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 | | Monday, 20 August, 2001, 09:23 GMT 10:23 UK Harley-Davidson rides into Europe  Harley's new V-Rod model aims to conquer the world Harley-Davidson, manufacturer of America's iconic motorcycle, has said it plans to double its market share in Europe. The Milwaukee-based firm exports less than 25% of the 200,000-plus bikes it makes annually, and most of those go to Asia. Now, the firm is aiming for a 13-14% share in the lucrative European market, up from its current 6.3%. In July, the firm launched the fruits of its engineering co-operation deal with Germany's Porsche, with the launch of the V-Rod, its first new model in 50 years. The V-Rod, an attempt to integrate Japanese design ideas into its established style, is reckoned to have the potential to boost Harley's international sales. Revving up After nearly going bankrupt in the 1980s, Harley-Davidson is now prospering. In mid-July, it announced second-quarter profits up 27%, at $115m. Its shares have risen by more than 40% since the beginning of the year.
But the firm is concerned that it is reaching saturation in its core US market, where it has a 50% market share. In Europe, it has 375 dealers, and the firm thinks it needs between 450 and 500. Uneasy riding It might not be plain sailing, however. Harley's international rivals, especially Germany's BMW and Japan's Suzuki, have an arm-lock over the European market. And sales growth for heavy motorcycles is only a modest 5% annually region-wide, as bikers increasingly shift to lighter, nippier models. In the key markets of Germany and the Benelux countries, which together account for more than one-third of all European sales, sales are actually falling. This year alone, demand for heavy motorcycles has contracted by 15% in Germany and Benelux. | | See also:  Top Business stories now:  Links to more Business stories are at the foot of the page. | |||||||||||||||||||||
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