Harley Davidson Q2 2020 news
In March 2020, Harley Davidson announced the early scrapping of its More Roads To Harley strategic plan and unveiled a new plan called Rewire that addresses the company’s challenges more closely with more conservative goals and objectives. The ambitious goals set in 2018 were shelved along with a lineup of new models, and Harley decided to go back to basics, regroup and set a new growth strategy.
Harley Davidson’s new plans
Initially, Harley Davidson outlined the new strategy only in general terms, and it was not clear how exactly their new plans would be implemented. At the time of the speech, it might seem that they themselves do not yet know this – but it seems that now the situation has cleared up. On July 28, 2020, new CEO Jochen Zeitz released the company’s second-quarter sales figures, elaborated on Rewire, and announced the next strategy called Hardwire.
Recent publications have revealed the company’s current objectives and shed light on what they are. In particular, it became known about the plans of Harley Davidson to reduce the number of planned models by 30 percent and reallocate investments between the current models and “high potential segments”… New models will appear during the first quarter of 2021, and not in August of this year, and for the first time since March, a Pan America release date was also announced – also, respectively, in 2021. About the Bronx, however, there is no word yet. It was also mentioned that the company plans to accompany the launches of new models with engagement “key figures” hoping to make the brand more attractive. Simply put, we are waiting for the next advertising campaigns, which, by the way, Harley Davidson marketers are able to carry out, subtly playing on the strings of human souls and on the images of real motorcycles for real people.
The Rewire strategy runs until the end of 2020, where it will be replaced by the new Hardwire Strategic Plan until 2025. Zeitz has kept silent about it yet, but said that Hardwire will be based on the goals and principles of Rewire.
From April to June 2020 (i.e. the second quarter), Harley Davidson sold 52,700 motorcycles worldwide, down 27 percent from the same period last year. The sharpest drop was shown by the Latin American market, where sales fell by 51 percent, followed by Europe with a 30% fall, North America showed a 27 percent decline, and Asia – a 10 percent drop in sales.
Since the beginning of the year, 93,200 Harleys have found new owners, and over the same period last year – 121,000 units. The company’s total profit for 6 months decreased by 28 percent.
Interestingly, in the first two quarters of 2020, Harley Davidson sold more cruisers worldwide than touring models and Sportsters. In the first half of 2019, touring companies were in the lead in sales.
Armed with a new corporate strategy, Harley Davidson seeks to consolidate its position “the most attractive motorcycle brand in the world”… Do they have a chance to complete this task without significant (at the moment) innovation? Life will show.