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Harley is scrambling to steer through a year-long slump in U.S.
demand as it grapples with an aging customer base and it is
aiming to boost sales of its motorcycles overseas.
The company said it expects to spend $675 million-$825 million
on these initiatives and expects the new plan to generate more
than $1 billion of incremental annual revenue in 2022 as
compared to 2017.
"The accelerated strategy will require significant investment to
change the trajectory of the business globally, and the company
plans to fund it entirely through comprehensive cost reduction
and reallocation of previously planned investment and
resources," the company said.
Harley said it plans to develop a more accessible motorcycle
with a small-displacement engine of between 250cc and 500cc for
Asia through an alliance with a manufacturer in the region.
The company will continue to develop improved touring and
cruiser motorcycles and launch new modular 500cc to 1250cc
middleweight platform of motorcycles, starting with a 1250cc
custom model and a 975cc Streetfighter model in 2020, it said.
Harley has also been spending on product development and
marketing, including promoting its learn-to-ride academies at
showrooms and developing electric motorcycle technology.
The company plans to launch its electric motorcycle in 2019.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Maju
Samuel, editing by Saumyadeb Chakrabarty)
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