TIME Military

Meet the Military’s New Humvee

William Kapinski/Oshkosh

Oshkosh beat out three competitors with this new design

After the Army tested Humvee prototypes from Lockheed Martin Corp., AM General LLC, and Oshkosh Corp. back in January, it offered the latter a $6.75 billion contract on Tuesday to build military vehicles, the Wall Street Journal reports.

Over the next 25 years, Oshkosh will produce up to 55,000 Joint Light Tactical Vehicles (JLTVs) to replace a good portion of the military’s aging Humvees and larger trucks. The Army plans to purchase 49,909 for itself and 5,500 for the Marines.

Oshkosh has been in the business of building military vehicles for a long time, but has recently faced rough times as the Pentagon decreased its spending. This long-term contract gives the company some much needed stability. Its stock declined by about 20% this year, but after it locked in this deal on Tuesday shares rose by 12%, reaching $43 apiece in after-hours trade. This upsurge erased over half of its 20% drop.

The new design is lighter than the previous one produced by AM General, making it easier to transport by air. They will also provide superior protection against mines and roadside bombs, with greater range and durability to transport troops and gear.

Oshkosh chief executive Charles Szews told the Journal that its role in the defense business “supports the whole infrastructure for the company,” making this “a historic win.”

TIME driverless cars

Can the Car Insurance Business Survive Driverless Cars?

Gov. Brown Signs Legislation At Google HQ That Allows Testing Of Autonomous Vehicles
Justin Sullivan—Getty Images

As car safety becomes more sophisticated, fewer drivers will need coverage

As technology inevitably advances, cars are becoming much safer. It started with airbags and antilock brakes, and soon driverless cars will become commonplace. As safety features become more sophisticated, the number of accidents on the road will significantly decrease. This is, no doubt, good news, but insurance giants are nervous about what it will mean for their companies, since drivers will need less coverage. As Warren Buffett, who owns Geico, puts it: “If you could come up with anything involved in driving that cut accidents by 30 percent, 40 percent, 50 percent, that would be wonderful. But we would not be holding a party at our insurance company.”

Donald Light, head of the North America property and casualty practice for research firm Celent, says that in the next 15 years, as driverless cars start hitting the roads, premiums can drop as much as 60%. He tells insurers: “You have to be prepared to see that part of your business shrink, probably considerably.”

Insurance companies have already had a taste of what that will look like with the introduction of sensors that warn you if another car is too close and other similar features. According to the Highway Loss Data Institute’s 2014 study of insurance claims, bodily injury liability losses dropped by 40%, and medical payments saw a 27% drop. This will only keep getting worse for insurance companies (and better for the rest of us) as self-driving cars become the popular choice. Boston Consulting Group estimates that by 2035, self-driving cars will make up about 25% of all auto sales worldwide.

Insurance companies will be forced to seek out alternate sources of revenue. Tom Wilson, CEO of Allstate, is thinking about selling coverage for other products, such as mobile phones. He’s also considering using data that the company is already collecting about its customers. For example, they track their customers’ driving behaviors so they can offer rewards for safe driving; they could also potentially use that information to send customers coupons as they drive by retailers.

Although this advancement in car safety decreases the need for driver coverage, it also opens up a market for covering the carmakers. If one of their automated features fails, they will want to be insured to cover any liability costs.

TIME car age

Here’s Why Lots Of Cars On The Road Probably Still Have Tape Decks

Toyota Opens Hybrid Engine Factory
Bloomberg—Bloomberg via Getty Images

The average U.S. vehicle age has hit a record

You know that slot in the middle of your center-console that you sometimes use as an iPhone holder? Well, that’s actually a tape deck—an ancient artifact once used to play cassette tapes. But what’s it doing in your car?

According to IHS Automotive, a consulting firm that provides insight into the automotive industry, the average age of vehicles in the U.S. has reached an all-time high of 11.5 years. Cars have become much more reliable throughout the years, so they can endure the road for a significantly longer period of time. With new smartphones and other devices being released every couple of years, cars far outlive the technology that comes with them; thus, tape decks.

IHS has been tracking this data since 2002. The average car age has gradually increased each year, with an even more dramatic boost during the recession due to a 40% drop in new car sales from 2008 to 2009. The climb has since slowed, and it has started to plateau. IHS predicts that the number will reach 11.6 in 2016 and remain stagnant until 2018, when the company thinks it will hit 11.7.

In case you’re wondering, the last new car to be factory-equipped with a cassette deck in the dashboard was a 2010 Lexus, according to the New York Times.

And here’s one caveat about owning and older car: make sure it has electronic stability control, and side curtain airbags — two key safety features introduced a little over a decade ago.

MONEY Autos

44,000 Cars Were Stolen Last Year for One Dumb Reason

key in ignition
B. Christopher—Alamy

It's embarrassing, but more people have done it than would like to admit.

Having your car stolen would be a terrible thing to experience, but apparently thousands of Americans aren’t thinking about that because they leave their keys in their vehicles — and then the cars get stolen.

Sure, it may seem like a no-brainer to not leave your keys in an unattended vehicle, but people are increasingly making this mistake, according to an analysis from the National Insurance Crime Bureau. From 2012 through 2014, 126,603 vehicles were stolen with the keys left inside. The actual number of key-in-car thefts is likely higher, because if the theft report didn’t include that detail (perhaps an omission of an embarrassed victim), it’s not included in these figures. While auto theft has declined in the last few years, the percentage of those thefts involving keys left in the vehicle has climbed.

In 2012, 5.4% of cars stolen had the keys in them at the time of theft. That share increased to 6% in 2013 and to 6.7% in 2014 — that’s 44,828 vehicle thefts with the keys inside.

Losing your car is bad enough, but think of what else you might lose. People leave lots of stuff in their cars that can be used by identity thieves, like mail and vehicle registration documents. If someone lifts your car because you left it running when you went to grab a cup of coffee, you might have left your purse, briefcase, wallet or phone behind, too. Not only do you have to deal with the stress of having your car stolen (and who knows what your insurance covers), now you have to worry about someone stealing your identity.

Identity theft can manifest in a variety of ways, all of which can harm your well-being, particularly your financial stability. For example, if someone opens up fraudulent credit accounts in your name, your credit standing will suffer the consequences, which could include a slew of things including credit inquiries, high debt levels and missed loan payments. The sooner you spot fraud, the sooner you can get the information removed from your credit history and repair any damage done. The longer fraud goes on, the more likely you are to deal with limited credit access and higher loan interest rates, as a result of fraudulent information. That’s why it’s so important to regularly monitor your credit, which you can do for free on Credit.com.

Of course, it’s also extremely helpful if you avoid leaving your car unattended with the keys inside. That would save you a lot of trouble.

More from Credit.com

This article originally appeared on Credit.com.

TIME Apple

This Is What Apple’s ‘Titan’ Car Could Look Like

One of the company's famed designers has already taken a crack at designing a car

iGiant Apple is reportedly working on a much bigger smart device: a car. After rumors of such a project began making the rounds online earlier this week, the Wall Street Journal reported Feb. 13 that the Cupertino, Calif.-based company has dedicated several hundred employees to creating an Apple-branded electric vehicle. The project is supposedly codenamed “Titan.”

If that is the case and the company proceeds—Apple is notorious for deeply investigating potential products but, ultimately, not bringing them to market—it will have something going for it beyond its massive cash hoard and broad-based brand loyalty. One of the company’s star designers, Marc Newson, has already had his hand at designing a concept car. Newson joined Apple last year.

Newson’s Ford 021C was a concept car first shown at the 1999 Tokyo Motor Show. Produced purely as a styling exercise and not intended for production, it was named after the Pantone orange color. Inside, the vehicle featured seats that swivelled on pedestals and extensive LED lighting (then a novelty). The London Design Museum put the vehicle bask on display a few years ago, dubbing it “a neat illustration of Marc Newson’s approach to design: don’t just tinker with existing typologies, but take a long lateral look at them and imagine how the perfect version would be.”

The Journal suggests Apple’s prototype is a minivan-like vehicle, but the 021C’s design philosophy could be a hint of ideas to come.

 

TIME Recalls

What You Should Do About the Massive Airbag Recall

Car Dealerships Ahead Of Total Vehicle Sales Figures
Bloomberg—Bloomberg via Getty Images Honda Motor Co. vehicles are displayed for sale at the Paragon Honda dealership in the Queens borough of New York, U.S., on Monday, Sept. 1, 2014.

Millions of cars from ten automakers are subject to an airbag recall. Here's what you need to know

Takata produces about 300,000 airbag replacement kits per month, possibly increasing to 450,000 or so. At that rate, it will take from 2 to 3 years to recall and replace the defective airbags in the 16-million to potentially 30-million affected vehicles in the U.S.

So what do concerned vehicle owners do in the meantime?

Takata is the only airbag manufacturer to use ammonium nitrate as a propellant for its inflators. Ammonium nitrate is affected by heat-and-cold cycling over time, plus humidity, that can cause it to become too forcefully explosive when ignited in a crash.

To fix this potentially lethal default the company says it has (1) changed the compression density force with new press machines; (2) rejected products that are not meeting quality standards; and (3) changed humidity control during production and assembly. Takata also says it also improved the hermetically-sealed package to minimize effects of moisture that would deteriorate the chemicals and make them less stable. Perhaps NHTSA should consider outlawing the use of ammonium nitrate in the first place, or at least use a safer chemical in the recall campaign.

But there are safer alternatives. It should be feasible to re-program the software in the vehicles’ airbag control modules (ACM). By changing the software, including the thresholds of activation and the control algorithms, the system could be made safer— as a temporary solution. The threshold to trigger the airbags could be raised so that it would take a crash at 30 mph, rather than 18 mph. In these low-speed collisions, the driver and passenger would still be protected by wearing their seat belts.

Since the driver and passenger airbags are dual-stage designs, they could be re-programmed to inflate only at the lower-pressure level to help ensure that the explosive force does not exceed levels that cause the metal canister to become lethal shrapnel. Because of the inherent instability of ammonium nitrate, such lower pressures in the canister cannot be absolutely guaranteed, but the risk would be reduced. (On the other hand, passenger risks would rise in a high-speed crash.)

To re-program your car’s Takata airbags, you’d drive over to your local dealership and download new software into your car’s ACM computer. It would likely take less than an hour, and then you’d drive away with a less-risky airbag system that could still offer protection in a crash. If the automakers and Takata cooperated, such software could be developed and tested and available probably within a month…. or maybe even a week.

I believe it should also be a requirement that each affected vehicle have a label attached permanently on the instrument panel, advising that the vehicle has been recalled and that a replacement airbag system has been installed. The date of such recall and replacement action should also be noted on the label.

Finally, I believe that all Takata airbag systems should have a “failsafe” pressure-relief mechanism to prevent any over-pressurization of the airbag. In the late-1970’s I became aware that too many pressurized beer kegs were exploding and propelling lethal shrapnel that injured or killed college students. I showed there was a solution, a simple device that would vent out any over-pressurization before it could cause the metal keg to explode. Lives have been saved by adopting such an inexpensive, simple device for beer kegs. Why not a use a similar device to prevent excessive forces from rupturing the metal canister that holds the airbag’s propellant? And yes, the canisters should be made stronger, too.

Byron Bloch has over 30 years of experience as an independent consultant and court-qualified expert in Auto Safety Design and Vehicle Crashworthiness. Over the years, he has inspected accident vehicles to evaluate how and why the occupants were severely injured, and exemplar vehicles to evaluate their structural details. He has qualified and testified as an expert in auto safety defect cases in Federal and State Courts coast-to-coast. He also lectures, writes, and appears on TV reports on auto safety design and vehicle crashworthiness.

MONEY Autos

New Lincoln MKC: Comfort With a Dash of Audacity

The entry-level luxury crossover SUV, which sits atop a Ford Escape chassis, dares to compete with foreign rivals. It's up to the challenge.

You’ve got to give Lincoln Motor a little credit just for the sheer audacity of its marketing posture for the MKC, its new entry-level luxury crossover SUV. No, I’m not talking about the endlessly parodied commercials featuring stud actor Matthew McConaughey. I’m talking about Lincoln inviting direct comparison with foreign rivals such as the Audi Q5, the BMW X3, the Mercedes GLK, and the Acura RDX — and basically saying, “Bring it on.”

What gives Lincoln this kind of chrome chops? In truth, a little desperation helps. When Alan Mulally reorganized Ford a couple of years ago, he sold off the company’s upscale badges — Jaguar, Range Rover, and Volvo — and junked its pointless Mercury brand. Lincoln lived because it could offer something unique: American luxury.

And if Lincoln wants to be relevant, it has to play ball in the upscale urban crossover sport utility vehicle (a.k.a. CUV) market. The MKC has got some game. At a base price of about $34,000, the MKC dares to be different in a very American way. Where the Germans offer Teutonic toughness, the MKC offers a comfy ride. You are, after all, driving the kids to soccer practice, not taking laps at Nürburgring. Do you really need to feel the road that much?

The revelation for me occurred in the first 10 seconds of my test drive: This ride feels nice. And that’s a good thing. Start with the chair. Every car evaluation has to begin here. The MKC’s is a beauty: a 10-way power, heated driver’s seat with lumbar controls. You will find your sweet spot; you will be sitting pretty. Then there’s the lack of road noise, courtesy of an active noise control system. You can also add continuously controlled damping ($650 extra) — all those sensors working to keep road vibrations from reaching you.

But don’t think this is an old-fashioned American couch drive. The MKC has electronic steering control, so it’s responsive enough. And thanks to its tunable suspension — with settings for comfort, normal, and sport — you can get a stiffer ride if you want one. Still, there’s no confusing the MKC for an Audi. You can decide if you like that or not.

There’s also a gimmick: a push-button gear selector located on the dash. How high-tech is that? Not very. It’s actually a throwback to the 1950s and 1960s. The indestructible, used, mid-60s vintage Plymouth station wagon (the original CUV) that my parents hauled their four offspring in had this very same feature, as did any number of models of the time. Lincoln has revived the push-button transmission for the MKC — only this time around it adds some unexpected elegance to the car and also frees up room in the center console.

There’s some real innovation at the back of the CUV: an optional motion sensor that lets you wave a foot underneath the wraparound tail gate to open it. Quite useful.

The MKC is offered in three flavors, Premiere ($34,000 to $36,000), Select ($37,225 to $40,860) and Reserve ($40,930 to $44,565). One of Lincoln’s selling points is that its competitors start at around $40,000 for a very basic model, and the price moves up quickly with options. The Premiere MKC model is powered by Ford’s 2.0 liter, 240-hp EcoBoost I-4, which has plenty of pop. With the other two trims, you have the option of the 2.3 L, 285-hp version. All-wheel drive is available on all three.

I drove the bigger power plant with AWD, and there’s nothing lacking there; it delivers 305 lb-ft of torque, and churns plenty of power. The EcoBoost engine is a Ford mainstay, and totally fitting for the MKC. With the Reserve trim you can also opt for a technology package that includes adaptive cruise control, collision warning with brake support, active park assist, forward sensing, lane-keeping, and driver alert systems. This is a really good safety grouping; let’s hope it’s standard on all cars some day.

The fact that Ford has piled so many nice touches into the Lincoln MKC is a bit confounding in auto circles, since the car is built on the same platform as the Ford Escape. It evokes memories of earlier times, when the Big Three created really bad luxury cars this way, Lincoln among them. But in modern practice, wherein manufactures try to minimize the number of platforms across a global product line, it works just fine. If Audis can sit on VW beds, there’s no reason Lincolns can’t sit on Fords. It’s all about execution. And with the MKC, Lincoln has pulled it off.

TIME Autos

Toyota Charges After Tesla With New Fuel-Celled Car

A challenge to Tesla

Toyota unveiled its 2015 hydrogen fuel-cell sedan on Wednesday, its closest competitor yet to Tesla’s fully-electric Model S.

The car will launch in Japan and cost seven million Yen (almost $70,000), but will not reach U.S. and European markets until the summer of 2015. The company known for the fuel-efficient Prius is one of the first to challenge Tesla after Tesla’s CEO Elon Musk announced that he would not initiate any patent lawsuits against competitors using his revolutionary technology.

But Toyota will not be going fully electric.

“Hydrogen is a particularly promising alternative fuel since it can be produced using a wide variety of primary energy sources, including solar and wind power,” the company said. “When compressed, it has a higher energy density than batteries and is easier to store and transport. In addition to its potential as a fuel for home and automotive use, hydrogen could be used in a wide range of applications, including large-scale power generation.”

The new sedan boasts a cruising range of approximately 435 miles and a refueling time of less than 3 minutes—leaving only water vapor in its wake.

TIME energy

Harley Davidson Goes Electric

Harley Davidson, battery powered, 2014, Motorcycle
Grant Cornett for TIME Profile full body photograph of Harley-Davidson’s 2014 battery powered motorcycle, taken on June 5, 2014 at the Harley-Davidson headquarters in Milwaukee, WI.

Will this battery-powered hog help the famed cyclemaker grow beyond aging boomers?

It’s bike night at the Harley-Davidson Museum near downtown Milwaukee. Outside this Modernist cathedral of chrome, hundreds of riders have parked their Harleys to admire one another’s bikes, swap stories and enjoy a perfect May evening. Anyone from a corporate marketing department happening on this scene might have been horrified, because it would not suggest a growing market. Bike Night in Milwaukee sure looks like Old White Guys’ Night. The only diversity among this group of aging boomers is in the beer brands in the cozies they carry. But Mark-Hans Richer, who is indeed Harley’s marketing boss, isn’t bothered. “We love old white guys,” says Richer, who is not quite one. “Our old white guys are great customers, we love them, and we never want to walk away from them.”

That said, Harley is in the midst of a complete reimagining as it increasingly tries to appeal to African Americans, Hispanics and women, not to mention riders in China and India, all of whom have become target customers. Global demographics–more young people with less money to spend–are forging big changes at the iconic firm. Harley still sells the rebellious, hell-raising, American free-spirit ideal that it rode to fame in the 1950s and ’60s. But that isn’t a strategy for running a company in 2014.

The Great Recession drove Ford to the wall and Chrysler and GM into bankruptcy, forcing drastic operational and cultural changes that made them more efficient, higher-quality operators. Harley was in better shape than the auto companies going into the recession but fared worse after the downturn: motorcycles are typically a second or third ride for Americans. Harley’s sales plunged from $5.8 billion in 2006 to $3.1 billion in 2010, even as autos were recovering. Its U.S. market share fell from 51% in 2006 to 43% in 2008, according to the Trefis research firm. The average age of its customers increased to 49 from 44.

Worse, perhaps, is that when sales turned up again, Harley reverted to form. And form wasn’t particularly good. Harley’s product line was full of retreads, and it had little to offer consumers in emerging markets like India and China. “There was a recognition that it was a great company, 108 years old,” says CEO Keith Wandell, a former auto-parts executive who took over in 2009 and began to force Harley to behave. “A lot of great things had happened, but I think what was apparent was that we’d become stuck in time. We had become sort of resistant to change and doing things differently.”

This year Harley’s sales should increase 9.7%, to $6.5 billion, and it will move perhaps 283,000 motorcycles. It’s introducing new lower-powered, lower-priced models for young riders and taking its biggest technology risk ever: the LiveWire, an electric-powered, urban globocycle whose high-pitched, jetlike whine sounds nothing like the Harley roar–that hurricane of sound that tells you a V-twin gas-engine hog is approaching even before you check your rearview. “We have a powerful brand and a powerful product–that’s why we are doing this. It isn’t the better-mousetrap strategy,” says Wandell. If the bike sells, it will punctuate the turnaround of a uniquely American corporation.

The electric Harley sitting on a small test track behind the company’s development center in Wauwatosa, outside Milwaukee, isn’t going to be confused with some of the putt-putt electrics on the market today. The design of LiveWire is gnarly enough to be Harley: it’s angular and agile, with a cast-aluminum exoskeleton sitting on a short wheelbase with 18-in. tires. The tires are a little bigger than normal and the seat a little higher, so the cycle can more easily jump curbs and handle the potholes of New Delhi or New York City. The turn signals and rear lamp are glowing LEDs, like those found on high-end Audis. What’s missing is the steroidal engine sitting under the rider–replaced by a lithium-ion-battery-powered motor.

In electric cars, the compartment for the battery that powers the vehicle takes up a disproportionate amount of space and produces a lot of heat that has to be dissipated. That’s a lot harder to do on a bike. Engineers jammed as much battery into the bike as they could to deliver sufficient acceleration. LiveWire generates 75 horsepower and goes from zero to 60 m.p.h. in four seconds.

Sound was another challenge because Harleys rumble even at low r.p.m.–a sound referenced, onomatopoeically, as potato, potato, potato. The LiveWire’s gearbox-and-motor combo produced a new and somewhat unexpected sound, which the engineers tuned. “We knew immediately we had something cool,” says Jeff Richlen, the chief engineer.

What’s it like to ride? The beauty of all electric motors is that you get torque–the force that turns the wheels–on command. You don’t have to go through the gears. Twist the throttle and LiveWire responds like an impatient New Yorker, even if the engine growl lags. (The pedal-to-engine-noise disconnect is familiar to owners of electric cars like the Chevrolet Volt, Toyota Prius and Nissan Leaf.) LiveWire’s speed tops out at 92 m.p.h, by which time it sounds like a big Fourth of July rocket whizzing by. “We wanted to make this a real Harley,” says Richlen. Right now, the bike has a range of 100 miles–fine for city riding–and recharges in about three hours.

Harley isn’t releasing LiveWire for sale until customers and dealers have a chance to weigh in. The company began offering test rides to select customers this month. Can they accept any battery-powered bike as a true Harley? Yes, says Gail Worth, who owns Gail’s Harley-Davidson, located outside Kansas City, Mo. “The world is ready for a Harley-Davidson e-bike,” she says. “Electric bikes are going to be on the street. That is the one element left that will allow Harley to just take over the motorcycle market.” Harley hasn’t priced its rocket yet, but as with electric automobiles, consumers will typically pay a 10% to 20% premium for electric bikes, which suggests something north of $20,000. Worth expects LiveWire to debut in a year.

The electric-motorcycle market is generating a lot of interest these days. BMW already sells a $22,500 C Evolution e-Scooter in Europe. Although the market for e-cycles is still small, the consultancy Navigant Research predicts that domestic sales will grow tenfold and reach 36,000 units by 2018. A couple of specialty manufacturers, such as Brammo and Zero, are already in the market. Harley says it isn’t worried about being late to market. “If it’s green, it’s badass green. It has character,” says Richer. “We don’t see our competitor understanding that.”

Livewire isn’t just a flashy new concept for Harley; it’s also the product of a painful corporate revolution long in the making. In the depths of the downturn, the company produced print ads that proclaimed, “We don’t do fear … Screw it, let’s ride.” The bravado was a misdirected rallying cry. “We were heading downhill–not spiraling but walking down this hill pretty fast,” says Worth, who also heads Harley’s dealer council. Sales of the company’s best-selling heavy bikes fell 50%.

When Wandell arrived in 2009, sales had begun to pick up, but the company had no new products in the pipeline to meet the increasing demand. Harley’s 1,500 dealers vented, but Harley’s product-development cycle was so sluggish that the company needed far more time to get new products to market than the competition: some five to six years. New cars are created in half that time.

Global regard for the Harley brand had long insulated it from bad management. In 1969 a conglomerate named AMF, which you might know from its bowling pins, bought Harley. The motorcycle company suffered from corporate inattention, and in 1981 a management-led investor group bought it back. But it remained a boom-bust outfit that relied on periodic economic upticks to bail it out.

Wandell spent most of his career at Johnson Controls, an auto-components maker. So his being chosen to become Harley’s boss attracted some criticism–he wasn’t a Harley guy. But Wandell quickly drew up a “short list of big things” that had to change: how the company designed products, how it made them and how it interacted with customers. Everything, in other words. He replaced all but one of the top bosses, mostly with talent he found being squandered in middle management.

One of those talented people was Michelle Kumbier, whom Wandell tapped to reshape Harley’s product development. Though not an engineer, Kumbier took an engineer’s approach, benchmarking the company against other manufacturers like Ford. Then she shared the not-so-pretty results: by any measure, Harley was a laggard in both product-development cycles and manufacturing efficiency. “Engineers were able to accept the truth if you showed them the data and the evidence. We showed them the road map. This is how we are going to get to world class.” Since then Harley has cut its time to market in half.

In another big shift, Harley says it has become customer- and dealer-led. Worth says the listening is real. “It used to be lip service,” she says. “‘Let’s sit down and have a beer.’ They’d fix onesie-twosie things. Now they handle it as business. We don’t sit around drinking beer with each other anymore.” Oddly enough, for an outfit with such a devoted following, Harley used to build products based on its managers’ gut feelings, which was fine when the customers were mostly white boomers. But now the customers could be newly wealthy Chinese looking for style, city-dwelling millennials who need utility and affordability or retirees who want a trike that doesn’t embarrass them.

That shift led to a company initiative code-named Rushmore, whose mission was to produce new products for this multiculti world. Harley took a fresh look at every aspect of motorcycling–the issue of the rider’s head being buffeted by wind, the position of the saddlebags, the passenger’s viewpoint–and integrated new technology like GPS. How, for instance, could a rider use a touchscreen while going 80 m.p.h. and wearing leather riding gloves? The research led to more than 106 changes in the way that its touring bikes are built.

Harley-Davidson’s plunge into advanced technology–a third of its engineering is now focused on innovation–led it to LiveWire. A small group of developers was freed to work on the project. “It’s a symbol of what we can be,” says Matt Levatich, Harley’s president, “not what we shouldn’t do. Why not us?”

More immediately, Rushmore yielded something that wouldn’t have been contemplated before: smaller bikes for younger riders, especially women. This year Harley introduced its lower-end Street series, high-riding bikes with 500-cc and 750-cc engines that still provide a Harley feel for less than $7,500. “Street is about access over engine displacement,” says Richer. “It is designed with a global customer in mind. You can grow up in Beijing and Chicago, and you might have a cultural connection that your parents didn’t have 25 years ago.”

With Street, the company now has models that can compete in developing nations such as Brazil, South Africa and India, where price matters. Harley is a latecomer to India, but it is now assembling bikes in Bawal and sponsoring group rides in places like Goa that can attract 5,000 cyclists who want to taste the American ideal. Harley is feeding that hunger: overseas cycle sales now account for 36% of the company’s total. Indeed, there are now group-ride events in China, Africa and India.

The smaller bikes are also a better fit for Europe, where consumers prefer sport and utility cycles like Street over Softail cruisers. In China, Harley doesn’t have the opportunity that American automakers have. Motorcycles are banned from many highways and urban areas. But just as they prefer big Buicks, Chinese riders are hog lovers, as are riders in Japan, home to giants such as Yamaha and Kawasaki.

So far, the strategy appears to be working. Harley has picked up two market-share points in Europe on BMW. And while Street models are now heading to U.S. dealers, the company is living you-know-where on the hog with its traditional cruiser bikes. It owns 56% of the market, up from 41.5% in 2008, according to Wells Fargo Securities. Even better, the supply of white guys over age 35 figures to be about 50 million strong in the U.S. for the next 25 years. “We’re not dying a slow death,” says Levatich. “We’re creating a new future.”

TO SEE MORE SOLUTIONS, GO TO time.com/solutionsforamerica


This appears in the June 30, 2014 issue of TIME.
TIME Autos

Ford Recalls Nearly 700,000 Vehicles Over Airbag Problem

Ford Escape Airbag Recall
Daniel Acker—Bloomberg/Getty Images A row of 2014 Ford Escape vehicles sit on display at Uftring Ford in East Peoria, Illinois, on Nov. 30, 2013.

Faults discovered in Ford Escape and C-Max models could cause delayed deployment of airbags and increase risk of injury to passengers during accidents, but there have been no reported accidents or injuries related to the defects so far

Ford recalled nearly 700,000 vehicles Friday due to potential airbag malfunctions that could delay deployment of the safety feature.

Ford said the airbag defect, affecting nearly 692,500 2013-2014 Ford Escape and C-Max models, was traced back to a glitch in the airbag deployment software. Under “rollover circumstances,” the company told the New York Times, the glitch could increase the chance of injury to passengers.

Ford is also recalling 692,700 2013-2014 Escapes for an unrelated door latch problem that could prevent the latch from properly fastening into place, allowing the door to swing open while the vehicle is in motion.

There have been no reported accidents or injuries related to the Ford defects. The recalls come within weeks of Ford’s decision to boost funding for recall repairs by $400 million.

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