News and stories from the world of Powersports business.
Ducati World Première 2024: The Presentation of Ducati’s New Models Kicks Off on July 27
The Ducati World Première season, the series of events with which the Bologna-based manufacturer has been presenting its new products for the following season for the last few years, is starting again.
After the excellent results obtained in the first six months of 2023, both commercially and sporting, the time has come to start looking to the future. The journey that will take two-wheel enthusiasts to many different places will begin on July 27: from the desert to mountain roads, passing through cities and race tracks.
The first appointment will celebrate one of the most iconic models of the Bologna-based manufacturer. The series will resume on September 19 and unveil a new bike every two weeks until November 7, an opportunity to celebrate one of the most representative bikes in Ducati’s history.
The six legs dedicated to Ducati’s new products for 2024 will be covered on the Ducati.comwebsite and the Bologna-based company’s social media networks and the new models will all be visible live starting from Thursday, November 10, when EICMA 2023 will open to the public.
Below is the calendar of all the episodes of the Ducati World Première 2024 web series:
July 27, 2023: Ducati World Première – Episode 1
September 19, 2023: Ducati World Première – Episode 2
October 3, 2023: Ducati World Première – Episode 3
October 19, 2023: Ducati World Première – Episode 4
November 2, 2023: Ducati World Première – Episode 5
November 7, 2023: Ducati World Première – Episode 6
BoxoUSA proudly sponsors the 2023 AMA Amateur National Motocross Championship at Loretta Lynn Ranch
We are thrilled to share our partnership with BoxoUSA at the upcoming 42nd Annual Monster Energy AMA Amateur National Motocross Championship at Loretta Lynn Ranch. As fellow motocross enthusiasts, Boxo designed something truly special for you to elevate your racing experience.
Introducing their Limited Edition Commemorative Loretta Lynn’s MotoBox – two exclusive creations that will make their debut at this extraordinary event, crafted with your needs in mind. Each Motobox comes custom-wrapped and loaded with a collection of 103-piece metric moto tools, all meticulously chosen to handle motorcycle repairs you may encounter on the race day. Reliability and performance are important, which is why all BoxoUSA tools are crafted with pro-quality and backed by a lifetime warranty – providing you with the utmost peace of mind.
Don’t miss this exclusive opportunity to be the first to own a piece of motocross history and take your racing passion to new heights.
Limited Edition 2023 Loretta Lynn MotoBoxes
Be sure to visit the BoxoUSA booth to check out their pro-quality tools with event specials and enter to win daily prizes valued at $135. Winners will be selected each day August 1st – August 5th. The winners will be contacted to pick up their prize.
Daily prizes include: 8-piece American Flag Handle Screwdriver set, 10mm Emergency kit, and 8mm Bottle Opener.
Think you’ve got what it takes to be a BoxoUSA Affiliate? Sign up to join the BoxoUSA Street Team Affiliate program! Affiliates receive exclusive discounts, commission and more. Visit the Boxo booth to sign up at Loretta Lynn’s and meet the Boxo team!
BoxoUSA is looking forward to seeing you at the event and sharing their love for motocross. Rev up, gear up, and get ready to make motocross magic happen!
Cardo Systems Announces New Intercom Recording Feature, Allowing Riders to Seamlessly Capture Adrenalin-Filled Journeys with the Push of a Button
Cardo Systems, the global market leader in wireless communication systems forpowersports riders, today introduced an all-new voice recording feature, allowing PACKTALK EDGE, NEO and CUSTOM (with a Platinum Package) riders to easily record and save intercom audio. The feature is made available with a push of a button via the Cardo Connect mobile app and its newest 7.0 software update.
The ability to seamlessly record Dynamic Mesh Communication (DMC) chats and share thrilling stories and conversations is yet another game-changing update from Cardo, as the company continues to raise the bar and bring riders together through shared ride experiences.
This new feature is exclusively available with the latest DMC products’ generation which includes PACKTALK EDGE and its derivatives, PACKTALK NEO and PACKTALK CUSTOM (with Platinum Package) models. Now, riders can record any DMC conversation (with any DMC generation e.g Bold and Black), including BT intercom bridge with any BT unit (Cardo or non-Cardo), it will be recorded as well.
Riders can simply enable voice and Intercom recording by pushing the ‘mic’ button on the Cardo Connect home screen and automatically receive the saved recording directly on their phone.
“Providing solutions to enhance the riding experience is our number one goal at Cardo,” said Dan Emodi, Chief Marketing Officer, Cardo Systems. “With this update, we are at the forefront of advanced technology, offering a simple and seamless platform to record and store audio directly on the rider’s cell phone. All with just the push of a button.”
How To Use Voice Recording Feature:
- Download Cardo Connect App.
- On the home screen tap “voice recording button”.
- Grant app permissions to record audio.
- Tap mic icon to start recording.
- Pause and resume during recording is available.
- Stop the recording by tapping the save button.
- The recording will be saved to your phone storage with a default name.
- Start a new recording? Tap the mic icon again and start rolling.
For more information, or to view the full Cardo Systems model range, visit www.cardosystems.com.
Ducati Riding Experience (DRE) Racetrack Academy Comes to America for the First Time
For the very first time, the Ducati Riding Experience (DRE) Racetrack Academy is coming to America. On September 10–11, the Circuit of the Americas (COTA) will open the paddock gates to 85 lucky Ducatisti for an unrivaled track experience.
The heart of Ducati has always been at the racetrack. Since 2003, Ducati has opened its heart to its cherished Ducatisti by hosting the DRE Racetrack Academy. Since then, over 28,000 Ducatisti have participated, riding Borgo Panigale’s latest motorcycles at the very racetracks they were developed while receiving instruction from a cast of legendary racers.
There’s no other track school in the world that checks off three bucket list items at the same time: Ride at a Grand Prix circuit, on a Ducati, and with coaching from your favorite racer. For residents of North America, realizing the dream will be easier than it’s ever been.
DRE Racetrack Academy COTA is coordinated by Dario Marchetti, DRE technical director, who will ensure riders get the same experience they’d have at other world class circuits—but with an American twist. Ducati has assembled a team of instructors that includes American racing legends Ben Bostrom, Eric Bostrom, Jake Zemke, Jason Pridmore, and Roger Lee Hayden. Toni Elías, Corey Alexander, Shelina Moreda, and current Warhorse HSBK Racing Ducati New York riders Josh Herrin and Xavi Forés will also provide instruction for attendees. Riders will be grouped according to skill level, so every rider is afforded tailored instruction in the safest possible environment.
The Circuit of the Americas, situated on 1,500 acres of rolling hill country just minutes from downtown Austin, TX is the only North American circuit on the MotoGP calendar. Its technical 3.41-mile layout and world-class facilities are the perfect venue to highlight Ducati’s core values of style, sophistication and performance.
More than just an ordinary track school, DRE COTA is a once-in-a-lifetime experience: socialize with other Ducatisti, gather over local cuisine, and let American racing legends show you their favorite lines through COTA’s first split.
For more information, visit https://bit.ly/DRECOTA2023. Space is limited exclusively to Ducati owners, so register now.
Yamaha Unveils 2024 Proven Off-Road ATV and Side-by-Side Lineup
Yamaha Motor Corp., USA, sets a new standard for Proven Off-Road 2024 Side-by-Side (SxS) and ATV models with the unveiling of all-new models and technological enhancements. The 2024 collection showcases Yamaha’s commitment to providing optimal capability, comfort, and confidence for every off-road enthusiast, whether conquering the toughest terrain or embarking on epic adventures.
Manufactured with pride at Yamaha’s state-of-the-art facility in Newnan, Georgia, every Yamaha SxS and full-size ATV is assembled in the USA and distributed worldwide. The 2024 lineup boasts a wide range of models designed to cater to various preferences and needs:
- Recreational SxS Lineup: The Wolverine lineup takes the spotlight with the introduction of the all-new Wolverine X2 1000.
- Pure Sport SxS Lineup: The YXZ1000R / SS receives a new 6-speed transmission and Auto-Shift Technology for enhanced performance and versatility with the Sport Shift.
- Utility SxS Lineup: The Viking and Viking VI models provide durable and reliable options for utility-focused tasks.
- Recreational and Utility ATV Lineup: The Grizzly, Kodiak 700, and Kodiak 450 offer maximum value and work-ready performance.
- Sport ATV Lineup: The popular Raptor 700R and YFZ450R continue to dominate the track and trail.
- Youth ATV Lineup: The Grizzly 90 and YFZ50 models are joined by the new Raptor 110, expanding the offerings and providing younger riders with exciting off-road experiences.
“As the powersports industry continues to grow and reach new audiences, Yamaha is expanding its product offerings to meet the needs of a wider variety of off-road enthusiasts,” said Steve Nessl, Yamaha’s motorsports marketing manager. “From new models to an unrelenting focus on the customer experience, we’re committed to delivering the best adventures for both new and longtime members of the Yamaha family.”
2024 Recreational SxS Lineup: All-New Wolverine X2 1000 Provides Extreme Durability and Value
The 2024 Wolverine models represent Yamaha’s most versatile vehicles, suitable for work and adventure alike. The all-new Wolverine X2 1000 combines the compact and nimble Wolverine X2 platform with premium enhancements derived from the premium RMAX 1000, delivering superior handling and exhilarating power for navigating tight, technical trails to wide open terrain. This includes an advanced 999-cc DOHC, eight-valve, parallel-twin engine, readily capable of receiving Yamaha’s D-Mode, allowing for three power-delivery options (Crawl, Trail, and Sport) to meet the varying demands of terrain and driver mindsets. The 2024 Wolverine X2 and X4 models offer smooth and ultra-quiet power with an 847-cc twin-cylinder engine housed in a sporty, compact chassis.
The Wolverine lineup caters to different customer demands, with two- and four-seat configurations available. The Wolverine RMAX2 1000 and Wolverine X2 models feature a two-seat chassis paired with a hydraulic piston-assist dump bed, offering excellent utility for ranch work and hunting while allowing easy engine access for maintenance. The Wolverine RMAX4 1000 and Wolverine X4 models provide a four-seat chassis, with flexible options for additional cargo space, passenger capacity for up to four occupants, or a combination of the two.
All 2024 Wolverine models come equipped with Yamaha’s reliable Ultramatic continuously variable transmission (CVT), backed by an unprecedented, industry-exclusive 10-Year Belt Warranty. They also feature Yamaha’s durable On-Command 4WD system, torque- and speed-sensitive Electric Power Steering (EPS) for the best balance of steering assist and trail feedback, bright LED lighting, a 2,000-pound towing capacity, 600-pound bed capacity, and prewiring for various accessories.
The 2024 Yamaha Wolverine X2 1000 is available at Yamaha dealers nationwide, starting at a $17,999 MSRP for the R-Spec trim in White and Armor Gray. The XT-R Edition, priced at $19,999 MSRP, includes additional features such as new Titan and Tactical Black painted bodywork, a suntop, a rear-view center-mounted mirror, and a factory-installed WARN VRX 4,500-pound winch.
The 2024 Yamaha Wolverine RMAX 1000 R-Spec is available at Yamaha dealers nationwide, starting at a $22,999 MSRP for the 2-seat and a $25,399 MSRP for the 4-seat. The Wolverine RMAX2 1000 Sport, starting at a $24,899 MSRP, features highly adjustable, sport-tuned FOX 2.0 piggyback shocks, a 30-inch asymmetric GBC Terra Master SQ tire design, and beadlock wheels. The XT-R Editions, priced at $26,199 MSRP for the RMAX2 1000 and $28,199 MSRP for the RMAX4 1000, offer painted bodywork, color-matched interior, a WARN VRX 45 winch, Yamaha Adventure Pro, rearview mirror, beadlock wheels on the 2-seat version, and an SSV Works audio package. Limited Edition models, available in Silver Metallic and Black, include all XT-R upgrades, FOX iQS shocks, 14-inch cast aluminum wheels, and a higher-grade audio system, starting at $26,699 MSRP for the RMAX2 1000 LE and $29,399 MSRP for the RMAX4 1000 LE.
The 2024 Yamaha Wolverine X2 and X4 850-class R-Spec models are available at Yamaha dealers nationwide, starting at a $15,799 MSRP for the 2-seat and a $18,399 MSRP for the 4-seat. The XT-R Editions, priced at $17,399 MSRP for the Wolverine X2 and $19,999 MSRP for the Wolverine X4, offer painted bodywork, color-matched interior, a WARN VRX 45 winch, rearview mirror, advanced suspension, and cast aluminum wheels.
2024 YXZ Lineup: Pure Sport Performance with All-New Auto-Shift Technology and 6-Speed Transmission
The YXZ1000R stands as the industry’s first and only direct-connection pure-sport SxS, providing exceptional performance to off-road enthusiasts. In 2024, the YXZ lineup receives significant enhancements, including a new 6-speed transmission and Yamaha’s all-new Auto-Shift Technology in the SS variant.
The 2024 YXZ lineup boasts a new close-ratio 6-speed manual transmission, offering enhanced capability and comfort during low-speed operation. With optimized gear ratios and a 40% lower first gear, the YXZ models deliver the next level of aptitude and performance across various terrains. The new transmission also reduces “shift-shock” and noise, providing a smoother driving experience and increased clutch life.
The YXZ1000R SS introduces Yamaha’s all-new Auto-Shift Technology, allowing automatic-transmission drivers to experience the thrill of a pure sport and direct-connection feeling. Drivers can effortlessly switch between Auto-Shift modes and manual gear-selection on-the-fly using the dash-mounted dial. Yamaha’s Auto-Shift Technology offers three user-selected modes: Auto, Sport Auto, and Sport Shift, catering to different preferences and driving styles.
Every YXZ1000R model is equipped with Yamaha’s signature driver-controlled On-Command system, offering 2WD, 4WD limited slip, and 4WD full-differential lock for consistent steering and handling. The vehicle’s torque- and speed-sensitive Electric Power Steering (EPS) strikes the perfect balance between assist and positive feedback, delivering optimized off-road capability, ideal steering feel, and precise handling even on challenging terrains.
Bolstered by a new interior dash panel featuring integrated accessory switches, the upgraded electrical charging system of the YXZ1000R now delivers an impressive 1000W of electricity. With a main fuse capacity of 70A, this enhanced system efficiently powers a wide range of accessories without compromising horsepower, avoiding the common issue experienced with many popular SxS LED light bars and stereo systems. Additionally, the YXZ1000R now offers convenient plug-and-play integration with the addition of four electrical ports – two located in the front and two in the rear – for easier and faster installation of accessories, providing a seamless and user-friendly experience.
The 2024 YXZ1000R and YXZ1000R SS are available at Yamaha dealers nationwide starting at a $20,899 MSRP in Team Yamaha Blue. The YXZ1000R SS XT-R Edition is available with painted bodywork and a color-matched interior, a center-mounted rearview mirror, beadlock wheels, and a factory-installed WARN VRX 4,500-pound winch, at a $23,699 MSRP.
2024 Utility SxS Lineup: Work-Ready and Stout Viking and Viking VI
Yamaha presents the 2024 Utility SxS Lineup featuring the Viking and Viking VI. These vehicles are renowned for their Real World Tough durability and exceptional value. Equipped with Yamaha’s proven 700-class engine, the Viking models deliver outstanding performance all day long. With spacious cabins that lead the class, accommodating three to six people comfortably, the Vikings are built to tackle the toughest utility SxS tasks.
Key features of all 2024 Viking and Viking VI vehicles include:
- Yamaha’s durable Ultramatic CVT, backed by an industry-exclusive 10-Year Belt Warranty, ensuring reliability and longevity.
- Yamaha reliable On-Command 4WD drive system with 2WD, 4WD limited slip, and 4WD full-differential lock, to handle any task or terrain.
- Yamaha’s speed- and torque-sensitive EPS providing the ideal mix of assist and positive feedback to reduce fatigue when tackling daylong chores.
- Impressive towing capacity of 1,500 pounds through the standard 2-inch hitch receiver, along with cargo bed rated at a 600-pound capacity for hauling heavy loads.
- Hydraulic piston-assist dump bed featuring a rugged rubber cargo bed mat for added convenience and durability.
Both 2024 Viking models are available in Tactical Green. The three-seat variation starts at a competitive $15,799 MSRP, while the six-seat variation is priced at $16,599 MSRP. For those seeking additional enhancements, the 2024 Ranch Edition models feature Copper Metallic painted bodywork, color-matched interior, under-seat storage, cast aluminum wheels, comfort-grip steering wheel, overfenders, center rearview mirror, rear grab bar, and distinct Ranch Edition badging. The Ranch Edition Viking starts at a price of $16,499 MSRP, while the Viking VI is available at $17,899 MSRP.
2024 Recreational and Utility ATV Lineup: Grizzly, Kodiak 700, and Kodiak 450
Yamaha introduces the 2024 Recreational and Utility ATV lineup, designed to excel in a wide range of applications from heavy-duty ranch and farm work to exhilarating off-road adventures. The Grizzly stands as the ultimate adventure ATV, delivering exceptional power and performance for conquering extreme trails. Meanwhile, the Kodiak 700 and Kodiak 450 offer maximum value and work-ready performance in compact and agile chassis, perfectly suited for navigating tight and technical trails when off the job.
Key features of the 2024 Grizzly and Kodiak models include:
- Yamaha’s proven 700-class liquid-cooled SOHC 4-stroke engine, which powers all Grizzly and Kodiak 700 models. The Grizzly’s engine exhibits a sportier character for recreational riding, while the Kodiak 700 focuses on smooth operation and a milder initial power engagement. The Kodiak 450 features a 421-cc liquid-cooled SOHC 4-stroke engine.
- Ultra-reliable Ultramatic CVT transmission backed by Yamaha’s exclusive 10-Year Belt Warranty, ensuring consistent performance and peace of mind.
- Yamaha’s On-Command 4WD drive system, enabling seamless transitions between 2WD, 4WD limited slip, and 4WD full-differential lock to conquer varying terrain conditions.
- Yamaha’s industry-leading torque- and speed-sensitive EPS on all Grizzly and select Kodiak ATVs, providing precise and effortless steering control for a comfortable riding experience.
The 2024 Yamaha Grizzly is available in White and Armor Gray, starting at a $11,399 MSRP. The Realtree Edge options adds a touch of ruggedness and is now equipped with a factory-installed WARN VRX 25 winch, 14-inch aluminum wheels, and 27-inch Maxxis ‘Zilla tires priced at $12,499 MSRP. For those seeking additional upgrades, the Special Edition Grizzly offers Silver metallic and black painted bodywork, 27-inch Maxxis ‘Zilla tires, and 14-inch aluminum wheels, with a price of $11,999 MSRP. The Grizzly XT-R Edition is equipped with painted bodywork, a factory-installed WARN VRX 25 winch, and all the Special Edition enhancements, available for $12,399 MSRP.
The Kodiak 450 is offered in Steel Blue or Tactical Green, with optional EPS, starting at an affordable $6,999 MSRP. Fall Beige and Realtree Edge is available with EPS at an $8,099 MSRP. The Special Edition package features Desert Tan and Midnight Blue color schemes, along with EPS and a factory-installed WARN VRX 25 winch, at a price of $8,399 MSRP.
The Kodiak 700 is available in Tactical Green, with optional EPS, starting at $8,499 MSRP. Fall Beige and Realtree Edge is also available with EPS at a $10,099 MSRP. For those seeking top-of-the-line features, the Special Edition Kodiak 700 offers Desert Tan and Midnight Blue color schemes, EPS, and a factory-installed WARN VRX 25 winch, with a price of $11,099 MSRP.
2024 Sport ATV Lineup: Raptor 700R and YFZ450R Continue to Reign Supreme
Conquering dunes and trails with ease, the 2024 Sport ATV lineup offers superior style, comfort, and performance. The undisputed podium-topping ATV in this lineup is the YFZ450R, which is trusted by the world’s top racers, including the renowned Grand National Cross Country and ATV Motocross pro racers such as Brycen Neal, Walker Fowler, Joel Hetrick, and Chad Wienen. As the most technologically advanced sport ATV on the market, the YFZ450R boasts a 449-cc fuel-injected engine and a titanium five-valve cylinder head, delivering torquey acceleration off idle and abundant power throughout the powerband. Its professional-caliber lightweight aluminum frame with a tension-steel bottom allows the engine to sit lower, ensuring excellent mass-centralization. Further enhancing the handling is the suspension system, featuring weight-reducing components and precise tuning for optimal performance. The assist-and-slipper clutch reduces clutch lever effort and enhances cornering speed, especially during downshifting.
The Raptor 700R models in the lineup feature a powerful 700-class engine that delivers enormous torque right off idle, transitioning into a potent mid-range and thrilling top-end. With an advanced hybrid steel-aluminum frame, aluminum subframe, and swingarm, combined with race-caliber suspension, the Raptor 700R offers a light, yet durable and rigid structure that provides the best power-to-weight ratio and superior handling in all environments.
The 2024 YFZ450R is available in Team Yamaha Blue at a $10,599 MSRP, or in an SE trim with added GYTR front grab bar and unique color and graphic kits in Gray Metallic at a $10,999 MSRP. The 2024 Raptor 700R is available in Team Yamaha Blue at a $10,299 MSRP, while SE models are further enhanced with a GYTR front grab bar, GYTR footwells, and a unique color and graphic kit in either Gray Metallic or Yamaha Black at a $10,899 MSRP. The standard Raptor 700 is available in Cyan / Yamaha Black at a $9,699 MSRP.
2024 Youth ATV Lineup: New Raptor 110 Joins Grizzly 90 and YFZ50 for Budding Riders Seeking Adventure
Introducing the new 2024 Raptor 110, a dynamic ATV that combines sporty styling with confidence-inspiring performance for riders ages 10 and up. Designed based on the top-selling Raptor 700R, this entry-level electronic fuel injected ATV brings Yamaha’s Proven Off-Road sport ATV performance, legacy, and quality to new riders as they develop their skills and embrace their passion for motorsports. The new Raptor 110 is available in either Cyan or Team Yamaha Blue at a $3,599 MSRP and will be available later this fall.
The 2024 Grizzly 90 embodies Yamaha’s renowned performance and versatility, offering a fun and confidence-inspiring riding experience for entry-level riders aged 10 years and up. Equipped with a 90-cc engine and CVT drivetrain, this youth model incorporates several Grizzly DNA features such as mud-protection fenders, trail-pointed comfort suspension, front and rear cargo racks, and Grizzly-tread tires. Available in White and Armor Gray, the 2024 Grizzly 90 starts at an affordable $3,399 MSRP.
For riders aged 6 and up, the 2024 YFZ50 opens the door to the thrilling world of sport ATVs. Inspired by the championship-winning YFZ450R, this youth model brings Yamaha’s Proven Off-Road performance and confidence to the next generation of motorsports enthusiasts. Riders can choose between the Team Yamaha Blue or Teal color options. The 2024 YFZ50 is priced at $2,349 MSRP.
Yamaha Celebrates 50 Years of YZ
Yamaha Motor Corporation, USA, is excited to mark the 50th anniversary of its legendary YZ model line with the introduction of the new 2024 50th Anniversary Edition YZ125, YZ250, YZ250F and YZ450F. With bold heritage livery inspired by the iconic 1990s-era YZ two-strokes campaigned by riders like Damon Bradshaw and Jeff Emig, these Anniversary Edition models commemorate a thrilling and nostalgic time of American motocross near the end of the two-stroke era.
First introduced in 1974, the YZ lineup has represented the pinnacle of motocross technological advancement and off-road performance. From the original YZ250 two-stroke and game-changing YZ400F four-stroke to breakthrough technologies like monoshock suspension, liquid-cooling, exhaust power valves, and modern four-stroke technology, the YZ has long been a leading platform for off-road development.
“As we look back at our rich history of YZ models, we felt it only natural to commemorate the 50th anniversary with special livery for 2024,” said Derek Brooks, Yamaha Motorsports Motorcycle Product Line Manager. “The 90s was a special era for me as a teenager, racing on the weekends and watching my hero, Damon Bradshaw. He set the world on fire, not only with his riding but also with the style of his bikes and gear. I can’t think of a better way to pay homage to the iconic YZ than with this iconic era of design.”
The new 2024 YZ125 50th Anniversary Edition will be available from dealers this August for $7,299 MSRP. The new 2024 YZ250 50th Anniversary Edition will be available from dealers this August for $8,199 MSRP. The new 2024 YZ250F 50th Anniversary Edition will be available from dealers this October for $9,099 MSRP. The new 2024 YZ450F 50th Anniversary Edition will be available from dealers this August for $10,199 MSRP.
Welcome to the victorYZone
Yamaha’s off-road competition bikes offer the very latest in technology with performance features designed to help racing enthusiasts reach their maximum potential, win races and stand on top of the podium.
New 2024 Yamaha YZ250F
Long a cornerstone of Yamaha’s off-road racing success, the lauded YZ250F has remained at the top of the ultra-competitive 250cc class for years, winning numerous press shootouts and more than a dozen Supercross and Motocross championships since 2014. The new 2024 YZ250F features extensive updates designed to further boost its class-leading performance and capability.
Underneath its sharp, aggressive new YZ styling lies the most refined, balanced and competition-ready YZ250F ever. A lighter, more compact chassis offers improved handling feel and more comfortable riding position, a revised intake path boosts mid- to high-rpm performance, and an advanced new generation Yamaha Power Tuner App is simpler to use and more intuitive than ever.
It starts with a completely redesigned aluminum bilateral beam frame based on its class-dominating YZ450F sibling, providing just the right amount of strength and flex for the perfect balance of stability and cornering performance. The result is a better handling machine with lightweight feel and increased front wheel traction, allowing the rider to enter corners with greater confidence and more line choices.
Additional chassis updates include revised suspension internals to match the new frame. Class leading, fully adjustable KYB® coil spring-type fork with speed-sensitive damping delivers exceptional balance between handling and bump absorption for championship-winning performance. The fork now also includes a hand-adjustable knob for quick, toolless compression adjustments. The linkage-type rear suspension features a revised KYB® shock, and combines with the updated front suspension to provide less pitch on corner entry/exit for improved stability.
Drawing further inspiration from the flagship YZ450F, the new 2024 YZ250F has a slimmer, flatter body design for enhanced rider movement, including a lower airbox, flatter seat and more narrow fuel tank and radiator shrouds. The rider triangle is also improved with increased legroom between the seat and footpegs for improved rider comfort.
Known for its broad, useable powerband and class-leading low-end and mid-range torque, the YZ250F’s advanced four-stroke engine features a high-spec piston, aggressive cam profiles and forward positioned intake cylinder head layout. New for 2024, the updated body design now allows for a more efficient intake path which, together with revised ECU settings, results in even more mid- to high-end power.
To help riders fine tune that power to their liking, the new YZ250F is compatible with Yamaha’s next-generation Power Tuner App, allowing detailed air/fuel mixture and ignition timing adjustments to be made on their smartphone, tailoring delivery to specific preferences or riding conditions. An intuitive new “Simple Tuning” slide bar further simplifies the engine mapping process to where riders can simply scroll between smoother or more aggressive power character settings for the quickest adjustments. The app can also monitor a range of data such as maintenance and system diagnosis, engine run time, lap times or log track set-up information. There’s also helpful new engine and suspension tuning guides to dial in the perfect setup.
Additional features for 2024 include an all-new Traction Control System, which communicates wheel slip to the ECU to maintain ideal rear wheel traction. Three levels can be selected: HIGH, LOW or OFF. Also, an updated Launch Control System now features an rpm limiter which can be adjusted in 500 rpm increments between 6,000 rpm and 14,000 rpm for optimized launches when the gate drops. Both systems are controlled through the Yamaha Power Tuner App.
With these carefully considered updates, Yamaha plans to take the unparalleled racing pedigree of YZ250F to a new level of performance.
2024 YZ250F Features & Benefits
- The new 2024 YZ250F takes the superior race-tested qualities of its predecessor and expands them in a lighter, slimmer, sharper and more usable package designed to continue dominating the competition
- Completely redesigned aluminum bilateral beam frame based on the flagship YZ450F provides the perfect balance of straight-line stability and cornering performance
- Revised, fully adjustable KYB® coil spring-type fork with speed-sensitive damping now includes hand-adjustable knob for toolless compression adjustment
- Linkage-type rear suspension features a fully adjustable KYB® shock with revised settings for enhanced performance
- A flatter, more narrow body design eases rider movement and updated ergonomics offer increased legroom and more comfort
- Advanced 250cc four-stroke engine features a high-spec piston, aggressive cam profiles and forward positioned intake cylinder head layout for a broad, useable powerband
- More efficient intake path further boosts mid- to high-rpm engine performance
- Innovative wrap-around exhaust design improves mass centralization and power characteristics
- Ultra-compact 44mm Mikuni® throttle body ensures optimum fuel atomization while saving weight and improving mass-centralization
- Revised Yamaha Power Tuner App is even more user-friendly with intuitive new “Quick Setting” slide bar, helpful new engine and suspension tuning guides, and additional new features
- New three-level selectable Traction Control System controlled through the Power Tuner App maintains ideal rear wheel traction
- Updated Launch Control System now features adjustable rpm limiting for improved launches when the gate drops
- Two-mode adjustable engine mapping allows on-the-fly selection between two maps via new handlebar-mounted push-button switchgear
- Large 270mm front brake disc and 240mm rear disc are coupled with a Nissin calipers to provide exceptional stopping power and control
- Durable, large-diameter 15-plate clutch withstands the high demands of motocross racing
- Lightweight, tapered 1-1/8-inch aluminum handlebars secure to four-position adjustable handlebar mounts
- Wide 55mm footpegs
- Compact, lightweight push-button electric start provides effortless restarts
- Premium embedded graphics provide excellent durability and scratch resistance
- Advanced computer-aided wheel design shaves weight without sacrificing durability
- Rear wheel comes laced in a three-cross-spoke pattern for improved impact absorption and rider feel
- Race-developed Dunlop® Geomax MX33 tires
The new 2024 YZ250F will be offered in Team Yamaha Blue and will be available from dealers this October for $8,899 MSRP, and the above mentioned 50th Anniversary Edition livery for $9,099 MSRP.
Additionally, the remainder of Yamaha’s Motocross lineup including the YZ65, YZ85 and YZ85LW, YZ125, YZ250 and YZ450F return for 2024 with updated graphics and a new seat color.
New 2024 Yamaha YZ450FX
Following last year’s update to the YZ125X and YZ250X, Yamaha has shifted focus to the flagship of the Cross Country lineup for 2024 with an all-new YZ450FX four-stroke. Evolved from the benchmark-setting YZ450F motocrosser, the 2024 YZ450FX is designed to dominate cross country competition. Lighter, slimmer and more compact, with improved rider ergonomics, a revised chassis, a more powerful engine and next-generation Yamaha Power Tuner app all carry over directly from the YZ450F. Additional modifications tailored toward enhanced cross country performance include a wide-ratio transmission, larger fuel capacity, low fuel warning light, 18-inch rear wheel, side stand, skid plate, revised ECU and suspension settings, along with a 10mm lower seat height for increased maneuverability in challenging off-road conditions.
Changes for the new YZ450FX start with a completely redesigned four-stroke engine that’s lighter, more compact, higher revving and more powerful across the entire rev range. Updates include new exhaust and intake port shapes, larger diameter titanium intake valves, new forged aluminum piston, new cylinder body, crankshaft and balancer assembly, 500 rpm higher rev limit and a switch from wet sump to dry sump lubrication. The YZ450FX’s ECU settings are also tailored to suit the specific demands of cross country and enduro-style racing.
The all-new clutch design replaces the coil springs of the previous model with a new disc spring and integrates primary gear and basket into a single steel unit. The result is a more compact, lightweight and durable assembly with smooth engagement and excellent feel. A premium clutch cover employs a stylish geometric design that helps minimize scratching and lends a bold look. There’s also a new wide-ratio transmission featuring a tri-shaft layout making it lighter and more compact, with gear ratios optimized for cross country conditions.
Providing riders with the opportunity to fine-tune engine performance within their smartphone, Yamaha’s next-generation Power Tuner App is easier to use with more functionality. Engine mapping can now be made using an intuitive new “Quick Setting” slide bar. An all-new Traction Control System is controlled within the app, providing riders with three selectable levels of intervention: HIGH, LOW or OFF. There is also a new lap timer and handy bike set-up guides. Additionally, a new lightweight handlebar-mounted switch allows on-the-fly selection of two preloaded engine maps, one standard and one optimized for more extreme conditions. These maps can also be customized within the app.
A new chassis includes a completely redesigned aluminum bilateral beam frame consisting of more than 10 different aluminum components welded together. This provides the opportunity to carefully tune rigidity and flex characteristics of each component to ensure competition-level performance. The result is a better handling machine with lighter feel, improved bump absorption and increased traction, allowing riders to charge into corners with greater confidence.
Additionally, rider ergonomics are improved with a slimmer, flatter, more compact body including a more narrow fuel tank and front shrouds and a flatter, more rounded seat, making it easier for the rider to move and shift weight for enhanced control. The rider triangle is also improved with increased legroom between the seat and footpegs, and revised handlebar position for a more natural stand-up posture.
Maintaining the YZ450FX’s best-in-class suspension performance, the industry-leading, fully adjustable KYB® coil spring-type fork with speed-sensitive damping features revised settings and a new hand operated compression clicker for quick, toolless adjustments. The linkage type KYB® rear shock features specially tuned damping characteristics to match the new YZ450FX chassis. Revised settings also result in a 10mm lower seat height and lower center of gravity for improved handling and comfort in the type of tight, technical sections common to enduro racing.
The YZ450FX boasts a wide range of additional top-spec details carried over from the competition-tested YZ450F including push-button electric starter system with high-capacity ultra-light lithium-ion battery, rubber-mounted, four-position adjustable handlebar clamps, 1-1/8-inch aluminum tapered handlebars, new compact PVC handlebar pad, wide footpegs with new lightweight aluminum alloy mounting brackets and a quick-adjust clutch perch.
It all adds up to an exciting new entry to Yamaha’s Cross Country lineup for enthusiasts and racers who want competition-dominating performance straight out of the box.
2024 YZ450FX Features & Benefits
- The ultimate open-class cross country racer, the new 2024 YZ450FX is lighter, slimmer, faster and designed to dominate cross country competition
- All-new 450cc engine is lighter, more compact with increased power across the entire rev range and a 500 rpm higher rev limit and ECU settings tailored for cross country competition
- Ultra-compact 44mm Mikuni® throttle body ensures optimum fuel atomization while saving weight and improving mass-centralization
- More compact, lightweight cable-actuated clutch design replaces coil springs with a new disc spring for smoother engagement and excellent feel
- New tri-shaft transmission layout is lighter and more compact, wide-ratio five-speed is optimized for cross country conditions
- Revised Yamaha Power Tuner App is even more user-friendly with intuitive new “Quick Setting” slide bar, Traction Control tuning and additional new features
- Two-mode adjustable engine mapping allows on-the-fly selection between two tuneable engine maps via new handlebar-mounted push-button switchgear
- Redesigned aluminum bilateral beam frame with YZ450FX-specific front engine mounts provides just the right amount of strength and flex for the perfect balance of straight-line stability and cornering performance
- Slimmer, flatter and more compact body eases rider movement for better control, with improved rider triangle for enhanced comfort
- Revised, fully adjustable KYB® coil spring-type fork with speed-sensitive damping now includes hand-adjustable knob for toolless compression adjustment
- Linkage-type rear suspension features a fully adjustable KYB® shock with revised settings for enhanced performance
- A 10mm lower seat height than the YZ450F provides lower center of gravity for improved low-speed maneuverability
- Large 270mm front brake disc and 240mm rear disc, high performance Nissin calipers and aggressive pad material to provide exceptional stopping power and control
- Compact, lightweight push-button electric start provides effortless restarts
- High-capacity lithium-ion battery provides consistent performance and minimal weight
- Lightweight aluminum tapered handlebar
- Rubber-mounted four-position adjustable handlebar mounts reduce vibration
- Wide footpegs with new lightweight aluminum alloy mounting brackets
- Optimized for cross country with larger 2.1-gallon fuel capacity, low fuel indicator, 18-inch rear wheel, composite engine guard, sealed O-ring chain and a folding aluminum kickstand
- Premium Yamaha Blue graphics scheme is embedded to provide excellent durability and scratch resistance
- Advanced computer-aided wheel design shaves weight without sacrificing durability
- The 18-inch rear wheel comes laced in a three-cross-spoke pattern for improved impact absorption and feel
- Race-developed Dunlop® Geomax MX33 tires
The new 2024 YZ450FX will be offered in Team Yamaha Blue and will be available from dealers this October for $10,199 MSRP.
Additionally, the remainder of Yamaha’s Cross Country lineup including the YZ125X, YZ250X and YZ250FX return for 2024 with updated graphics and a new seat color.
Additional Returning 2024 Models
Along with the 2024 motocross and cross country lineups, Yamaha is also announcing the trail lineup featuring the TT-R230, TT-R125LE, TT-R110E, TT-R50E and PW50 will return with updated graphics for 2024.
Yamaha bLU cRU Off-Road Racing Contingency Program
All 2024 YZ models are eligible for Yamaha’s current bLU cRU Off-Road Racing Contingency Program, which features nearly $7 million for Yamaha bLU cRU riders competing in off-road motorcycle racing. YZ riders can earn contingency payouts via a bLU cRU debit card, receive a 10 percent rebate on GYTR parts and accessory purchases of up to $1,000, and receive a bLU cRU swag bag.
For complete details on how to register for the bLU cRU Off-Road Racing Contingency Program, along with specific information on which racing series, events, and classes are included, visit the Off-Road Racing Contingency page on the Yamaha Motor Corporation, USA, website at: https://www.yamahamotorsports.com/blucru-registration.
Learn more about Yamaha’s complete Motocross and Cross-Country lineup, as well as other Yamaha products at:
Find a range of Genuine Yamaha Accessories, apparel and more at: www.yamaha-motor.com/shop.
For more information related to all Yamaha products, visit: www.yamahamotorsports.com.
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Harley-Davidson Delivers Second Quarter Financial Results
MILWAUKEE, July 27, 2023 /PRNewswire/ — Harley-Davidson, Inc. (“Harley-Davidson,” “HDI,” or the “Company”), (NYSE: HOG) today reported second quarter 2023 results.
“Harley-Davidson showed continued progress in delivery of our Hardwire strategy this quarter, despite the macro-economic conditions affecting both the business and our customers. Following the production suspension we experienced late in the quarter impacting motorcycle shipments, we achieved retail growth for the quarter in addition to a strong increase in gross margin,” said Jochen Zeitz, Chairman, President and CEO, Harley-Davidson. “We are confident in our ability to navigate near-term headwinds and remain optimistic on the future, most notably following the successful launch of our game-changing CVO’s and the highly attended gathering of our community during our anniversary year, reinforcing the enduring power of the brand.”
Second Quarter 2023 Highlights and Results
- Strategy remains grounded in desirability and profitability
- 120th Anniversary events in Budapest and Milwaukee reinforced overall brand strength
- Introduced two new CVO motorcycles, as well as new models in the Enthusiast and Icons collections
- HDMC Gross Margin of 34.8%, an increase of 400 basis points
- HDMC Revenue declined 4%, behind a 10% decrease in wholesale shipments related to an unplanned production suspension
- HDFS Revenue increased 19% on higher interest income and increased investment income
- Delivered diluted EPS of $1.22
- Company revises full year 2023 outlook
First Half 2023 Highlights and Results
- Achieved HDMC Operating Income Margin of 19.2%, an increase of 240 basis points
- HDMC Revenue was up 8 percent versus prior year driven by a 2 percent increase in wholesale motorcycle unit shipments
- Delivered diluted EPS of $3.27, up 12 percent
- Repurchased $156 million of shares (4.1 million shares) on a discretionary basis
Second Quarter 2023 Results
Harley-Davidson, Inc. Consolidated Financial Results
| $ in millions (except EPS) | 2nd quarter | ||
| 2023 | 2022 | Change | |
| Revenue | $1,446 | $1,469 | -2 % |
| Operating Income | $221 | $278 | -20 % |
| Net Income Attributable to HDI | $178 | $216 | -18 % |
| Diluted EPS | $1.22 | $1.46 | -16 % |
Consolidated revenue was down 2 percent in the second quarter, driven by a revenue decline of 4 percent at HDMC, which was partially offset by revenue growth of 19 percent at HDFS.
Consolidated operating income in the second quarter was down 20 percent, driven by a decline of 8 percent at HDMC, a decline of 31 percent at HDFS, and an operating loss of $32 million in the LiveWire segment. Consolidated operating income margin in the second quarter was 15.3 percent compared to 18.9 percent in the second quarter a year ago.
Harley-Davidson Motor Company (HDMC) – Results
| $ in millions | 2 nd quarter | ||
| 2023 | 2022 | Change | |
| Motorcycle Shipments (thousands) | 42.9 | 47.9 | -10 % |
| Revenue | $1,198 | $1,254 | -4 % |
| Motorcycles | $891 | $935 | -5 % |
| Parts & Accessories | $216 | $214 | 1 % |
| Apparel | $66 | $77 | -14 % |
| Licensing | $5 | $12 | -57 % |
| Other | $20 | $16 | 31 % |
| Gross Margin | 34.8 % | 30.9 % | 4.0 pts. |
| Operating Income | $194 | $211 | -8 % |
| Operating Margin | 16.2 % | 16.8 % | -0.6 pts. |
Second quarter global motorcycle shipments decreased 10 percent, due to an unplanned production suspension that occurred in Q2. Revenue was down 4 percent, with global pricing partially offsetting unit declines. Parts & Accessories revenue was up 1 percent driven by improved digital efforts, while Apparel revenue was down 14 percent compared to a strong Q2 period last year, as the bulk of seasonal product sales occurred in Q2 last year, compared to Q1 of this year.
Second quarter gross margin was up 4.0 points behind pricing, cost productivity, and shipment mix, more than offsetting the negative impacts from reduced volume and foreign currency. Second quarter operating income margin fell by 0.6 points due to higher operating expense, including higher people costs and marketing spend.
Harley-Davidson Retail Motorcycle Sales
(excludes LiveWire units)
| Motorcycles (thousands) | 2nd quarter | ||
| 2023 | 2022 | Change | |
| North America | 35.1 | 34.7 | 1 % |
| EMEA | 8.1 | 8.7 | -6 % |
| Asia Pacific | 7.5 | 6.0 | 24 % |
| Latin America | 0.8 | 0.8 | 4 % |
| Worldwide Total | 51.5 | 50.2 | 3 % |
Global retail motorcycle sales in the second quarter were up 3 percent versus prior year. North America retail performance was up 1 percent, driven by strength in our core categories such as Grand American Touring and Cruiser, but offset by declines in the Sport motorcycle segment, following the discontinuation of legacy Sportster models in North America at the end of 2022. Growth in APAC was driven by continued strong demand across key markets, including Japan, China, and Australia. The decline in EMEA of 6 percent was primarily driven by a market exit and the planned unit mix shift towards the profitable core product segments. Growth in Latin America was driven by modest growth in Brazil partially offset by weakness in Mexico.
Harley-Davidson Financial Services (HDFS) – Results
| $ in millions | 2nd quarter | ||
| 2023 | 2022 | Change | |
| Revenue | $240 | $203 | 19 % |
| Operating Income | $59 | $86 | -31 % |
HDFS’ revenue was up $38 million in the second quarter, an increase of 19%, driven primarily by higher interest income and increased investment income. HDFS’ operating income decline of $27 million, or down 31 percent, was driven by higher interest expense and an increased provision for credit losses. The moderate increase in the provision for credit losses was driven by several factors relating to the current macroeconomic environment. Total quarter ending net finance receivables were $7.5 billion, which was up 6 percent versus prior year, driven primarily by an increase in wholesale receivables.
LiveWire – Results
| $ in millions | 2nd quarter | ||
| 2023 | 2022 | Change | |
| Electric Motorcycle Shipments (units) | 33 | 225 | -85 % |
| LiveWire ONE (units) | 33 | 204 | -84 % |
| Harley-Davidson LiveWire (units) | — | 21 | NM |
| Revenue | $7 | $13 | -44 % |
| Operating Loss | ($32) | ($19) | NM |
| NM – not meaningful |
LiveWire revenue for the second quarter was down compared to the same quarter in 2022, due to lower unit sales of LiveWire ONE electric motorcycles and STACYC electric balance bikes. LiveWire operating loss of $32 million in the second quarter, in-line with expectations, was driven by product development spending associated with the launch of the Del Mar electric motorcycle.
Other Harley-Davidson, Inc. 2023 Results – through Q2 2023
- Generated $411 million of cash from operating activities
- Effective tax rate was 24 percent
- Paid cash dividends of $48 million
- Repurchased $156 million of shares (4.1 million shares) on a discretionary basis
- Cash and cash equivalents of $1.5 billion at the end of the quarter
- Financing raised for HDFS of $2.0 billion
2023 Financial Outlook
For the full year 2023, the Company is revising its HDMC guidance and its LiveWire unit sales guidance and now expects:
- HDMC: revenue growth of flat to 3% and operating income margin of 13.9 to 14.3%
- LiveWire: motorcycle unit sales of 600–1,000
For the full year 2023, the Company reaffirms the following guidance and continues to expect:
- HDFS: operating income decline of 20 to 25%
- LiveWire: operating loss of $115 to $125 million
- Harley-Davidson, Inc.: capital investments of $225 to $250 million
New Segment Reporting Structure
LiveWire Group, Inc. (“LiveWire Group”) became a separate public company trading on the New York Stock Exchange (Ticker: LVWR) on September 27, 2022. Harley-Davidson has a controlling equity interest in LiveWire Group and continues to consolidate LiveWire Group results with adjustments for non-controlling shareholder interests. Net Income attributable to Harley-Davidson, Inc. and EPS reflect these adjustments.
Beginning with the fourth quarter of 2022, new business segment reporting now includes:
- Harley-Davidson Motor Company (HDMC): Group that is accountable for the design, manufacturing, marketing and sales of Harley-Davidson motorcycles and related products
- Harley-Davidson Financial Services (HDFS): Group that provides motorcycle and related products financing and insurance products and services for our dealers and retail customers
- LiveWire: Group that is accountable for the design, marketing and sales of LiveWire electric motorcycles and related products, including STACYC electric balance bikes
Prior period segment results have been retrospectively adjusted based on the new segments. In addition, the consolidated results will continue to be reflected by:
- Harley-Davidson, Inc. (HDI): Corporate entity for the overall Company, under which HDMC, HDFS and LiveWire operate
Company Background
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Our vision: Building our legend and leading our industry through innovation, evolution and emotion. Our mission: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. Our ambition is to maintain our place as the most desirable motorcycle brand in the world. Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, experiences, motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road. Harley-Davidson also has a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the United States. LiveWire is the future in the making for the pursuit of urban adventure and beyond. Drawing on its DNA as an agile disruptor from the lineage of Harley-Davidson and capitalizing on a decade of learnings in the EV sector, LiveWire’s ambition is to be the most desirable electric motorcycle brand in the world. Learn more at harley-davidson.com and livewire.com.
Webcast
Harley-Davidson will discuss its financial results and outlook on an audio webcast at 8:00 a.m. CT today. The webcast login and supporting slides can be accessed at http://investor.harley-davidson.com/news-and-events/events-and-presentations. The audio replay will be available by approximately 10:00 a.m. CT.
Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this presentation and our associated comments are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the company “believes,” “anticipates,” “expects,” “plans,” “may,” “will,” “estimates,” “targets,” “intends,” “forecasts,” “is on track,” “sees,” “feels,” or words of similar meaning. Similarly, statements that describe or refer to future expectations, future plans, strategies, objectives, outlooks, targets, guidance, commitments, or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this presentation. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.
Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the Company’s ability to: (a) execute its business plans and strategies, including The Hardwire, each of the pillars, and the evolution of LiveWire as a standalone brand, which includes the risks noted below; (b) manage supply chain and logistics issues, including quality issues, availability of semiconductor chip components and the ability to find alternative sources of those components in a timely manner, unexpected interruptions or price increases caused by supplier volatility, raw material shortages, inflation, war or other hostilities, including the conflict in Ukraine, or natural disasters and longer shipping times and increased logistics costs, including by successfully implementing pricing surcharges; (c) realize the expected business benefits from LiveWire operating as a separate public company, which may be affected by, among other things: (i) the ability of LiveWire to: (1) execute its plans to develop, produce, market and sell its electric vehicles; (2) achieve profitability, which is dependent on the successful development and commercial introduction and acceptance of its electric vehicles, and its services, which may not occur; (3) adequately control the costs of its operations as a new entrant into a new space; (4) develop, maintain and strengthen its brand; (5) execute its plans to develop, produce, market and sell its electric vehicles on expected timelines; and (6) effectively establish and maintain cooperation from its retail partners, largely drawn from the Company’s traditional motorcycle dealer network, to be able to effectively establish or maintain relationships with customers for electric vehicles; (ii) competition; and (iii) other risks and uncertainties indicated in documents filed with the SEC by the Company or LiveWire Group, Inc., including those risks and uncertainties noted in “Risk Factors” under Item 1.A of LiveWire Group Inc.’s Annual Report on Form 10-K for the year ended December 31, 2022; (d) accurately analyze, predict and react to changing market conditions and successfully adjust to shifting global consumer needs and interests; (e) successfully access the capital and/or credit markets on terms that are acceptable to the Company and within its expectations; (f) successfully carry out its global manufacturing and assembly operations; (g) develop and introduce products, services and experiences on a timely basis that the market accepts, that enable the Company to generate desired sales levels and that provide the desired financial returns, including successfully implementing and executing plans to strengthen and grow its leadership position in Grand American Touring, large Cruiser and Trike, and grow its complementary businesses; (h) perform in a manner that enables the Company to benefit from market opportunities while competing against existing and new competitors; (i) manage ongoing risks related to the impact of the COVID-19 pandemic, such as supply chain disruptions, its ability to carry out business as usual, and government actions and restrictive measures implemented in response; (j) manage the regulatory compliance matter relating to a third-party supplier’s component part in a manner that avoids additional costs or recall expenses that are material (k) manage the quality issue relating to brake hose assemblies provided by Proterial Cable America (PCA), including (i) the nature and extent of the issue and the ability of the supplier to remedy the potential issue, and (ii) the effects that the production suspension caused by the quality issue relating to the PCA brake hose assemblies may have on its business, including on retail sales of new motorcycles; (l) successfully appeal: (i) the revocation of the Binding Origin Information (“BOI”) decisions that allowed the Company to supply its European Union (“EU”) market with certain of its motorcycles produced at its Thailand operations at a reduced tariff rate and (ii) the denial of the Company’s application for temporary relief from the effect of the revocation of the BOI decisions; (m) manage and predict the impact that new, reinstated or adjusted tariffs may have on the Company’s ability to sell products internationally, and the cost of raw materials and components, including the temporary lifting of the Section 232 steel and aluminum tariffs and incremental tariffs on motorcycles imported into the EU from the U.S., between the U.S. and EU, which expires on December 31, 2023; (n) prevent, detect and remediate any issues with its motorcycles or any issues associated with the manufacturing processes to avoid delays in new model launches, recall campaigns, regulatory agency investigations, increased warranty costs or litigation and adverse effects on its reputation and brand strength, and carry out any product programs or recalls within expected costs and timing; (o) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles; (p) successfully manage and reduce costs throughout the business; (q) manage through changes in general economic and business conditions, including changing capital, credit and retail markets, particularly with the recent turmoil in the banking industry, and the changing domestic and international political environments, including as a result of the conflict in Ukraine; (r) continue to develop the capabilities of its distributors and dealers, effectively implement changes relating to its dealers and distribution methods and manage the risks that its dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand; (s) continue to develop and maintain a productive relationship with Zhejiang Qianjiang Motorcycle Co., Ltd. and launch related products in a timely manner; (t) maintain a productive relationship with Hero MotoCorp as a distributor and licensee of the Harley-Davidson brand name in India; (u) successfully maintain a manner in which to sell motorcycles in China and the Company’s Association of Southeast Asian Nations (ASEAN) countries that does not subject its motorcycles to incremental tariffs; (v) manage its Thailand corporate and manufacturing operation in a manner that allows the Company to avail itself of preferential free trade agreements and duty rates, and sufficiently lower prices of its motorcycles in certain markets; (w) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices; (x) retain and attract talented employees, and eliminate personnel duplication, inefficiencies and complexity throughout the organization; (y) prevent a cybersecurity breach involving consumer, employee, dealer, supplier, or Company data and respond to evolving regulatory requirements regarding data security; (z) manage the credit quality, the loan servicing and collection activities, and the recovery rates of Harley-Davidson Financial Services’ loan portfolio; (aa) adjust to tax reform, healthcare inflation and reform and pension reform, and successfully estimate the impact of any such reform on the Company’s business; (bb) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles; (cc) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities; (dd) manage changes, prepare for, and respond to evolving requirements in legislative and regulatory environments related to its products, services and operations; (ee) manage its exposure to product liability claims and commercial or contractual disputes; (ff) continue to manage the relationships and agreements that the Company has with its labor unions to help drive long-term competitiveness; (gg) achieve anticipated results with respect to the Company’s pre-owned motorcycle program, Harley-Davidson Certified, the Company’s H-D1 Marketplace, and Apparel and Licensing; (hh) accurately predict the margins of its segments in light of, among other things, tariffs, inflation, foreign currency exchange rates, the cost associated with product development initiatives and the Company’s complex global supply chain; (ii) optimize capital allocation in light of the Company’s capital allocation priorities; and (jj) manage through the effects increased environmental, safety, emissions or other regulations or other influences may have on the business and its operating results.
The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company’s dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its dealers to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company’s dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions, the impact of the COVID-19 pandemic, or other factors.
In recent years, Harley-Davidson Financial Services (HDFS) experienced historically low levels of retail credit losses, but credit losses have been normalizing to higher levels in recent quarters. Further, the Company believes that HDFS’s retail credit losses will continue to change over time due to changing consumer credit behavior, macroeconomic conditions including the impact of inflation, and HDFS’ efforts to adjust underwriting criteria based on market and economic conditions, as well as actions that the Company has taken and could take that impact motorcycle values.
The Company’s operations, demand for its products, and its liquidity could be adversely impacted by work stoppages, facility closures, strikes, natural causes, widespread infectious disease, terrorism, war or other hostilities, including the conflict in Ukraine, or other factors. Refer to “Risk Factors” under Item 1.A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above.
### (HOG-Earnings)
| Harley-Davidson, Inc. | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (In thousands, except per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Three months ended | Six months ended | |||||||
| June 30, | June 26, | June 30, | June 26, | |||||
| 2023 | 2022 | 2023 | 2022 | |||||
| HDMC revenue | $ 1,198,136 | $ 1,253,965 | $ 2,755,965 | $ 2,546,735 | ||||
| Gross profit | 417,474 | 387,140 | 974,500 | 794,722 | ||||
| Selling, administrative and engineering expense | 223,137 | 176,361 | 444,427 | 365,137 | ||||
| Restructuring benefit | – | (264) | – | (392) | ||||
| Operating income from HDMC | 194,337 | 211,043 | 530,073 | 429,977 | ||||
| LiveWire revenue | 7,026 | 12,506 | 14,788 | 22,907 | ||||
| Gross profit | (2,940) | (390) | (1,676) | (337) | ||||
| Selling, administrative and engineering expense | 29,044 | 18,966 | 54,855 | 35,078 | ||||
| Operating loss from Livewire | (31,984) | (19,356) | (56,531) | (35,415) | ||||
| HDFS revenue | 240,361 | 202,616 | 463,456 | 394,631 | ||||
| HDFS expense | 181,376 | 116,688 | 346,051 | 222,346 | ||||
| Operating income from HDFS | 58,985 | 85,928 | 117,405 | 172,285 | ||||
| Operating income | 221,338 | 277,615 | 590,947 | 566,847 | ||||
| Other income, net | 7,226 | 10,055 | 27,322 | 21,085 | ||||
| Investment income (loss) | 11,151 | (3,530) | 21,176 | (5,509) | ||||
| Interest expense | (7,696) | (7,720) | (15,416) | (15,431) | ||||
| Income before income taxes | 232,019 | 276,420 | 624,029 | 566,992 | ||||
| Income tax provision | 58,189 | 60,571 | 148,370 | 128,641 | ||||
| Net income | $ 173,830 | $ 215,849 | $ 475,659 | $ 438,351 | ||||
| Less: Loss attributable to noncontrolling interests | 4,209 | – | 6,470 | – | ||||
| Net income attributable to Harley-Davidson, Inc. | $ 178,039 | $ 215,849 | $ 482,129 | $ 438,351 | ||||
| Earnings per share: | ||||||||
| Basic | $ 1.24 | $ 1.47 | $ 3.33 | $ 2.92 | ||||
| Diluted | $ 1.22 | $ 1.46 | $ 3.27 | $ 2.91 | ||||
| Weighted-average shares: | ||||||||
| Basic | 143,414 | 147,211 | 144,724 | 149,936 | ||||
| Diluted | 145,787 | 147,835 | 147,351 | 150,812 | ||||
| Cash dividends per share: | $ 0.1650 | $ 0.1575 | $ 0.3300 | $ 0.3150 | ||||
| The Company operates in three reportable segments: Harley-Davidson Motor Company (HDMC), LiveWire and Harley-Davidson Financial Services (HDFS). The Company changed its segments in the period ended December 31, 2022. The change has been retrospectively reflected in the Company’s results. | ||||||||
| LiveWire results presented in the Company’s financial statements represent the LiveWire reportable segment as determined in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280 Segment Reporting which may differ from LiveWire Group, Inc. results. |
| Harley-Davidson, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | (Unaudited) | |||||||
| June 30, | December 31, | June 26, | ||||||
| 2023 | 2022 | 2022 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ 1,521,940 | $ 1,433,175 | $ 2,194,259 | |||||
| Accounts receivable, net | 329,487 | 252,225 | 302,049 | |||||
| Finance receivables, net | 1,979,645 | 1,782,631 | 1,674,970 | |||||
| Inventories, net | 846,033 | 950,960 | 726,586 | |||||
| Restricted cash | 135,618 | 135,424 | 226,488 | |||||
| Other current assets | 201,702 | 196,238 | 183,816 | |||||
| 5,014,425 | 4,750,653 | 5,308,168 | ||||||
| Finance receivables, net | 5,530,221 | 5,355,807 | 5,428,714 | |||||
| Other long-term assets | 1,470,915 | 1,386,016 | 1,384,736 | |||||
| $ 12,015,561 | $ 11,492,476 | $ 12,121,618 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ 950,110 | $ 998,947 | $ 1,008,962 | |||||
| Short-term deposits, net | 216,293 | 79,710 | 78,005 | |||||
| Short-term debt | 695,356 | 770,468 | 701,384 | |||||
| Current portion of long-term debt, net | 604,700 | 1,684,782 | 1,887,552 | |||||
| 2,466,459 | 3,533,907 | 3,675,903 | ||||||
| Long-term debt, net | 5,765,246 | 4,457,052 | 5,204,317 | |||||
| Other long-term liabilities | 594,000 | 594,709 | 606,246 | |||||
| Shareholders’ equity | 3,189,856 | 2,906,808 | 2,635,152 | |||||
| $ 12,015,561 | $ 11,492,476 | $ 12,121,618 | ||||||
| Harley-Davidson, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited | ||||||||
| Six months ended | ||||||||
| June 30, | June 26, | |||||||
| 2023 | 2022 | |||||||
| Net cash provided by operating activities | $ 410,520 | $ 244,186 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (86,526) | (55,015) | ||||||
| Finance receivables, net | (259,520) | (439,241) | ||||||
| Other investing activities | 850 | 797 | ||||||
| Net cash used by investing activities | (345,196) | (493,459) | ||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of medium-term notes | 1,446,304 | 495,785 | ||||||
| Repayments of medium-term notes | (1,056,680) | (950,000) | ||||||
| Proceeds from securitization debt | 547,706 | 1,826,891 | ||||||
| Repayments of securitization debt | (645,377) | (610,205) | ||||||
| Net decrease in unsecured commercial paper | (75,229) | (50,672) | ||||||
| Borrowings of asset-backed commercial paper | 33,547 | 425,253 | ||||||
| Repayments of asset-backed commercial paper | (129,961) | (133,159) | ||||||
| Net increase in deposits | 122,288 | 55,255 | ||||||
| Dividends paid | (48,193) | (47,146) | ||||||
| Repurchase of common stock | (169,645) | (325,828) | ||||||
| Other financing activities | 76 | (1,237) | ||||||
| Net cash provided by financing activities | 24,836 | 684,937 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (490) | (14,413) | ||||||
| Net increase in cash, cash equivalents and restricted cash | $ 89,670 | $ 421,251 | ||||||
| Cash, cash equivalents and restricted cash: | ||||||||
| Cash, cash equivalents and restricted cash, beginning of period | $ 1,579,177 | $ 2,025,219 | ||||||
| Net increase in cash, cash equivalents and restricted cash | 89,670 | 421,251 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ 1,668,847 | $ 2,446,470 | ||||||
| Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows: | ||||||||
| Cash and cash equivalents | $ 1,521,940 | $ 2,194,259 | ||||||
| Restricted cash | 135,618 | 226,488 | ||||||
| Restricted cash included in Other long-term assets | 11,289 | 25,723 | ||||||
| Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows | $ 1,668,847 | $ 2,446,470 | ||||||
| HDMC Revenue and Motorcycle Shipment Data | ||||||||
| (Unaudited) | ||||||||
| Three months ended | Six months ended | |||||||
| June 30, | June 26, | June 30, | June 26, | |||||
| 2023 | 2022 | 2023 | 2022 | |||||
| HDMC REVENUE (in thousands) | ||||||||
| Motorcycles | $ 890,919 | $ 935,172 | $ 2,193,297 | $ 1,992,177 | ||||
| Parts and accessories | 215,520 | 214,267 | 383,192 | 379,587 | ||||
| Apparel | 66,356 | 77,325 | 137,747 | 128,729 | ||||
| Licensing | 5,116 | 11,781 | 11,326 | 18,278 | ||||
| Other | 20,225 | 15,420 | 30,403 | 27,964 | ||||
| $ 1,198,136 | $ 1,253,965 | $ 2,755,965 | $ 2,546,735 | |||||
| HDMC U.S. MOTORCYCLE SHIPMENTS | 24,229 | 28,181 | 66,817 | 64,000 | ||||
| HDMC WORLDWIDE MOTORCYCLE SHIPMENTS | ||||||||
| Grand American Touring(a) | 20,270 | 21,758 | 52,489 | 47,770 | ||||
| Cruiser | 15,476 | 14,565 | 36,734 | 30,128 | ||||
| Sport and Lightweight | 6,161 | 8,452 | 12,746 | 18,106 | ||||
| Adventure Touring | 1,027 | 3,168 | 3,202 | 6,685 | ||||
| 42,934 | 47,943 | 105,171 | 102,689 | |||||
| (a) Includes Trike | ||||||||
| LiveWire Motorcycle Shipments | 33 | 225 | 96 | 322 | ||||
| HDMC Gross Profit | ||||||||
| (Unaudited) | ||||||||
| The estimated impact of significant factors affecting the comparability of gross profit from the second quarter of 2022 to the second quarter of 2023 were as follows (in millions): | ||||||||
| Three months ended | Six months ended | |||||||
| 2022 gross profit | $ 387 | $ 795 | ||||||
| Volume | (43) | 1 | ||||||
| Price and sales incentives | 51 | 154 | ||||||
| Foreign currency exchange rates and hedging | (13) | (35) | ||||||
| Shipment mix | 14 | 42 | ||||||
| Raw material prices | 8 | 14 | ||||||
| Manufacturing and other costs | 13 | 4 | ||||||
| 30 | 180 | |||||||
| 2023 gross profit | $ 417 | $ 975 | ||||||
| HDFS Finance Receivables Allowance for Credit Losses | ||||||||
| (Unaudited) | ||||||||
| Three months ended | Six months ended | |||||||
| June 30, | June 26, | June 30, | June 26, | |||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Balance, beginning of period | $ 358,431 | $ 340,473 | $ 358,711 | $ 339,379 | ||||
| Provision for credit losses | 57,278 | 29,133 | 109,642 | 57,955 | ||||
| Charge-offs, net of recoveries | (33,929) | (17,469) | (86,573) | (45,197) | ||||
| Balance, end of period | $ 381,780 | $ 352,137 | $ 381,780 | $ 352,137 | ||||
| Worldwide Retail Sales of Harley-Davidson Motorcycles(a) | ||||||||
| (Unaudited) | ||||||||
| Three months ended | Six months ended | |||||||
| June 30, | June 30, | June 30, | June 30, | |||||
| 2023 | 2022 | 2023 | 2022 | |||||
| United States | 32,161 | 31,641 | 56,438 | 60,985 | ||||
| Canada | 2,899 | 3,086 | 4,643 | 4,955 | ||||
| Total North America | 35,060 | 34,727 | 61,081 | 65,940 | ||||
| EMEA | 8,120 | 8,656 | 14,037 | 14,946 | ||||
| Asia Pacific | 7,525 | 6,045 | 14,406 | 12,744 | ||||
| Latin America | 821 | 791 | 1,427 | 1,600 | ||||
| Total worldwide retail sales | 51,526 | 50,219 | 90,951 | 95,230 | ||||
| (a) Data source for retail sales figures shown above is new sales warranty and registration information provided by dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning new retail sales, and the Company does not regularly verify the information that its dealers supply. This information is subject to revision. |
LiveWire Group, Inc. Reports Second Quarter Financial Results
LiveWire Group, Inc. (“LiveWire”) (NYSE: LVWR) today reported second quarter results.
“Throughout Q2, we saw high anticipation for Del Mar™, the first bike on the S2 platform, from both riders and our retail partners. With the first bikes rolling off the line in the third quarter, we’re looking forward to getting Del Mar to more and more riders throughout the back half of 2023. During the quarter, we also saw keen interest in the LiveWire brand in the European market in response to our launch events in Berlin, Paris, London and Amsterdam,” said Karim Donnez, CEO, LiveWire.
Second Quarter 2023 Business Highlights
- Continued activities in final supply chain, regulatory and manufacturing for expected start of production of Del Mar in third quarter
- Continued product development efforts on third motorcycle in LiveWire family (second on new S2 platform)
- Activated a network of 35 retail partners in France, the UK, Germany and the Netherlands in support of our hybrid go-to-market model
- LiveWire ONE® became available in the European market in late June, while preparing to ship the Del Mar Launch Edition later this year
LiveWire Group, Inc. – Unit Results
| $ in millions, except units | 2nd quarter | ||
| 2023 | 2022 | Change | |
| LiveWire ONE (units) | 33 | 204 | (84%) |
| Harley-Davidson LiveWire (units) | — | 21 | (100%) |
| Electric Motorcycle Shipments (units) | 33 | 225 | (85%) |
Second Quarter 2023 Results
LiveWire Group, Inc. – Consolidated Results
| $ in millions, except units * | 2nd quarter | ||
| 2023 | 2022 | Change | |
| Consolidated Revenue | $7.0 | $12.5 | (44%) |
| Electric Motorcycles | $0.8 | $5.1 | (85%) |
| STACYC | $6.3 | $7.4 | (15%) |
| Consolidated Operating Income (Loss) | ($32.0) | ($19.4) | 65% |
| Electric Motorcycles | ($31.9) | ($20.2) | 58% |
| STACYC | ($0.1) | $0.8 | (110%) |
| Net Loss | ($40.7) | ($19.6) | 108% |
| *Amounts may not add up due to rounding | |||
LiveWire Group, Inc. consolidated net loss was $40.7 million for the second quarter as compared to $19.6 million in the same period prior year driven by the below segment results, planned product development investment, as well as a $11.4 million non-operating mark-to-market expense related to the increase in fair value of the outstanding warrants as of the end of the quarter.
LiveWire Group, Inc. is comprised of two business segments:
- Electric Motorcycles – focused on the sale of electric motorcycles and related products
- STACYC – focused on the sale of electric balance bikes for kids and related products
Electric Motorcycles
Electric Motorcycle revenue was down compared to the same quarter in the prior year due to lower unit sales of LiveWire ONE. In line with expectations, increased operating losses versus the second quarter of 2022 were the result of the planned product development investments to advance the electric vehicle systems and activities associated with launch preparation of the Del Mar and the development of LiveWire’s third motorcycle. Increased operating losses also incorporate the added planned costs of standing up a new organization as compared to the same quarter in the prior year.
STACYC
STACYC revenue was down in the second quarter due to our retail partners for electric balance bikes taking a more conservative approach to inventory in response to the macro-economic environment as compared to the second quarter of 2022. STACYC operating loss for the second quarter was $0.1 million versus operating income of $0.8 million a year ago, largely due to gross margin driven by lower volumes.
2023 Financial Outlook
For the full year 2023, the Company is revising its unit sales guidance and now expects:
- Electric Motorcycle unit sales of 600 to 1,000
For the full year 2023, the Company reaffirms its initial guidance and continues to expect:
- LiveWire Group Operating Loss of $115 to $125 million
Liquidity
To support future ongoing operations, the Company has the following available liquidity:
- Cash and cash equivalents as of the end of Q2 2023 of $216 million
- A non-binding $200 million term sheet with majority shareholder
Webcast
The public is invited to attend an audio webcast from 8-9 a.m. CT. LiveWire leadership will be joining the Harley-Davidson, Inc. audio webcast to discuss our results, developments in the business, and updates to the Company’s outlook. The webcast login can be accessed at https://investor.livewire.com/news-events-1/events/default.aspx. The audio replay will be available by approximately 10:00 a.m. CT.
About LiveWire
LiveWire has a dedicated focus on the electric motorcycle sector. LiveWire’s majority shareholder is Harley-Davidson, Inc. LiveWire comes from the lineage of Harley-Davidson and is capitalizing on a decade of its learnings in the EV sector. With a dedicated focus on EV, LiveWire plans to develop the technology of the future and to invest in the capabilities needed to lead the transformation of motorcycling. www.livewire.com
Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements concerning possible or assumed future actions, business strategies, events or results of operations, and any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Words or phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will” and “would,” or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of important factors that could cause actual results to differ materially from those in the forward-looking statements, including the risks, uncertainties and assumptions described in prior public filings titled “Risk Factors.” These forward-looking statements are subject to numerous risks, including, without limitation, the following: our history of losses and expectation to incur significant expenses and continuing losses for the foreseeable future; our limited operating history, the rollout of our business and the timing of expected business milestones, including our ability to develop and manufacture electric vehicles of sufficient quality and appeal to customers on schedule and on a large scale; our financial and business performance, including financial projections and business metrics and any underlying assumptions thereunder; changes in our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; our ability to attract and retain a large number of customers; our future capital requirements and sources and uses of cash; our ability to obtain funding for our operations and manage costs; challenges we face as a pioneer into the highly-competitive and rapidly evolving electric vehicle industry; our operational and financial risks if we fail to effectively and appropriately separate the LiveWire business from the H-D business; H-D making decisions for its overall benefit that could negatively impact our overall business; our relationship with H-D and its impact on our other business relationships; our ability to leverage contract manufacturers, including H-D and Kwang Yang Motor Co., Ltd., a Taiwanese company (“KYMCO”), to contract manufacture our electric vehicles; retail partners being unwilling to participate in our go-to-market business model or their inability to establish or maintain relationships with customers for our electric vehicles; potential delays in the design, manufacture, financing, regulatory approval, launch and delivery of our electric vehicles; building out our supply chain, including our dependency on our existing suppliers and our ability to source suppliers, in each case many of which are single-sourced or limited-source suppliers, for our critical components such as batteries and semiconductor chips; our ability to rely on third-party and public charging networks; our ability to attract and retain key personnel; our business, expansion plans and opportunities, including our ability to scale our operations and manage our future growth effectively; the effects on our future business of competition, the pace and depth of electric vehicle adoption generally and our ability to achieve planned competitive advantages with respect to our electric vehicles and products, including with respect to reliability, safety and efficiency; our business and H-D’s business overlapping and being perceived as competitors; our inability to maintain a strong relationship with H-D or to resolve favorably any disputes that may arise between us and H-D; our dependency on H-D for a number of services, including services relating to quality and safety testing. If those service arrangements terminate, it may require significant investment for us to build our own safety and testing facilities, or we may be required to obtain such services from another third-party at increased costs; any decision by us to electrify H-D products, or the products of any other company; our expectations regarding our ability to obtain and maintain intellectual property protection and not infringe on the rights of others; potential harm caused by misappropriation of our data and compromises in cybersecurity; changes in laws, regulatory requirements, governmental incentives and fuel and energy prices; the impact of health epidemics, including the COVID-19 pandemic, on our business, the other risks we face and the actions we may take in response thereto; litigation, regulatory proceedings, complaints, product liability claims and/or adverse publicity; and the possibility that we may be adversely affected by other economic, business and/or competitive factors. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in an evolving environment. Some of these risks and uncertainties may in the future be amplified by new risk factors and uncertainties that may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. As a result of these factors, we cannot assure you that the forward-looking statements in this press release will prove to be accurate. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this earnings release completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.
| LiveWire Group, Inc.Consolidated Statements of Operations(In thousands, except per share amounts)(Unaudited) | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||
| June 30, 2023 | June 26, 2022 | June 30, 2023 | June 26, 2022 | ||||||||||||
| Revenue, net | $ | 7,026 | $ | 12,506 | $ | 14,788 | $ | 22,907 | |||||||
| Costs and expenses: | |||||||||||||||
| Cost of goods sold | 9,966 | 12,896 | 16,464 | 23,244 | |||||||||||
| Selling, administrative and engineering expense | 29,044 | 18,966 | 55,215 | 34,718 | |||||||||||
| Total costs and expenses | 39,010 | 31,862 | 71,679 | 57,962 | |||||||||||
| Operating loss | (31,984 | ) | (19,356 | ) | (56,891 | ) | (35,055 | ) | |||||||
| Other income, net | — | 87 | — | 156 | |||||||||||
| Interest expense related party | — | (198 | ) | — | (475 | ) | |||||||||
| Interest income (expense) | 2,754 | (16 | ) | 5,446 | (20 | ) | |||||||||
| Change in fair value of warrant liabilities | (11,438 | ) | — | (10,370 | ) | — | |||||||||
| Loss before income taxes | (40,668 | ) | (19,483 | ) | (61,815 | ) | (35,394 | ) | |||||||
| Income tax provision | 64 | 95 | 64 | 163 | |||||||||||
| Net loss | $ | (40,732 | ) | $ | (19,578 | ) | $ | (61,879 | ) | $ | (35,557 | ) | |||
| Net loss per share, basic and diluted | $ | (0.20 | ) | $ | (0.12 | ) | $ | (0.31 | ) | $ | (0.22 | ) | |||
| Weighted-average shares, basic and diluted | 202,409 | 161,000 | 202,407 | 161,000 | |||||||||||
| LiveWire Group, Inc.Consolidated Balance Sheets(In thousands) | |||||||
| (Unaudited) | |||||||
| June 30, 2023 | December 31, 2022 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 215,872 | $ | 265,240 | |||
| Accounts receivable, net | 4,677 | 2,325 | |||||
| Accounts receivable from related party | 407 | 525 | |||||
| Inventories, net | 32,174 | 29,215 | |||||
| Other current assets | 2,720 | 4,625 | |||||
| Total current assets | 255,850 | 301,930 | |||||
| Property, plant and equipment, net | 35,678 | 31,567 | |||||
| Goodwill | 8,327 | 8,327 | |||||
| Lease assets | 2,538 | 3,128 | |||||
| Intangible assets, net | 1,578 | 1,809 | |||||
| Other long-term assets | 6,490 | 5,044 | |||||
| Total assets | $ | 310,461 | $ | 351,805 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 6,072 | $ | 7,055 | |||
| Accounts payable to related party | 16,324 | 5,733 | |||||
| Accrued liabilities | 17,047 | 20,343 | |||||
| Current portion of lease liabilities | 1,385 | 1,312 | |||||
| Total current liabilities | 40,828 | 34,443 | |||||
| Long-term portion of lease liabilities | 1,244 | 1,913 | |||||
| Deferred tax liabilities | 78 | 15 | |||||
| Warrant liabilities | 18,757 | 8,388 | |||||
| Other long-term liabilities | 425 | 246 | |||||
| Total liabilities | 61,332 | 45,005 | |||||
| Shareholders’ equity: | |||||||
| Preferred Stock | — | — | |||||
| Common Stock | 20 | 20 | |||||
| Additional paid-in-capital | 333,426 | 329,218 | |||||
| Accumulated deficit | (84,317 | ) | (22,438 | ) | |||
| Total shareholders’ equity | 249,129 | 306,800 | |||||
| Total liabilities and shareholders’ equity | $ | 310,461 | $ | 351,805 | |||
| LiveWire Group, Inc.Consolidated Statements of Cash Flows(In thousands)(Unaudited) | |||||||
| Six months ended | |||||||
| June 30, 2023 | June 26, 2022 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (61,879 | ) | $ | (35,557 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities | |||||||
| Depreciation and amortization | 1,372 | 2,806 | |||||
| Payment of contingent consideration in excess of acquisition date fair value | — | (413 | ) | ||||
| Change in fair value of warrant liabilities | 10,370 | — | |||||
| Stock compensation expense | 4,202 | (171 | ) | ||||
| Provision for doubtful accounts | 55 | 27 | |||||
| Deferred income taxes | 63 | 82 | |||||
| Inventory write-downs | 1,626 | 597 | |||||
| Cloud computing arrangements development costs | (640 | ) | (1,158 | ) | |||
| Other, net | (629 | ) | (511 | ) | |||
| Changes in current assets and liabilities: | |||||||
| Accounts receivable, net | (2,407 | ) | 3,064 | ||||
| Accounts receivable from related party | 118 | (1,124 | ) | ||||
| Inventories | (4,585 | ) | (11,321 | ) | |||
| Other current assets | 1,905 | 1,892 | |||||
| Accounts payable and accrued liabilities | (1,357 | ) | 4,143 | ||||
| Accounts payable to related party | 10,591 | — | |||||
| Net cash used by operating activities | (41,195 | ) | (37,644 | ) | |||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (8,175 | ) | (5,722 | ) | |||
| Net cash used by investing activities | (8,175 | ) | (5,722 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds received from exercise of warrants | 2 | — | |||||
| Borrowings on notes payable to related party | — | 15,333 | |||||
| Payment of contingent consideration up to acquisition date fair value | — | (1,767 | ) | ||||
| Transfers from H-D | — | 32,497 | |||||
| Net cash provided by financing activities | 2 | 46,063 | |||||
| Net (decrease) increase in cash and cash equivalents | $ | (49,368 | ) | $ | 2,697 | ||
| Cash and cash equivalents: | |||||||
| Cash and cash equivalents—beginning of period | $ | 265,240 | $ | 2,668 | |||
| Net (decrease) increase in cash and cash equivalents | (49,368 | ) | 2,697 | ||||
| Cash and cash equivalents—end of period | $ | 215,872 | $ | 5,365 | |||
