Harley-Davidson considers selling its financial division
Harley-Davidson considers selling its financial division
It sounds unbelievable at first, but Harley-Davidson is seriously considering divesting an important part of its business - its in-house finance division HDFS. According to a Bloomberg report, more than one billion US dollars could flow from the sale.
Harley-Davidson Financial Services (HDFS) is the division responsible for financing motorcycles. Many who want to buy a new Harley run precisely through this internal credit arm - which, incidentally 2024 has generated an impressive 248 million US dollars in operating profit. As far as I know, Harley-Davidson earns more with this division than with the entire merchandise business. Nevertheless, the company now apparently wants to get out.
Why? Die Gründe liegen auf der Hand: steigende Zinsen, mehr Kreditausfälle, ein schwieriger Markt. Harley will sich im Rahmen der „Hardwire“-Strategie auf das Kerngeschäft konzentrieren – sprich: Motorräder bauen und verkaufen. Und vielleicht auch ein bisschen auf die Elektrosparte, wenn man den CEO Jochen Zeitz richtig interpretiert.
Zeitz himself could also benefit from the sale. His remuneration is strongly linked to shares - and if the deal boosts the share price, his cash register will ring again. He had already announced that he would soon be stepping down as CEO - so one last big deal could come at just the right time.
Will the plan really be implemented? Nothing has been confirmed yet. But the information hasn't come from just anywhere. And it fits the picture: Harley has been trying to strike a balance between tradition, future and profitability for years. Perhaps the sale is another tough step on this path. And there is not much left to sell from the company.
Text & picture credits: Harleysite
#harleydavidson #harleysite #HDFS #JochenZeitz #HarleyNews
