Harley Spinning Off LiveWire Was a Great Move
Making LiveWire a separate entity is the best way for Harley to maintain its ethos and embrace its future.
On September 27th, Harley-Davidson officially spun off its LiveWire division, taking the it public via a $1.8-billion merger with a Special Purpose Acquisition Company (SPAC). The move has been in the works since December, and while some market analysts have questioned the timing — citing rising inflation — of the strategy, I think it was the right play. Ultimately, LiveWire becoming a separate entity will lead to better electric bikes, and more of the products core Harley riders want.
The reason is simple: When it comes to electric bikes, the Harley-Davidson name isn’t an asset. Because if there’s one thing that Harley haters and fans alike have in common? It’s that both factions associate the MoCo with thundering, chrome-drenched motorcycles, which are either cliché or classic, depending on your perspective. So regardless of how good the electric bikes are? There’s a certain segment of the market that’s doesn’t want to ride anything sporting the famous bar and shield.
So with the demand for electric vehicles growing, giving LiveWire products a chance to stand on their own makes sense. It also provides the engineers an opportunity to design bikes for a much lower price point, without worrying about diluting Harley’s iconic brand. After all, outside of its limited range, the 30k-sticker was the biggest problem with the initial LiveWire. And since Harley poured tons of time and treasure into its first electric motorcycle, the tech it developed will likely pay dividends for years.
Given that HD owns 74% of LiveWire, I think this investment in future-forward bikes will provide the company with the capital to build the kind of machines it’s famous for. And while it’s not an exact comparison? I keep thinking about the story of Porsche and the Cayenne. Back in 2022, the idea that Stuttgart would make something like an SUV was absolute heresy, and Porsche fans were beyond pissed. Initially, there was even a question of whether folks who bought a Cayenne would even be eligible to join the Porsche Owner’s Club.
But as we now know, the Cayenne actually saved the company. So without the Cayenne, hardcore enthusiasts would never have gotten bareknuckle sports cars like the GT3 RS. In theory, I could see LiveWire generating massive profits, with money trickling over to the original company to support increasingly niche bikes like the Road King and Fat Boy. Meaning the Harley of the present will survive long into the future, and I think that’s awesome.
Photos: Harley Davidson
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