Harley-Davidson is actively trying to reshape its future, but will its core riders be upset by the shift? Leave it to a Wall Street analyst to raise a great question about the possible feelings today of the notorious, leather-wearing baby-boomer Harley-Davidson (HOG) - Get Report rider. "While Harley needs bold action to reinvigorate sales, the strategy unveiled today is not without risk, particularly as it relates to how the new models will be perceived by Harley's core customers, although we view the first introduction (LiveWire) as the least likely to cause customer mutiny," says William Blair analyst Sharon Zackfia following Harley's big reveal of its product pipeline. To be sure, by 2022 this won't be your grandfather's Harley-Davidson. And that's by design as the iconic U.S. bike-maker tries to reinvigorate demand for motorcycle riding. Harley-Davidson took the wraps off its future product plans on Monday, unveiling a host of new bikes set for release by 2022. Several include electric offerings that range from an actual motorcycle to something that would best be characterized as a bicycle with an electric motor. Harley said the effort will require operating investment through 2022 of $450 to $550 million and capital investment during that span of $225 to $275 million. The plan is expected to generate more than $1 billion of incremental annual sales in 2022 vs. 2017. "The bold actions we are announcing today 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 Harley-Davidson CEO Matt Levatich. The wildcard is how Harley's core customer, the motorcycle enthusiast who embodies the Harley life (and spends accordingly), reacts to the new Harley. Will Harley's efforts to broaden its image to attract new riders hurt its credibility among those that arguably keep it in business? Only time will tell. Says Zackfia, "We maintain our wait-and-see philosophy and our Market Perform rating pending a turnaround in sales trends as new product innovation and increased marketing over the past few years have yet to result in any sustained improvement."<doc-sep>Future Harley Streetfighter prototype Harley-Davidson Motor Co. Harley-Davidson has fired its rockets in a bid to achieve escape velocity, announcing a slew of future models meant to let the 115 year-old company escape the gravity of its past and blast into a financially viable future. The Rich Urban Bikers who drove Harley profits to new heights in recent decades are slowing their purchases of the company's signature heavyweight cruiser models, with their strong links to biker iconography of the '50s through the '70s. ADVERTISEMENT Thanks for watching! Visit Website Streetfighter prototype Harley-Davidson Motor Co. ADVERTISEMENT Thanks for watching! Visit Website ADVERTISEMENT Thanks for watching! Visit Website In response, Harley is developing new models for markets where it should have already been anyway. The streetfighter muscle bike is a segment that Harley created with the original Sportster, before that model became trapped by nostalgia as a perpetual vintage bike. Now, Harley plans a true Streetfighter that can contend with bikes like the Ducati Monster and Triumph Speed Triple, along with the Yamaha V-Max. 2020 Harley-Davidson Pan America 1250 prototype Harley-Davidson Motor Co. And European customers especially like the dirt-pretender adventure bike class of motorcycles, so Harley will take on the BMW R1200 GS, Triumph Tiger and Ducati Multistrada with an adventure model of its own that it calls the Pan America 1250. 2021 Custom 2150 prototype Harley-Davidson Motor Co. Harley is also going not-very-far out on a limb with a custom cruiser version of the all-new chassis that will underpin all of the new models, using a new engine that will come in a range of displacements between 500cc and 1250cc. The Pan America 1250 and Streetfighter 975 will launch in 2020, followed by the Custom 1250 in 2021. They'll be followed by other variants and displacements through 2022. 2021 Custom 2150 prototype Harley-Davidson Motor Co. Harley's long-awaited electric model, the LiveWire, is also on its way, arriving in dealers next year. The LiveWire prototype was well received by those riders who got a chance to test the bike during Harley's program for public feedback, so the production model promises to be an interesting step into the electrified future for tradition-bound Harley. 2019 LiveWire prototype Harley-Davidson Motor Co. The market for high-exhaust-pipe, knobby-tire scrambler models is red hot, and Ducati, Triumph and BMW are all doing well with their interpretations of this theme, so the absence of a scrambler from this announcement is puzzling. Maybe it will emerge as one of the variants that is scheduled by 2022, but that market is hot now, so it would seem to make more sense than adding another custom cruiser to a showroom that is already full of them. Planned 2022 electric models. Harley does have plans in 2022 for entry-level electric models that will provide a variety of options to urban riders looking for something that is both affordable and a step up from electric bikes and scooters. “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,”said Matt Levatich, president and chief executive officer, Harley-Davidson, Inc. Harley has tried to escape its "heritage" trap before, with the purchase of the Buell sportbike company and with the introduction of the four-cylinder V-Rod line. Harley closed Buell and the V-Rod models have been slow sellers.<doc-sep>Harley to roll out electric bike LiveWire in 2019 Company has no plans to pull back on manufacturing its big bikes Share Shares Copy Link Copy Hide Transcript Show Transcript WEBVTT HER RECOVERY AND EVENTUALLY BEGIN REHABILITATION. KATHY: THAT, OF COURSE, IS THE ICONIC SOUND OF A HARLEY-DAVIDSON. BUT, STARTING NEXT YEAR, SO IS THIS. HARLEY-DAVIDSON WILL START PRODUCTION OF ELECTRIC MOTORCYCLES AS PART OF MAJOR OVERHAUL TO BOOST SLUMPING SALES. 12 NEWS’ KENT WAINSCOTT IS LIVE AT THE COMPANY’S MILWAUKEE HEADQUARTERS KENT: SMALLER AND QUIETER. THAT IS PART OF HARLEY-DAVIDSON’S PLAN TO ATTRACT NEW RIDERS. SMALLER BIKES, SMALLER STORES, AND QUIETER ENGINES. THE COMPANY THAT HAS BEEN HEADQUARTERED IN MILWAUKEE SINCE 1903 HOPING TO REVERSE A SALES SLUMP BY ROLLING OUT SOME BIG CHANGES. THERE’S A NEW ROUTE ON THE ROAD AHEAD FOR HARLEY-DAVIDSON INCLUDING A LINE OF SMALLER BIKES, ONLINE SALES, SMALL URBAN STOREFRONTS, AND EVEN SOME ELECTRIC ENGINES. 12 NEWS GOT A FIRST LOOK AT HARLEY’S LIVEWIRE ELECTRIC BIKE IN 2014, WHEN THE PROTOTYPE WAS ROLLED OUT. THE COMPANY SAYS IT WILL START PRODUCTION NEXT YEAR. >> HARLEY IS DOING WHAT IT HAS ALWAYS DONE, RESPONDING TO CUSTOMER WANTS AND NEEDS. KENT: THE MILWAUKEE MOTORCYCLE MAKER IS BATTLING SLUMPING SALES, AND FACING BACKLASH OVER ITS PLANS TO MOVE SOME PRODUCTION OVERSEAS TO COMBAT HIGH TARIFFS. >> WE HAVE TO DO WHAT WE HAVE TO DO BASED ON THE FACTS AND CIRCUMSTANCES BEFORE US, AND WE ARE DOING THAT. KENT: THE COMPANY’S CEO DECLINED TO TALK TO 12 NEWS, BUT APPEARED ON A NATIONAL TALK SHOW. MATT LEVATICH SAYS THE LATEST MOVES ARE AN EFFORT TO REACH TO A NEW GENERATION OF RIDERS, WITHOUT HURTING THE HARLEY BRAND. >> I DON’T WANT ANYONE TO THINK THAT WE’RE RUNNING AWAY FROM OUR CORE CUSTOMER AND THE STRENGTH THAT THE COMPANY HAS TODAY. BUT -- HAS TODAY. KENT: BUT IT’S THE ELECTRIC ENGINE THAT MAY BE BOTH THE MOST TALKED-ABOUT, AND QUIETEST, PART OF THAT NEW PLAN. BUT CONVINCING LONG-TIME RIDERS MAY BE TOUGH. >> YOU LIKE THE SOUND OF A MOTORCYCLE. AND THERE’S NO SOUND, IT JUST WHIRLS. KENT: STILL, EVEN THOSE LOCKED INTO HARLEY TRADITION TRUST THAT THE COMPANY IS FOLLOWING THE RIGHT PATH. >> I THINK THEY’RE GOING TO DO WHATEVER THEY NEED TO DO TO DO BUSINESS. KENT: THE COMPANY STRESSED THAT THE NEW PLAN IS IN ADDITION TO ITS CURRENT OPERATION. THE CEO SAYS THERE ARE NO PLANS TO SCALE BACK ITS CURRENT -- SCALE BACK ANY PRODUCTION, AND THAT ALL MOTORCYCLES SOLD HERE IN THE U.S. WILL CONTINUE TO BE MADE IN THE U.S. REPORTING LIVE OUTSIDE HARLEY GET LOCAL BREAKING NEWS ALERTS The latest breaking updates, delivered straight to your email inbox. Submit Privacy Notice<doc-sep>
Despite America’s growing interest in motorcycles, Harley-Davidson is in a tough spot. The brand has not resonated with younger riders, and Harley’s first-quarter sales this year were down 12 percent over the same period in 2017. The American bike-builder have also been hit hard by recent E.U. tariffs placed on U.S.-made motorcycles—a retaliatory response to Trump’s steel and aluminum tariffs. Harley badly needs a home run, something to capture the hearts of new riders, different from their usual variations on the classic iron cruisers. Rather than digging deeper into the past, they’ve done an about-face and are embracing the future. Harley has just announced four new bikes to be put into production between now and 2021, and three of them look like anything but a typical Harley. Finally, Harley’s engineers have been given free reign. LiveWire: All-Electric Introduced as a prototype in 2014, the LiveWire is finally coming to full-scale production. Harley-Davidson The first new motorcycle is the all-electric LiveWire, a clean, production version of the “Project LiveWire” prototype, which shocked the world in its 2014 debut. It is Harley’s dashing retro-futurist take on what an electric motorcycle should be, with a familiar speed screen, lots of torque, and a frame that exposes and celebrates the battery. A dummy “gas” tank keeps the bike from looking too alien. Harley’s Chief Operating Officer Michelle Kumbier has hinted at future models : “We’re going big in EV with a family of products that will range in size, power, as well as price. When you look at EV you know this is a whole new customer base that we are bringing in.” There is even talk of an electric bicycle from Harley. The first LiveWire, pictured above, is coming in 2019. Pan America: Off-Road Adventure The Pan America is Harley’s first ever adventure bike. Harley-Davidson In 2020, Harley will launch the Pan America, the company's first adventure tourer. It is a chunky 1250cc bruiser which will compete with similarly-sized adventure bikes made by Ducati, KTM, and BMW in this hotly contested category. The fairing bears a passing resemblance to that of the Road Glide, and the big V-Twin is easily visible from the side of the bike—giving this adventure bike the heart of a classic Harley. Custom: Classic Look for a New Generation The Custom is something of a redesigned Sportster aimed at new riders. Harley-Davidson The Custom model is an aggressive low-slung 1250cc that looks like an artist’s impression of a cafe’d XR1200. It’s a compelling design, and certainly the most typically “Harley” of any of the four new models. Streetfighter: A Sportier Harley The Streetfighter is a new, sportier look for Harley. Harley-Davidson Finally, in 2021, this 975cc Streetfighter will arrive. The bike’s angular styling makes it look like a subdued Ducati Streetfighter. It is handsome, but doesn’t look totally banzai. That is perhaps because the Streetfighter, Custom, and Pan America will all share the same platform; a tubular steel frame and a 60’, DOHC V-TWIN. Later on in the product cycle, two additional displacements will be available. Even without Harley’s other woes, there are so many good used bikes on the market that in order to sell motorcycles from a showroom, it helps if there is something tangibly “new” about them—and these new concepts are unlike anything else Harley has ever offered. If the Milwaukee motorcycle company can get the execution right, and these new models aren’t slow and overweight, we have a new lineup of forward-looking American bikes to be proud of. This time, there’s no chrome needed.