Harley-Davidson announced they are working with China’s Qianjiang Motorcycle in order to build smaller displacement bikes (archived). Harley has seen a substantial decline in sales as the US market continues getting poorer and older (archived). At the same time their product line centered around the peculiarities of American recreational riding is failing to gain traction in the international market which favors useful bikes capable of agile urban navigation. The first announced product from this partnership will still have a displacement of 338 cc, well above the 125 to 250 cc range favored by most riders worldwide.