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According to Harley-Davidson’s 2017 financial report, the company had less than a sterling year. Overall sales dropped by 6.7 percent, with an 8.5 percent slide in the United States and a dip of 3.9 percent in international markets. This lackluster performance has resulted in the company’s stock dropping by 6.5 percent over the last 12 months and per share dividends falling from .64 to about .40. This downward sales trend is by no means unique to HD as big bike sales have been dropping for all major manufacturers for several years.The general consensus among market watchers is that it is simply a matter of demographics. The aging baby boomer generation is buying fewer motorcycles, and the millennials that are coming of age just aren’t as enamored with bikes and the riding lifestyle as their predecessors were.
In answer to this challenge, Harley-Davidson has decided to move ahead with a project that it first showcased some years ago. In 2015, the world was introduced to HD’s electric concept bike, the LiveWire, in stunning fashion as it was featured in the “Avengers: Age of Ultron” movie ridden by Scarlett Johansson’s character Black Widow. It subsequently went on a tour to the company’s major dealerships, where a limited few were allowed to test ride it.
The prototype displayed some awesome performance numbers for the time, being capable of reaching 100 mph and having a 0-60 time of just 4 seconds. What didn’t exactly thrill was that, equipped with a rather anemic 7 kWh battery, the bike had a maximum range of 55 miles. It can only be hoped that this will be greatly improved as the company has now promised to have its first fully electric motorcycles rolling off the assembly line in 18 months’ time.
Little is known about the yet-unnamed bike, but it shows a clear departure from the company’s traditional client’s idea of a Harley, and in the past, this hasn’t set well with them. Hog owners tend to be almost fanatically traditional.
Every upgrade since the 1984 introduction of the Evolution engine has been met with cries of disdain from the Harley Tribe. Still, if any motorcycle company can maintain its customer base, it would be HD, whose name recognition is so great that people who have never even been on a bike proudly wear its logo.
HD President and CEO Matt Levatich summed up the company’s view this way: “The EV motorcycle market is in its infancy today, but we believe premium Harley-Davidson electric motorcycles will help drive excitement and participation in the sport globally. As we expand our EV capabilities and commitment, we get even more excited about the role electric motorcycles will play in growing our business.”
Indeed, according to a 2016 report from TechNavio, the e-bike market is expected to nearly double by 2020, and with Harley-Davidson’s known reputation, the company could be perfectly positioned to become the Cadillac of electric motorcycles.
We queried motorcycle attorney and collector Brad Sinclair for his thoughts on HD’s coming offering. “To be honest, I’m a little shocked. I fully support the e-bike movement, but when you think Iron Horse, Hog, Harley, you think of massive machines rumbling with that sweet growl only a V-Twin can produce. I just don’t see my crowd giving that up for a hummer.”
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