Harley-Davidson is shifting its strategy under new CEO Artie Starrs to focus on increasing volume sales through more affordable motorcycles, marking a departure from its previous emphasis on high-end cruisers aimed at baby-boomer customers. The company plans to reintroduce its popular Sportster model next year, targeting a price point of about $10,000, comparable to its current least-expensive motorcycle. The Sportster, which the company discontinued in 2022 due to an inability to meet European emissions standards, now features updates addressing those regulatory challenges, according to Starrs, though he did not provide technical specifics.
The new Sportster, powered by an 883 cubic-centimeter engine, will be produced at Harley’s factory in York, Pennsylvania, and distributed globally. Starrs highlighted strong demand from both riders and dealers as a driving force behind the model’s return. Previously, Harley had been losing approximately $2,000 on each Sportster sold, a problem the company says has now been resolved. Part of this improvement is attributed to recent trade policy changes that have exempted certain imported motorcycle parts from tariffs, although Starrs did not elaborate further.
In addition to the Sportster, Harley-Davidson will launch the Sprint later this year, a smaller entry-level bike with a 440 cubic-centimeter engine priced around $6,000. The production site for the Sprint remains undecided; the company currently operates a factory in Thailand and maintains a partnership with a manufacturer in India. Harley will also continue offering existing entry-level models like the Nightster, which recently saw a price reduction to approximately $10,000, resulting in increased sales despite mixed reception from dedicated Harley enthusiasts.
This renewed focus on more accessible motorcycles contrasts sharply with the approach of Starrs’s predecessor, Jochen Zeitz, who prioritized premium touring bikes and cruisers costing upwards of $50,000. While Zeitz’s strategy bolstered profit margins, it did little to reverse the long-term decline in retail sales and drew criticism from dealers, who felt marginalized under his leadership. Harley’s retail sales have fallen steadily since a peak in 2006, with the company’s share price hitting a low of $17 in March before a slight recovery.
Starrs has emphasized repairing relations with dealers as a central goal of his tenure, aiming to double dealer profits this year and quadruple them by 2029. The reintroduction of the Sportster is integral to this plan, as Harley encourages buyers to customize their bikes with dealer-installed parts and accessories, a key revenue source. The company also revised its e-commerce policies, requiring customers who order branded merchandise online to pick up items at dealerships, addressing dealer concerns that direct-to-consumer sales were reducing showroom traffic.
Starrs, who began riding only recently, captured his vision for the brand as centered on “joy and swagger,” inspired by his own experience taking riding lessons at a Texas Harley dealership. He described the appeal of motorcycling as a deeply engaging and enjoyable activity.
Harley-Davidson’s first-quarter financial results under Starrs show modest progress. The company met Wall Street’s earnings expectations and reported a slight revenue increase, with North American retail sales rising 14 percent over the previous year, partly fueled by discounts on older models. Harley maintains its goal of selling up to 135,000 motorcycles this year, which would represent the first sales increase in five years.
