Harley-Davidson will invest between 190 and 250 millions of dollars every year until 2025 with the objective of underpin your growth and expand your profitability, according to the five-year strategic plan that the company has unveiled.
"By unlocking our full potential by prioritizing profit through leadership and enlivening our lifestyle brand with an enhanced product offering and digital capabilities, our strategic plan will bring an appetite for Harley-Davidson around the world."Said Jochen zeitz, the president and CEO of the American company.
The firm will invest “significant time and resources " to strengthen its market position in the three motorcycle segments that it considers most profitable and that have "Proven" a sustained demand for first and second hand sales. Specifically, the company will focus on the commercialization of touring, cruiser and three-wheeled motorcycles.
These three motorcycle classes will be developed through specific product launches for ten markets that Harley-Davidson has identified as the most successful.
On the other hand, the company's sales strategy will also focus on electrified vehicles. For this reason, you will create a independent division dedicated to electric motorcycles and focused on the development of its own technology.
In this way, Harley estimates to achieve revenue growth of around 5%, as well as a “sustained” improvement in operating margins and an increase in earnings per share of close to 10%.
RESULTS IN 2020
In 2020, the company managed to close the year with a net profit of 1,3 million dollars, despite the impact of the Covid-19 pandemic. In 2019, net earnings were $ 423,6 million, so the decrease was 99,7%.
"The entire Harley-Davidson team put in a tremendous effort in 2020 and we now have the right organization, structure, and strategy to make changes to our performance and enhance our position as the world's most desirable motorcycle brand.", Zeitz has added.
The turnover for the year as a whole was 3.264 million, 28,6% less than in 2019. At the time, selling, administrative and engineering expenses reached 895 million dollars, 12,2% less than a year earlier. The extraordinary cost of the restructuring was 119 million.
Likewise, due to lower sales, the net income obtained from the provision of financial services also fell, to stand at 199 million, 25,2% less.