Harley-Davidson to make small motorcycles in China

[Denim]

Harley-Davidson to make small motorcycles in China

 

 

Harley-Davidson Inc. is partnering with a manufacturer in China to make its smallest bike in decades for that fast-growing market, extending a strategy to build more motorcycles outside the U.S.

Harley wants to sell half its bikes abroad by 2027, up from 42% in 2018, as domestic Hog sales to a shrinking base of aging customers continue to decline.

The push overseas carries its own risks. The fastest-growing sales there are for smaller bikes in developing markets that sell for much less than the $25,000 black-and-orange machines coveted by American riders.

Moving production of some of those smaller bikes nearer the markets where they are sold has drawn criticism from union leaders and President Trump that Harley is giving up on U.S. manufacturing.

Harley has said that it intends to continue making all motorcycles sold in the U.S. domestically.

Harley said Wednesday that the new bike will be manufactured by Qianjiang Motorcycle Co. and have an engine displacement of 338 cubic centimeters. Most motorcycles sold in the U.S. have engines of 601 cubic centimeters or more, according to Harley.

 

The new offering will be the only Harley-branded bike not made at its own facilities. The Milwaukee-based manufacturer said that despite the small size, the bike will be a premium product in China that looks and sounds unmistakably like a Harley. It is due to make its debut by the end of 2020.

Qianjiang is majority-controlled by Geely, a Chinese company that owns the Volvo brand of cars and has a significant stake in Daimler AG, the parent company of Mercedes.

Harley said it chose Qianjiang as its local partner because of its experience producing small motorcycles and knowledge of emerging markets.

Harley said last June it would move more motorcycle production overseas to avoid European Union duties applied in response to Trump administration tariffs on foreign steel and aluminum. The company said bikes sold in Europe would be produced at its Thailand facility. The company still plans also to make bikes at that factory for sale in China and other Asian countries.

"We see tremendous long-term opportunity in China," Chief Executive Matt Levatich said on a call with analysts in January.

Harley said last year that it expects industry-wide sales of smaller bikes in Asia to grow 6% a year between 2017 and 2022, while it expects sales of many types of motorcycles in the U.S. to decline over that period. Still, Harley hopes to find new riders in the U.S., with dozens of new models scheduled to debut through 2027 including its first electric bike.

The company is relying more on its financing arm to underpin sales to new riders. Nearly two-thirds of its new-bike sales in the U.S. are now financed through its loan arm.

 

Write to Austen Hufford at [email protected]

 

https://www.marketwatch.com/story/harley-davidson-to-make-small-motorcycles-in-china-2019-06-19

[Denim]

They will of course be re branded as :

 

Heng Lee De Wu Sung

[Denim]

 

[Isaanbiker]

Qianjiang Motorcycle, founded in 1985, is a subsidiary of Geely Technology Group specializing in making and selling motorcycles, engines and components. In 2005, Qianjiang acquired Italian motorcycle manufacturer Benelli. Qianjiang’s products include motorcycles from 50 cc to 1130 cc and are exported to more than 130 countries and regions.

 

      More here: https://www.jsonline.com/story/money/business/2019/06/19/harley-davidson-and-chinese-firm-make-motorcycle-asian-market/1498935001/

 

 Qianjiang is a subsidiary of Geely, which owns Volvo and has a joint venture to assemble cars in China with Mercedes Benz parent company Daimler (DDAIF).

 

  https://edition.cnn.com/2019/06/19/business/harley-davidson-china/index.html

[ballpoint]

I think I saw one of their prototypes being tested

[NokNokJoke]

Oh, that's what a Harley fat boy looks like!

Sent from my Nokia 6.1 using Thailand Forum - Thaivisa mobile app

[Damrongsak]

On 6/22/2019 at 5:43 AM, Isaanbiker said:

... Qianjiang is a subsidiary of Geely, which owns Volvo and has a joint venture to assemble cars in China with Mercedes Benz parent company Daimler (DDAIF). ...

They own a majority stake in Lotus cars and almost 10% of Daimler stock.  They also own Keeway, a European-registered  motorcycle brand. 

[eisfeld]

It'll be a Harley branded Benelli bike, nothing really developed. Harley is looking for some quick cash and maybe the Chinese will buy them outright at some point. Their western home market is shrinking and the only hope for growth is in Asia. They have stagnated both in terms of development as well as diversification for way too long. They finally realized this and are scrambling to do a u-turn.

[Nickymaster]

a Benelli 302s branded as HD XR338....boring

[guzzi850m2]

Yes their customer base has declined for years, Vietnam vets that wanted a HD when they came home, younger people wants something more nippy and not so expensive.

They have hold on to the v-twin for far too long and they even abandoned the v-rod that was very powerful for a HD.

Hope they can turn the ship around in time.

[HoudiniXLogic]

Whatever they do hopefully they dont revive the Dyna as one of those small chinese bikes 

[canthai55]

You know what the worst thing to have happened to HD ?

They got popular. An 'IN' thing. Doctors, Dentists, Lawyers, 99%-ers.

Should of stayed Outlaw. Know who you were dealing with.

Not Yuppies. Mid Life Crisis AH-es.

[Rhys]

Honda frames on  / Lifan cycles.... good to know.

[spidermike007]

Not making America great again. This is entirely due to careless, reckless, and non visionary policy by Trump. He is driving more production overseas, and increasing costs for the average American. It is the equivalent of a massive tax hike, on the middle class in the US. He will not be re-elected. For a hundred good reasons. 

[eisfeld]

6 minutes ago, spidermike007 said:

Not making America great again. This is entirely due to careless, reckless, and non visionary policy by Trump. He is driving more production overseas, and increasing costs for the average American. It is the equivalent of a massive tax hike, on the middle class in the US. He will not be re-elected. For a hundred good reasons. 

Trump has nothing to do with this. Harley has seen a decline in its domestic market for many many years and its sole growth potential lies overseas. How is it even increasing costs for Americans? The bikes built in Thailand/China or for the local Asian markets because that lowers the prices for these markets by avoiding huge import duties for CBU bikes from America. The market for HDs bikes in the US has been shrinking a long long time because they kept building the same old bikes while interest from younger folks has shifted to for example naked bikes that weigh half, cost half while having twice the power and are more exciting to ride while throwing in a ton of features on top.

[spidermike007]

1 minute ago, eisfeld said:

Trump has nothing to do with this. Harley has seen a decline in its domestic market for many many years and its sole growth potential lies overseas. How is it even increasing costs for Americans? The bikes built in Thailand/China or for the local Asian markets because that lowers the prices for these markets by avoiding huge import duties for CBU bikes from America. The market for HDs bikes in the US has been shrinking a long long time because they kept building the same old bikes while interest from younger folks has shifted to for example naked bikes that weigh half, cost half while having twice the power and are more exciting to ride while throwing in a ton of features on top.

The tariffs are increasing the costs for Americans on hundreds of different products. Globalization is the future. It is here to stay. No PR slogan is going to stop the tide. If the US was competitive, more products would be made there. Trump and Ivanka made 95% of their products overseas. Is this not the epitome of hypocrisy? 

[eisfeld]

1 minute ago, spidermike007 said:

The tariffs are increasing the costs for Americans on hundreds of different products. Globalization is the future. It is here to stay. No PR slogan is going to stop the tide. If the US was competitive, more products would be made there. Trump and Ivanka made 95% of their products overseas. Is this not the epitome of hypocrisy? 

But this is about HD making small bikes in China. Do you think HD making a 338cc bike in the US would bring them nice profits there? With or without Trump, HD has to go through a big transition to stay alive.

[watcharacters]

 

Mr. Harley Davidson himself, Sonny Barger, doesn't seem to give a piss about Harley Davidson's  other than the image they convey.

 

I wonder how much his published feelings hurt the  HD company.

 

https://www.belfasttelegraph.co.uk/cars/hell-of-a-read-from-legendary-angel-28531796.html?r=RSS#ixzz0lu7ky3Cu

[CharlieH]

Off topic post removed