Harley-Davidson (H-D) is taking steps to return to profitability, but to get there, they need to make some adjustments.
This long and difficult road started with the Rewire plan launched last year. It involved cutting back on some of its plans, shelving some planned future models, leaving markets it is not competitive in, and returning the focus to its core specialties.
We’ve already seen some of the results of the Rewire plan, from layoffs, to canceled models, and even to the discontinuation of new model lines like the Street series.
Now, Harley-Davidson has layed out its new plan, called Hardwire. Serving as the plan for the years 2021 – 2025, Hardwire is a long-term strategy that hopes to return the brand to profitability while also pleasing its shareholders who were especially critical of the previous More Roads to Harley-Davidson plan.
Put simply, H-D will be cutting the fat and simply focusing on what it’s good at, building tourers, large cruisers, and trikes.
In fact the Milwaukee motorcycle maker also plans to launch a certified pre-owned program to make acquiring these models much easier. This means buyers can look into buying used but well-maintained Harleys rather than acquiring a new one. There will also be various financial services expending installment and deferred payment possibilities.
As for the future, the brand will strengthen its commitment to electric models with the creation of a dedicated division. Perhaps they’re thinking of spinning off the LiveWire as its own brand.
The only new segment Harley is willing to take a chance on is Adventure Touring, as evidenced by the planned launch of the Pan America later this week.
Finally, the brand will also improve its parts, accessories, and apparel offerings capitalizing on its lifestyle brand appeal.
This strategy certainly isn’t as earth-shattering as New Roads to Harley-Davidson was, which announced plans to expand into multiple new segments and give birth to the LiveWire and Pan America, however, it seems to be a more modest and achievable strategy for the mean time.