Things Just Went From Bad To Worse For Harley-Davidson

As if things weren’t bad enough already for Harley-Davidson, the Milwaukee brand’s President & CEO has now stepped down. The outgoing Matt Levatich has presided over the worst sales slump in decades, and will be replaced by board member Jochen Zeitz in the interim period before a new full-time CEO is announced.

The bar and shield brand finds itself in a rather difficult position at the moment. Its erstwhile target audience is now ageing out and the Motor Company is having a hard time attracting younger buyers. H-D’s characteristic loud, expensive and heavy cruisers aren’t striking a chord with newer buyers anymore, and its more forward efforts with the LiveWire haven’t been a commercial success either, since the electric bike is still inaccessible to most people.

US President Donald Trump’s trade wars aren’t doing much to help the brand either. Things could improve a little for H-D on the Indian front, though. Indo-US trade talks have been a hot topic following Trump’s recent Indian visit, with a new classification rumoured to be introduced for bikes above 1,600cc.

The official statement from Harley-Davidson can be found below:

MILWAUKEE, Feb. 28, 2020: Harley-Davidson, Inc. ("Harley-Davidson") (NYSE:HOG) today announced that Matthew Levatich has stepped down as President and CEO and as a member of the Board of Directors. The Board of Directors has appointed current Board member Jochen Zeitz as Acting President and CEO. A committee of the Board will be formed, and the Company will utilize an external search firm to undertake a search for a new CEO, and a further announcement will be made at a later date. Levatich will assist with the transition through the end of March.
As part of this leadership change, Jochen Zeitz has also been named Chairman of the Board and will remain Chairman once a new CEO is appointed. Current Chairman of the Board, Michael Cave, is now Presiding Director.

Zeitz said, "The Board and Matt mutually agreed that now is the time for new leadership at Harley-Davidson. Matt was instrumental in defining the More Roads to Harley-Davidson accelerated plan for growth, and we will look to new leadership to recharge our business. On behalf of the Board, I would like to thank Matt for his 26 years of service to Harley-Davidson. He has worked tirelessly to navigate the Company through a period of significant industry change while ensuring the preservation of one of the most iconic brands in the world."

"The Harley-Davidson Board and leadership team will continue to work closely together as we search for a new CEO. We have confidence that our combined leadership experience and deep understanding of Harley-Davidson will ensure an effective transition. As a passionate Board Member of Harley-Davidson, I look forward to continuing to work with my colleagues and other Harley-Davidson stakeholders to advance and deliver the Company's strategy and execution during this important time," Zeitz continued.