Harley-Davidson Looking For New CEO

[advrider]

It was a short message, but one that many thought could be coming. Today, Harley-Davidson announced that its current CEO, Jochen Zeitz, will be leaving the company to retire. Harley’s press release says the search process for a new CEO commenced sometime in Q4 2024 and that Zeitz would stay on board until “…the appointment of a suitable successor” and “…will remain as CEO until such successor is identified to ensure an orderly leadership transition.”

Harley CEO Jochen Zeitz. Photo: Harley-Davidson

Zeitz’s departure is not shocking news. In October 2024, we asked whether Zeitz’s job was at risk. Now, we know that the era of Zeitz’s leadership of Harley-Davidson will soon come to a close.

The Board praised Zeitz’s tenure at Harley-Davidson, saying:

“The Board is grateful to Mr. Zeitz for his many significant contributions to the Company as CEO. These contributions include, but are not limited to, the creation and successful execution of the Hardwire, the Company’s five-year strategic plan (2021-2025), reinvigorating the brand, and his leadership during one of the most challenging operating environments in the history of the Company.”

While the statement praises Zeitz’s performance, it’s the usual corporate speak when a high-level executive leaves the company, whether of their own volition or with a crowd of Board members pushing them out the door. Zeitz certainly took the company in a new direction after previous CEO Matt Levatich was not so graciously ousted. Zeitz’s plan took Harley in the direction of catering to Harley-Davidson’s traditional customers. In other words, he stuck with Grand American Touring, Softail, and Trike bikes while killing off in-process or planned projects that were outside these categories.

At the end of 2022, Zeitz’s Hardwire Strategy seemed to be working very well. But the question was… was it sustainable? Many asked, and the answer was that it wasn’t. Image: Harley-Davidson

Whether Zeitz’s Hardwire strategy was sustainable or not, it certainly made Wall Street happy, at least initially. But after around 5 years of implementation, the recipe has soured. Will they throw out the Hardwire soup or doctor it up somewhat, hoping for better results while they reassess their business strategy?

What’s Next?

So the question becomes what’s next for the MoCo. Zeitz’s Hardwire strategy to build less and charge more was a short-term winner. But for the last couple of years, things have not gone well, and the outlook for this year is also dismal. So when Harley’s new CEO arrives, will a major course correction be made, or will the MoCo continue full speed ahead with a Hardwire-like plan? It would seem that at least a minor course correction needs to be made so the company can chart a new course to sales, revenue, and profit success.

Plotting A New Course

In July 2016, Harley’s previous CEO, Matt Levatich, rolled out a plan he called “More Roads To Harley-Davidson.” Its goal was to create more entry points to the Harley-Davidson brand. It was quite ambitious, perhaps too ambitious. The More Roads To Harley-Davidson plan had an objective of launching 50 new motorcycles over the next five years. Shortly thereafter, Levatich upped his ante and, in an investor presentation, said that Harley-Davidson would introduce “100 new high-impact Harley-Davidson motorcycles…” over ten years.

Image: Harley-Davidson

Ultimately, Levatich didn’t get the chance to fully implement his More Roads To Harley-Davidson plan. The US economy in 2016 wasn’t in great shape, showing weak economic growth, an increasing national debt, and rising interest rates. Levatich’s plan may have been a good one, but it was poorly timed.

Another Chance At More Roads To Harley-Davidson

Fast-forward to 2025, and things are different. While the economy isn’t in outstanding condition, it’s better than it was when the More Roads To Harley-Davidson plan was hatched. Sticking to just a few and more expensive motorcycles isn’t working, so is it a good time to re-implement the More Roads To Harley-Davidson strategy, but on a toned-down level? If the More Roads To Harley-Davidson plan is an alternative, what would it look like? We will have to wait and see what Harley’s new CEO thinks to get an idea of whether the More Roads To Harley-Davidson plan has a chance.

My Magic Wand

I have already had a bite at the “what if I were Harley’s CEO apple.” Back in January 2021, Zac Kurylyk and I discussed what we would do to help reinvigorate the MoCo. About four years later, I still think similarly. I genuinely believe the More Roads To Harley-Davidson plan could work if the MoCo’s board will stick with it long-term (i.e., more than a couple of years). Harley doesn’t need more big, expensive bikes. It needs a wider variety of bikes that cater to both young and older people. That means smaller displacement models with lower price tags that are within reach of younger people’s wallets.

What’s wrong with this picture? Similar bikes with eyewatering prices. Screengrab: Harley-Davidson

Looking back at More Roads To Harley-Davidson, right up front, there were a few bikes that cater more to motorcycling itself and potential riders than the current Harley-Davidson hype of its “open road” image. Let’s get back to making Harley-Davidson motorcycles more accessible to a larger group of people, not a targeted subset.

Bring back some of the More Roads To Harley-Davidson-specific machines, e.g., give the Bronx and similar models a shot. Also, think about introducing a baby Pan America. Yes, the current Pan America isn’t a success, but with baby Pan Am and other smaller machines, it won’t be the redheaded stepchild of the family.

Kill off the festering wound that is LiveWire. Sell off its assets if you can, and use the money to build a wider variety of machines. If you can’t sell off LiveWire, shift it to transfer all debt, and at least cash won’t be bleeding from the company any longer.

Finally, change your dealers’ attitudes towards bikes other than big cruisers. The sad story that is Buell should have been a warning to you Harley-Davidson. Zeitz already killed off lots of mom-and-pop dealers, so it should be easier for you to implement change if you want to.

A New Chance

Harley-Davidson, you are an American icon. We want you to succeed. Riders still want your bikes, but you have to meet them at least halfway. Produce a wider range of motorcycles that will be interesting to a broader set of riders. Change your pricing to make more machines more affordable as well. A single model of one of your least popular bikes is not going to cut it. You have another chance. Please don’t waste it.

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