LiveWire: Harley-Davidson's New Electric Motorcycle Brand

LiveWire Transitions to Independent Electric Motorcycle Brand

LiveWire, the electric motorcycle developed by Harley-Davidson, is now operating as a distinct and independent brand. This transition includes the adoption of a new logo and a completely refreshed brand identity.

Initial Launch and Challenges

Harley-Davidson initially showcased the LiveWire electric motorcycle in 2018, with an original price point of $29,799. This positioned it within the premium segment of the motorcycle market. Production commenced the following year, though not without initial setbacks.

A temporary suspension of production occurred due to a charging system issue identified in one of the delivered motorcycles. The first motorcycle to be released under the LiveWire brand is scheduled for launch on July 8th.

Its official public unveiling will take place on July 9th at the International Motorcycle Show, as announced by Harley-Davidson on Monday.

Market Reception and Demographic Considerations

Reports from Reuters in 2019 indicated that dealerships encountered difficulties in marketing the bike to younger, less experienced motorcycle enthusiasts. The high price tag, comparable to that of a Tesla Model S, was cited as a contributing factor.

Considering Harley-Davidson’s traditional customer base largely consists of baby boomers, who are progressively aging, the success of this spin-off and rebranding hinges on attracting a younger, more affluent demographic.

Synergies and Resource Sharing

A collaborative relationship will continue between the two companies, with shared technological advancements. LiveWire will leverage Harley-Davidson’s established engineering expertise, manufacturing capabilities, supply chain network, and global logistics infrastructure.

Retail Strategy and Headquarters

LiveWire will establish dedicated showroom locations, beginning in California. Additionally, the brand will operate a “virtual” headquarters, with operational hubs located in Silicon Valley and Milwaukee.

Harley-Davidson’s Recent Performance

Harley-Davidson remains a highly recognizable motorcycle manufacturer, but has faced challenges with sales figures in recent years. The company experienced a nearly 24% decrease in annual revenue in 2020 compared to the prior year.

This decline was partially attributed to the economic impact of the coronavirus pandemic. As part of a restructuring initiative called “The Rewire,” the company reduced its global workforce by 700 positions last summer.

Future Strategy and Electric Market Investment

More recently, Harley-Davidson unveiled a five-year strategic plan known as “The Hardwire.” A key component of this plan is increased investment in the electric vehicle market.

The company has already begun expanding its presence in this sector with the November release of its Serial 1 Cycle e-bicycles. The Rush/Cty Speed model boasts a top speed of 28 mph and is priced at $5,000.