structure, with 70 percent of its efforts going to the core business, 20 percent into expansion into new segments that offer clear potential for more profit, and 10 percent for testing ideas for long-term growth, including plans for smaller displacement models in new markets, like in China, with the Qianjiang Group, and in India, with Hero MotoCorp.

  • 2021 Harley-Davidson Pan America 1250 Launched Globally

    2021 Harley-Davidson Pan America 1250 Launched Globally

    Three years after we first got a glimpse, Harley-Davidson has launched its first-ever adventure motorcycle globally, the Pan America 1250. Harley will sell two variants of the Pan America, the Pan America 1250 and the Pan America 1250 Special. While the stance of the Pan America is typically that of an ADV, the face is what has divided opinions. While some may like the Max Max-esque, post-apocalyptic, scourge of the earth sort of a design, others may not be too fond of it! Good thing is, you are not going to mistake it for some other motorcycle when you see it on the road. The front end gets a wide fairing, with Harley’s ‘Daymaker LED headlights’ and a tall windscreen. View it in profile and you see the sculpted fuel tank along with Harley’s signature V-Twin engine, but more on that later. You get an exposed sub-frame at the rear along with split seats and an upswept exhaust.

    The quirky Pan America gets a 1,252 cc Revolution Max V-Twin which is first of its kind from the company. The engine is liquid-cooled and it makes 150 bhp at 9,000 rpm along with 127 Nm of peak torque at 6,750 rpm. The engine is paired to a 6-speed gearbox. Harley claims that the Pan America 1250 has a fuel efficiency of 48 miles per gallon or 20.4 kmpl, which is quite impressive indeed.

    Talking about the chassis, the Pan America is built on a low alloy steel trellis frame along with a one-piece cast Aluminium swingarm. The motorcycle is suspended on 47 mm BFF forks up front and a linkage-mounted piggyback mono-shock at the rear, both adjustable for compression, rebound and preload. Both suspension units get a travel of 191 mm. Up front, the motorcycle gets 320 mm twin discs gripped by a radially mounted Brembo 4-piston calliper. The rear wheel gets a 280 mm single disc with a 2-piston calliper. The motorcycle gets 19-inch alloy up front and a 17-inch alloy at the rear and both are wrapped in Michelin Scorcher adventure radial tyres.

    In terms of features, the motorcycle gets a 6.8-inch TFT touchscreen display along with Bluetooth phone connectivity via the H-D app. The Pan America also gets an inertial measurement unit (IMU) which supplies data to ABS, traction control, drag torque slip control and hill hold control. There are also five riding modes to choose from – road, sport, rain, off-road and off-road plus. Each riding mode has different settings for other electronics.

    Now there are a few differences between the Standard model and the Special. The Pan America 1250 Special gets semi-active suspension along with vehicle load control, tyre pressure monitoring system, standard centre stand, adjustable rear brake pedal, Aluminium skid-plate, heated hand grips, steering damper, adaptive ride height and tubeless spoked wheels. The colour options are different on both motorcycle variants as well.

    Prices for the H-D Pan America 1250 start at 14,000 pound sterling while the Pan America 1250 Special gets a starting price of 15,500 pound sterling. Converted to Indian rupee, the starting prices come to ₹ 14.27 lakh and ₹ 15.80 lakh respectively.

  • Harley Unveils Turnaround Plan As Shares Nosedive On Disappointing Results

    Harley Unveils Turnaround Plan As Shares Nosedive On Disappointing Results

    Harley-Davidson Inc’s shares plunged more than 20% on Tuesday after the motorcycle maker unexpectedly swung to a quarterly loss, overshadowing a new turnaround plan that targets low double-digit earnings growth through 2025.

    Since the middle of last year, the Milwaukee, Wisconsin-based company has shifted focus back to big bikes, traditional markets like the United States and Europe, and older and wealthier customers.

    Harley has trimmed its workforce and global dealer network eliminated slow-selling models, and exited markets where weak sales and profits do not justify the investment.

    Chief Executive Jochen Zeitz, who took charge last year, is focused on enhancing Harley’s brand and has done away with promotional offers, tightened supplies and reduced inventory, enabling dealers to charge the sticker price for the company’s bikes.

    This more than halved dealer inventory last year and drove up prices for pre-owned bikes, which used to be a drag on new-bike sales. The leaner inventory as well as a switch in the introduction of new models to January from August, however, took a toll on the bike sales in the quarter through December.

    Fourth-quarter revenue dropped 39% versus a year earlier as motorcycle shipments almost halved, leading to a loss of 63 cents per share. Analysts surveyed by Refinitiv, on average, expected the company to report a profit of 14 cents a share.

    Harley’s shares, which had gained 38% since July when the company shared an earlier plan to reboot its business, fell as much as 22% on Tuesday morning and were still down 18.8% at $32.62 at midday.

    “Many investors had thought the turnaround plan was leading to better profitability faster than the plan the company laid out today,” said Brian Yarbrough, an analyst at EdwardJones.

    “While they are shrinking the business currently to drive more sustainable growth longer term, we continue to be concerned about lack of demand for Harley products longer term.”

    Retail sales in the United States – the company’s biggest market – fell for the 16th straight quarter, resulting in an 8 percentage-point decline in big-motorcycle market share.

    The decline comes at a time when motorcycle sales have gone up on the back of a demand for socially distanced recreational outdoor activity.

    Polaris Inc last week said retail sales of its Indian brand of motorcycles in North America were up more than 30% in the December quarter. In contrast, Harley’s sales in the region declined 15.4% year-on-year.

    Harley’s new leadership, however, remains steadfast in the strategy of keeping inventories tight as it prefers building

    The decline comes at a time when motorcycle sales have gone up on the back of a demand for socially distanced recreational outdoor activity desirability of the brand to expanding market share.

    “We are going to continue to manage inventory in line with demand,” Chief Commercial Officer Lawrence Hund told investors on an earnings call.

    As part of the five-year turnaround plan unveiled on Tuesday, the 118-year-old company would lean on combustion motorcycles to increase sales in touring, large cruiser and trike bike segments to achieve revenue growth in the mid-single digits.

    The company, which launched its first electric motorbike in 2019, will create a separate division focused on the development of electric vehicles. It also intends to make forays in premium low displacement bikes via partnerships.

    The latest turnaround strategy from the company, which has struggled for years to expand sales beyond baby boomers, comes after a decade-long effort to increase business overseas and draw younger riders with cheaper and newer models.

    Overall, Harley would invest between $190 million and $250 million a year over the next five years.

    It forecast a 5%-7% operating margin, or profit from sales, for 2021 on the back of a 20%-25% growth in motorcycle revenue.

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  • Harley-Davidson Decides To Discontinue India Operations

    Harley-Davidson Decides To Discontinue India Operations

    Harley-Davidson has decided to discontinue its sales and manufacturing operations in India, as part of restructuring actions that the company refers to as ‘The Rewire’ strategy. On Thursday, Harley-Davidson informed its employees of additional restructuring costs amounting to $75 million in 2020, which includes discontinuing the iconic American brand’s operations in India. Total costs associated with ‘The Rewire’ strategy outlined by Jochen Zeitz, President, Chairman and CEO of Harley-Davidson amount to $169 million this year. The motorcycle brand expects to complete the restructuring actions from August to be completed within the next 12 months, which will include optimizing its global dealer network, exiting certain international markets and discontinuing its sales and manufacturing operations in India. In India, Harley-Davidson will reduce the workforce by approximately 70 employees.

    In a statement to the United States Securities and Exchange Commission, Harley-Davidson outlined the development, adding some details about the restructuring costs.

    “As a result of the actions approved from August 6, 2020 through September 23, 2020, the Company expects to incur restructuring expenses of approximately $75 million in 2020, of which approximately 80% are expected to be cash expenditures, including one-time termination benefits of approximately $3 million, non-current asset adjustments of approximately $5 million, and contract termination and other costs of approximately $67 million. Full implementation of these Rewire actions may require the Company to commit additional funds for additional contract termination and other costs. Including previously disclosed restructuring charges, the Company expects total restructuring expenses associated with Rewire restructuring actions approved through September 23, 2020 of approximately $169 million in 2020. The Company expects to complete the restructuring activities approved through September 23, 2020 within the next 12 months. Announcements associated with additional actions under The Rewire are expected to occur, some of which will likely result in additional restructuring charges,” Harley-Davidson said.

    Harley-Davidson India has responded with a press statement saying that the company is “evaluating options” to continue to serve its customers. While H-D India has said that the manufacturing facility in Bawal will be closed down, and the sales office in Gurugram will be significantly reduced in size, there is still no concrete announcement on how the brand will support its existing customer base in India. All Harley-Davidson India has said is that the dealer network will continue to serve customers through the contract term. Harley-Davidson has 33 dealerships across India, and each dealership will have a different contract term, but how existing customers will be served in terms of spares and service in the future is still not clear. In fact, with the closure of the manufacturing facility in India, the Harley-Davidson Street 750 range will likely be discontinued, as will be assembly operations. But there’s still some hope that the brand will continue to have some presence, importing models from its facility in Thailand, and with India’s Free Trade Agreement, that may work out to be cost-effective as well.

    Harley-Davidson has been under pressure in recent years, with sales of the American motorcycle brand slowing down in several markets around the world. And India seems to be one such market, where Harley-Davidson has been present since 2009, and where the first Harley dealership came up in July 2010. Harley-Davidson still led premium motorcycle sales in India over the last few years, led by the made-in-India Street 750 models. Harley-Davidson also had assembly operations in India at its plant in Haryana, assembling several models from completely knocked down (CKD) kits. In the last financial year, Harley-Davidson sold fewer than 2,500 units in India, and between April-June 2020, only about 100 Harleys were sold in India, making it one of the worst-performing international markets. And just about 10 years since the iconic brand set up shop in the world’s largest motorcycle market, it’s now time to wind up manufacturing and sales.

    Earlier this year, Jochen Zeitz replaced former CEO Matt Levatich as President, Chairman and CEO of Harley-Davidson. Levatich was in Harley-Davidson for 26 years, and with increasingly slowing sales in recent years, his exit was seen as a move to give new strategic vision to revive the brand internationally. ‘The Rewire’ plan outlined by Zeitz intends to re-look Harley-Davidson’s product strategy, as well as focus on about 50 markets, mainly in North America, Europe and parts of Asia Pacific, that represent the “majority of the company’s volume and growth potential.” And India, the world’s largest motorcycle market, seems to have been given the miss from those important markets where Harley-Davidson sees potential growth.

  • Harley-Davidson Street 750 To Be Discontinued

    Harley-Davidson Street 750 To Be Discontinued

    Harley-Davidson has announced the brand’s decision to discontinue sales and manufacturing operations in India, as part of the brand’s ‘Rewire’ strategy. Harley-Davidson India has released a press statement saying that the company will shut down its manufacturing facility in Bawal, and the sales office in Gurugram will be significantly reduced in size. The made-in-India Harley-Davidson models, the Harley-Davidson Street 750 and the Harley-Davidson Street Rod will now be discontinued. According to a source, a decision to discontinue the Street range was taken months ago, and that is why Harley-Davidson India was offering massive discounts on these models.

    Only last month, Harley-Davidson announced massive price cuts on the Street range of motorcycles. The Street 750, India’s highest-selling Harley-Davidson motorcycle, is also the most affordable, and the company announced a price cut of ₹ 65,000, lowering the price to ₹ 4.69 lakh (Ex-showroom). The Harley-Davidson Street Rod, on the other hand, was offered with price cuts of ₹ 77,000 with prices starting at ₹ 5.99 lakh (Ex-showroom). In fact, Harley-Davidson Street 750 used to Harley-Davidson India’s highest-selling model, accounting for over 80 percent of Harley-Davidson’s sales in India for several years in a row.

    According to one source familiar with the developments, the price cuts for the Street range were announced to liquidate existing stock of motorcycles. With Harley-Davidson planning to shut down manufacturing operations in India, both the Street 750 and Street Rod would have been discontinued anyway. Now, Harley-Davidson has said that the dealership network in India, totaling 33 across the country, will continue to support existing customers through the contract term. But each dealership will have a different contract term and there’s still no concrete announcement on how existing customers will be served in the future, in terms of service and spares.

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