Word: harley
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...that. "This is the first departure from their traditional customer base," says Don Brown, a motorcycle consultant with DJB Associates. And it shows. With its aerodynamic look, clamshell-style instrument panel and unpainted aluminum-and-steel frame, the long, low-slung V-Rod lives up to its billing as Harley's first "performance custom" motorcycle--although a pricey one at around $17,000. (A classic hog goes for $10,000 to $15,000.) It features a 115-hp engine, designed with help from Porsche, that claims a top speed of 140 m.p.h.--without the trademark earth-rumbling noise. "We wanted...
Close to half a million bikers will pour into Sturgis, S. Dak, this week for the annual motorcycle rally, revving their hogs to a deafening pitch and baring their Harley-Davidson tattoos for all to see. But no matter how much leather they don, most will have a hard time looking tough. There will probably be far more aging white-collar baby boomers trying to recapture their imaginary rebellious youth than Hell's Angels flaunting it. The average age of a Harley devotee is now 45, up from 37 a decade ago; 20% are over...
...sleek, radically new bike it will unveil at this year's gathering. Even though the company, based in Milwaukee, Wis., is firing on all cylinders, it could be headed for a nasty spill if it doesn't navigate this generational speed bump. Despite its powerful brand, Harley has failed to attract enough young riders, who prefer the speedy, more technically advanced machines from Asian powers like Honda and Yamaha and European rivals BMW and Ducati. While it still leads the pack when it comes to the heavyweight cruisers favored by Mom and Dad--they're cute on their big bikes...
...Harley is still boss on Wall Street, blowing past expectations with record second-quarter profits that rose 28% from a year ago; in roughly the same period, its stock has gained nearly 50%, closing last week at $52. While other manufacturers downsize, Harley plans to spend $145 million on a massive expansion of its plant in York, Pa. The company offers classes at dealerships to lure younger, less experienced riders, especially women. In the past year, its sports-bike subsidiary, Buell, rolled out the Blast, an affordable lightweight motorcycle ($4,395) targeted expressly at beginners, with easy handling...
Sales in the industry are riding ahead of the braking economy, up 3% in the first six months, though nothing like the torrid 20% pace of the past few years. Harley hopes to sell 11,000 V-Rods, which will be available this fall, by the end of this year. That's about 5% of its total annual output. Still, Harley is by no means guaranteed a smooth ride. The V-Rod is a few thousand dollars more expensive than comparable bikes like Honda's hot-selling VTX. And expanding beyond the core franchise is never easy, as Harley learned...