It didn’t last long. Exactly two months after the firing of Matt Levatich as Harley-Davidson’s CEO, the Bar & Shield brand has announced that it is stepping away from the company’s “More Roads Lead to Harley-Davidson” business strategy, for a new plan that is being called “The Rewire”.
As you would expect, the new plan is framed partially by the response to the COVID-19 pandemic that is gripping the world, but Harley-Davidson sees things further down the path as well, saying that the “The Rewire” will be a five-year strategy for the motorcycle maker.
This move comes after a considerable internal battle for control of the Harley-Davidson board of directors, which saw a proxy fight breaking out with Impala Asset Management – one of Harley-Davidson’s largest shareholders.
The fight ended in a truce, with Impala and Harley-Davidson agreeing to add another board seat, of their mutual choosing. Presumably, a part of that peace offering is the new Rewire plan that we now see.
Italians are rejoicing over the news that Mercedes-Benz CEO Dieter Zetsche has made it clear that the German car manufacturer is not interested in acquiring more of MV Agusta’s private stock.
Loyal readers will remember that Mercedes-AMG purchased 25% of MV Agusta last October, for a rumored €30 million — echoing the move Audi made in Ducati.
Talking at the North American International Auto Show in Detroit though, Zetsche said “we had a past experience of cross-marketing with Ducati that was promising, but the company was acquired by Audi and the experiment ended.”
“We now have a new partnership with MV Agusta, a very prestigious brand,” the Mercedes CEO continued. “Again, we have established a cross-branding strategy between AMG and MV Agusta and we believe that the two brands are complementary. However, to avoid what happened with Ducati we point out that we have no intention to take over the business or produce motorcycles. MV Agusta can do it better than us.”
Stefan Pierer’s acquisition of Husqvarna continues to baffle me. You will note I say Pierer, and not KTM, bought Husqvarna, since the Austrian CEO used Pierer Industrie AG in the transaction as a means to help side-step European antitrust issues. After all, we can’t have Europe’s largest dirt bike manufacturer, nay largest total motorcycle manufacturer, gobbling up even more brands in the two-wheeled world. But, I digress.
For as big of an issue as it might be that KTM, by proxy, has swallowed another dirt bike brand, I still do not understand the thinking behind this madness. Dropping to four-digit yearly sales, it wasn’t until BMW started taking the off-road brand into the on-road market did signs of growth appear again at Husky.
Developing three road bikes (Husqvarna Nuda 900, Husqvarna Strada 650, & Husqvarna Terra 650), with three more concepts waiting in the wings (Husqvarna Moab, Husqvarna Baja, & Husqvarna E-G0), it is with even more confusion that we learn that Pierer & Co. intend to kill the Husqvarna Nuda project and its other street siblings.
Hero may be losing ground to Honda in its smallest displacement categories in its home market of India, but the Indian brand is poised for good growth abroad. Already linked to a number of projects with Erik Buell Racing, Hero MotoCorp is said to be also eyeing the African and Latin American markets for its next international business moves.
Hoping to enter a few markets in Africa and Latin America by the end of the company’s fiscal year, Hero MotoCorp is cagey on specifics regarding its overall international plan. However, in September of this year, Hero’s CEO Pawan Munjal stated that the company would start assembly plants in Kenya and Nigeria, tipping those two countries as the starting points for the Indian company’s African market invasion.
As for Latin America, Colombian market is favored to be the first vector, with Munjal also tipping that Hero MotoCorp would establish an assembly operation in the South America country, and then presumably work its way farther north. The position also easily positions the Indian company for expansion south into lucrative markets like Brazil, Argentina, and Peru.
Before yesterday afternoon, I had a hard time getting excited about Polaris. I think they make snowmobiles…but I’m not sure. This is how engaged with their brands I was, but of course this has all changed with the news that Polaris Industries, Inc. has acquired Indian Motorcycle for still undisclosed terms. Covering the business strategy side of motorcycling for the past two and a half years, I can tell you that there are few moves or decisions that strike me as truly inspired, but that events of the past 24 hours are surly Mensa-worthy.
Before I can talk about Polaris and Indian, I have to talk about another motorcycle company: Harley-Davidson. Kingdoms are fated to topple, but looking at Harley-Davdion and its dominance in the American motorcycle scene, let alone in popular culture, the legacy of the Milwaukee company seems assured to endure the test of time. So many companies have tried to be the next Harley, and all of their failures reinforce that concept that no company does “Harley” better than Harley-Davidson. Virtually creating the the legacy cruiser segment, and Harley-Davidson’s success in this regard is also the double-edged sword that is slowly prostrating the Milwaukee brand.
If I had to give one piece of advice to a company wanting to compete with Harley-Davidson, it would be real simple: don’t. Seemingly at the risk of painting itself into a corner, Harley-Davidson has refined its marketing message so thoroughly that it has honed in on a particular type of rider, and exhibits such a distinct persona of motorcycling that the company’s identity has found itself heading full-speed down a one-way street of branding. Thus the low-hanging fruit of competing with Harley-Davidson is to go after the brand where it cannot go.
There’s something happening on the electric side of the motorcycle industry, but no one is talking publicly about it. It’s a fragile idea, and it feels like even mentioning it could jeopardize its very existence. Because of this, I’ve wrestled with putting words down to discuss the topic, not wanting to be the person to spoil the whole thing.
However, lately so many influential people involved with electric motorcycles have independently brought up the subject with me that this discussion is not only becoming unavoidable, but perhaps airing the idea out in public will facilitate some sort of greater dialogue between the different parties. The concept that I’m referring to is of course consolidation.
Amidst all the fanfare over seeing Valentino Rossi wearing Rosso Corsa and sporting his new Dainese leathers, which surprisingly aren’t being sponsored by McDonald’s, one announcement has gotten little attention (and no, we’re not talking about Nicky Hayden). The 2011 Wrooom event signals the end of a three-year strategic plan that’s been going on internally at Ducati, which has seen the Italian company release 12 new models, increase sales across the board, and ship 36,200 motorcycles in 2010 alone.
Jeremy Burgess and crew are reportedly having a meeting with Ducati Corse in Bologna this week in order to discuss and finalize the basic outline for the Ducati Desmosedici GP11. The biggest question on the agenda is whether to use the “Screamer” or “Big Bang” motor for next year.
Other items likely to be discussed include the weight balance of the GP11 (something we already saw Burgess and Rossi working on in Valencia), and the forward fairing design. Tweets from Rossi’s Mechanic Alex Briggs confirm that he and Burgess were at least headed into Rome from Australia this weekend, seemingly confirming this report.
This week, the Piaggio group, which owns several brands including Aprilia & Gilera released its 2009-2012 strategic plan, where it told investors that the company intends to develop a range of sports bikes with mid-sized engines for the American market.
What that means exactly is fairly vague, as no other details beyond this simple statment were given, “The Group intends to work on the growth of different brand names, also through the development of sport bikes with mid-sized engines.”
Many have speculated that this means that Aprilia will be releasing a 600cc sport bike to go along side its , and that seems like a fairly logical conclusion.
And then, we remembered this rumor from last year, Gilera 600cc Supersport 2009 Fact or Fiction?