Despite Setbacks, Harley Davidson Accelerates Plans for Future

By Tim McDonald - June 21, 2022

Harley-Davidson to woo new riders with ‘More Roads to Harley Davidson’ campaign.

Yes, these are strange times we’re living in, with worldwide inflation and soaring gas prices. So when Harley Davidson announced in May it was shutting down most production temporarily due to supply chain problems, more than a few long-time Harley riders feared the worst, with good reason.

At the time of the shutdown, the company’s stock was down more than 20 percent over the previous three months and operating income had been declining steadily. But the motor company isn’t exactly sitting still; in fact, HD is accelerating its plans for the coming years.

So don’t give up all hope. The roar of those hogs we all know and love is likely to be around for a long time, even if it means sharing the road with the whisper and whine of fancy new contraptions.

‘More Roads to Harley Davidson’

There are some hopeful signs for growth and prosperity for the motor company under CEO Jochen Zeitz, though those same dark obstacles loom, as well as new ones.

H-D says it plans to have four million riders in the US by 2027, up from three million in 2017.

They’re calling their overall strategy “More Roads to Harley Davidson,” which is a fancy, corporate-like motto that says they plan to produce more and more kinds of motorcycles different from the loud, gas-powered bikes that made the company famous.

Where Are the Used Bikes?

That means holding onto the traditional Harley lover as well as luring in new riders that would have never even considered sitting in the saddle of a loud Fat Boy.

The plan is going to require a sizable investment. How will the company pay for it? Well, they expect to make more than $1 billion in revenue this year alone from the new initiative and $1.5 billion next year.

You may have already noticed part of the plan. I certainly have. The multiple dealerships I’ve visited in the last half-year or so have a noticeable lack of used inventory, compared to days past. Dealerships have been urged to clear excess stock.

Big Electric Push

The big push, as you probably already know, is the electric bike segment. The Livewire was the first HD electric model to come out, and it didn’t exactly sell like hotcakes, largely due to a hefty price tag.

But when the limited edition of the much cheaper Del Mar S2 came out, all 100 bikes sold out in 18 minutes. It remains to be seen if the Del Mar holds that allure when the larger release comes.

HD thinks it will; it plans to release a similar electric model based on the same platform, known as Arrow. It is believed that offer will be even lighter than the middleweight Del Mar.

Get With It

Overall, as you’ve almost certainly noticed if you’ve been following the company’s new releases for the last few years, the idea is twofold: Bring younger motorcycle riders into the fold and offer new, more technologically advanced bikes.

In other words, get with the times in order to survive.

That doesn’t mean just the electric segment. Remember when Harleys were divided into Touring, Softails, Dynas and sportsters? Those were the old days.

Today we have Grand American Touring and Adventure Touring to go with the Cruiser and sportster lineups.

Faster and Sportier

The bikes are getting sportier too. Witness the new liquid cooled Sportster S, whose Revolution Max 1250T engine puts out 121 horsepower. Or the new, water-cooled Nightster.

That’s right, after nearly a century of letting the wind cool their engines, HD has finally switched to liquid cooling.

Also, check out the Pan American, HD’s well-received entry into the increasingly popular adventure bike field.

All this newness and forward-thinking has the business types relatively impressed, but cautious. Analysts, for the most part, are saying HD stock is solid and advising investors to hang onto it.

For now.

Photos: Harley Davidson