Latest LiveWire Move Proves Harley Should Move On From Electric Brand
Harley-Davidson's LiveWire division is facing some seriously tough challenges that threaten its very existence.
Time to Move On?
It was only a few years ago when EVs were the new hot thing, and automakers were scrambling to build enough of them to meet demand. However, things have changed significantly as of late, as a variety of economic and other factors have led to a massive decline in EV demand. This applies to electric-powered motorcycles as well, leaving Harley-Davidson's LiveWire division in dire straights - and perhaps proving that it's time for MoCo to move on entirely.
Photos: Harley-Davidson
Moving Home?
As part of its recent Q1 2024 financial reporting, Harley announced that LiveWire was moving its headquarters from California to Milwaukee, joining its parent company in that particular part of the world. This announcement came as a huge surprise to most, particularly as it happened mere months after H-D announced that LiveWire would operate as its own independent brand.
Photos: Harley-Davidson
Cutting Costs
Additionally, LiveWire had embraced its Cali roots thus far, positioning itself in that EV-friendly state and even naming the S2 Del Mar and S2 Mulholland after familiar sites in California as well. Now, however, the focus is on reducing costs, and this move will reportedly "enable synergies and efficiency," according to LiveWire brass.
Photos: Harley-Davidson
Writing on the Wall?
The real question here, however, is whether or not this move will help save LiveWire, or if the proverbial writing is already on the wall. Harley is clearly facing its own financial headwinds - and has been doing so for years now - meaning that its patience with that particular brand may be growing short.
Photos: Harley-Davidson
High Prices
LiveWire's paltry sales have undoubtedly been plagued from the start by its high prices, with the One still starting out at well over $20k and the Del Mar stickering for around $15k. Meanwhile, its rivals - including the new Kawasaki Ninja and Z E-1 electric bikes - can be had for far, far less. This is precisely why H-D is working to drive down costs.
Photos: Harley-Davidson
Paltry Sales
Thus, most critics will simply say that Harley needs to ditch LiveWire and cut its losses, and it's hard to argue with that notion. After all, that brand recorded paltry sales of just 117 total units in Q1 of 2024, which is insanely low by anyone's standards. On the flip side, that was far more than the 63 it moved in Q1 of 2023, at least.
Photos: Harley-Davidson
Holding On
Things could certainly turn the corner - particularly as LiveWire launches new, compelling, and more affordable models - but the problem is, it's unclear how long Harley can hold on, financially speaking. Thus, we'll certainly be keeping a close eye on this situation, and ultimately, it wouldn't be surprising to see LiveWire get sold off at some point in the near future.
Photos: Harley-Davidson
