Harley-Davidson Rethinks Product Plan

Harley-Davidson may be looking to re-organise and rethink the brand's immediate product strategy as the ongoing coronavirus pandemic hits the brand's bike sales and profits. Already reeling under pressure for the past few years, a dwindling customer base and low sales worldwide, more specifically, in the once-strong home market of the United States, has caused the company to rethink its strategy. Dubbed 'The Rewire', Harley's new plans will see it once again train its focus on highest-profit products, rather than make an offensive with newer, and more accessible motorcycle as outlined in the 'More Roads To Harley-Davidson' plan unveiled by former CEO Matt Levatich.

Also Read: Harley-Davidson Profits Slide Amidst Coronavirus Lockdown

The Pan America is expected to be Harley-Davidson's first foray into the adventure motorcycle space

Two years ago, Harley-Davidson announced an expansion plan, focusing on developing new buyers and markets with an aggressive new product and marketing strategy. Now, as the American motorcycle brand faces the full impact of the COVID-19 crisis on top of already receding sales numbers, the new leadership seems to have taken a completely different approach, refocusing energies and activities with priority on 'markets that matter' and 'reset product launches and product line-up for simplicity and maximum impact.'

Also Read: Harley-Davidson Lays Off Staff, Cuts Salaries

The Harley-Davidson LiveWire is expected to spearhead the brand's electric motorcycle vertical

Levatich has since stepped down, earlier this year, and Harley's new interim CEO, Jochen Zeitz, a board member and former CEO of Puma, seems to have a different approach to revive the American motorcycle brand. The 'More Roads' plan included the new Revolution Max v-twin engine, along with bikes like the Bronx streetfighter and the Pan America adventure tourer, along with a push into a wider range of electric bikes to follow the Harley-Davidson LiveWire. Additionally, Harley-Davidson also had plans to introduce a smaller model aimed at India and other emerging markets, with a 338 cc parallel-twin engine, and derived from the Benelli 302S.

The Harley-Davidson Bronx was expected to be launched by the end of 2020

'The Rewire' plan at the moment is an outline of what Harley-Davidson will focus on going ahead. And as per Zeitz, it will be focused on achievable plans and realistic goals, rather than becoming 'accustomed to over-committing and under-delivering.' Harley-Davidson is expected to elaborate on 'The Rewire' plan in three months' time, but for now, it has outlined it with a focus on core strengths, prioritizing markets that matter, reset product launches and product line-up for simplicity, build the spare parts and accessories, as well as general merchandise business to full potential, and to adjust and align the organizational structure, cost structure and operating model to reduce complexity and drive efficiency.

While it's still not clear what will be the immediate strategic vision and path Harley-Davidson will follow, what is clear is that for the foreseeable future, or at least till sales and revenue stabilizes, Harley will continue to focus on the cruiser market. Other future models the Bar & Shield may have planned will probably be shelved, but at the same time, the company said it will 'remain committed to Adventure Touring, Streetfighter and advanced electric motorcycles.' So, as far as immediate plans are concerned, the Harley-Davidson Pan America, as well as the Harley-Davidson Bronx, will likely see production. But it's difficult to say the same of other models, some rumoured to be in the pipeline, like the Bareknuckle, expected to be a factory custom based on a new engine platform. More details are expected in the coming months.