But shrinking the overall footprint does not mean less focus on overseas consumers. He said Harley should look to further shrink its global footprint to focus on markets that are the most profitable with the greatest long-term growth potential. There may be more cost-cutting to come, according to Nelson. "We increasingly like the investment case for Harley-Davidson," he wrote.
Meanwhile, Harley's new leadership has put in place operational changes that should drive growth in 2021, Kennison said, including streamlining its product portfolio, reducing dealer inventory 30%, and instituting ongoing annual costs savings of $115 million. Harley's strong brand, scale, and loyal customers give it an advantage over competitors, in his view. "Harley-Davidson is the most valuable motorcycle brand on the planet," wrote Craig Kennison, a senior research analyst and director of research operations at Baird, in a recent research note. The company's iconic brand remains attractive, even as its financial fortunes have fluctuated. Harley-Davidson's share price is at a 52-week high - like many companies in this extended bull market - but remains well below its all-time peak. "We expect the cost of electric vehicles to reach parity with internal combustion engine vehicles by the middle of this decade, as battery costs continue to decline." "Over time, we are bullish on the opportunity, given that we think lithium-ion battery costs are going to continue falling in the coming years and electric vehicles are going to be heavily subsidized by the new administration," Nelson said. The LiveWire retails for nearly $30,000, making it one of Harley's more expensive motorcycle offerings for the 2021 model year, which range from $9,500 to $49,000. "EV cycles are a rounding error at the moment," he said of the sales. "More of a concrete strategy on the electric bike, the Livewire, will be necessary," Citi analyst Shawn Collins said, but he added that EVs remain a longer-term rather than immediate financial priority. The LiveWire, Harley's sole current electric motorcycle, shows promise, but the company has been somewhat slow bringing it to market since its release in late 2019, he said. Nelson also was cautiously optimistic about the manufacturer's prospects in an increasingly electrified future. He added that Harley should pursue similar opportunities with other established players to widen its exposure in faster-growing Asian markets. Harley surrenders some of the margin for access to the distribution network in the fast-growing market." "Harley gets access to Hero's existing distribution network in India and Hero benefits from the sale of additional motorcycles at its dealerships," he said. He praised Harley's late-October agreement with Hero as beneficial to both parties. "We think they are on the right track," noted Garrett Nelson, senior equity analyst at CFRA Research. It closed out 2020 by entering into a distribution agreement with Indian motorcycle maker Hero and spinning off its electric bicycle operations to a new firm where it holds a minority stake. The company also laid off 700 employees to trim costs.
Our first exciting addition to the dealership will be a Harley-Davidson® Authorized Rental department! This will be sure to allow more people from all corners of Canada and beyond to experience the freedom and legend we have all come to love.Zeitz, and other new executives pushed the "Rewire" initiative, which has driven the manufacturer to exit international markets with low potential to focus on 36 high-growth-potential areas in North America, Europe and Asia. The building is the same, for now, but you can expect to see some refreshing changes in the near future as we learn and grow. As the new kids in town, we have been welcomed with open arms into the community and will reciprocate the warm welcome with awesome service guaranteed to create lasting bonds with our customers. In the spring of 2016, Grant decided to expand our namesake over the borders of Alberta and into the beautiful picturesque city of Kelowna, British Columbia. Gasoline Alley Harley-Davidson® has proven time and time again that its dedication to customer service knows no bounds. Not only has our flagship dealership grown in size but we have also crossed the world and added a location in Brisbane, Australia. In 30 short years, Gasoline Alley Harley-Davidson® has grown from a humble motorcycle shop with 10 bikes on the floor in downtown Red Deer to the beautiful 41,500 sq.
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