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Harley-Davidson to shut sales and manufacturing operations in India

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from https://indianexpress.com and https://www.reuters.com The announcement comes two months after Harley unveiled a strategy to shift focus back to more profitable motorcycles and core markets such as the United States. Harley-Davidson Inc said on Thursday it would discontinue its sales and manufacturing operations in India, effectively abandoning the world’s biggest motorcycle market after a decade of unsuccessful efforts to gain a foothold. Harley had spent recent months moving dealerships in the country to cheaper locations, and the announcement followed speculation in Indian media a month ago that executives had played down. The move involves $75 million in restructuring costs, some 70 redundancies and the closure of its Bawal plant, walking away from a market worth about 17 million bike and scooter sales a year. It will retain only a scaled-down sales office in Gurgaon, south of New Delhi. The departure is also the latest setback for Prime Minister Narendra Modi’s strategy to encourage domestic manufacturing that would keep more of the fruits of a gigantic home consumer market in India. Harley has been scrambling for years to grow sales beyond baby boomers in the United States and has not posted retail sales growth there in the past 14 quarters. Chief Executive Officer Jochen Zeitz, who took the reins at the company in February, unveiled a major “Rewire” in July to boost profits by reducing Harley’s product portfolio by 30% and investing in 50 markets with growth potential in North America, Europe and parts of Asia Pacific. India was one of the markets the company at that point committed to investing in more heavily. Thursday’s statement said the move to leave had been pushed through since Aug. 6. Harley said it now expects total restructuring costs of about $169 million in 2020, but warned that the restructuring program – referred to […]

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ALYI Expects To See Orders For ReVolt Electric Motorcycles Double Next Month

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from https://www.prnewswire.com DALLAS, Aug. 27, 2020 /PRNewswire/ — Alternet Systems, Inc. (USOTC: ALYI) today announced that it expects a new fleet order for its ReVolt Electric Motorcycle to double the company’s current production outlook. Earlier this month the company announced entering into discussions regarding additional fleet orders. Management now expects to sign an order resulting from those discussions by the end of September. ALYI currently has already entered into an initial $20 million electric motorcycle order and an additional letter of intent for a $30 million contract. Both agreements cover six-year durations resulting in an overall $300 million revenue opportunity for ALYI. The new order expected to be signed next month would edge ALYI toward a $500 million revenue opportunity. Over two years ago, ALYI piloted an electric motorcycle that in its first rendition was a BMW R71 clone retrofitted with an electric motor. The BMW R71 is a breathtaking iconic image popularized through decades of frequent Hollywood screen appearances in addition to the real engineering breakthroughs that maintain the bike’s relevance. Still drawing on the BMW R71 original design and look, after several design iterations, the ReVolt Electric Motorcycle today is an innovation feat. When ALYI unveils the production version of the ReVolt Electric Motorcycle, it will be an industry changing event. The ReVolt Electric Motorcycle is a connected, state of the art electric motorcycle, ergonomically optimized for its target market while still maintaining an iconic look. ALYI expects to be in production later this year.

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Covid-19 puts low-cost 350cc Harley-Davidson bike plans in danger

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by Pradeep Shah from https://www.financialexpress.com The proposal by Zeitz suggests scrapping 30 percent of the current models in the favour of a more sorted lineup. So far, the models that would be axed have not been revealed but expect a lot of bikes to retire especially from the Softail family that includes as many as 14 models. Here is why the upcoming India-bound 350cc Harley might be in danger. The year 2020 is no less than a nightmare for multiple sectors and the automotive space is no different! Not only the production of the vehicles is getting affected but the sales have taken a severe hit too. America has been one of the worst affected nations by Covid-19 and hence, for obvious reasons, the industries and companies there are seeing some of the worst days. One such manufacturer is Harley-Davidson that has reported a loss of USD 92 million. Now, in order to offset the losses a bit, the company has came up with a new ‘Hardwire’ plan that includes aborting some of the models that the brand was planning to bring in the coming months. Now the worst piece of news is that the company’s strategy might include a 350cc low-cost motorcycle that was meant for Indian and some of the Asian markets. Previously, the brand had announced the introduction of as many as 50 new models over the next five years. As a part to rejig strategies, the proposal of Jochen Zeitz, President, CEO and Chairman, Harley-Davidson suggests scrapping 30 percent of the current models in the favour of a more sorted lineup. So far, the models that would be axed have not been revealed but expect a lot of bikes to retire especially from the Softail family that includes as many as 14 models. Now here comes

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Motorcycles Sales Bounce Back Post Pandemic Slump

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by Sabrina Giacomini from https://www.rideapart.com Rising from the ashes. To say that 2020 has been an eventful year so far is an understatement. “2020, written by Stephen King” is probably the best description of this year’s events we found so far. Of course, with a pandemic forcing most of the global population into lockdown, the health crisis was bound to have an impact on the motorcycle industry. For several manufacturers, between suspended production and customers shying away from the dealers, the months of April and May 2020 have been challenging to say the least. Thankfully, with life gradually resuming, so are sales, and the numbers are bouncing back. Things Are Going Better Than Expected: An increasing number of people and publications suggest that the pandemic will encourage more people to turn to motorcycles and scooters for transportation—the perfect type of commuter for social distancing. In the U.S., buyers didn’t waste any time running for the hills—literally—as soon as COVID-19 poked its ugly head. Honda, BMW, Suzuki, and Yamaha’s North American branches reported that sales are thriving since the beginning of the year, particularly in the off-road segment. For instance, American Honda Motor Co. confirmed that motorcycle sales for May 2020 have more than doubled over May 2019—both in the road and off-road segments (+103% and +172% respectively). For BMW North America, while official sales numbers were not disclosed, the spokesperson did say that May 2020 sales were far exceeding last year’s. The European market is showing a similar, positive trend. Italian sales numbers for June 2020 show a 37-percent increase over June 2019—not even over the catastrophic month of May 2020. More bikes and scooters sold in Italy post-pandemic than last year, back when nobody had even heard of a coronavirus. A total of 39,085 motorcycles, scooters, and mopeds have

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Harley-Davidson To Drop From S&P 500 As Coronavirus Batters Struggling Motorcycle Maker

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by Bill Roberson from https://www.forbes.com/ Iconic American motorcycle maker Harley-Davidson [HOG] continues to struggle. The company will move off the S&P 500 in the next week and will land on Standard and Poor’s MidCap 400 list of stocks instead, according to the Milwaukee Journal Sentinel. Clothier Nordstrom Inc. and Alliance Data Systems Corp. will also fall off the S&P 500. With a two-month work stoppage (since resumed) due to the pandemic coupled with an expected deep dive in sales due to the general halt in economic activity, the near future could be a rough ride. The most recent report on sales from the company show the numbers were down close to 18% year over year as of late April. The S&P 500 delisting, set for June 22, comes while Harley-Davidson continues to navigate rough waters, including a personnel shuffle that included the CEO and a stock price that has hung in the $25 range during the pandemic but was as high as $73 in 2014 and over $40 per share in the last year. In the depths of virus-fueled market turmoil in April of this year, the share price dipped to nearly $15 but has since rebounded, almost reaching $30 just about a week ago. The drop from the index could hurt the stock price since many investors include companies in the S&P 500 as part of their portfolios. Before the coronavirus and COVID-19 outbreak, the Milwaukee,Wisconsin-based maker of heavyweight cruisers – and a fully electric model – had been on a sales and stock price slide for several years as the company searched for new buyers. Their core – and highly loyal – customer base has slowly eroded due to age and competition, notably from a resurgent Indian, which was once Harley’s main sales and racing competitor before shuttering

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Harley-Davidson Leads the List in Peak Demand for Motorcycles

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by Daniel Patrascu from https://www.autoevolution.com Like most other countries in the world, the UK is set to relax its distancing measures as of this week, despite the health crisis being more severe than ever. Among the distancing measures to be kept is the obligation for the Brits to wear face-coverings on all public transport means on the island. That decision seems to have scared people who would normally ride the tube or buses, and that is visible in the number of online searches for alternative means of transportation. Motorcycles and their derivatives seem to be in high demand these days, according to the figures provided by Auto Trader. The organization says that compared to the same period last year, sales of motorcycles and mopeds exploded, reaching 180 and 2019 percent, respectively. Keep in mind this happens as sales of cars are dropping to levels not seen since the 1970s. Online interest for such two-wheeled machines is at a peak as well, and the idea that this is not a passing trend is backed by other data as well: Brits are hell-bent on becoming motorcycle riders, and proof to that is the doubling of Compulsory Basic Training (CBT) riders must take before being allowed on the roads. “It seems to be part and parcel of getting into a ‘new normal’. They’re relatively cheaper options for commuting, they can help you get around easily in congested urban areas, and they’re easier to park in tight spots,” said in a statement Auto Trader’s Rory Reid. “They can also be a much more viable option than walking or cycling for the majority of people whose commute is longer than five miles.” As far as what type of motorcycles the Brits prefer, two Harley-Davidson families, the Sportster and Softail, are among the most sought after,

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Harley appoints turnaround specialist Jochen Zeitz to revive sales

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by Rachit Vats, Sanjana Shivdas from https://www.reuters.com/ (Reuters) – Harley-Davidson Inc (HOG.N) on Thursday appointed board member and turnaround specialist Jochen Zeitz to the role of chief executive officer, as the struggling motorcycle maker looks to tap into his expertise to woo customers and revive sales. Shares of Harley, which were down 47% this year as of last close, rose 5% to $20.6 in morning trade. Zeitz, a former CEO hailed for turning around German footwear brand Puma’s near-bankrupt business, is known to have led a push for sustainability at Harley and was a force behind Harley’s LiveWire, the company’s first electric bike. The company said Zeitz, who joined the Harley board in 2007, will continue to serve as the board chairman. Harley has failed for years to increase sales in the United States, its top market, which accounts for more than half of its motorcycles sold. As its tattooed, baby-boomer consumer base ages, the Milwaukee-based company is finding it challenging to attract new customers. To make matters worse, the pandemic has further dented demand as Americans stay at home to curb the spread of COVID-19. In April, Harley slashed here its dividend and halted share buybacks to boost its cash reserves to weather the impact from the health crisis. Zeitz was asked to take over after CEO Matthew Levatich stepped down in February following Harley’s worst sales performance in at least 16 years. In his first call with investors as acting CEO, Zeitz lined up plans to cut costs and “de-emphasize” some of its unprofitable international regions. The shift in strategy for the company that symbolized the counterculture movement of the 1960s comes as it struggles to woo the next generation of younger riders with its electric and more nimbler bikes in the United States.

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Royal Enfield withdraws from Japan until new importer takes charge

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by Abhinand Venugopal from https://www.rushlane.com Royal Enfield’s Japan operations were carried out by the importer, Wingfoot Chennai-based motorcycle manufacturer Royal Enfield operates in more than 50 countries across the globe. The automaker has a huge fan following in many parts of the world, especially for its single-cylinder ‘Classic 350’ model. In India, the company has updated most of its products to BS6 specifications while readying to launch the next-gen ‘UCE 350’ models, starting with the Royal Enfield Meteor 350 (which replaces the Thunderbird range). Wingfoot Co. Ltd., Royal Enfield’s official importer in Japan has announced a business termination with the British-origin motorcycle manufacturer. The official statement stated that it has “finished all business related to the import and export of Indian-made Royal Enfield motorcycles” after ending the contract with Eicher Motors — the parent company of Royal Enfield. In other words, Royal Enfield has temporarily withdrawn from the Japanese market until a new importer takes charge. Royal Enfield Japan’s official website will be taken down by the end of this month while its social media handles will be deleted on May 15. In a matter of days, Eicher Motors might announce a new partner to commence operations in Japan. Royal Enfield has not been a strong player in Japan since the country has its own compelling alternatives from the likes of Yamaha, Honda, Suzuki and Kawasaki. Even in India, Japanese two-wheeler brands often come at the top of monthly sales charts while Royal Enfield mostly remains at the bottom of the top 10. However, it is no secret that India is a volume-sale market and six-digit numbers need not always tell the story of a brand’s success or struggles. As mentioned before, Royal Enfield has already made a smooth transition to BS6 emission norms. In the process, the company has

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Harley-Davidson shifts strategy, to focus on core markets

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from https://www.livemint.com The company’s shares climbed after the motorcycle maker’s new acting chief executive officer laid out plans to cut costs The stock had plunged 49% this year through Monday’s close Harley-Davidson Inc. shares climbed after the struggling motorcycle maker’s new acting chief executive officer laid out plans to cut costs and complexity and focus on the company’s strengths. The stock rose as much as 17% after the unveiling of a strategy dubbed “The Rewire,” which Morgan Stanley analyst Adam Jonas said could make Harley one of few manufacturers to grow profits in the coming years. “It is clear to us that HOG will be less adventurous in terms of trying its hand at segments and markets where the brand faces extremely low chances of success with high up-front costs and high risks of brand atrophy that could threaten the company’s long-term survival,” Jonas, who rates the stock the equivalent of a buy, wrote in a report Tuesday. Jochen Zeitz, a board member and former CEO of sporting-goods maker Puma SE, took over as acting CEO at the end of February. He’s dialing back his predecessor’s turnaround plan to focus on expanding U.S. ridership, iconic profitable bikes such as the Adventure Touring and Streetfighter models, and electric motorcycles. Those goals echo the demands of an activist investor, Impala Asset Management, that reached an agreement calling for Harley to add an independent director to its board later this year. ‘Achievable Plans’ Harley “has become accustomed to over-committing and under-delivering; we need to set achievable plans and realistic goals,” Zeitz said during the earnings call. “It is clear that our strategy needs to be refocused to better align with our capacity and capabilities and also updated given our new reality.” Harley shares were up about 12% as of 11:53 a.m. in New

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