Harley-Davidson Inc. is putting the brakes on a $15,000 motorcycle it had originally planned to introduce at the end of this year.
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The Bronx streetfighter bike won’t be coming anytime soon, if at all, as the Milwaukee, Wisconsin-based manufacturer prioritizes another new model while grappling with sliding revenue during the COVID-19 pandemic.
“Harley-Davidson’s immediate new product focus in 2021 will be on the launch of Pan America, our first Adventure Touring motorcycle,” a company spokesperson told FOX Business. “We will not be launching the Bronx streetfighter motorcycle next year.”
TickerSecurityLastChangeChange %HOGHARLEY DAVIDSON28.26-0.59-2.05%
Harley did not answer FOX Business’ questions about whether the Bronx, which earlier this month was scrubbed from the company’s website, would ever be brought to market.
The bike, which debuted at the Milan Motorcycle Show last year, was a middleweight, powered by the new Revolution Max engine and expected to have more than 115 horsepower and 70 pound-foot of torque.
Analysts at the investment bank UBS speculate the Street 500 and 750 models may also be at risk after dealers reported not being given the lightweight models following poor sales performance. Harley did not respond to requests for comment regarding the status of other models.
“With Harley Davidson holding back production of new vehicles, one dealer we spoke with expects to see many more” dealerships close, wrote the UBS team, led by Robin Farley. They believe 50 stores have closed or are in the process of closing and that “significantly more” will shut their doors this year.
Harley last month announced a five-year strategic plan after the COVID-19 pandemic resulted in a $92 million loss in the three months through June, with motorcycle sales plummeting 27%.
The overhaul, dubbed The Hardwire, includes vast changes to Harley’s operating model, updated motorcycles, new products and a focus on accessories and general merchandise.
Additionally, the company will focus on 50 key markets, mostly in North America and Europe, and is working on plans to exit areas that are unprofitable.
The changes are projected to save the company $250 million this year and $100 million annually thereafter.
Harley-Davidson shares fell 22% this year through Monday, underperforming the S&P 500’s 6.21% gain.