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Project Rushmore

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In a surprise press release late-today, Harley-Davidson announced that Matt Levatich will be taking over as the company’s CEO, starting May 1, 2015. Levatich will replace current CEO Keith Wandell, who took on his role in the company on May 1, 2009 — in the middle of the great economic recession.

The news is perhaps less shocking to industry insiders and analysts, who are familiar with the reasons behind Wandell’s tenure as CEO, and where Harley-Davidson stands today.

For sometime now we have been wondering when Harley-Davidson would initiate the next phase of its business plan, and whether Wandell would be a part of the company going forward.

As the symmetry of the tenure shows, today’s news is also a tip by Harley-Davidson that the swap in CEOs is due more to a new company direction than a reflection on performance.

The brand that seems to polarize motorcyclists worldwide but is inextricably tied to the image of “the biker”, did quite well in 2013. Hot off the presses of Harley-Davidson’s Accounting and Finance department in Milwaukee is the 2013 sales report detailing their growth in worldwide new motorcycle sales.

For 2013, H-D sold 5.7% more bikes in the fourth quarter and 4.4% over the full-year compared to the previous year.  Full year net income was $734 million on consolidated revenue of $5.9 billion. Compared to 2012 when the net income was $623.9 million on consolidated revenue of $5.58 billion.

Signs of life are finally coming back to the motorcycle industry, as Harley-Davidson has shown strong gains in the third fiscal quarter of 2013. Posting an increase in sales of 15.5% worldwide, Harley-Davidson grew 20.1% in the United States the last three months, due mainly to its “Project Rushmore” line of water-cooled motorcycles.

“Rider response to the 2014 motorcycles we introduced August 18 was extremely positive. In fact, initial retail sales of the new Project Rushmore motorcycles sparked the largest year-over-year new model year sales increase in two decades,” explained Harley-Davdison CEO Keith Wandell in the company’s investor communique.

Harley-Davidson has debuted its 2014 touring and trike motorcycles, which would normally be an event that we’d forgo even mentioning here at Asphalt & Rubber, after all “brand new” to Harley typically means new paint and chrome pieces to bikes that already exist in the line-up — that’s not entirely the case this year though.

Rolling out eight “new” motorcycles for enthusiasts, Harley-Davidson has listened to customer feedback and made changes to the following models in its line-up: Road King, Street Glide, Street Glide Special, Electra Glide Ultra Classic, Ultra Limited, Tri Glide Ultra, CVO Ultra Limited, and CVO Road King. Nothing crazy there, right?

However what was called “Project Rushmore” inside the motorcycle company, we now know refers to the company’s effort to bring more technology to its two-wheeled midlife crisis machines… the most drastic change being a liquid-cooled engine design. We’ve got your attention now, don’t we?

Debuting two liquid-cooling engine configurations, the Twin-Cooled High Output Twin Cam 103 motor will be used on the 2014 Harley-Davidson Ultra Limited and the Tri-Glide Ultra trike, while the Screamin’ Eagle Twin-Cooled Twin Cam 110 will be featured on the 2014 Harley-Davidson CVO Limited.