The Rewire
The Rewire is a critical overhaul of our business, setting a strong foundation for the company including a new operating model that realigns the organization for performance, reduces costs and sharpens focus on profitable products and markets.
Through the first nine months of 2020, progress has been made across each of the key elements of The Rewire Playbook:
Key Elements of The Rewire
New operating model: reduced complexity and increased speed
- Eliminated duplication and complexity across global operations
- Refreshed leadership structure; added new capabilities and fresh perspectives
Protecting value - Q3
- Reduced gap between new and used H-D motorcycle prices
- Q3 global dealer inventory down 30%
- Focusing on products and initiatives that add value – nearly eliminated promotions and discounting
Reset global business and focus on high-priority markets
- Focus on ~50 highest priority markets
- Investment and resources aligned with projected market potential
Refined motorcycle line-up and high-impact product launches
- Streamlined product portfolio by 30%+
- Delivering first Adventuring Touring motorcycle, Pan America, in 2021
Expanded focus beyond motorcycles
- Established new business units with dedicated leadership for P&A and GM
- P&A – Tightly align strategy with new motorcycle launches, target 15% SKU reduction
- GM - Strengthen link to our brand heritage, reestablish design and quality principles, focus on most profitable SKUs
The Hardwire
The Hardwire is Harley-Davidson’s forthcoming 2021-2025 strategic plan to deliver profitable growth and shareholder value based on expanding the desirability of Harley-Davidson. Guided by our vision and mission, the basis of The Hardwire is Harley-Davidson as the most desirable motorcycle brand in the world and the company that defines motorcycle culture globally.
Desirability provides the framework for our work and success measures. It will be organized around desirable:
- Growth strategy for motorcycles, P&A and GM in priority markets
- Customer focus inclusive of distinct products, brand and purchase experiences
- Operations that are high-performance, lean and efficient
- Impact with emphasis on inclusive stakeholder management and delivering long-term value
- Workplace that is diverse, inclusive and built around top talent rooted in a high-performance, winning culture
Desirability defines success. The Hardwire will target growth that is focused and profitable across the businesses, rooted in a clear understanding of sources of growth associated with value.
