His failure to learn a lesson from Polaris (Victory) and their disastrous foray into the e-bike market made this all but inevitable. It would be cool if they got someone who knows how to build something other than cruisers to replace him.


MILWAUKEE — Harley-Davidson CEO Matthew Levatich is leaving the struggling motorcycle maker.

The Milwaukee company announced Friday that Levatich will leave his post and give up his seat on Harley's board of directors.


Board member Jochen Zeitz will become acting president and CEO while a board search committee is formed and Harley hires an outside search firm to fill the job.
“The Board and Matt mutually agreed that now is the time for new leadership at Harley-Davidson,” Zeitz said in a prepared statement.

Harley has been struggling with declining sales in the U.S., its biggest market, as it tries to adapt to an aging customer base while looking to expand markets overseas.

The announcement of the leadership change, made after the markets closed, pushed Harley’s shares up 5% in after-hours trading. They had fallen 2.3% with the broader markets during the trading day.

Harley’s closing share price Friday was down 18% for the year.


Harley reported a net profit of $423.6 million in 2019, but it made only $13.5 million in the fourth quarter.
The company said Levatich will stay on through March to assist with the transition.

Zeitz also was named board chairman, replacing Michael Cave, who becomes presiding director. He said the board is confident that its leadership experience and understanding of the company will bring an effective transition.

Link to original article

https://en.wikipedia.org/wiki/Jochen_Zeitz#Career

And this is the replacement. At least for the time being.

No one in upper management is a true motorcycle guy to my knowledge. They seem to be all about profit. Profit is necessary; true. But In the pursuit of profit they ignore the rest of the company.

But what do I know, I ride old Harleys.

The Live Wire failure is just one issue. There’s a lot more to it than that. The market for Harleys is drying up. People want smaller, more reliable and better handling bikes. Their continually dropping sales numbers prove it. Getting rid of him is just rearranging deck chairs on the titanic.

Yeah, hire a CEO with experience with Sneakers and non profit's.

Sheees.

Thirty years back when anything and everything they built SOLD. You would think they would have saved some of that profit and looked to the future.

I think they assumed the baby boomers wanting traditional bikes would never dry up. They were wrong.

Many dealers felt the same. My local Dealer was an arrogant sob milking max profit 100% of the time. Getting the shop to do work under warranty was a constant battle.

Screw HD they made their own bed, now lie in it.

So, is that electric wave of the future "Harley Davidson" dead?

quote:

Originally posted by PowerSurge:
The Live Wire failure is just one issue. There’s a lot more to it than that. The market for Harleys is drying up.

This ^^^^^

The husband of a friend of my wife is considering a move to a management position either at HD or an HD dealer. Don't know which. I asked her "Are they aware HD's prospects haven't been so good lately?" She asked why and I explained it to her.

I was this >< close to buying a Harley 8-10 years ago. Didn't happen. Now it certainly won't. I'd be more likely to pop for a Honda Monkey than a Harley these days. And I grew up inured in the mystique of HD.

Having gone to the DC motorcycle show last month, I can say that I wasn't impressed with too many of the new products being delivered, but H-D had the least appealing "new" bikes to me. While I like some older classics like the Road King, the newer options just don't do it for me. The price tags on most of their products are higher than your average Toyota Corolla. The LiveWire is even worse @ $30,000. Portly with a limited range and it looks horrible. I wanted to like it but it didn't even have the appeal that some of the nostalgic designs had. Soulless and inefficient. There is room for them in the market though. KTM has had the greatest finding market share. They offer big cc V twins that perform well, sound great, and are priced right. HD needs to step it up or they'll be a footnote in history.

When it costs more to buy a Harley than it does to buy a new car, I think they have a problem.

There is a Harley dealer not far from where we live, and we drive past it from time to time.

The lot where they keep their bikes, continues to get bigger ang bigger which indicates to me that their product is too expensive, and the demand is not there, for whatever reason.

I rode a midsized bike for a couple of years, back during the first phony gasoline crisis.

Enjoyed it. AIR, I paid some $1100 for the bike.

quote:

Originally posted by Elk Hunter:
When it costs more to buy a Harley than it does to buy a new car, I think they have a problem...

A couple of years ago I saw a new Harley CVO Ultra Classic with a price tag of $42,000.

I asked the salesman if the bike came with a trailer, to tow it around and show it off at Harley Rallies.

HD Salesman was not amused.

I am looking at the Pan America. If it ever hits the showroom. Supposedly 19K. I can get a BMW for that price. Both are more expensive than comparable adventure bikes.
Harley debuts (maybe) a new bike in a hot segment of the market and then prices it out of competition.

Its well past time for HD to rethink its place in the motorcycle market. Big, expensive, cruisers aren't where the market is headed, and if HD wants to be a player, they need new ideas and products to compete. And the Livewire debacle is a perfect example HD does't know what do to right now. Time to clean house and bring in a whole bunch of new blood.

I’ve got friends in the industry. Bikes are not selling like they used to. Can’t compete with phone addiction and I devices.

The mfr’s are also doing it to themselves. Escalating msrp’s and overly complicated bikes. I had one of my state inspected today and I was asking the shop their current valve inspection/adjustment charges and almost fell over. Posted $120 an hour shop labor. I know we will see dealerships close over the next 5 years.

How long before Harley Davidson is acquired by a large automaker, an investment firm, or a competitor and begins Harley in brand name only?

quote:

Originally posted by Prefontaine:
I’ve got friends in the industry. Bikes are not selling like they used to. Can’t compete with phone addiction and I devices.

The mfr’s are also doing it to themselves. Escalating msrp’s and overly complicated bikes. I had one of my state inspected today and I was asking the shop their current valve inspection/adjustment charges and almost fell over. Posted $120 an hour shop labor. I know we will see dealerships close over the next 5 years.

Really one of the biggest issues right now. ALL manufacturers are hurting for sales (in the US at least), but I think HD is the hardest hit because of their lack of development. There's some seriously well equipped bikes that run reliably for a 1/3rd the price of a new HD. Not everyone needs or wants a pig of a bike that requires a 2nd mortgage just to get on one. I have always wanted a HD, but could never get past the price tag. Harley Davidson needs to get their heads out of their asses when it comes to pricing. Hell, they can't even claim that the high prices are because everything is Made In The USA, because most parts are sourced from Asia.

You're not wrong about the labor rates either. It's insane, but with less and less people wrenching (or even with the knowledge how to), they can pretty much demand whatever rate they want. Laziness and complacency are 2 major factors in what a shop charges. Add on top what the newest diagnostic tools cost and I can see why $120-200/shop hour is the norm. Hell, even a simple tire change costs insane amounts of money any more.

I've never understood the HD allure. Don't get me wrong, two of my best friends are Harley addicts and I love to ride with them. I am more of a sport touring sort of guy. Harley's problem seems to be that people my age (retiring) have already bought their bike or are going to give up riding.
There is hardly anyone behind my age group that wants or can afford a "hog". That's an issue that they have never addressed since Reagan bailed them out.

The best HD Mechanics opened their own shops charge less and the keep what they charge. vs being an employee for $25 an hour.
Willie is a dinosaur and so is the think tank @HD.
The funeral will be held soon.
Also as mentioned, HD was taken over by an investment group back in the early 90's. They gave us the merch boutiques, and $10 hr mechanics.

"We've decided that our buisness model is to commit to selling a niche product, so we really don't need a motorcycle guy to take charge of the company."

"The guy leading the company isn't really a motorcycle guy, so we're kinda committed to a buisness model that leaves us totally reliant on a niche product. The ads are pretty cool, though."

"We just got rid of the guy leading the company because he clearly didn't understand the motorcycle market. His golden parachute was so expensive, though, that we can't afford to take any chances - so we're kinda stuck with selling the same old niche product until we can somehow find enough money to come up with products that actually sell."

I don't care how they brand it, Harley needs to start with a Sunbeam and a CB360 and work their way up all over again.

quote:

Originally posted by FN in MT:
Thirty years back when anything and everything they built SOLD. You would think they would have saved some of that profit and looked to the future.

I think they assumed the baby boomers wanting traditional bikes would never dry up. They were wrong.

Many dealers felt the same. My local Dealer was an arrogant sob milking max profit 100% of the time. Getting the shop to do work under warranty was a constant battle.

Screw HD they made their own bed, now lie in it.

Yep. Same w/ the dealer around here.

quote:

Originally posted by DaBigBR:
How long before Harley Davidson is acquired by a large automaker, an investment firm, or a competitor and begins Harley in brand name only?

AMF

https://en.wikipedia.org/wiki/..._Machine_and_Foundry