The H-D 21 Virtual Launch

H-D 21 Virtual Broadcast

The H-D 21 virtual broadcast was an all digital event to announce new 2021 motorcycles, parts and accessories.

The new model launch yesterday came less than a year after the motor company reported plans to streamline its product portfolio by 30% while overhauling its launch timing (historically every August) and go-to-market practices for maximum impact.

As soon as the media, dealers and consumers logged into the Harley-Davidson online portal, I knew this year’s product launch was going to be … different.

The event opened with a long video montage on the joys of the motorcycling experience.  I watched Jason Mamoa gush about his Harley family, or “Ohana” — you’ll remember him as Aquaman.

As someone who has served time in the trenches creating marketing campaigns, this was the traditional entertainer-as-a-promotional vehicle initiative.  The idealized figure introduced Harley-Davidson CEO Jochen Zeitz who teased the audience with a number of motorcycles and projects that he apparently can’t speak about yet.

Huh?

As the motorcycle launch wore on, with a selection of motor company smooth-talking prognosticators from various departments sharing bits of information about updates to Cruiser, Touring and CVO models, the value of an all-virtual Harley-Davidson product roll-out actually became less clear. The new products, which we usually look forward to, felt less exciting. It’s hard to determine the viability of any product by watching a slick video about it in a browser. The discussions about the Harley-Davidson future of motorcycling felt less like revelatory conversations and more like a TED Talk that I’d scroll past in my Twitter feed.

For me the serendipity of discovery was gone. One of the most exciting parts of a product launch has been finding out about something or learning about something new through pure chance. At a virtual H-D 21, that’s a virtual impossibility.

Street Bob 114

But, I’ve digressed.

Cruiser Updates
Harley stated that the Street Bob 114 is the lightest Softail model to be equipped with the Milwaukee-Eight 114 engine. The legendary Fat Boy receives refreshed styling for 2021, getting brilliant chrome instead of satin chrome on the engine and exhaust, the front end, the rear fender struts and console.

Touring Models
The 2021 Touring lineup includes three baggers that feature the Milwaukee-Eight 114 motor: Road King Special, Road Glide Special and Street Glide Special. The Street Glide Special and Road Glide Special get new two-tone paint options, and a choice of a blacked-out or bright chrome styling treatment – a choice between dark and sinister, or brilliant and more traditional.

Fat Boy

Road King Special and Street Glide Special models get a new brilliant Daymaker LED headlamp. All Harley-Davidson Touring models that are equipped with the colour touchscreen Boom! Box GTS infotainment system that now have Android Auto and Apple CarPlay compatibility. The feature requires a wired connection to a smartphone rather than going through Bluetooth.

CVO Models
Custom Vehicle Operations (CVO) motorcycles are the poster child for Harley-Davidson’s styling and performance. The Milwaukee-Eight 117 V-Twin engine is exclusive to CVO models as standard equipment. For 2021, the CVO Street Glide and CVO Road Glide models receive all-new Harley-Davidson Audio provided through an exclusive partnership with Rockford Fosgate.

CVO Limited

The audio systems, featuring speakers and amplifiers, were designed specifically for Harley-Davidson motorcycles. These components will also be made available through Harley-Davidson Genuine Motor Parts & Accessories for 2014 and newer Touring models equipped with a Boom! Box infotainment unit.

The 2021 CVO models (CVO Street Glide, CVO Road Glide, CVO Limited and CVO Tri Glide) all feature new paint options and styling features. All four CVO models are also equipped with RDRS safety equipment, including Cornering Enhanced Electronic Linked Braking, Cornering Enhanced ABS, Cornering Enhanced Traction Control, Drag-Torque Slip Control, Vehicle Hold Control, and Tire Pressure Monitoring System.

Pan America 1250

Pan America Global Reveal
The upcoming and over exposed Pan America 1250 adventure tourer was previewed in the virtual launch broadcast, but the most important details weren’t provided as it’s official launch is set for February 22nd. Mark your calendar and register for the event HERE.

It will be interesting to compare how this virtual launch broadcast performs in attracting potential motorcycle buyers and if it will drive demand for products or make an emotional connection to the Harley-Davidson brand.

It’s been my experience that: “People don’t buy “what” you do, they buy “why” you do it.”  — Simon Sinek

Photos courtesy of Harley-Davidson

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Harley-Davidson (Re) Introduces The CVO Road Glide

2020 CVO™ Road Glide®

Mid-way through the motor company 2020 model year — Harley re-introduces a CVO™ Road Glide®.

Similar to the 2019 model, the re-launched 2020 CVO (Custom Vehicle Operations) motorcycle is packed with aesthetic and performance features.  Of course, there’s the 117-cubic-inch Milwaukee-Eight Big Twin (includes color accented Rocker Box Lowers), a heavy breather air cleaner with a factory rating of 128 lb.-ft. of torque which is five percent more than 114-inch engine.

The CVO Road Glide’s sub-27-inch seat height will provide a wide variety of riders a solid feel in the saddle.  There is a high-output BOOM!™ GTS infotainment system, as well as a 21-inch front and 18-inch rear wheels, finished in Gloss Black and Contrast Smoked Satin.  New for several 2020 touring models and now included on the CVO Road Glide is the subscription-based cellular connectivity, where you can connect to your bike through a smart phone using the Harley-Davidson® App and check the bike’s vitals including fuel level, get tamper alerts and stolen-vehicle tracking, and more.  The motorcycle is complemented with the “phat” heated Kahuna™ collection hand grips and controls.

CVO™ Road Glide® Heavy Breather

What might be behind this un-typical launch?

It’s called twelve consecutive quarters of U.S. sales decline. As previously reported, Harley-Davidson motorcycle sales slipped again in 2019 despite new models and expanded overseas operations.

In addition, it’s part of their “More Roads to Harley-Davidson” accelerated resuscitation plan for growth and part of the 2017-2027 Objectives — Launch 100 new high-impact Harley-Davidson® motorcycles — which allows management to check a box for investors on a “new product.”

The good news is that if you want a 2020 CVO (only available in Sand Dune) parked in your garage, it’s going to cost you LESS!  Yes, less. The MSRP is $40,999.00, a reduction of $1,340.00 than last year.  The MSRP on the 2019 CVO Road Glide was $42,339.00 and for comparison the 2018 CVO Road Glide was $42,949.00

CVO’s are the badge-and-shield brand’s shining beacon on the hill!

It’s a borrowed analogy from John Winthrop, the first governor of Massachusetts who, upon setting sail for New England in 1630, wrote that, “We shall be as a city upon a hill, the eyes of all people are upon us.”

The eyes of motorcycle enthusiasts are upon Harley-Davidson…

Photos courtesy of Harley-Davidson

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Is The Juice Really Worth The Squeeze

2020 CVO™ STREET GLIDE®

It’s a slang expression and in general has the meaning of knowing if something is worth the trouble of trying to get it.

And in this case I’m thinking about the MSRP on Harley-Davidson’s 2020 lineup.

In 2019, the 10 models in the touring family: Road King; Street Glide; Road Glide; Road King Special; Electra Glide Ultra Classic; Street Glide Special; Road Glide Special; Road Glide Ultra; Ultra Limited Low; and Ultra Limited had starting prices which ranged from $19,289 to $28,089.  The new 2020 models starting prices range from $19,499 to $28,699.  The three 2019 CVO (Custom Vehicle Operations) models: CVO Street Glide (starting at $40,889); CVO Road Glide (starting at $42,339); and CVO Limited (starting at $43,889). The new 2020 CVO models are priced below.  I’m no Financial Samurai, but that’s getting squeezed!

But wait a minute.  Maybe it’s time to just accept the reason why the average new motorcycle price is so high is because the economy is booming and people seem to have money to spend. If people weren’t cashed up, prices would decline instead of rising to these historical levels.

So, let’s look briefly at the new 2020 models…

2020 CVO™ TRI GLIDE®

Harley-Davidson launched new models and a saddle-bag full of new technologies that are featured on the Low Rider® S model, the all-electric LiveWire™ model, a new CVO™ Tri Glide® model and a “re-styled” Heritage Classic.  Not mentioned in Harley-Davidson’s press release were the models which will not be returning for 2020: the Superlow, 1200 Custom and Forty-Eight Special, the Electra Glide Ultra Classic, the Ultra Limited Low and the CVO Road Glide. Also gone is the Road Glide Ultra, which is officially being replaced by the Road Glide Limited.

The LiveWire motorcycle as previously noted is powered by the all-new H-D Revelation™ permanent-magnet electric motor rated at 105 horsepower (78 kW) and producing 86 ft. lbs. of torque.  You may recall that back in January, Harley-Davidson made a splash at the Consumer Electronics Show (CES) in Las Vegas, with the LiveWire and stated they would start deliveries of the $29,799 all-electric motorcycle by this fall.  The motorcycle was initially rolled out for “beta testing” back in 2014 to H-D brand fans, but since then, the motor company has been working on fine-tuning the design and overall electrification.  Unlike an internal combustion engine (ICE), the H-D Revelation can produce 100 percent of its rated torque the instant the throttle is twisted, and 100 percent of that torque is always available, resulting in incredible, acceleration for an exhilarating ride. The LiveWire can accelerate from 0-60 mph in 3.0 seconds, and 60-80 mph in 1.9 seconds. And the high-voltage battery provides 146 miles (235 km) of city range or 95 miles (152 km) of combined stop-and-go and highway range as measured using the MIC City and MIC Combined tests.  The H-D Revelation motor is cooled by a water jacket, with coolant circulated through a small radiator, and is positioned longitudinally and low in the chassis to lower the motorcycle’s center of gravity, and aid maneuverability.

2020 Low Rider® S

The Low Rider S focuses first on performance. This motorcycle places emphasis on power, handling, and enhanced rider control, while maintaining the typical character of the Harley-Davidson. The motorcycle employs the Softail chassis, enhanced by premium suspension components tuned for aggressive riding and powered by the Milwaukee-Eight 114 engine.  The Low Rider S is really rooted in the legacy of the Low Rider models of the 1980s, that has a devoted following which spread world-wide from origins in Southern California.  The 2020 Low Rider S model has a base price of $17,999.

The Heritage Classic model has been restyled for 2020 “to give the bike a more appealing and nostalgia look of Harley-Davidson chrome.” The Heritage Classic is powered by the same Milwaukee-Eight 107 powertrain as the 2019 model and retains the same mechanics as its predecessor.  The base price for for the 2020 Heritage Classic is $18,999.

The Road Glide Limited, which replaces the Road Glide Ultra will offer the rider new premium luxury-touring features. The model is intended for long-haul touring and is equipped with the distinctive aerodynamic Road Glide shark-nose fairing with triple split stream vents that limit rider head buffeting. The motorcycle is powered by the standard Milwaukee-Eight 114 engine. The base price for the Road Glide Limited is $28,299.

2020 CVO™ LIMITED

The CVO Tri Glide is the newest addition to the company’s line of premium CVO motorcycles and labeled as the ultimate three-wheel motorcycle.  The trike will uphold the CVO standard for advanced technology, exclusive components, and attention to detail that is expected of CVO’s. The CVO Tri Glide will utilize the Milwaukee-Eight 117 powertrain that is unique to CVO models.

Base price for the 2020 CVO Tri-Glide is $48,999.
Base price for the 2020 CVO Limited is $44,039
Base price for the 2020 CVO Street Glide model is $40,539

The H-D™Connect service rolled out which is a cellular telematics control unit (TCU) that functions as an (LTE) enabled modem connecting the 2020 LiveWire™ and select 2020 Touring models to the cloud.  The service is built on the IBM Cloud and Panasonic’s OneConnect™ service.  It’s a ($12/month fee-based service – FREE 1st year) service that remotely connects the rider to their motorcycle through the Harley-Davidson App via a smart phone.  The built-in cellular connectivity with the IBM Cloud, IBM artificial intelligence (AI), analytics and Internet of Things will enhance the rider’s experience as well as keep the rider in the know with motorcycle status, notifications and alerts.  The press release, web site and product documents note that the service is not available in all markets and availability will vary.

H-D™ Connect

The motor company also launched the new Reflex™ Defensive Rider Systems (RDRS) — unlike previous model years Linked Brembo Brakes with ABS, the new system is a collection of technology designed to match motorcycle performance to available traction during acceleration, deceleration and braking, utilizing the latest chassis control, electronic brake control and powertrain technology.   With features like: Cornering Electronically Linked Brakes, Cornering-ABS, Cornering-Traction Control with modes, Drag Torque Slip Control, Vehicle Hold Control and Tire Pressure Monitoring (TPMS) the motor company upped it’s game to give the rider confidence and control in less-than-ideal situations.  Important to note is that RDRS is not a system to directly influence vehicle direction. This is a key difference between motorcycle RDRS and Automotive Stability Control. The rider is ultimately responsible for speed, steering, and path corrections.  The RDRS features are standard on the 2020 LiveWire, Trike and CVO models, and optional on all 2020 Touring models in the U.S. (except Electra Glide®Standard models).

Boom!™ Box GTS infotainment system has evolved with the latest look, feel and function of mobile phones and tablets and with durability and features designed specifically for motorcycling. Every element has been optimized to enhance the rider’s interaction with the motorcycle and connectivity.  Most notable is the GTS processes faster, has more memory and is much more responsive.  Start-up time is reduced from 21 seconds to 10 seconds,  Time to FM Audio is less than 6 seconds and Route calculation time is reduced from 10 seconds to 2.5 seconds.  The GTS replaces the Boom!™ Box 6.5GT system on MY19 Ultra Limited, Ultra Limited Low, Road Glide Ultra, Road Glide Special, Street Glide Special models, and is a factory-installed option on Street Glide, Road Glide and Ultra Classic models.  What DID NOT change and deserves a shout-out is the current audio sources are maintained: AM, FM, WB, XM, A2DP Bluetooth streaming and Digital Mass Storage compatibility!

Heather Malenshek, Harley-Davidson Chief Marketing Officer stated that “Harley-Davidson offers riders a host of new models, gear and accessories for 2020 as we leverage our unmatched ability to blend style, performance and technology in products designed to elevate the motorcycling experience.”

Clearly rider and motorcycle assistance systems are rolling out faster and getting better at Harley-Davidson.  The advance technologies provide incremental improvements and make for inspiring marketing collateral.  But, the picture looks different for more price-sensitive customers when you shine a “Daymaker” headlamp on cost competitiveness.

The accelerating motorcycle costs are a good reminder that whatever you’re going through–whatever financial pressure or squeezing stress–the question at the end-of-day is–is it worth what it produces? i.e., is the juice really worth the squeeze?

UPDATED: October 1, 2019 — Previously neglected to include the role Panasonic Automotive has in connecting Harley riders to their motorcycle through a cellular connection to the telematics control unit (TCU) utilizing Panasonic’s OneConnect™ service. The OneConnect™ service complements the Harley-Davidson App and the new Harley-Davidson Connect service. Together, these systems link LiveWire riders with their motorcycle through their smartphone providing features such as motorcycle status, tamper alerts and vehicle location and service reminder and notifications.

References:
H-D Media Kit: (HERE)
More Roads to Harley-Davidson Plan: (HERE)

Photos courtesy of Harley-Davidson

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Harley-Davidson Pricing Heartburn

2018 CVO Lineup

It’s arrogant at best and obscene at worst.

I’m talking about the CVO pricing that Harley-Davidson management approved for the 2018 models.  Now that we’ve had a couple days to digest the euphoric feeling of the new 2018 models, we’re left with a gnawing and burning sensation in our stomach that even a spoonful of sodium bicarbonate won’t put an end too.

I can’t help but wonder if the new head of design, Brad Richards, who replaced Willie G. after more than 40 years is singing that new Taylor Swift single, “Look What You Made Me Do,” after going full-tilt Goth and dripping black on so many of the new designs.

2018 CVO Street Glide

Unless you’ve won the lotto, you’ll be crunching numbers very late into the night to learn how to squeeze a new Harley CVO into the garage without breaking the discretionary entertainment budget!  They are expensive!  In a small way, we have Polaris to thank for exiting the market with Victory motorcycles and reducing Harley-Davidson pricing pressures.

I’m reminded of the Mylan EpiPen scalping gone wrong in the pharmaceutical industry.  Will we see the motor company deploy industry “experts” to justify the value of overtly expensive models and purport to quantify the net social benefits of belonging to the riding “lifestyle?”  If they do, it’s likely to be based on a complicated economic model and include scholarly speeches, articles, blogs and conferences to lend prestige on the whole “we’re doing everything in manufacturing to keep our prices down” lobbying blitz.

2018 CVO Road Glide

The fact is, Harley-Davidson is a luxury brand cleverly disguised as a blue collar, workin’ man’s brand.

Millions of marketing dollars are spent every year on campaigns to drive home the point that it’s name is synonymous with regular, working class folk.

But, have you seen their luxury price increases on the 2018 CVO models?  Harley-Davidson has exceeded the price range of BMW and Ducati, two brands with a public perception of being expensive toys for the upper-class.

Most of us will never get to experience the CVO results of Harley-Davidson’s labors for ourselves, thanks to prices ranging from $40,000 to $43,000.  Specifically the MSRP pricing is:

2018 CVO Road Glide — $41,399 (not available in 2017)

2018 CVO Street Glide — $39,949 (+$2150 above 2017 price)

2018 CVO Limited — $42,949 (+$1950 above 2017 price)

2018 CVO Limited

I’ve written about Harley-Davidson’s sales and marketing woes.  Much of it outside their control, but we can’t absolve the motor company of any responsibility for these arrogant price hikes.  Harley-Davidson owns this one.  The pricing backlash has already begun across the motorcycle forums and the whole thing leaves a bad taste in consumers’ mouth — of all age groups!

For example, the CVO Limited jumped $1950 from 2017 to 2018.  Beyond paint, there are NO significant upgrades on the 2018 model.  Looking at web pages indicates the only “NEW” item was the addition of a Bluetooth wireless connection module to the stereo.  This may have been as simple as a firmware update to the BOOM stereo system.  Let’s assume it was a hardware addition.  A Cardo bike-to-bike intercom with dual handsfree to connect up multiple bluetooth-enabled mobile phones retail for less than $300.  That would mean the price increased $1650.

Let’s look at the 2018 CVO Street Glide — Harley-Davidson removed the radiator and abandoned water cooled heads as the lowers now have speakers along with another power amp to drive the sound “bubble.”  They’ve provided similarly configured models in the past.  The company added Bluetooth wireless connection to the stereo and created a “NEW” Gun Metal grey paint, however, they jacked the price up over $2100 above the 2017 model.

The CVO Road Glide is a bit trickier to do a price comparison as the last time they offered a similarly stripped down version of the CVO Road Glide was back in 2013 (remember the Cat Whisper paint stripe scheme which was priced at $33,999?) and it was based on the old 110cu.in. engine, old radio and outdated fairing, frame etc.  Harley-Davidson skipped a year and then for 2015 they offered up that behemoth CVO Road Glide Ultra at $36,649 which included all the accouterments which was based on ‘Project Rushmore’ enhancements that other touring bikes received.  It’s not a pure apple-to-apple comparison, but this basically equates to a $7,400 price increase over a 5 model year period.  Which is incredible given the low rate of inflation and manufacturing cost reductions.

Are the financial analysts really scratching their heads wondering why riders don’t line up to lay down these $$ on a motorcycle?

In fairness, Harley-Davidson does make some decent, affordable bikes in their Street lineup.  But they still have a bit of that stigma — which is backed up by most of their current lineup — of putting heritage before innovation and that’s turning some of the riding youth away from the brand.  Harley isn’t as strong a competitor in terms of bang-for-the-dollar with the likes of Triumph, Ducati and the Japanese manufactures.

Even the blue collar, workin’ man who can afford a nice bike will certainly take a look at the local Indian dealer and realize that the competition is making all-American cruisers that indeed have an appeal and nearly every model is priced less than a new Harley-Davidson.

It boggles the mind how according to Harley-Davidson management, the new 2018 motorcycles are less expensive for Harley to manufacture, with simpler frames and more commonality of parts yet they’ve rolled out what looks like an orgy of price scalping.

Photo courtesy of Harley-Davidson

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