Harley-Davidson has just announced its new five-year plan, The Hardwire. Although some traditional motorcycle media had speculated that Harley-Davidson would abandon electric motorcycles, they were not wrong anymore.
For anyone who has actually ridden a LiveWire electric motorcycle and talked to the Harley-Davidson executive responsible for the realization of the project, it is clear that HD is pushing electric cars at full speed.
However, this does not prevent analysts from worrying about the worst off the field, because HD has been focusing on implementing an internal cost reduction plan called The Rewire in the past few months. According to HD CEO Jochen Zeitz, the Rewire plan will save the company $115 million annually.
With the completion of the Rewire plan, HD has announced the company’s latest five-year strategic plan The Hardwire.
The plan focuses on several key aspects aimed at increasing revenue and investing in the company’s future, including an annual investment of US$190 million to US$250 million in gasoline-powered and electric motorcycles.
HD intends to invest more in its core heavy-duty motorcycles and will also set up a new department in the company dedicated to the evolving electric motorcycles.
In 2018 and 2019, Harley-Davidson developed plans for at least five types of electric two-wheelers, from full-size electric road bikes and flat-track electric motorcycles to electric mopeds and electric trailers. The goal at the time was to launch five different electric vehicles by 2022, even though the COVID-19 pandemic severely disrupted HD plans.
The company also recently split the high-definition electric bicycle division as a new start-up company, Serial 1, working with its major shareholder HD.
Establishing an independent department will give full autonomy to electric vehicle development, enabling business departments to act in an agile and fast manner like technology startups, while still leveraging the support, expertise and supervision of a wider organization to achieve Innovative cross pollination is engaged in the electrical development of combustion products.
Hardwire’s five-year strategic plan also includes providing equity incentives for more than 4,500 HD employees (including hourly factory workers). Detailed information about the equity grant has not been provided.
Although you would believe many keyboard warriors, Harley-Davidson did not bury his head in the sand. Even if it is not very beautiful, the company can still see text on the wall.
HD’s financial woes continue to plague the company, including the recent announcement of a 32% year-on-year decline in revenue for the fourth quarter of 2020.
Almost a year ago, HD appointed Jochen Zeitz as acting president and chief executive officer, and formally appointed the position a few months later.
The German-born brand master is the first non-US CEO in the company’s 100-year history. His past successes include saving the troubled Puma sportswear brand in the 1990s. Jochen has always been a champion of environmentally and socially sustainable business practices, and has always been a supporter of Harley-Davidson electric vehicle development.
By focusing on the core strength of HD heavyweight motorcycles and investing in the development of electric motorcycles, the company is likely to lay a solid foundation in the near and far future.
I am an EV driver, so the news that HD focused on its core heavyweight bike did not help me in any way. But I am also a realist, and I know that the company currently sells more gasoline bicycles than electric bicycles. So if HDTVs need to double their investment in loud, shiny big boy toys, and at the same time invest in electric cars, it doesn’t matter to me. I accept it because I see it as the best way to ensure that HD videos can survive to complete their start with LiveWire.
Believe it or not, Harley-Davidson is still one of the world’s most advanced traditional motorcycle manufacturers in the field of electric vehicles. Most electric motorcycles on the market today come from electric car-specific start-ups, such as Zero (although I’m not sure if Zero can be called a start-up again?), which makes HD one of the few traditional manufacturers entering the game One.
HD claims that its LiveWire is the best-selling electric motorcycle in the United States, and the numbers seem to support it.
The profitability of electric motorcycles is still a tricky dance, which explains why so many traditional manufacturers are stalling. However, if HD can make the ship go smoothly and continue to take the lead in the EV field, then the company will actually become a leader in the electric motorcycle industry.
Micah Toll is a personal electric car enthusiast, battery nerd, and the author of Amazon’s top best-selling book DIY Lithium Battery, DIY Solar, and Ultimate DIY Electric Bike Guide.