Harley-Davidson rolls out smaller model for Asia in ‘aggressive’ growth plan
Harley scrambles to steer through a year-long slump in US demand and rising global tariffs
Bengaluru — Harley-Davidson said on Monday it would cut costs, launch new models — including smaller, lightweight motorcycles — and revamp its dealer network in a plan to revive flagging sales in the face of rising global tariffs.
Harley is scrambling to steer through a year-long slump in US demand as it grapples with an ageing customer base and it is aiming to boost sales of its motorcycles overseas. The company said it expects to spend $675m-$825m on these initiatives and expects the new plan to generate more than $1bn of incremental annual revenue in 2022 compared with 2017.
"[It] 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 ... investment and resources," it said.
Harley said it plans to develop a more accessible motorcycle with a small-displacement engine of between 250cc and 500cc for Asia through an alliance with a manufacturer in the region.
The company will continue to develop improved touring and cruiser motorcycles and launch new modular 500cc to 1250cc middleweight platform of motorcycles, starting with a 1250cc custom model and a 975cc Streetfighter model in 2020, it said.
Harley has also been spending on product development and marketing, including promoting its learn-to-ride academies at showrooms and developing electric motorcycle technology.
The company plans to launch its electric motorcycle in 2019.