Motorcycles: Is Harley-Davidson Speeding Back to Success With Its Adventure Touring Bike?

Adventure Motorcycle Review: The Harley-Davidson Pan America 1250

  Adventure Motorcycle Review: The Harley-Davidson Pan America 1250 Harely-Davidson has been making iconic motorcycles since 1903, but this is its first foray into adventure bikesMotorcycles have long been able to access remote areas of the world. Thrill-seekers like Ewan McGregor and Charley Boorman chose the BMW R 1200 GS to take them on a trip around the world. And the Indian military uses the Royal Enfield Himalayan to patrol mountain passes as high as 18,700 feet above sea level. They are highly-capable machines that can go places larger vehicles simply cannot; ideal for solo adventurers looking to get off-pavement.

After years of financial stalls and skids as its large, expensive bikes failed to appeal to younger customers, Harley-Davidson (NYSE: HOG) might be back on the high road to success thanks to its new strategic direction. The company's stock price started on a swift bull run after it released its third-quarter earnings report, beating expectations on the top and bottom lines.

Is Harley-Davidson Speeding Back to Success With Its Adventure Touring Bike? © Provided by The Motley Fool Is Harley-Davidson Speeding Back to Success With Its Adventure Touring Bike?

Investors seem confident in new CEO Jochen Zeitz's strategy, but has the famous maker of "hogs" really turned the corner on its long-term woes? Here are two reasons the company could have smooth riding and strengthening growth ahead.

I Rode the Equinox+ SoulCycle At-Home Bike for 30 Days, Here’s How it Stacks Up to Peloton

  I Rode the Equinox+ SoulCycle At-Home Bike for 30 Days, Here’s How it Stacks Up to Peloton If you live and breathe SoulCycle, this bike is probably worth the investment. Buy: SoulCycle At-Home Bike $2,500.

1. Adventure touring: the wave of the future?

Harley-Davidson delivered forecast-beating third-quarter results on Oct. 27, surpassing Wall Street expectations on both revenue and earnings. It also delivered more bikes than analysts expected, with third-quarter shipments rising 11.5% year over year from 43,983 in 2020 to 47,941. Shipments also narrowly outperformed consensus estimates of 47,330 by approximately 1.3%.

A rider driving their adventure touring motorcycle fast along a road between green fields. © Getty Images A rider driving their adventure touring motorcycle fast along a road between green fields.

While the Grand American Touring motorcycle remains Harley-Davidson's backbone, the new Pan America is leading the charge into the swiftly growing "adventure touring" market. Adventure touring motorcycles combine "sporty" performance with rugged construction, off-road capability, and long on-road range, making them a hybrid between off-road dirt bikes, sport motorcycles, and larger, long-distance on-road only touring bikes.

Harley-Davidson unveils chic vintage-style e-bike – but you'll have to be quick to grab one

  Harley-Davidson unveils chic vintage-style e-bike – but you'll have to be quick to grab one The S1 Mosh/Tribute takes design cues from the oldest known Harley, which was built in 1903.Harley made its first move into e-bikes in October 2020, when it announced the launch of Serial 1 – a dedicated spin-off company that takes its name from the oldest-known Harley.

It has new, aggressive styling and a suggested retail price under $20,000. A cutting-edge adaptive ride-height feature makes it easier for riders (and shorter riders in particular) to handle the bike. And the Pan America's self-adjusting suspension gives a reliably similar ride regardless of how heavily laden it is with passengers and luggage, according to reviews by such sites as Task & Purpose.  And the motorcycle looks to be competitive with other companies' entries in the same market.

The Pan America is the No. 1 selling adventure touring model in the U.S. since its launch, chief financial officer Gina Goetter said during the company's third-quarter earnings conference call. Goetter said the bike now has a 16% market share in the adventure touring category, an increasingly popular part of the bike market. Market research firm Market Intelligence Data forecasts an approximately 10.1% compound annual growth rate (CAGR) for the sector through 2027.

The New Specialized Crux Might Just Be The One Bike To Do It All

  The New Specialized Crux Might Just Be The One Bike To Do It All Is it a gravel or a cyclocross bike? It doesn't matter because it might just be the best drop-bar bike ever. © Trevor Raab specialized crux Takeaway: Using what they’ve learned from the successful Aethos road bike, Specialized has remade the Crux into quite possibly one of the most versatile and exceptional drop-bar bikes (maybe) ever.The standard 10r carbon frame is exceptionally light at 825g. At 725g, the S-Works version is claimed by Specialized to be the lightest gravel frame in the world.English threaded (BSA) bottom bracket, a round 27.

With the modern, affordable, adaptable Pan America, Harley is aiming squarely at a motorcycle sector with juicy gains and a long runway of growth. And sales figures suggest it may have scored a bull's-eye.

It also just released the Sportster S, another motorcycle with a sticker price under $20,000. Goetter said "we have seen very strong sell-through" on the new model, though with an introduction at the very end of third quarter, full-quarter metrics on Sportster S sales aren't yet available.

2. It just got a big boost from the end of European tariffs

As world leaders convened in Rome for the G20 economic summit, U.S. and European lawmakers hashed out a deal on Halloween weekend to de-escalate the tariff war between the two continents. The U.S. had imposed tariffs on European Union (E.U.) produced steel and aluminum in 2018, leading the E.U. to respond with tariffs on American-made clothing, food and alcohol products, and -- most significantly for Harley-Davidson -- motorcycles.

The U.S. government is only partly stepping down its tariffs. In exchange, U.S. Commerce Secretary Gina Raimondo said, the E.U. will drop retaliatory tariffs on American goods, including motorcycles.

Motorcycle Monday: Guy Buys, Rides WWII Harley Home

  Motorcycle Monday: Guy Buys, Rides WWII Harley Home Can the vintage motorcycle make the 200-mile journey? If you’re like me, the thought of buying a 1942 Harley-Davidson WLA fills you with absolute glee. Sure, there are faster, sexier newer bikes out there just like there are rarer, more exotic vintage motorcycles to be had. But there’s something attractive about “the motorcycle that won the War.” So much vivid history is enshrined in every inch of such a machine, plus they have that rugged look which some have tried to duplicate but failed to fully encapsulate.Learn about the Harley-Davidson WLA’s role in the Korean War here.

The 31% tariff on motorcycles cut into Harley's European sales for several years. And a potential increase to 56% was taken as a bearish indicator by analysts and investors. So Zeitz said the news of the tariff truce "is a big win for Harley-Davidson and our customers, employees, and dealers in Europe." He added that removal of the tariffs is an "important course correction" and he expects it to "allow us to further Harley-Davidson's position as the most desirable motorcycle brand in the world."

Wall Street apparently agreed, with Harley's shares surging more than 8% by midday on Monday, following the tariff deal's announcement. Europe is Harley's second-largest market by motorcycle sales, though price increases related to the tariffs, plus refocusing of sales, led to European sales dropping 16% year over year in the third quarter and 18% for the first nine months of the year.

Europe is a prime target for growth under Harley's current strategy. During the latest earnings conference call, Zeitz said the company has "[a] great opportunity to build on the success of Pan America," with around 33% of motorcycle sales in Europe overall now being adventure touring bikes, and that percentage continuing to grow. Zeitz added that Harley-Davidson intends to actively target new buyers in Europe in the adventure touring category.

Harley-Davidson Stock Soars After EU Drops Steel, Aluminum Tariffs

  Harley-Davidson Stock Soars After EU Drops Steel, Aluminum Tariffs A weekend US-EU pact to end 'dirty steel' imports has lead to the removal of tariffs on products made by Harley-Davidson, sending shares sharply higher in pre-market trading. Harley-Davidson shares roared higher Monday after the European Union dropped tariffs against the iconic motorcycle maker linked to a years-long dispute with the United States over steel and aluminum imports.

Given the success of the Pan America and adventure touring bikes in general in the U.S., this looks like a strong strategy. Freed from tariffs, Harley will be more competitive in Europe, making the thaw in trade relations between the U.S. and Europe timely for its continued expansion.

With the good reception for the Pan America, Harley-Davidson might have shaken off its years of decline and once again become a bullish consumer durables stock worth investing in.

SPONSORED:

10 stocks we like better than Harley-Davidson

When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Harley-Davidson wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of October 20, 2021

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

info on new model Lakes - Harley-Davidson Low Rider S 2022 .
There is a new Harley-Davidson Low Rider S for the model year 2022., with the 117er engine, which comes with 1,923 cm³ capacity. © Harley-Davidson In the first week of January, Harley-Davidson already presented numerous model-maintained series for the model year 2022. But the palette was not complete. There was already the announcement elsewhere that under the slogan "Further, Faster" on January 26, 2022, a new model will debut.

See also