HARLEY-DAVIDSON has introduced three massive changes in the hopes it can quell a two-decade-long sales slump.
From new CEOs to a first-of-its-kind motorbike roll-out, here is how the cult-favorite brand hopes to turn the business around.
Harley-Davidson has implemented three major changes in the past week[/caption]
The brand appointed Artie Starrs as its new CEO[/caption]
This week, Harley-Davidson announced that Artie Starrs would be replacing Jochen Zeitz as CEO starting October 1.
Starrs is coming into the chief seat after a stint as the CEO of sports entertainment company Topgolf. Before that, he was the global CEO of Pizza Hut.
Zeitz had been leading Harley-Davidson since 2020, but had made some enemies in recent months.
In April, after he announced his intentions to retire, furious shareholders moved to try and kick him off the board entirely.
They blamed him and other leaders for being responsible for the “cultural depletion” of the brand, which has been battling an aging customer base.
However, Zeitz dodged the ousting in a tense vote in May and has continued to lead the company in his final months.
BILLION DOLLAR DEAL
Days before announcing the new appointment, Harley-Davidson signed a deal with a private equity firm that’s expected to unlock $1.25 billion in cash.
Harley-Davidson Financial Services, a subsidiary of the motorcycle manufacturer, partnered with KKR and Pimo to pay off debt and accelerate share repurchases, The Wall Street Journal reported.
The firms will purchase about two-thirds of consumer loans under the deal for five years going forward, according to Zeitz.
Harley-Davidson Financial Services will retain the last third.
“With this transaction, we are reducing our overall leverage and the perceived risk highlighted every time the business environment deteriorates,” the CEO said.
Shares skyrocketed 22% after the deal was announced, and the stock was on its way to the highest percentage increase since 2020.
Harley-Davidson’s uncertain future
- May 2020: Jochen Zeitz replaces Matthew Levatich as the company’s CEO
- April 2021: Zeitz implements the “Hardwire” five-year plan, in which the company focused on revamping its core touring line-up and focused on online sales through the HD-1 Marketplace
- April 2021: Harley-Davidson lost millions after it was threatened by a 56% tariff from the EU, which never came to fruition, Reuters reported
- December 2024: In the fourth quarter, the company reported a loss of $117 million, with domestic market share shrinking by 13 percent in the same period
- February 2025: The trade war between Europe and the Trump administration leads Harley-Davidson’s CEO to say the company would “fight aggressively” against any tariffs, Milwaukee Journal reported
- April 1, 2025: Board member Jared Dourdeville wrote a letter announcing he would resign from the board and called for Zeitz to retire, blaming him for the “cultural” depletion of the company
- April 8, 2025: Zeitz announced he planned to step down and will remain the CEO until a replacement is found
NEW BIKE
The brand also introduced a new bike model in the past week in its latest bid to appeal to a wider audience.
Motorbikes have been falling out of fashion for years, and Harley is trying to get a foothold with younger riders.
Because of this, the brand released a new Sprint bike that’s selling for just $6,000.
The lightweight model still sports the enviable Harley-Davidson logo, but at a much more affordable price.
Dealerships will be shown the new bike in the fall.
However, fans won’t be able to get their hands on one until 2026.
Zeitz said that he believes this product will be key to the brand getting some extra cash.
In related Harley news, the brand recently slashed the prices on four popular bikes.
