Harley future: Success again with “Hardwire”

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Harley future: Success again with
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Harley future: Success again with

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Harley future: Success again with
Jascek Bilski, Rossen Gargolov, Harley-Davidson

1/10
1st place: Harley-Davidson XL 1200 X with a total of 9,851 new registrations.

Harley future: Success again with
Jascek Bilski, Rossen Gargolov, Harley-Davidson

2/10
2nd place: Harley-Davidson Street Bob with a total of 8,118 new registrations.

Harley future: Success again with
Jascek Bilski, Rossen Gargolov, Harley-Davidson

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3rd place: Harley-Davidson Fat Bob / 114 with a total of 6,422 new registrations.

Harley future: Success again with
Jascek Bilski, Rossen Gargolov, Harley-Davidson

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4th place: Harley-Davidson Breakout / 114 with a total of 5,920 new registrations.

Harley future: Success again with
Jascek Bilski, Rossen Gargolov, Harley-Davidson

5/10
5th place: Harley-Davidson XL 883 Iron with a total of 5,539 new registrations.

Harley future: Success again with
Jascek Bilski, Rossen Gargolov, Harley-Davidson

6/10
6th place: Harley-Davidson Sportster 1200 Cus. with a total of 2,614 new registrations.

Harley future: Success again with
Jascek Bilski, Rossen Gargolov, Harley-Davidson

7/10
7th place: Harley-Davidson Softail Slim with a total of 2,179 new registrations.

Harley future: Success again with
Jascek Bilski, Rossen Gargolov, Harley-Davidson

8/10
8th place: Harley-Davidson Night Rod with a total of 2,068 new registrations.

Harley future: Success again with
Jascek Bilski, Rossen Gargolov, Harley-Davidson

9/10
9th place: Harley-Davidson Sport Glide with a total of 1,498 new registrations.

Harley future: Success again with
Jascek Bilski, Rossen Gargolov, Harley-Davidson

10/10
10th place: Harley-Davidson Fat Boy Special with a total of 1,049 new registrations.

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Harley future: With &# 34; hardwire&# 34; again to success

Hardwire’s 5-year plan aims to secure the future of Harley
Germany is the core market

Harley-Davidson is in difficult waters. with “Hardwire”, a 5-year plan, the company wants to reposition itself and make it fit for the future. Germany is one of the most important markets for H-D in the future.


Uli Baumann,

Jens Kratschmar

02/02/2021

Since March 2020, the German manager Jochen Zeitz has been the new CEO of Harley-Davidson. Immediately after taking office, Zeitz began reorganizing the motorcycle manufacturer – the conversion program ran under the title “Rewire”. Has now Harley-Davidson announces the annual figures for 2020 and proclaims a new corporate strategy. The 5 year plan “Hardwire” aims to sharpen the profile of the brand, operate it more cost-effectively, open up new market segments, push electromobility, bind customers and employees closer to the company and, of course, bring more money into the coffers.

2020: a difficult year for Harley

Let’s cut the big numbers out: Harley 2020 has to accept a 29 percent drop in annual sales for motorcycles, which shrinks total sales in its core business to just under 3.3 billion dollars and results in a loss of 186 million dollars in its core business. Fortunately, the sales figures do not look so gloomy, with a minus of a good 16 percent in the EMEA countries (Europe, Mid-East and Africa) is a bit more than a black eye. In comparison to the technical knockout in Latin America, however, no comparison. Here, H-D lost 51 percent of its business in the fourth quarter, and still a hefty 39 percent over the year. On average, Harley is shrinking around 17 percent worldwide, which is pretty much the same percentage that H-D is losing in the American market.

Tourers triumph

If you look at the pure number of units, Harley also has to accept a sharp decline of a good 32 percent, which means that the number of motorcycles delivered has dropped to 145,246 units. Whereby the fourth quarter with a minus 48 percent contributes a large part. With 38 and 38.6 percent, the cruiser and touring models still hold the lion’s share of the success of Harley-Davidson worldwide. The Streets and Sportster keep a respectful distance with 23.4 percent shares, but that is a necessity new class for entry into the Harley world in Europe just affirmed.

Into the future with hardwire and Germany

The new strategic five-year plan bears the title “Hardwire” and should bring the Americans back on the road to success and position them healthy and profitable in the long term. “I am confident that the major changes we will be making “The Rewire” have made it possible for us to successfully implement our strategic plan. We are now a leaner, more aligned organization and we make decisions faster”, said Zeitz. He expects the with “Rewire” Measures introduced will result in ongoing gross savings of approximately $ 115 million from 2021. Within the framework of Hardwire, Germany has been chosen as one of the 10 core markets worldwide with the highest priority, on which Harley will focus.

Zeitz had already stated in advance that with Hardwire the range of planned new models should be cut by around a third. You also want yourself withdraw from markets with little growth potential. In addition, Harley wants to focus on its bestsellers, new market launches will be brought forward from August to the beginning of the year. the Big Enduro Pan America is set to celebrate its digital world premiere on February 22nd. Here there also seems to be a glimpse into the future of the new Revolution X engine.

Harley is said to grow on desire

Harley wants nothing less than to become the world’s most sought-after motorcycle brand. A leaner model range should help here, as well as the claim to become a leader in electromobility. New target groups and, above all, markets are to be opened up for this purpose, just like to bind employees even more closely to the brand’s fortunes through share programs. The focus is also on non-motorcyclists, but they should be positively charged with the Harley brand, which should result in a strong offensive in terms of merchandise and clothing.

Of course, profitable growth is the main goal of the new strategy “Hardwire”. This stands for healthy growth of the company in the best sense of the word, so more sales should be achieved with more profit. The thrust: new products and offers in new markets. In addition to Pan America as the embodiment of all aspects, the future of the new Revolution X engine is explicitly mentioned, which is preparing to become the new backbone of the company.

Leading in Electric

With the Livewire Harley has an extremely future-oriented motorcycle at the start. But that is probably not enough and therefore Harley does not want to be less than a leader in this field. Establishing your own electrical department is the first step here. This team should then, detached from the combustion brand, design their own products and also provide them with their own marketing. What this means for dealers can only be guessed at at this point. Interesting in this context that one of the three pillars mentioned on which the E-Unit is supposed to stand “speed and agility” called. Conversely, that could mean: Unfortunately, this has not been possible until now.

And everything except motorcycles

One of the pillars of Hardwire for Harley is the pre- and post-motorcycle business. The already strong business areas of spare parts and accessories then count here. Here, individualization seems to be the driving force, which is underlined by the claim of a large, global merchandise brand. But one of the sub-goals is also to strengthen ties with local dealers. Here, in particular, the experience value of a trip to the dealer or online is to be increased with new features and the live experience with and on motorcycles should also pay into this account.

$ 250 million annually

Harley plans to invest up to 250 million dollars annually in all Hardwire measures by 2025. In terms of sales in 2020, that is seven percent of revenue. However, it is not shown whether this also includes the development of new models or just the E-Unit. Harley, on the other hand, formulates its goals for 2021 very clearly, with an increase in sales of 20 to 25 percent, which should be feasible if the situation normalizes.

Conclusion

Harley-Davidson wants to reinvent itself. This should succeed with the hardwire plan, which should bring the Americans back on the road to success. The measures, however, sound sensible and welcome on paper. The structural effects they have on the workforce, however, is a completely different matter.

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