Harley-Davidson to Build Riders by Expanding Access in Asia with Small Displacement Motorcycle
Collaboration established to deliver a new Harley-Davidson motorcycle
with Qianjiang Motorcycle Company
MILWAUKEE (June 19, 2019) - Harley-Davidson, Inc. (“Harley-Davidson”) (NYSE:HOG) today announced another step in its strategy to build more riders globally and expand access into Asia through a collaboration with Qianjiang Motorcycle Company Limited (“Qianjiang”) to launch a smaller, more accessible Harley-Davidson motorcycle for sale in Harley-Davidson dealerships in China by the end of 2020.
This collaboration joins Harley-Davidson’s global motorcycle leadership with the capabilities of Qianjiang to co-develop a premium 338cc displacement Harley-Davidson motorcycle for sale first in the China market with additional Asian markets to follow. Harley-Davidson selected Qianjiang based on its experience developing premium small displacement motorcycles, established supply base, proven capabilities in emerging markets, and ability to meet consumer requirements.
“Harley-Davidson has always been about inspiring riders around the world. Our More Roads plan is all about bringing our brand of freedom to more people, in more places, in more ways,” said Matt Levatich, President and Chief Executive Officer, Harley-Davidson. “We’re excited about this opportunity to build more Harley riders in China, one of the world’s largest motorcycle markets, by creating new pathways to our brand.”
This collaboration marks significant progress toward another major milestone in the More Roads to Harley-Davidson accelerated plan for growth. It is intended to expand access to the Harley-Davidson brand to more riders to drive incremental sales – both of the new small displacement motorcycle and also of traditional Harley-Davidson products currently offered in Asia. Continuing to capitalize on growth opportunities in Asia is key to the company achieving its 2027 objective to grow its international business to 50 percent of annual volume.
Like all Harley-Davidson products, this new model will embody a distinctive look, sound and feel that will spark powerful connections with riders. The new Harley-Davidson motorcycle and engine will be produced in a Qianjiang facility in China and adhere to the rigorous quality standards and testing processes followed for all Harley-Davidson products.
“We are pleased to collaborate with Harley-Davidson,” said Mr. Dongshao GUO, General Manager, Qianjiang. “We have proven manufacturing capability and experience in China, and we are committed to improving the experience of motorcycling for riders in Asia.”
With its expanding middle class and increased consumer spending on discretionary, premium products, China is a key growth market for Harley-Davidson. Since it announced its More Roads plan in July 2018, Harley-Davidson has continued to advance its efforts to grow riders in China by expanding its dealer network in China and investing in marketing, eCommerce and product availability. Harley-Davidson retail sales in China grew 27 percent in 2018 compared to 2017.
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, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Since 1903, Harley-Davidson has fulfilled dreams of personal freedom by leading the innovation of two-wheeled mobility. The company offers an expanding range of leading-edge, distinctive motorcycles and brings the brand to life through Harley-Davidson riding experiences and exceptional motorcycle parts, accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get Harley-Davidson riders on the road. For more information, visit Harley-Davidson's Web site at www.harley-davidson.com.
About Qianjiang Motorcycle
Zhejiang Qianjiang Motorcycle Co., Ltd, founded in 1985, is a subsidiary of Geely Technology Group specializing in the research and development, manufacturing and sales of motorcycles and engines as well as key components. The company was listed on the Shenzhen Stock Exchange in 1999 (stock code: 000913). In 2005, the company acquired Benelli, the Italian motorcycle manufacturing company with a 100-year history. Qianjiang’s products include all series of motorcycles from 50cc to 1130cc, and are exported to more than 130 countries and regions globally. The company is one of the few enterprises in the Chinese motorcycle industry that can manufacture high-end, large-displacement motorcycles. It has led the market in China for seven consecutive years and continues to lead the trend of large-displacement motorcycles in China. For more information, please visit Qianjiang Motorcycle's website at www.qjmotor.com.
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "intend," "plan," "goal," "believe," "future," "will" and similar references to future periods. Examples of forward-looking statements in this press release include, among others, statements we make regarding:
- The development, availability, and success of future products.
- Our plan to launch a smaller motorcycle so that it is available in Harley-Davidson, Inc.’s (the “Company’s”) dealerships in China by the end of 2020.
- Increases in incremental motorcycle sales in Asia.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
The company's ability to meet the targets and expectations noted above depends upon, among other factors, the company's ability to (i) execute its business plans and strategies, including the elements of the More Roads to Harley-Davidson plan for growth that the company disclosed on July 30, 2018, and strengthen its existing business while enabling growth, (ii) manage and predict the impact that new or adjusted tariffs may have on our ability to sell products in Asia, and the cost of raw materials and components, (iii) execute its strategy of growing ridership in Asia, (iv) accurately analyse, predict and react to changing market conditions in Asia and successfully adjust to shifting Asian consumer needs and interests, (v) continue to develop and maintain a productive relationship with Qianjiang, (vi) develop and introduce motorcycles on a timely basis that the Asian market accepts, that enable the company to generate desired sales levels in Asia and that provide the desired financial returns, (vii) perform in a manner that enables the company to benefit from market opportunities while competing against existing and new competitors in Asia, (viii) manage supply chain issues in Asian markets, including quality issues and any unexpected interruptions or price increases caused by raw material shortages or natural disasters, (ix) continue to develop the capabilities of its Asian dealers, effectively implement changes relating to its dealers and distribution methods and manage the risks that its independent dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand, and (x) other factors described in the risk factor section of the Company’s SEC form 10-K filed with the U.S. Securities And Exchange Commission on February 28, 2019.
The company's ability to sell its motorcycles in Asia depends on the ability of the company's independent dealers to sell its motorcycles and related products and services to retail customers. The company depends on the capability and financial capacity of its independent dealers to develop and implement effective retail sales plans to create demand for the motorcycles. In addition, the company's independent dealers may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles as a result of weather, economic conditions or other factors.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Media Contact: Patricia Sweeney (414) 343-8199
Financial Contact: Shannon Burns (414) 343-8002