What I’d do with Harley-Davidson

If Harley-Davidson was going to stick with Matt Levatich’s strategy, they would have stuck with him. So I imagine we’re going to see a significant shift away from some or all of these ideas, which were the cornerstones of his strategy

Harley needs to be in the business of building riders, not just motorcycles
Shifting to electrics with the Livewire, electric bicycles, and IRONe kid’s ‘strider’ bike (ironically, that might be the most accidentally truthful brand name ever trademarked!)
Updating the product mix with a new naked muscle cruiser and an ADV bike
I’m sure there are lots of other aspects to it, but that’s enough to start a conversation.

So, what should The Motor Company do instead?

I put that question up on my Facebook page, and got over 50 thoughtful comments, some of which I’ll attach to the bottom of this post.

But first; anyone who has a simplistic answer to Harley’s existential problems is, well, a simpleton. H-D is tightly tied to the U.S. domestic motorcycle market, which is in a long-term structural decline that is irreversible in any time frame relevant to a publicly-traded company.

H-D’s domestic audience is–despite efforts to appeal to more women, minorities, and millennial/Gen Z consumers–overwhelmingly pale, male, and stale. Not very many people are buying new Harleys, but those who are, are buying their last new Harley.

I would honestly not be surprised if the Board fired Matt Levatich because he refused to prune the company back and make it an acquisition target for Geely, or some similar foreign company. I wouldn’t blame them; it’s probably the best thing the company could do for its shareholders over the next five years.

One problem is, for sure, the short-sightedness of most contemporary investors

But I’d rather see Harley-Davidson survive as an independent company. So for what it’s worth–about what you’re paying to read it–here’s my strategic outline...

Existing dealers should branch out

The vast majority of Harley-Davidson dealers carry H-D only. This means that only people who’ve self-selected as “Harley types” will ever even walk in the door. This might’ve made sense 20 years ago, when there was a waiting list for every new Harley model, but it’s counterproductive now.

Corporate should free existing dealers to carry other brands–even encourage it–and look for successful multi-brand franchises that will add Harley-Davidson into their mix. A gal who thinks she wants a Kawasaki W800 might consider a Sportster instead, if she sat on one.

Rationalize the existing line

Who, besides Harley-Davidson employees and salesmen, think these are six different models?

Although devotees gnashed their teeth over the demise of the Dyna, the existing product mix still includes a bunch of models that are indistinguishable.

“Designed in Milwaukee™”

It’s time to cut costs on the bikes sold here, even if it means assembling them somewhere else. Apple products carry a coy, “Designed in California” statement, suggesting some cool factor I suppose, but no one cares they’re made by slave labor in China. A bunch of old reactionaries will fume, “I’ll never buy another Harley,” when they’re all made in Malaysia, or Thailand, or China... but those old farts weren’t going to buy another one anyway.

Harley-Davidson can keep one small assembly plant open in the U.S. where American craftsmen bench-build blueprinted versions of a few key models to a higher spec and visibly higher quality, which will be sold at premium prices.

Peashooter™ by Harley-Davidson

I think this comment is on the right track but I’d rather see a truly modern single closer to a Husqvarna Vitpilen. So, replace the Street 500 (a model I’ve never, ever seen in the wild) with a modern 450cc single. Give it a brand story that evokes H-D’s Class A racing success. This platform would include a sporty streetbike, a small ADV bike, and a hip urban cruiser with dual shocks.

Livewire? Kill it. But double down on electric vehicles with ‘Zero™ by Harley™’

Livewire was a good idea, but the company needed to act on it immediately. And the bike Harley finally released is far too expensive. How many are they even making? Two a day? Five?..

A better strategy would be to acquire 49% of Zero, which could use that cash to ramp up production. Zero would then have access to a much bigger dealer network.

Pan-America? FFS it had better not be the ‘Panned-America’

A big ADV bike would be great, with one proviso noted below…

I just Googled “Harley-Davidson Pan-Am…” because I wasn’t sure if H-D used a hyphen between ‘Pan’ and ‘America’. Google filled in this suggestion: “Pan-America weight”. That gives you some idea of the skepticism ADV riders have towards this model.

Matt Levatich made a very high-risk/high-reward play with the Pan-America. Yes, ADV is the U.S. market’s last buoyant, big-bike class. But it’s filled with highly evolved motorcycles that are stunningly competent.

It would be better not to enter that market at all, than to enter it with a bike that is not at least as good as the Tiger 1200.

Hearken back to the mid-oughts, when Triumph entered the 600 Supersport class with the Daytona, which was a a butter knife in a class of switchblades. Hard core sport riders were, like, “Pfft.” It didn’t matter that the Daytona was actually a great … — Hearken back to the mid-oughts, when Triumph entered the 600 Supersport class with the Daytona, which was a a butter knife in a class of switchblades. Hard core sport riders were, like, “Pfft.” It didn’t matter that the Daytona was actually a great bike for most riders; 600 class buyers wanted bragging rights, and every other OEM in the class got it. They lavished more engineering on their 600s than they did on their superbikes. Well the big ADV class is like that now. If the Pan-America is just a good bike, it’ll be the Panned America amongst ADV aficionados, and Harley will give itself a real black eye.

Put the ‘sport’ back in Sportster

If I had a nickel for every time I’ve heard other-brand riders say, “The one Harley I think is kind of cool is the Sportster,” I could buy a latte at Starbucks the next time I’m in some airport on a two-hour layover.

Harley should leverage that appeal by benchmarking an entry-level Sportster against the Royal Enfield 650, and a mid-priced one against the Triumph Thruxton.

Oh, and one last thing...

If we learned anything from Harley-Davidson’s ‘Buell’ experience, it’s that the company–and especially its dealers–are resistant to change. I suspect Matt Levatich would agree! No strategy will work unless its effectively sold into the distribution network.