Harley-Davidson is one of the many automotive manufacturers who are reeling under the ill-effects of the Coronavirus pandemic and a long-lingering economic slowdown before the pandemic arrived. It was in May 2020 that the company announced its 'Rewire' plan where it planned on focussing on higher profit models and cut down on a new model line-up under the 'More Roads To Harley-Davidson' plan, that was put forth by former CEO Matt Levatich. In fact, the new president and CEO, Jochen Zeitz, who joined office in March 2020, said that up to 30 per cent of new models could be axed.
The initial plan of the company had new models like the Pan America ADV, and the Bronx, which is a streetfighter and even a faired motorcycle. Plus, the company is ready to bring in a new small volumes motorcycle for Asia, which is based on QJ Motor's Qianjang 350, getting a 338 cc parallel-twin motor. The Pan America ADV will be launched in USA in Q1 2021 and we expect the Bronx to be launched later next year as well. Future models may be shelved in a bid to reduce cost and focus on products which really sell.
Other steps to control costs and bring in profits in the Rewire plan include exiting certain markets which do not support continued investment in terms of volumes and profitability. Harley has identified 50 markets across the globe with 'high potential' along with other few other traditionally strong market where it would like to focus. The company is also streamlining dealerships operations so that inventory is kept at an optimum level and dealerships reduce cost on discounts and such. In India, Harley is still one of the highest-selling premium bike manufacturers and has a strongly established presence with regards to its HOG (Harley Owners Group) community. The company also has a facility at Bawal, Haryana for manufacturing its 'Street' range of motorcycles along with a few CKD models.
Harley-Davidson will shed more light on this when the company outlines its new 'HardWire' plan towards the end of this year. The Harley-Davidson HardWire is a 5 year plan and will go into force 2021 onwards.