Will Electric Bikes Save Harley?
Rodney Johnson | February 19, 2019 | My father had a Harley in the mid-1980s, which I would ride from time to time. It was an '83 Sportster, and it leaked oil, and the electrical system would cut off when you turned a corner. Back then that was called "character." Today, we'd call it sloppy workmanship. Insiders bought the company from conglomerate AMF in the early 1980s, and by the end of the decade they'd returned the storied brand to its historical place – a well-made American icon. Harley Davidson (NYSE: HOG) rode through the 1990s and early 2000s like a company on a mission. It sold a zillion "hogs" to aging professional Baby Boomers (like my father) who longed to connect with some distant part of their DNA that called for rebellion. The Boomers were the right age, their early 40s, and Harley had the right product. Then came 2006. Note that I didn't say, 2008 or 2009, referring to the financial crisis. Harley's problem came sooner. In 2006 the highest number of Boomers reached the prime motorcycle-buying age of 45. Our research suggested that Harley was going to struggle after that, which is exactly what happened. Since then, Harley has tried to move mountains to regain its pace in selling motorcycles, but to no avail. In its latest earnings report, Harley noted it sold fewer bikes in 2018 than it did in 2017, and expect to sell fewer again this year. But they have a plan. Harley will introduce the LiveWire Electric Bike later this year, and two electric scooters by 2022. Unfortunately, it won't work. READ MORE »
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