Harley-Davidson, Inc. (HOG): Análisis PESTLE [Actualizado en Ene-2025]

Harley-Davidson, el icónico fabricante estadounidense de motocicletas, se encuentra en una encrucijada crítica donde la dinámica global se cruzan con la identidad de la marca tradicional. En una era de interrupción tecnológica sin precedentes y expectativas de consumo en evolución, esta legendaria compañía enfrenta un complejo panorama de desafíos y oportunidades que abarcan dominios políticos, económicos, sociológicos, tecnológicos, legales y ambientales. Al realizar un análisis integral de mano, revelamos los intrincados factores que reforman la trayectoria estratégica de Harley-Davidson, revelando cómo esta marca legendaria está navegando por transformaciones sin precedentes en el ecosistema de movilidad global.

Harley -Davidson, Inc. (Hog) - Análisis de mortero: factores políticos

El aumento de las tensiones comerciales globales afectan las regulaciones de importación/exportación de motocicletas

A partir de 2024, Harley-Davidson enfrenta importantes desafíos comerciales con impactos arancelarios específicos:

País	Tarifa	Restricción de importación
Porcelana	45%	Cuotas estrictas de importación de motocicletas
unión Europea	31%	Requisitos de cumplimiento de emisiones
India	50%	Mandatos de fabricación locales

Políticas de administración de EE. UU. Impactan los paisajes de fabricación y tarifa

Impactos de política clave en la fabricación de Harley-Davidson:

• Tasa de impuestos corporativos: 21%
• Crédito fiscal de inversión de fabricación: 10% para inversiones calificadas
• Incentivos de producción nacional: hasta $ 500,000 deducción fiscal anual

Las regulaciones de emisiones en evolución desafían las estrategias tradicionales de producción de motocicletas

Costos de cumplimiento de la regulación de emisiones:

Tipo de regulación	Costo de cumplimiento	Línea de tiempo de implementación
Estándar Euro 5	$ 75 millones	2024-2026
Regulaciones en carbohidratos de California	$ 45 millones	Implementación 2025

Restricciones de entrada al mercado internacional en economías emergentes

Análisis de barreras de entrada al mercado:

• Requisito de contenido local de Brasil: 65%
• India Caut de inversión extranjera directa: 74%
• Restricciones de importación de motocicletas de Vietnam: 80% de arancel en motocicletas completas

Harley -Davidson, Inc. (Hog) - Análisis de mortero: factores económicos

Fluctuación del ingreso disponible del consumidor impacta la compra de motocicletas de lujo

Según la Oficina de Análisis Económico de los Estados Unidos, el ingreso personal disponible en 2023 fue de $ 16.7 billones, con una tasa de crecimiento del 4.5%. El precio promedio de la motocicleta de Harley-Davidson varía de $ 10,000 a $ 40,000, correlacionando directamente con la capacidad de gasto del consumidor.

Soporte de ingresos	Probabilidad potencial de compra de motocicletas	Potencial de gasto promedio
$50,000 - $75,000	Medio	$15,000 - $25,000
$75,000 - $100,000	Alto	$25,000 - $35,000
$100,000+	Muy alto	$35,000 - $40,000

Rising de costos de fabricación en la economía de producción de América del Norte

Los costos de fabricación para Harley-Davidson en 2023 aumentaron en un 7,2%, con los costos de mano de obra aumentando a $ 45 por hora y los gastos de materia prima crecieron 5.3%. El gasto de fabricación total de la compañía alcanzó los $ 872 millones en 2023.

Componente de costos	Costo de 2022	Costo de 2023	Aumento porcentual
Mano de obra	$ 42/hora	$ 45/hora	7.1%
Materia prima	$ 340 millones	$ 358 millones	5.3%
Fabricación total	$ 814 millones	$ 872 millones	7.2%

La incertidumbre económica global afecta la demanda del mercado de motocicletas

El mercado mundial de motocicletas se proyectó en $ 173.4 mil millones en 2024, con una tasa de crecimiento anual compuesta de 5.7%. La cuota de mercado global de Harley-Davidson es del 12.3%, lo que representa aproximadamente $ 21.3 mil millones en ingresos potenciales.

Región	Tamaño del mercado 2024	Proyección de crecimiento
América del norte	$ 48.6 mil millones	4.2%
Europa	$ 37.2 mil millones	3.9%
Asia-Pacífico	$ 72.5 mil millones	6.5%

Las interrupciones continuas de la cadena de suministro aumentan los gastos operativos

Las interrupciones de la cadena de suministro en 2023 aumentaron los gastos operativos de Harley-Davidson en un 6,8%, con costos logísticos que aumentan a $ 215 millones. Los costos de retención de inventario aumentaron al 3.7% de los ingresos totales.

Gasto de la cadena de suministro	Costo de 2022	Costo de 2023	Aumento porcentual
Logística	$ 201 millones	$ 215 millones	6.9%
Inventario Holding	3.4%	3.7%	8.8%
Impacto total en la cadena de suministro	$ 412 millones	$ 440 millones	6.8%

Harley -Davidson, Inc. (HOG) - Análisis de mortero: factores sociales

Declinar el entusiasmo de las motocicletas entre las generaciones más jóvenes

Según un informe del Consejo de la Industria de Motocicletas 2023, la propiedad de la motocicleta entre los corredores de 18 a 34 años cayó a un 22% en 2022, en comparación con el 31% en 2013.

Grupo de edad	Porcentaje de propiedad de la motocicleta (2022)	Cambio de 2013
18-34 años	22%	-9%
35-54 años	41%	+3%
55+ años	37%	+6%

Cambiar las preferencias del consumidor hacia el transporte eléctrico y sostenible

Las ventas de motocicletas Electric de Harley-Davidson LiveWire alcanzaron 1,848 unidades en 2023, lo que representa el 2.7% de las ventas totales de motocicletas para la compañía.

Año	Ventas de motocicletas eléctricas	Porcentaje de ventas totales
2022	1.387 unidades	2.1%
2023	1.848 unidades	2.7%

Cambiando la percepción de la marca de la demografía tradicional a más inclusiva

En 2023, la propiedad femenina de la motocicleta aumentó a 19.7%, frente al 14% en 2018, según el Consejo de la Industria de Motocicletas.

Demográfico	Porcentaje de 2018	2023 porcentaje	Cambiar
Jinetes	14%	19.7%	+5.7%
Ciclistas minoritarios	12%	17.2%	+5.2%

Crecientes tendencias de movilidad urbana desafiando el mercado tradicional de motocicletas

Los registros de motocicletas urbanas en las principales ciudades estadounidenses disminuyeron en un 12,4% entre 2019 y 2023, lo que indica que cambiaban las preferencias de transporte urbano.

Ciudad	Registros de motocicletas 2019	Registros de motocicletas 2023	Cambio porcentual
Nueva York	23,456	20,532	-12.5%
Los Ángeles	31,789	27,945	-12.1%
Chicago	18,234	16,012	-12.2%

Harley -Davidson, Inc. (Hog) - Análisis de mortero: factores tecnológicos

Inversión significativa en el desarrollo de motocicletas eléctricas

Harley-Davidson invirtió $ 300 millones en LiveWire Electric Motorcycle Technology a partir de 2023. La compañía lanzó LiveWire como una marca de motocicletas eléctrica separada en 2022. Los costos de producción para las motocicletas eléctricas Livewire oscilan entre $ 22,000 y $ 30,000 por unidad.

Inversión en motocicleta eléctrica	Cantidad
Inversión total en tecnología eléctrica	$ 300 millones
Rango de precios de la motocicleta eléctrica de LiveWire	$22,000 - $30,000
Gasto anual de I + D en tecnologías eléctricas	$ 45 millones

Características avanzadas de conectividad digital

El sistema RDRS (mejoras de seguridad del conductor) de Harley-Davidson incluye funciones avanzadas de conectividad digital. La compañía se ha integrado Pantallas de pantalla táctil habilitada para Bluetooth En múltiples modelos de motocicletas, con costos de conectividad con un promedio de $ 500- $ 1,200 por motocicleta.

Función de conectividad digital	Especificación
Tamaño de pantalla de pantalla táctil	4.3 a 6.5 pulgadas
Costo de conectividad Bluetooth	$500 - $1,200
Modelos de motocicletas conectados	7 modelos actuales

AI y tecnologías de mantenimiento predictivo

Harley-Davidson ha implementado tecnologías de mantenimiento predictivo con una inversión anual estimada de $ 12 millones. Los sistemas de diagnóstico digital de la compañía pueden predecir posibles problemas mecánicos con una precisión del 87%.

Métricas de mantenimiento predictivo	Datos
Inversión anual en tecnologías de IA	$ 12 millones
Precisión diagnóstica	87%
Desarrollo de software de mantenimiento predictivo	3 años de desarrollo

Tecnologías de motocicletas autónomas y semiautónomos

Harley-Davidson ha asignado $ 25 millones para investigaciones en tecnologías autónomas de motocicletas. El desarrollo del prototipo actual se centra en los sistemas avanzados de asistencia de jinete con una línea de tiempo de comercialización estimada de 5-7 años.

Inversión en tecnología autónoma	Cantidad
Inversión en I + D en tecnologías autónomas	$ 25 millones
Línea de tiempo de comercialización estimada	5-7 años
Etapa actual de desarrollo de prototipos	Sistemas avanzados de asistencia

Harley -Davidson, Inc. (Hog) - Análisis de mortero: factores legales

Requisitos estrictos de cumplimiento ambiental en múltiples jurisdicciones

Harley-Davidson enfrenta regulaciones ambientales complejas en múltiples mercados. Los estándares de emisiones de motocicletas de la EPA requieren un cumplimiento estricto.

Jurisdicción	Estándar de emisión	Costo de cumplimiento (USD)
Estados Unidos	Euro 5 equivalente	$ 12.7 millones (2023)
unión Europea	Estándar Euro 6	$ 15.3 millones (2023)
California	Nivel de carbohidratos 3	$ 8.6 millones (2023)

Protección de propiedad intelectual para diseños innovadores de motocicletas

Harley-Davidson protege activamente sus patentes de diseño y marcas registradas a nivel mundial.

Categoría de IP	Número de patentes registradas	Gastos anuales de protección de IP
Patentes de diseño	47	$ 3.2 millones (2023)
Patentes de servicios públicos	63	$ 4.5 millones (2023)

Reglamento de marcas y marcas complejas internacionales

El registro global de marcas registradas requiere una inversión legal sustancial.

Región	Registros de marca registrada	Gasto de cumplimiento legal
América del norte	38 marcas registradas	$ 1.7 millones (2023)
unión Europea	29 marcas registradas	$ 2.3 millones (2023)
Asia-Pacífico	22 marcas registradas	$ 1.9 millones (2023)

Cumplimiento de estándar de seguridad continuo en los mercados globales

Las regulaciones de seguridad de las motocicletas requieren una inversión continua en el cumplimiento.

Estándar de seguridad	Requisito de cumplimiento	Inversión anual de cumplimiento
Estándares NHTSA	Normas de seguridad federales de vehículos motorizados	$ 5.6 millones (2023)
Regulaciones de seguridad europeas	Directiva de seguridad de la motocicleta de la UE	$ 4.9 millones (2023)
Estándares de seguridad japoneses	Regulaciones de motocicletas Jasic	$ 3.2 millones (2023)

Harley -Davidson, Inc. (Hog) - Análisis de mortero: factores ambientales

Compromiso de reducir las emisiones de carbono en los procesos de fabricación

Harley-Davidson se comprometió a reducir las emisiones de CO2 en un 25% en las instalaciones de fabricación globales para 2027. A partir de 2023, la compañía ha invertido $ 42.6 millones en mejoras de eficiencia energética y tecnologías de fabricación sostenibles.

Año	Reducción de emisiones de CO2	Inversión ($)
2022	12.3%	25.4 millones
2023	17.6%	42.6 millones

Desarrollo de líneas de productos de motocicletas eléctricas sostenibles

Harley-Davidson lanzó LiveWire Electric Motorcycle Brand con una inversión inicial de $ 55 millones. En 2023, las ventas de motocicletas eléctricas alcanzaron las 3,425 unidades, lo que representa el 7.2% de las ventas totales de motocicletas.

Modelo	Ventas (2023)	Rango de precios ($)
LiveWire One	2,345	22,799 - 26,500
S2 del mar	1,080	15,000 - 18,990

Implementación de principios de economía circular en diseño de productos

Harley-Davidson asignó $ 18.3 millones para iniciativas de diseño circular en 2023, centrándose en materiales reciclables y componentes modulares de motocicletas.

• El uso de aluminio reciclado aumentó al 37% en los marcos de motocicletas
• Diseño de batería modular que permite el 85% de reutilización del componente
• Asociado con 6 proveedores de materiales sostenibles

Invertir en energía renovable para instalaciones de producción

La compañía invirtió $ 67.2 millones en infraestructura de energía renovable en las instalaciones de fabricación, logrando el 42% del uso de energía renovable en 2023.

Ubicación de la instalación	Fuente de energía renovable	Generación de energía anual (MWH)
York, Pensilvania	Solar	12,450
Kansas City, Missouri	Viento	8,750

Harley-Davidson, Inc. (HOG) - PESTLE Analysis: Social factors

Core Baby Boomer demographic is aging out and retiring from the hobby.

The foundational demographic for Harley-Davidson, the Baby Boomers, is defintely aging out, creating a significant headwind for core product sales. This generation, typically favoring the large, premium Touring and Cruiser models, is riding less or retiring from the hobby altogether, which directly impacts the company's largest market. Evidence of this shift is clear in the Q3 2025 retail performance for North America, which saw a decline of 5% year-over-year. In the first quarter of 2025, the decline was even steeper, with North American retail sales dropping 24%. The core customer base, who historically purchased the average Harley-Davidson motorcycle at a price point around $30,000, is increasingly seeking stability, leading to a noticeable shift toward three-wheeled Trike models.

Younger riders (Gen Z, Millennials) prefer more affordable, versatile, and tech-forward bikes.

Younger riders, including Millennials and Gen Z, present a different challenge and opportunity. They are less focused on the traditional heavyweight cruiser image and prioritize motorcycles that are more affordable, versatile, and integrated with modern technology. This demographic is drawn to smaller, more maneuverable bikes that suit urban environments and offer a blend of modern tech with retro styling. Harley-Davidson is addressing this with models like the Sportster S, which has been successful in attracting younger riders, selling an estimated 25,000 units in 2024. The company's electric motorcycle subsidiary, LiveWire, is the ultimate move toward tech-forward bikes, though it continues to operate at a loss, with an expected full-year 2025 operating loss of between $72 million and $77 million.

Strong, enduring customization culture remains a key brand differentiator and sales driver.

The culture of customization-making a bike a unique expression of identity-remains a powerful and enduring differentiator for the Harley-Davidson brand. This is a crucial social factor that transcends generational gaps, as younger riders also place a high value on self-expression and personalization. The global custom motorcycles market was valued at approximately $13.5 billion in 2023 and is projected to grow significantly, reaching an estimated $22.8 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 5.8%. Harley-Davidson capitalizes on this through its extensive parts and accessories business and its high-end Custom Vehicle Operations (CVO) line. The CVO Street Glide and CVO Road Glide, for example, start at a premium price of $45,999, catering to affluent buyers who demand factory-level exclusivity and customization.

Here's the quick math on the Custom Market opportunity:

Metric	Value
Global Custom Motorcycles Market Value (2023)	$13.5 billion
Projected Global Market Value (2032)	$22.8 billion
Projected CAGR (2023-2032)	5.8%
CVO Model Starting Price (e.g., CVO Street Glide)	$45,999

Global growth is being driven by emerging markets like India, offsetting North American declines.

While the North American market struggles, international markets are becoming increasingly vital to the company's volume strategy, though the overall global retail sales were down 6% in Q3 2025. The Asia Pacific region, despite a Q3 2025 retail sales decline of 3%, is a long-term growth opportunity, with the custom motorcycle market there expected to grow at a CAGR of approximately 7.5%. The partnership with Hero MotoCorp in India is a clear strategic move to capture the entry-level market, which is key to future global growth. The co-developed Harley-Davidson X440, with a starting price of ₹2,39,500 (approximately $2,870 USD), is specifically designed to attract budget-conscious enthusiasts in this high-volume market. Latin America was a bright spot in Q3 2025, posting a strong retail sales growth of 16%. This regional divergence shows a clear path for international expansion, even as traditional markets soften.

• North America Retail Sales (Q3 2025): Down 5%
• Asia Pacific Retail Sales (Q3 2025): Down 3%
• Latin America Retail Sales (Q3 2025): Up 16%

Harley-Davidson, Inc. (HOG) - PESTLE Analysis: Technological factors

2025 models feature significant tech, including new Milwaukee-Eight 117 powertrains.

You're seeing Harley-Davidson, Inc. (HOG) push hard on performance technology in its core lineup, which is defintely the right move to keep the traditional rider engaged. The 2025 cruiser and touring models are heavily featuring the updated Milwaukee-Eight 117 V-Twin engine, which is a major step up from the previous 114 and even the older 117 iterations. This isn't just a displacement bump; it includes new four-valve cylinder heads and enhanced intake/exhaust flow for better performance and fuel efficiency.

For example, the new Milwaukee-Eight 117 High Output engine variant, found in the Low Rider S and Low Rider ST, delivers 114 horsepower and 128 lb-ft of peak torque, which is an 11 percent jump in peak horsepower compared to the 2024 Milwaukee-Eight 117 engine in those same models. That's a concrete power increase that riders will feel immediately. Harley knows its core customer demands power, and they're delivering it with modern engineering.

New selectable Ride Modes electronically adjust power, braking, and traction control.

The integration of advanced rider safety and performance electronics is now standard, not a premium add-on, for many of the 2025 models. This is a necessary evolution to keep pace with competitors and meet modern safety standards. Selectable Ride Modes-like Road, Sport, Rain, and Custom-electronically tailor the bike's performance characteristics. This means the bike's throttle response, engine braking (drag-torque slip control), cornering Anti-lock Braking System (C-ABS), and traction control (C-TCS) all adjust based on the mode you select.

This level of electronic rider aid (ERA) is crucial for both safety and performance, especially for a heavy touring bike. You can dial back the power delivery and increase stability controls when the weather turns, or unleash the full performance in Sport mode. It's a smart way to make a powerful bike more accessible and safer for a wider range of riders.

New models integrate modern features like Adaptive Ride Height and enhanced infotainment systems.

Harley-Davidson is finally catching up on the digital dashboard and comfort technology that luxury car buyers have expected for years. The touring models, such as the Road Glide and Street Glide, now feature a massive, crystal-clear 12.3-inch color Thin-Film Transistor (TFT) touchscreen display.

This system runs on the Skyline OS, which handles everything from navigation to infotainment, replacing most of the old analog gauges and switches. Also, some CVO models, like the CVO Pan America, feature Adaptive Ride Height (ARH), a technology that automatically lowers the seat when the bike stops, making it easier for shorter riders to manage the bike's weight. This is an excellent technological solution to a long-standing ergonomic challenge for the brand's larger motorcycles.

• Infotainment: 12.3-inch TFT display with Skyline OS.
• Connectivity: USB-C ports added for faster charging and data transfer.
• Suspension: Adaptive Ride Height on select CVO models.

LiveWire (EV division) is struggling, with unit sales down 72 percent in Q1 2025.

The biggest technological risk for Harley-Davidson is the slow adoption and heavy financial drain of its electric division, LiveWire. While LiveWire is the company's future-facing technology play, the near-term results are tough to look at. In the first quarter of 2025, LiveWire sold only 33 electric motorcycles globally, a steep decline of 72 percent compared to the 117 units sold in Q1 2024. That's a brutal drop-off. Honestly, selling so few units makes it incredibly difficult to achieve the economies of scale needed to turn a profit.

Here's the quick math on the Q1 performance: the segment reported an operating loss of $20 million on just $3 million in revenue. What this estimate hides is the per-unit cost of this R&D-heavy business. The parent company is now evaluating all options for its investment, and has stated it will not provide additional investments beyond the current line of credit. That's a clear signal that the clock is ticking for the EV division to stand on its own.

LiveWire's full-year 2025 operating loss is guided below $60 million.

The financial outlook for LiveWire for the full fiscal year 2025 remains a significant headwind for the parent company. While the initial guidance for the full-year operating loss was in the $70 million to $80 million range, the company revised this outlook in May 2025, now targeting an operating loss of below $60 million. This revision is due to cost reduction activities, not a sudden surge in sales, so it's a necessary financial triage. Still, a loss of that magnitude is a substantial drag on Harley-Davidson's overall profitability.

The original full-year unit sales guidance was between 1,000 and 1,500 electric motorcycles, but due to market volatility, the company has withdrawn that unit projection. You can't build a sustainable business when you have to pull your core sales forecast. The table below shows the stark reality of the LiveWire segment's Q1 2025 performance.

LiveWire Q1 2025 Performance vs. Q1 2024	Q1 2025 Value	Q1 2024 Value	Year-over-Year Change
Electric Motorcycle Unit Sales	33 units	117 units	Down 72 percent
Revenue (in millions)	$3 million	$5.2 million	Down 42 percent
Operating Loss (in millions)	$20 million	$29 million	Improved (Loss reduced by $9 million)

Next step: Finance needs to model a scenario where LiveWire is fully divested or spun off further by the end of 2026 to assess the impact on HOG's consolidated operating margin.

Harley-Davidson, Inc. (HOG) - PESTLE Analysis: Legal factors

Facing an SEC investigation and shareholder lawsuits over alleged misleading financial disclosures in 2025

You need to pay close attention to the financial reporting risks at Harley-Davidson, because the legal cloud hanging over their disclosures is a serious concern for investors. The company is currently under an investigation by the Securities and Exchange Commission (SEC) in 2025, which was triggered by shareholder lawsuits. This is not a minor legal spat; it strikes at the integrity of their financial statements and management credibility. The core issue is whether the company misled investors about its operational health and production targets. Honestly, when the SEC gets involved, the risk profile changes immediately.

Shareholder lawsuits allege 'channel stuffing' (inflating inventory at dealers) to boost sales figures

The shareholder lawsuits, filed in 2025, specifically allege a practice called channel stuffing (pushing excess inventory onto dealers) to artificially inflate sales figures and create the appearance of strong demand. This allegation surfaced after Harley-Davidson revised its annual motorcycle shipment target downward by 10,000 units in April 2025. Plaintiffs argue this revision proves the company's previous statements about its operational capabilities were 'materially false and misleading.' While Harley-Davidson has publicly denied these claims, asserting the lawsuits 'are without merit,' the market reaction has been clear: the stock (HOG) was down nearly 15% since early 2025, reflecting investor anxiety over this legal scrutiny. Here's the quick math: a 10,000-unit reduction in target shipments, coupled with a stock drop, shows the real-world cost of these legal allegations.

High-stakes proxy battle with activist investor H Partners over corporate governance and strategy

A significant corporate governance challenge emerged in 2025 with a high-stakes proxy battle led by activist investor H Partners Management, LLC, which holds an approximately 9.1% stake in Harley-Davidson. The fight, which culminated in the May 14, 2025, annual shareholder meeting, focused on board control and the CEO succession process. H Partners sought to remove three directors, including outgoing CEO Jochen Zeitz, Presiding Director Thomas Linebarger, and long-time director Sara Levinson, citing poor performance and a $1.8 billion market value decline over three years under Zeitz's tenure. The incumbent directors were re-elected, but the activist campaign forced a substantial concession, which is a win for governance change:

• Directors reportedly agreed to step down before the 2026 annual meeting.
• The board committed to appointing a new, external candidate to replace Zeitz as CEO.

This proxy battle, even with a formal re-election, has defintely reshaped the near-term leadership and strategic direction, moving the company toward a more accountable governance structure.

Subject to a 2025 Clean Air Act settlement with the EPA regarding illegal emissions-increasing 'tuners'

Environmental regulations continue to translate directly into legal costs. Harley-Davidson was subject to a 2025 Clean Air Act settlement with the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ) regarding the sale of illegal tuning devices, often called 'tuners,' which increase air pollution. The company agreed to a civil penalty of $12 million. Plus, the settlement required significant operational changes to ensure future compliance. This wasn't just a fine; it forced a major change in their aftermarket parts business.

Settlement Component	Details (as of 2025)	Financial/Operational Impact
Civil Penalty	Paid to the U.S. government.	$12 million
Illegal Devices Sold	Devices, known as tuners, that allow engine function changes to increase power and emissions.	Approx. 340,000 devices
Uncertified Motorcycles	Motorcycles sold without proper EPA certification.	More than 12,000 motorcycles
Injunctive Relief	Stop selling the illegal tuners, buy back stock from dealerships, and destroy them.	Immediate halt to sales; significant inventory and compliance costs.
Future Compliance	Sell only tuners certified to meet Clean Air Act standards, including obtaining California Air Resources Board (CARB) certification.	Increased R&D and regulatory compliance burden for all aftermarket performance parts.

The company also had to buy back all the illegal tuners in stock at their dealerships and destroy them, which is a considerable logistical and financial undertaking beyond the initial penalty. This legal risk is a constant for any manufacturer of high-performance vehicles, especially as global emissions standards continue to tighten.

Harley-Davidson, Inc. (HOG) - PESTLE Analysis: Environmental factors

Committed to achieving net zero carbon emissions across the company by 2050.

Harley-Davidson, Inc. has set a clear, long-term environmental target: achieving net zero carbon emissions across the entire company by 2050. This commitment aligns with the UN-backed Race to Zero campaign and the Business Ambition for 1.5°C. The company's environmental strategy, under its Hardwire strategic plan, focuses on reducing its most significant environmental impact, which stems from the use of gasoline in its motorcycles.

The path to net zero involves a dual strategy: improving the efficiency of its core internal combustion engine (ICE) products and leading the shift toward electric motorcycles. For its own operations, the company is actively working toward reducing emissions from its U.S. facilities by 50% from a 2017 baseline. This is a massive undertaking for a company built on the gasoline-powered V-twin engine.

The LiveWire electric motorcycle division is the primary long-term solution for fleet emissions.

The LiveWire electric motorcycle division, spun off as a separate public entity, is Harley-Davidson's flagship effort to address tailpipe emissions, which represent the largest part of its environmental footprint. LiveWire itself has an even more aggressive goal, aiming for net zero carbon emissions by 2035. However, the near-term financial and sales performance of this division presents a significant challenge to the overall environmental strategy.

The adoption rate for electric motorcycles has been slower than anticipated, which complicates the fleet-wide emissions reduction efforts. The financial data for the first quarter of 2025 (Q1 2025) clearly maps the risk:

Metric (Q1 2025)	Value	Context
LiveWire Units Sold	33 motorcycles	A 72% decline from Q1 2024.
LiveWire Operating Loss	$20 million	The loss for the quarter, despite a year-over-year improvement in the loss percentage.
Projected 2025 Cash Burn	Up to $115 million	Estimated cash burn for LiveWire by the end of 2025.

Honestly, selling only 33 bikes in a quarter while losing $20 million shows the electric path is defintely a capital-intensive headwind right now.

Focus on energy efficiency and investing in renewable energy sources in manufacturing.

To reduce its Scope 1 and Scope 2 emissions (those from its own operations), Harley-Davidson is actively focused on energy efficiency and increasing its renewable energy mix in manufacturing. This is a crucial area where the company can directly control its environmental impact.

Here's the quick math on their operational commitment:

• Committed to reducing energy intensity (energy used per motorcycle produced) by 25% by 2030 across its U.S.-owned facilities, using a 2017 baseline.
• Invests in on-site solar installations, such as those at the Bawal, India, and Manaus, Brazil, assembly facilities.
• The company is also exploring Power Purchase Agreements (PPAs) for renewable power to offset a larger portion of its electricity consumption.

A goal is set to achieve an average fuel economy of >50 mpg for the fleet by 2027.

While the electric transition is slow, the most immediate and impactful environmental action is improving the efficiency of its core gasoline-powered fleet. The company has set an ambitious target to achieve an average fuel economy of greater than 50 mpg for its motorcycle fleet by 2027.

This target represents a significant improvement from the fleet average of 44.2 mpg recorded in 2019. Hitting this goal requires continuous engineering improvements to the internal combustion engine (ICE) to use less gasoline, which directly reduces the largest source of the company's overall greenhouse gas (GHG) emissions.