LiveWire, Harley-Davidson’s electric motorcycle, is being spun out as a standalone brand, complete with a new logo and brand identity.
Harley-Davidson first unveiled the LiveWire electric motorcycle in 2018 with a listing price of $29,799, placing it on the higher end for motorcycles. It went into production the following year, with some bumps, including a brief halt to production due to a charging-related problem on one of the motorcycles. The “first LiveWire-branded motorcycle” will launch on July 8. Its public debut will come a day later at the International Motorcycle Show, Harley-Davidson said Monday.
Dealers had trouble selling the bike to younger, newer motorcycle riders, Reuters reported in 2019. Part of the issue was the price, which is in the same category as a Tesla Model S, dealers told the news wire at the time. Given that Harley-Davidson’s core constituency is still baby boomers, who are beginning to age out of the products, the question is whether a new spin out and rebranding can attract younger (and affluent) riders.
The two companies will share technological advancements and LiveWire will “benefit from Harley-Davidson's engineering expertise, manufacturing footprint, supply chain infrastructure, and global logistics capabilities,” Harley-Davidson said Monday.
LiveWire will have dedicated showroom locations, starting in California, and a “virtual” headquarters with hubs in Silicon Valley and Milwaukee.
Harley-Davidson is one of the most recognizable motorcycle makers in the country, but its sales have struggled in recent years. The company’s annual revenue dropped nearly 24% in 2020 compared to the previous year, though some of that is likely due to the economic effects of the coronavirus pandemic. The company also cut 700 jobs from its global operations last summer, in a restructuring plan known as “The Rewire.”
More recently, the company debuted a five-year strategic plan dubbed “The Hardwire.” Included in the plan is to further invest in the electric market. The company has already started moving in this direction with the release last November of its Serial 1 Cycle e-bicycles. Its Rush/Cty Speed model can hit speeds of up to 28 mph and comes in at $5,000.