Harley-Davidson leadership crisis – investors vs. board of directors

Management in the headwind - Why Harley-Davidson needs more than a change of CEO

The Harley-Davidson management crisis is coming to a head: investors are rebelling, dealers are fighting - and the head office is under pressure.

Harley-Davidson's management is seething - and not just behind closed doors. H Partners, the second largest shareholder, has openly positioned itself against the management. The demand: CEO Jochen Zeitz should leave immediately. But this personnel matter alone will not be enough. The case shows that Harley-Davidson currently has not only a strategic but also a structural problem. If courageous and well thought-out action is not taken now, there is a risk of a creeping loss of trust - both internally and externally.

A brand in a field of tension - criticism from investors

H Partners holds around 9 % of the shares and recently declared its intention to remove three directors from the Board of Directors - including Jochen Zeitz himself. The pressure became particularly evident when Jared Dourdeville, H Partners„ representative on the Board of Directors, resigned openly and massively criticized the corporate culture. His words: Harley-Davidson was suffering from “cultural impoverishment" and a lack of leadership structure.

Jochen Zeitz - From crisis manager to reformer?

Jochen Zeitz took over as CEO of Harley-Davidson in 2020 during a difficult phase. At the time, the share price was around 14 euros (approx. 15 US dollars). The pandemic, an overloaded model range and stagnating brand development had weighed heavily on the share price and investor confidence.

Zeitz systematically restructured the company: with the „Rewire“ program, he streamlined models, markets and internal structures. The subsequent „Hardwire“ strategy focused on profitability, selected premium models and the expansion of LiveWire as an e-brand. As a result, the market in South America was also temporarily abandoned - although there are now official bases there again.

In fact, the share price recovered significantly in the meantime - in spring 2021 it was over 40 US dollars. But since 2022, it has gone downhill again. By April 2025, the share had lost almost 45 % in value.

Lack of models - dealer network under pressure

One of the biggest points of criticism comes from the dealer network. Many of the strong US and international dealers who have carried the brand for decades are dissatisfied. A lack of models, particularly in the lower price segment, is not only leading to a decline in registrations, but is also having a direct impact on dealers' earnings:

- Fewer new sales = less turnover

- No suitable entry-level model = lower new customer rate

- No accessory sales without a bike = slump in sales in clothing, parts & accessories

- Fewer new machines = lower capacity utilization in the workshop

The criticism is unmistakable, especially in the USA. Many dealers there feel that they are not sufficiently involved in strategic decisions. Communication with the headquarters in Milwaukee is considered to be one-sided - the operational knowledge of local dealers is hardly taken into account, even though they are in direct contact with customers on a daily basis.

The frustration has concrete consequences: Several large, long-established Harley-Davidson dealerships in the US have closed their stores in 2024, including:

- Los Angeles Harley-Davidson in Fullerton

- New York City Harley-Davidson in Queens

- Taboo Harley-Davidson in Alexandria, Louisiana

- Hideout Harley-Davidson in Joplin, Missouri

The reasons: falling earnings before tax, a lack of models and lower margins in the accessories and workshop business. What is happening there is more than just a local problem. It is a structural warning call.

Polarization instead of profile - DEI as a divider

The decision to focus heavily on DEI (Diversity, Equity & Inclusion) from 2020 was controversial both internally and externally. While some welcomed this as a step towards a modern corporate culture, a large proportion of Harley's traditional clientele felt that they had not been taken on board.

Many in the community said openly: That doesn't suit the brand. And in a second step, this very strategy was scrapped in 2024 - following criticism from conservative groups and calls for a political boycott.

The result: a double alienation. Some lost confidence in the company's attitude, while others felt unsettled by the interim turnaround. One thing is clear: the DEI initiatives were not properly integrated into the brand identity, but seemed artificial - and this is now taking its toll.

Structural weaknesses: Leadership, teams, vision

Many strategically important positions in the company are currently vacant or only temporarily filled. Communication between central management and the operational area is faltering.

A new CEO alone is not enough. Harley-Davidson needs:

- Team strength instead of a top-down culture

- Product-related decisions in which dealers are involved

- Brand communication that fits the community

- A realistic model policy that creates volume again

- Long-term oriented management teams with real motorcycle and brand experience

Now is the time for clarity

The Harley-Davidson brand still has enormous potential. But it cannot rely solely on its past and image. The strong dealer network, the unique community and a globally recognized brand - these are the pillars on which everything can be built.

The management must now prove that it is not only focusing on share prices, but also on substance and culture. Registration figures, dealer income and market presence must increase again - and this can only be achieved with suitable models, a productive structure and honest proximity to the base.

Text: Harleysite / Volker Wolf

---

---