Harley-Davidson (NYSE: HOG) is struggling with a number of headwinds that put the business in a precarious position long-term. Its core customers are aging and aren't being replaced by a new generation of loyal riders as has happened in the past. At the same time, transportation itself is changing, with younger consumers using ridesharing more frequently and even foregoing vehicle ownership altogether.
The result is a declining business that shows no signs of recovering at the moment. Management has a plan to turn the company around with an initiative known as "More Roads to Harley-Davidson," where it hopes to increase Harley ridership by 1 million people over the next decade to 4 million people. It's a tall task given where the business is today, and focusing on the Harley-Davidson brand may be a losing effort.
Image source: Harley-Davidson.