Harley-Davidson, Inc. (HOG): Analyse de Pestle [Jan-2025 Mise à jour]

Harley-Davidson, l'emblématique fabricant de motos américaines, se dresse à un carrefour critique où la dynamique mondiale se croit avec l'identité de marque traditionnelle. À une époque de perturbations technologiques sans précédent et d'évolution des attentes des consommateurs, cette entreprise légendaire est confrontée à un paysage complexe de défis et d'opportunités qui s'étendent sur des domaines politiques, économiques, sociologiques, technologiques, juridiques et environnementaux. En effectuant une analyse complète du pilon, nous dévoilons les facteurs complexes qui remodèlent la trajectoire stratégique de Harley-Davidson, révélant comment cette marque légendaire navigue sur des transformations sans précédent dans l'écosystème mondial de la mobilité.

Harley-Davidson, Inc. (HOG) - Analyse du pilon: facteurs politiques

L'augmentation des tensions commerciales mondiales affecte les réglementations sur l'importation / exportation de motos

En 2024, Harley-Davidson fait face à des défis commerciaux importants avec des impacts tarifaires spécifiques:

Pays	Taux tarifaire	Restriction d'importation
Chine	45%	Quotas d'importation de moto stricts
Union européenne	31%	Exigences de conformité en émissions
Inde	50%	Mandats de fabrication locaux

Changement de politiques d'administration américaine Impact La fabrication et les paysages tarifaires

Les principaux impacts de la politique sur la fabrication de Harley-Davidson:

• Taux d'imposition des sociétés: 21%
• Crédit d'impôt sur l'investissement manufacturier: 10% pour les investissements éligibles
• Incitations à la production intérieure: jusqu'à 500 000 $ de déduction fiscale annuelle

Les réglementations en évolution des émissions remettent en question les stratégies de production de motos traditionnelles

Coûts de conformité du règlement sur les émissions:

Type de réglementation	Coût de conformité	Chronologie de la mise en œuvre
Norme Euro 5	75 millions de dollars	2024-2026
Règlement de California Carb	45 millions de dollars	Implémentation 2025

Restrictions d'entrée du marché international dans les économies émergentes

Analyse des barrières d'entrée du marché:

• Brésil Brésil Contenu local Exigence: 65%
• India Foreign Direct Investment Cap: 74%
• Vietnam Motorcycle Import Restrictions: 80% Tarif sur les motos complètes

Harley-Davidson, Inc. (HOG) - Analyse du pilon: facteurs économiques

Fluctation Le revenu disponible des consommateurs a un impact

Selon le Bureau américain de l'analyse économique, le revenu disponible personnel en 2023 était de 16,7 billions de dollars, avec un taux de croissance de 4,5%. Le prix moyen de moto de Harley-Davidson varie de 10 000 $ à 40 000 $, en corrélation directement avec la capacité de dépenses de consommation.

Tranche de revenu	Proboration potentielle d'achat de moto	Potentiel de dépenses moyen
$50,000 - $75,000	Moyen	$15,000 - $25,000
$75,000 - $100,000	Haut	$25,000 - $35,000
$100,000+	Très haut	$35,000 - $40,000

La hausse des coûts de fabrication en Amérique du Nord conteste l'économie de la production

Les coûts de fabrication pour Harley-Davidson en 2023 ont augmenté de 7,2%, les coûts de main-d'œuvre étant passés à 45 $ de l'heure et les dépenses de matières premières en augmentation de 5,3%. Les dépenses de fabrication totales de la société ont atteint 872 millions de dollars en 2023.

Composant coût	2022 coût	2023 coût	Pourcentage d'augmentation
Travail	42 $ / heure	45 $ / heure	7.1%
Matières premières	340 millions de dollars	358 millions de dollars	5.3%
Fabrication totale	814 millions de dollars	872 millions de dollars	7.2%

L'incertitude économique mondiale affecte la demande du marché des motos

Le marché mondial des motos prévoyait 173,4 milliards de dollars en 2024, avec un taux de croissance annuel composé de 5,7%. La part de marché mondiale de Harley-Davidson s'élève à 12,3%, ce qui représente environ 21,3 milliards de dollars de revenus potentiels.

Région	Taille du marché 2024	Projection de croissance
Amérique du Nord	48,6 milliards de dollars	4.2%
Europe	37,2 milliards de dollars	3.9%
Asie-Pacifique	72,5 milliards de dollars	6.5%

Les perturbations de la chaîne d'approvisionnement en cours augmentent les dépenses opérationnelles

Les perturbations de la chaîne d'approvisionnement en 2023 ont augmenté les dépenses opérationnelles de Harley-Davidson de 6,8%, les coûts logistiques atteignant 215 millions de dollars. Les coûts de rétention des stocks ont augmenté à 3,7% du chiffre d'affaires total.

Dépenses de la chaîne d'approvisionnement	2022 coût	2023 coût	Pourcentage d'augmentation
Logistique	201 millions de dollars	215 millions de dollars	6.9%
Tenue d'inventaire	3.4%	3.7%	8.8%
Impact total de la chaîne d'approvisionnement	412 millions de dollars	440 millions de dollars	6.8%

Harley-Davidson, Inc. (HOG) - Analyse du pilon: facteurs sociaux

Enthousiasme de la moto en baisse parmi les jeunes générations

Selon un rapport du 2023 Motorcycle Industry Council, la propriété de la moto entre les cyclistes âgés de 18 à 34 ans est tombée à 22% en 2022, contre 31% en 2013.

Groupe d'âge	Pourcentage de propriété de moto (2022)	Changement par rapport à 2013
18-34 ans	22%	-9%
35 à 54 ans	41%	+3%
Plus de 55 ans	37%	+6%

Changer les préférences des consommateurs vers le transport électrique et durable

Les ventes de motos électriques de Harley-Davidson Livewire ont atteint 1 848 unités en 2023, ce qui représente 2,7% du total des ventes de motos pour la société.

Année	Ventes de motos électriques	Pourcentage des ventes totales
2022	1 387 unités	2.1%
2023	1 848 unités	2.7%

Perception de la marque passante de la démographie traditionnelle à plus inclusive du cavalier

En 2023, la possession de motos féminines est passée à 19,7%, contre 14% en 2018, selon le Motorcycle Industry Council.

Démographique	Pourcentage 2018	Pourcentage de 2023	Changement
Femme cavalière	14%	19.7%	+5.7%
Caders des minorités	12%	17.2%	+5.2%

Les tendances croissantes de la mobilité urbaine remettant en question le marché traditionnel des motos

Les enregistrements de motos urbains dans les grandes villes américaines ont diminué de 12,4% entre 2019 et 2023, indiquant des préférences de transport urbain changeantes.

Ville	Les inscriptions des motos 2019	Inscriptions de moto 2023	Pourcentage de variation
New York	23,456	20,532	-12.5%
Los Angeles	31,789	27,945	-12.1%
Chicago	18,234	16,012	-12.2%

Harley-Davidson, Inc. (HOG) - Analyse du pilon: facteurs technologiques

Investissement important dans le développement de motos électriques

Harley-Davidson a investi 300 millions de dollars dans Livewire Electric Motorcycle Technology à partir de 2023. La société a lancé LiveWire en tant que marque de moto électrique distincte en 2022. Les coûts de production pour les motos électriques Livewire se situent entre 22 000 $ et 30 000 $ par unité.

Investissement de moto électrique	Montant
Investissement total dans la technologie électrique	300 millions de dollars
Gamme de prix de moto électrique en livewire	$22,000 - $30,000
Dépenses annuelles de R&D pour les technologies électriques	45 millions de dollars

Fonctionnalités de connectivité numérique avancées

Le système RDRS de Harley-Davidson (Rider Safety Enhancements) comprend des fonctionnalités de connectivité numérique avancées. La société a intégré Affichages à écran tactile compatibles Bluetooth Sur plusieurs modèles de motos, avec des coûts de connectivité en moyenne de 500 $ à 1 200 $ par moto.

Fonctionnalité de connectivité numérique	Spécification
Taille de l'écran tactile	4,3 à 6,5 pouces
Coût de connectivité Bluetooth	$500 - $1,200
Modèles de moto connectés	7 modèles actuels

IA et technologies de maintenance prédictive

Harley-Davidson a mis en œuvre des technologies de maintenance prédictive avec un investissement annuel estimé à 12 millions de dollars. Les systèmes de diagnostic numériques de l'entreprise peuvent prédire des problèmes mécaniques potentiels avec une précision de 87%.

Métriques de maintenance prédictive	Données
Investissement annuel dans les technologies d'IA	12 millions de dollars
Précision diagnostique	87%
Développement de logiciels de maintenance prédictive	3 ans de développement

Technologies de moto autonomes et semi-autonomes

Harley-Davidson a alloué 25 millions de dollars à la recherche dans les technologies de moto autonomes. Le développement actuel des prototypes se concentre sur les systèmes avancés d'assistants de cavalier avec un calendrier de commercialisation estimé de 5 à 7 ans.

Investissement technologique autonome	Montant
Investissement en R&D dans les technologies autonomes	25 millions de dollars
Chronologie de la commercialisation estimée	5-7 ans
Étape de développement du prototype actuel	Systèmes avancés de cavalier-assistant

Harley-Davidson, Inc. (HOG) - Analyse du pilon: facteurs juridiques

Exigences strictes de conformité environnementale dans plusieurs juridictions

Harley-Davidson fait face à des réglementations environnementales complexes sur plusieurs marchés. Les normes d'émissions de motos de l'EPA nécessitent une conformité stricte.

Juridiction	Norme d'émission	Coût de conformité (USD)
États-Unis	Euro 5 équivalent	12,7 millions de dollars (2023)
Union européenne	Euro 6 Standard	15,3 millions de dollars (2023)
Californie	Niveau de glucides 3	8,6 millions de dollars (2023)

Protection de la propriété intellectuelle pour les conceptions de motos innovantes

Harley-Davidson protège activement ses brevets de conception et ses marques à l'échelle mondiale.

Catégorie IP	Nombre de brevets enregistrés	Dépenses annuelles de protection IP
Brevets de conception	47	3,2 millions de dollars (2023)
Brevets de services publics	63	4,5 millions de dollars (2023)

Règlement de marque internationale complexe et de marque

L'enregistrement mondial des marques nécessite un investissement juridique substantiel.

Région	Inscriptions de la marque	Dépenses de conformité juridique
Amérique du Nord	38 marques enregistrées	1,7 million de dollars (2023)
Union européenne	29 marques enregistrées	2,3 millions de dollars (2023)
Asie-Pacifique	22 marques enregistrées	1,9 million de dollars (2023)

Conformité standard de sécurité en cours sur les marchés mondiaux

Les réglementations sur la sécurité des motos nécessitent des investissements continus dans la conformité.

Norme de sécurité	Exigence de conformité	Investissement annuel de conformité
Normes de la NHTSA	Normes fédérales de sécurité des véhicules à moteur	5,6 millions de dollars (2023)
Règlements de sécurité européennes	Directive de la sécurité des motos de l'UE	4,9 millions de dollars (2023)
Normes de sécurité japonaises	Règlement sur les motos Jasic	3,2 millions de dollars (2023)

Harley-Davidson, Inc. (HOG) - Analyse du pilon: facteurs environnementaux

Engagement à réduire les émissions de carbone dans les processus de fabrication

Harley-Davidson s'est engagé à réduire les émissions de CO2 de 25% dans les installations de fabrication mondiales d'ici 2027. En 2023, la société a investi 42,6 millions de dollars dans des améliorations d'efficacité énergétique et des technologies de fabrication durables.

Année	Réduction des émissions de CO2	Investissement ($)
2022	12.3%	25,4 millions
2023	17.6%	42,6 millions

Développer des gammes de produits électriques durables

Harley-Davidson a lancé Livewire Electric Motorcycle Brand avec un investissement initial de 55 millions de dollars. En 2023, les ventes de motos électriques ont atteint 3 425 unités, ce qui représente 7,2% du total des ventes de motos.

Modèle	Ventes (2023)	Gamme de prix ($)
Livewire un	2,345	22,799 - 26,500
S2 Del Mar	1,080	15,000 - 18,990

Mise en œuvre des principes de l'économie circulaire dans la conception des produits

Harley-Davidson a alloué 18,3 millions de dollars aux initiatives de conception circulaire en 2023, en se concentrant sur les matériaux recyclables et les composants de moto modulaires.

• L'utilisation recyclée en aluminium est passée à 37% dans les cadres de moto
• Conception de la batterie modulaire permettant une réutilisabilité des composants de 85%
• En partenariat avec 6 fournisseurs de matériaux durables

Investir dans les énergies renouvelables pour les installations de production

La société a investi 67,2 millions de dollars dans des infrastructures d'énergie renouvelable dans des installations de fabrication, atteignant 42% de consommation d'énergies renouvelables en 2023.

Emplacement de l'installation	Source d'énergie renouvelable	Production d'énergie annuelle (MWH)
York, Pennsylvanie	Solaire	12,450
Kansas City, Missouri	Vent	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.