Investor Relations

Harley-Davidson Accelerates Strategy to Build Next Generation of Riders Globally

Harley-Davidson Accelerates Strategy to Build Next Generation of Riders Globally

“More Roads to Harley-Davidson” includes New Products in Additional Product Segments, Broader Access and a Commitment to Strengthen Dealers and Amplify Brand.

 

To inspire even more people around the world to experience the exhilaration of riding a motorcycle, in July 2018, Harley-Davidson shared details of its “More Roads to Harley-Davidson” accelerated plan for growth 2018 - 2022.

In a fast-changing world with new customer demands, these accelerated actions support Harley-Davidson’s 2017 - 2027 objectives with increased focus and strategic investment to reinvigorate the U.S. business while accelerating the pace of international growth.

The result of a comprehensive, top-to-bottom assessment incorporating a “customer first” perspective, the “More Roads to Harley-Davidson” plan includes:

New Products -

  • Keeping riders inspired by extending our leadership in the market segments we’ve shaped and defined while unlocking new market opportunities

Broader Access -

  • Creating new pathways to Harley-Davidson, expanding access and appeal to more people around the world

Stronger Dealers -

  • Working side-by-side with our global dealers to build stronger capabilities that lead to improved channel performance, greater profitability and a H-D experience that exceeds riders’ expectations

Amplify Brand -

  • Enhancing the Harley-Davidson experience to inspire interest in riding, foster moto-culture and build an even bigger, more passionate community of Harley-Davidson riders

New Products

Leveraging its industry-leading design and strong manufacturing capabilities, Harley-Davidson plans to offer its most comprehensive lineup of motorcycles, competing in many of the largest and fastest growing segments with a full portfolio of motorcycles across a broad spectrum of price points, power sources, displacements, riding styles and global markets. Highlights include:

  • Advancing our market leadership in Touring and Cruiser segments.
  • Launching multiple Harley-Davidson Middleweight Adventure Touring, Streetfighter and High-Performance Custom models through 2022.

Harley-Davidson™ Pan America™ 1250 cc - Planned to launch 2020

Harley-Davidson™ Pan America™ 1250
(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 Streetfighter Model - Planned to launch in 2020

Future Streetfighter Model
(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 High-Performance Custom Model - Planned to launch in 2021

Future Custom Model
(Prototype model shown. Production model features may vary. Not yet available for sale. All future models shown may not be available in all markets.)

 

  • Developing more accessible, small-displacement (250cc to 500cc) motorcycles for Asia markets through a planned alliance with a manufacturer in Asia. These new products are intended to fuel Harley-Davidson’s customer access and growth in some of the largest, fastest growing markets in the world.
  • Leading the electrification of motorcycles by launching Harley-Davidson’s first electric motorcycle LiveWire™, in 2019 -- the first in a broad, no-clutch “twist and go” portfolio of electric two-wheelers designed to establish the company as the leader in the electrification of the sport. LiveWire will be followed by additional models through 2022 to broaden the portfolio with lighter, smaller and even more accessible product options to inspire new riders with new ways to ride.

Harley-Davidson LiveWire™ - Launching in 2019

Harley-Davidson LiveWire™

 

Future Electric Harley-Davidson Model

Future Electric Harley-Davidson Motorcycle
(Concept art shown. Production model features may vary. Not yet available for sale. All future models shown may not be available in all markets.)

 

Future Electric Harley-Davidson Model

 Future Electric Harley-Davidson model
(Concept art shown. Production model features may vary. Not yet available for sale. All future models shown may not be available in all markets.)

 

Broader Access

Harley-Davidson will advance its market delivery approach and meet today’s customer needs by:

  • Creating high-engagement customer experiences across all retail channels – including improving and expanding the company’s global digital capabilities by evolving the Harley-Davidson.com experience to integrate with and enhance the dealership retail experience for existing and new customers.  
  • Establishing strategic alliances with global leading e-commerce providers to extend access to Harley-Davidson to a pool of millions of potential new customers.
  • Flexible distribution points -- including smaller, urban storefronts globally to expose the brand to urban populations and drive sales of the expanded Harley-Davidson product portfolio and expand international apparel distribution.

Stronger Dealers

Harley-Davidson’s world-class dealer network is an integral part of the company’s accelerated strategy and critical to overall success. The company will implement a performance framework to significantly enhance the strength of the dealer network and the customer experience, enabling the best-performing and most entrepreneurial dealers to drive innovation and success for themselves and Harley-Davidson -- while providing the premium customer experience the brand is known for across an increasingly diverse product and customer base.

Amplify Brand

Underpinning our strategy is a meaningful opportunity to amplify and leverage the power of the Harley-Davidson brand. We are enhancing the Harley-Davidson experience to inspire interest in riding, foster moto-culture and build an even bigger, more passionate community of Harley-Davidson riders.

Watch a video highlighting key elements of Harley-Davidson’s More Roads to Harley-Davidson plan here:

 

 

Funding & Financials
In addition to building riders, the company expects More Roads to Harley-Davidson to create more value, stabilize and strengthen the existing business, improve Harley-Davidson Motor Company Return on Invested Capital (ROIC), increase revenue and earnings, and allow the company to return more cash to shareholders.

The accelerated strategy 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 previously planned investment and resources including operating investment through 2022 of $450 to $550 million and capital investment through 2022 of $225 to $275 million. In total, the company plans More Roads to Harley-Davidson to generate more than $1 billion of incremental annual revenue in 2022 as compared to 2017.

The company believes its accelerated strategy is in line with and reinforces its objectives to drive revenue growth and expand operating margins. The company expects to fund strategic opportunities while maintaining its current investment and return profile and capital allocation strategy.

Harley-Davidson’s funding principles will focus on stabilizing and strengthening the existing business, enhancing the premium brand, and investments in profitable, growth-oriented projects. We expect these principles, along with a disciplined capital allocation focus, will allow Harley-Davidson to execute with improved cost competitiveness and overhead efficiencies.

Additional Information
Additional information can be accessed at H-D.com/acceleratedstrategy.

Forward-Looking Statements
The company intends that certain matters discussed on this page and in the presentation linked to above are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the company "believes," "anticipates," "expects," "plans," “strategy,” “future,” “may,” “goals,” “will,” "estimates," or words of similar meaning. Similarly, statements that describe future plans, strategies, objectives, outlooks, targets, guidance, commitments, milestones or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements on this page and the presentation linked to above are only made as of September 24, 2019, and the company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. This page and the presentation linked to above do not update any guidance or financial results provided in our most recent earnings release, earnings call, or Form 10-Q.

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 updated More Roads to Harley-Davidson plan for growth that the company disclosed on September 24, 2019, and strengthen its existing business while enabling growth, (ii) execute its strategy of growing ridership, globally, and (iii) accurately analyze, predict and react to changing market conditions and successfully adjust to shifting global consumer needs and interests.
Before making an investment decision based on this page, potential investors should review the presentation linked to above, including its forward-looking statement disclaimer, and the company’s most recent earnings release.