Harley-Davidson is getting crushed under the weight of its cruiser-centric business model.
During the last three many years, it is spent billions on pushing over-weight, over-priced HOGS to wealthy Boomer dentists who wanted to cosplay as Hells Angels members just for the Motor Co. to now be up a creek and not using a paddle and staring down a full-grown grizzly bear. And it is most undoubtedly not Yogi and Boo-Boo.
As an alternative, Harley’s an ageing demographic that both now not rides, and due to this fact will not want a brand-new $30,000 bagger, or else youthful riders who can’t afford a $30,000 bagger or simply would not need that bizarre piece of American pie. Sure, I do know I am mixing metaphors, however stick with me.
And that is proven in Harley’s financials. Although the model has stayed solvent, the corporate is promoting fewer and fewer bikes. LiveWire, the model that was made to carry youth to Harley, has all-but failed, and the corporate is catching strays from right-wing shit-birds who see the model as a simple goal. At current, we have got front-row seats to Harley’s downfall.
However, funnily sufficient, Harley-Davidson may have already got the means to flee its demise spiral. No, it is not one other full-dress cruiser, cheaper LiveWire EV, and even one other Sportster. It is really one thing Harley-Davidson refuses to promote to the American folks: the X350.
Yep, a small displacement Harley-Davidson that is low-cost, approachable, and I would argue higher wanting than practically its total lineup. It completely might be Harley’s ace up its sleeve.
The X350 is just at present accessible within the Asiatic market, together with China, Japan, Australia, and some different spots, and it is inbuilt collaboration with QJ Motors out of China. The design, nevertheless, is pure Harley-Davidson because it’s meant to imitate the model’s iconic flat-track bikes with a extra upright seating place and controls.
It is powered by a 353cc liquid-cooled parallel twin, an engine shared with Benelli’s 302S, and offers riders a whopping 23 horsepower. I jest, clearly, however that is fairly according to different small-displacement bikes. You do not want a lot to get these bikes shifting. And most significantly, it is low-cost AF.
In Australia, the Harley-Davidson X350 is priced at $5,500 transformed to USD. That is practically $10,000 cheaper than actually another bike Harley-Davidson sells. That is not only a screaming deal, it is a screaming deal that would actually save the corporate, because it solves two of Harley’s most nagging points: pricing and new rider acquisition.
As RideApart’s reported over the previous couple of months, Harley’s in serious trouble. Its gross sales have been declining for many years, however latest years have actually put the magnifying glass atop them. Ridership has declined because the model’s struggled to search out new clients in younger generations, each due to the luggage of Harley’s previous and since the bikes are so freakin’ costly. Excessive rates of interest, low wage development, and different components have additional contributed to Harley’s decline.
And but, these forces and points have all-but been ignored by Harley’s executives. As an alternative, they’re doubling down on cruisers and full-dress baggers. They’re upping costs and pretending they are a luxurious model, one thing alongside the traces of Cartier or Bentley, all whereas cheapening the products to increase profits. It is why there’s been oh-so-many recalls of Harleys as of late, and why one particular person waited a whole yr for a single stupid part.
However Jochen Zeitz, Harley’s CEO, and the remainder of the model’s board have ignored these macroeconomic components and simply made dangerous resolution after dangerous resolution. All whereas having the X350 proper there, ready for them to carry it to the States the place an increasing number of riders are choosing small displacement motorcycles. Everybody’s on that practice, together with BMW, Triumph, Royal Enfield, Kawasaki, KTM, and CFMoto.
And what’s actually annoying is that, technically, Harley’s child bike is already right here.
See, although Harley-Davidson will not promote you an X350, the corporate is more than pleased so that you can discover ways to trip a motorbike on one, as they’re the bike Harley makes use of in its rider coaching program. And that program, i.e. Rider Academy, a program that the corporate even celebrated earlier this year because it crossed over 1 million riders skilled via it.
Now I am no monetary guru—clearly—however would not you assume extra folks can be more likely to buy a motorbike after they get skilled on stated bike? A bike they’re comfy with? A bike they realized to trip on? A bike that is gentle and nimble versus instantly going to one thing that is 800 kilos and lumbers alongside like a fats pig? A bike as cheap because the X350? I imply, that appears like a successful mixture to me, however what do I do know?
And if Harley wished one thing barely greater to promote to People, it additionally has the Hero-made X440. It has choices.
I get that the present iteration of the Motor Co. is one among baggers and cruisers and massive bikes, and on-line weirdos and the model’s board shall be all like “BUT WHAT ABOUT OUR HISTORY!”, however there’s historic priority for smaller displacement bikes, too. Harley-Davidson might recount its small displacement bikes from the 1910s to Thirties (not the Aermacchi period that everybody hates, to be clear) and use it to promote these bikes to a brand new viewers, one which’s primed to buy a cheap bike to get them into the model. It provides clients a brand new entry level into the franchise and permits them the area to be taught and develop after which possibly get into the higher-priced, greater bikes that Harley-Davidson is thought for. It hooks them, and that is simply good enterprise.
That is clearly the way in which ahead for Harley, however watching what the model’s been doing, saying, and combating in recent times, I doubt anybody would pay attention. I really reached out to Harley and requested whether or not it had any plans on promoting the X350 within the States, to which a consultant said, ” We don’t touch upon future product and this bike just isn’t on the market within the US Market.”
Nonetheless, come on, Harley, promote the X350 right here. I guess you’d begin competing with Honda. Trigger you completely aren’t proper now.
Trending Merchandise
