This edition of AMD Magazine went to print the same day that
Harley had its MY2021 virtual unveil - the global ' Virtual Launch Experience ' - but the tightness of the schedule for this issue meant that these comments had to be written before knowing for sure just which models Harley would be fielding this year . So , my remarks this month are even more of a high wire act than usual . Apologies if anything said here doesn ' t fit with the 2021 model year news that appears elsewhere in this edition , but it will make for an interesting compare and contrast . On January 13 Harley issued another one of its ' Plan to Have a Plan ' news releases in which it stated that its ' Rewire ' had been completed and announced that WIRE II - its ' Hardwire ' 2021-2025 strategic plan - would be revealed to a breathless world on February 2 , along with its2020 Q4 and full year fiscals . While we already know that the latter won ' t be pretty ( regardless of how well the housekeeping has been going ), there is lingering uncertainty surrounding just how much noise the new five-year plan will make . Describing ' Rewire ' as the " critical overhaul of its business ," Harley described ' Hardwire ' as being a plan to " deliver profitable and desirable long-term growth and shareholder value ." ' Hardwire ' will be Harley ' s second attempt at nailing a strategic 5-year plan . In time-honored Soviet Republic of ' Politburo Knows Best ' style , the last such plan - ' More Roads to Harley-Davidson ' - eschewed taking a close look at where the global motorcycle industry was headed , with the result that it only lasted a couple of years before its failure cost former CEO Matt Levatich his job . While Harley has not quite yet completely airbrushed Levatich from its history , new CEO Jochen Zeitz wasted no time announcing the plan ' s demise and implementing the ' Rewire ' as a company-wide , no holds barred reappraisal of the company ' s ability to survive the ongoing issues it faced and set " a strong foundation " for the planned new plan . As an outsider looking in , dealer network development notwithstanding , Zeitz strikes me as a much more outward looking and consultation-oriented manager who consumes his H-D brand concepts in a rather more context-rich formula than those who preceded him . I don ' t see him as one who binge-drinks the Bar ' n Shield Kool-Aide , but instead as someone who understands that it is a finite , indeed shrinking market , and that stopping others taking his business is as important as trying to take business of others . He appears to be a balanced diet capitalist who doesn ' t measure how well he is doing by weighing up how badly ' the other guy ' is doing . Some of his management team ' s actions so far , especially as they affect the hardcore legacy dealers in the network , may suggest otherwise , but he does appear to understand that just because the brand ' s hardcore customer base is aging out doesn ' t mean he should euthanize those who could still support him for some time yet . “ I am confident the substantial changes we made with the ' Rewire ' have set us
leaner and more aligned
up to successfully execute our strategic plan ," Zeitz is quoted as saying . " We are now a leaner , more aligned organization , and we are making decisions faster . The right structure , leadership and principles are in place , and we are ready to execute our strategic plan and continue our H-D # 1 cultural journey to become a high-performing company .” The company says that , as a result of the ' Rewire ', it executed " a much needed reduction in organizational complexity ." One therefore hopes that the wasteful duplication that has plagued the company for decades has been eliminated and that the " increased speed " with which it can " implement plans and decisions " and that the " simplicity , agility and efficiency " the new operating model and organizational structure " across every function " actually means fewer people doing more real work with greater responsibility for outcomes and less blah blah . Harley says it has " reset its global business , resourcing and prioritizing the markets with the highest potential " and is expanding its business focus " beyond motorcycles " with a " strong commitment to newly established business units for Parts & Accessories and General Merchandise " and that it has " streamlined its product portfolio and rebuilt its go-to-market efforts for maximum impact ." Okay , fine - but please , no return to golf cart manufacturing , boats , lawn mower engines or drone rocket motors . Though maybe the Utilicar might be worth a refresh for final mile delivery duties ? Harley states that of equally critical focus has been a need to " enhance and protect the value and desirability of our products by changing the approach to supply and inventory management with a focus on a powerful and profitable dealer network ." Yes , sure , but Harley needs to be a lot more careful about squaring that against bringing the legacy along for the ride . Harley says that the actions taken and changes made as a result of the ' Rewire ' are expected to deliver ongoing gross cash savings of approximately $ 115m , starting in 2021 , which is good . But good enough ? In the past decade of changes , that is the kind of money Harley has shown it can waste before breakfast , so it is neither a deal maker nor a deal breaker . The company says it will now " execute the ' Hardwire ' grounded in desirability
Robin Bradley Co-owner / Editor-in-Chief robin @ dealer-world . com
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4 AMERICAN MOTORCYCLE DEALER - FEBRUARY 2021 www . AMDchampionship . com