Harley-Davidson bets big on small bike

Published April 8, 2014
Harley-Davidson has put its Hog, the nickname for its iconic motorcycles, on a diet. It is putting "The Street" on the road in hopes of attracting younger, hipper urbanites. - Video by Reuters

Welcome to the production hub of Harley-Davidson's first entirely new motorcycle in over a decade, and its first Harley-branded small bike in 50 years.

The motorcycle company is typically a little camera shy, so this is a rare look inside the Kansas City plant where Harley is building its two-wheeler aimed at a younger, more urban customer.

The lightweight, stripped-down machine is so different from other Harleys, that when it comes down to the assembly line workers have to reach into an entirely different tool-and-part kit to put it together.

Meet "The Street." From its name, to its ad campaign, to its size and price, it's a complete shift for Harley.

The bike is much cheaper than other models and much lighter too. 73 pounds lighter, in fact, than the smallest Harley now on the market. And it's designed to win over the young and counter the conventional wisdom that Harley is an old man's motorcycle.

A lot is riding on The Street's success. Harley-Davidson sales hit their all-time high in 2006, and have trailed ever since. Still, a rebound in sales off their lows has helped push up Harley shares along with the rest of the market, and the company is counting on The Street to accelerate those gains and restore its rep on Wall Street as a growth stock.

The strategy is not without risks. Harley's last small bike was a flop, and the market for lightweight bikes is already dominated by Japanese rivals.

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