Harley-Davidson Goes All-in For Electric

Can electric bikes save a dying Harley-Davidson brand? Yes, but the result might be unrecognizable.

Back in 2014, Harley-Davidson demoed its LiveWire prototype, with plans of bringing their first electric bike to market in 2019. CFO John Olin claimed that Harley would invest $25-50 million per year in electrification technology.

Cynics might tag this as a desperate ploy by a company whose earnings dipped 8.5% last year. Harley-Davidson, the epitome of cool – a brand that promotes image over fuel economy (even if Harleys consistently rank in the 40-50 MPG highway range).

But it’s more nuanced than that. EVs are growing exponentially -- research firm TechNavio claims the e-cycle market will flex its muscles an additional 45% by 2020. Oh, and traditional Harleys lost money for the fourth straight year.

Harley’s road map, “More Roads to Harley-Davidson,” promises to “lead the next revolution of two-wheeled freedom to inspire future riders who have yet to even think about the thrill of riding” (emphasis mine).

That last part bears repeating -- future riders who have yet to even think about the thrill of riding. Harley’s growth plan mentions LiveWire, “the first in a broad, no-clutch ‘twist and go’ portfolio of electric two-wheelers,” along with lighter and smaller e-bike models through 2022.

But who’s the target audience? Will Harley’s traditional customer base join the electric revolution?

Alan Stulberg, who co-founded Revival Cycles, doesn’t think so.

“My feeling is that [the electric bike] will be well-received by the public and new buyers, which Harley direly needs, but not by people who normally ride a Harley,” Stulberg claims.

Bloomberg Intelligence Analyst Kevin Tynan suggests that “Investment in [electric] tech will be funded by a dying business, and they are basically starting from scratch.”

So the crossover between electric and traditional Harley fans, who live and die by the internal combustion engine, might be nil.

Read more about this here: https://chargedevs.com/newswire/harley-davidson-announces-new-electric-motorcycles/