Harley Will Make More EV Bikes, but Will People Buy Them?
Harley won't be pushing EV bikes on everyone, it seems.
Not for Everyone
Harley's recent decision to spin its LiveWire electric motorcycle off into an entire brand was not completely unexpected, but its decision to slash the price of what is now known as the LiveWire One most certainly was. But while H-D plans on building more EV bikes moving forward, it's also well aware that they aren't for everyone, as CEO Jochen Zeitz recently explained to CNBC.
Photos: Harley-Davidson
Focused Offering
"Electrification is a given," Zeitz said while attending the CNBC Evolve Global Summit. "The future will be electrified also in motorcycling. We want to lead in electric. All the values that made Harley great in terms of adventure, in terms of freedom, you know, freedom for the soul, as we say, are also values that very much translate into LiveWire, although, you know, translated towards a different, more urban customer."
Photos: Harley-Davidson
Bridge To the Future
On the same token, Zeitz admits that EV tech is not quite to the point where it can feasibly power touring models for long distances. Instead, the LiveWire is more of a bridge to the future, something the company can build upon as battery technology improves in the coming years.
Photos: Harley-Davidson
Desirable Product
The key, as Zeitz points out, is making a desirable product, no matter what powers it. "Every business you're in that has a consumer, you need to constantly innovate and excite your consumer about your brand, about your product, and I don't take it as an answer that, you know, you are on a secular decline," he said. "Of course your existing customer gets older, but you have to make sure as a brand that you’re bringing new people into the sport, into riding, into the experience."
Photos: Harley-Davidson
Big Turnaround
So far, the LiveWire hasn't sold in any sort of quantity, however, much of which can be attributed to its formerly lofty price tag. Regardless, it, along with the new Pan America, has also excited investors, who feel like Harley is finally on the right track. As a result, shares are up 20 percent year to date, a big turnaround from years of dismal performance.
Photos: Harley-Davidson
Separation
"Harley is an iconic brand but that means certain things to certain people and those things are hard to change, so if you want to give the electric bike room to breathe on its own, separating it from the legacy, from Harley, can be a good thing," said Craig Kennison, senior research analyst of consumer and automotive at Robert W. Baird & Company.
Photos: Harley-Davidson
Smart Approach
It's clear that Harley intends to move forward with the idea of electrification, but it also isn't abandoning its traditional customer in the process. That's probably the smartest play in today's world, given the fact that no one really knows if or when the masses will be ready to give up their big V-twins for silent electric motors.
Photos: Harley-Davidson
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