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Harley Davidson will offer cheaper, lighter, and smaller motorcycles

12K views 25 replies 15 participants last post by  hogcowboy 
#1 ·
Matt Levatich, Harley Davidson's chief operating officer, said the company will offer bikes that are more physically and financially accessible at the Reuters Global Manufacturing and Transportation Summit this week. Increasing market share in emerging markets seems to be the goal.

"In the past, our market was predominantly core customers in the United States," Levatich said. "We see an opportunity, not to make (scooter-sized) bikes by any stretch, but to make Harley-Davidsons that are physically and financially accessible for emerging markets, for international markets, for the United States for that matter."

No plans are being made for manufacture outside of the US, although "complete-knock-down" assembly plants are being used in India and Brazil to get around tariff regulations in those countries. Harley Davidson has had issues with international partnerships in the past, specifically an Italian distributor who didn't promote the larger bikes as the company wished. Harley Davidson has so far resisted partnering with Chinese companies for the manufacture of motorcycles for sale in Asia.

"We feel we were aided in waiting a little bit and not getting in early with a JV partner that had a different idea of what the Harley brand could be or should be," Levatich said. "Part of the decision to go in on our own was because of the cleanup work we've had to do, a lot of the cleanup work was where we were buying out distributors and resetting the market."

The less expensive motorcycles are planned to be marketed in the US as well as emerging markets worldwide. Currently, Harley Davidson's exports amount to about 35% of it's sales, up from 25% just a few years ago. The motor company plans to have 40% of it's sales as exports by 2014.


[The Kneeslider | Reuters]
 
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#7 ·
They also realize that their customer base is rapidly aging. Smaller, lighter, and cheaper bikes not only gets them into emerging markets, but may get them a younger buyer in the U.S.A.

They will definitely have to be called something different, or they will dilute the brand name.
 
#19 ·
I like the look too. I too would be concerned about brand preservation.

John Deere freely admits, that the (homeowner) version that big box stores sells, has tarnished their brand name. That's a ton of extra marketing dollar, that could have been saved with a little forethought.

I hope they do it right.
 
#21 ·
Brand preservation was what they quoted when the closed Buell. I never did understand that since they were different brands. I do agree with you on this one though. Who knows though, if they only sell them overseas, it may be that starter/intro bike that they need to get people interested in the brand.
I was in Turkey this year and was wearing a Harley hat. I got into a nice conversation with a shop owner about bikes. Over there it seems like EVERYBODY has, or has had, a bike. He wanted to know how big the engine was on my bike. I told him it was 1600 cc's and he did not believe me. He said that they do not make bikes with motors that big. Luckily I had a picture of my bike on my phone. He said that a 500 cc bike there is a big bike.
 
#20 ·
I've worked for both Home Depot and Lowes. John Deere and all the other manufacturers know full well the risks and benefits beforehand and still rush full speed into the big box stores. It's a well known fact that the manufacturers cut corners and produce a cheaper product in order to meet the price point that these stores dictate to them beforehand. Shed no tears for John Deere or anyone else, I've seen the profit numbers they realized from those big box stores. They'd do it again in a heartbeat.
 
#25 ·
Light and powerful? Sounds good to me I can't wait to see what HD comes out with. The Triumph Street Triple R is 9k and arguably one of the best naked bikes out there. If HD can do something similar to that they'd have a huge hit on their hands, and I'd most likely buy one :)
 
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