Harley-Davidson, the iconic motorcycle company, is buying StaCyc, which makes two-wheel electric bikes for kids.
StaCyc has two models — the 12eDrive and 16eDrive with a speed of about 10 miles per hour, considered perfect for children between the ages of 3 and 7.
These Harley-Davidson branded versions of StaCyc’s two models, will sell for a range of $649 to $699. And will be available at select Harley-Davidson dealers in the United States in the third quarter of 2019.
Harley-Davidson Is Investing It’s Future Into Electric Bikes
This move to target younger riders comes at a great time for Harley. Shares of Harley have rallied this year by rising by 10%. But the stock is trading nearly 20% below it’s 52 week high.
Harley-Davidson sales and profits are expected to fall this year, and revenue is expected to rebound slightly in 2020.
Harley has also recalled nearly 175 thousand bikes because the brakes can fail.
With the sales of traditional bikes slowing, Harley is hoping to turn things around by selling electric bikes to the younger generation.
Buying StaCyc Might Help Save Harley-Davidson
Also, the StaCyc team shares the same vision as Harley. That goal is to attract the next generation of riders, by bringing the fun and enjoyment of riding to them.
The company also plans to launch a premium motorcycle named the LiveWire this fall. While also developing other electric bikes that it plans to start selling in 2021.
It’s definitely clear that Harley-Davidson needs new growth opportunities.
The company is struggling with sales and profits, a massive brake recall, and tariffs from the Trump administration that have hurt earnings.
Hopfully, by buying StaCyc, Harley-Davidson can rebrand itself for the younger generations and millennials that no longer want big loud bikes.
And can instead become a global leader again by targeting the electric bike market, which seems to be growing rapidly.