HARLEY-Davidson continues to suffer through a historic season of chaos as key shareholders go to war over the brand’s new lineup of decision makers.
Leaders for the iconic American brand are at odds over where to go next after CEO Jochen Zeitz stepped down in the middle of a poor sales performance.
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The brand, struggling with high inventory levels and falling sales, is now at the center of a heated battle over its future leadership.
The departure of Zeitz has sparked a fierce debate among key investor groups, with tensions running high as they push for changes at the top.
The National Powersports Dealer Association, which represents more than 170 Harley dealerships across the US, has joined activist investors H Partners Management in calling for a major overhaul of the company’s board.
The NPDA has expressed frustration over the company’s lack of action on issues that have plagued its dealer networks.
Dealers have complained about an excess of unsold motorcycles, discounting, and competition from Harley’s online sales of parts and accessories, problems they say have been ignored by management.
“It’s like letting the customers see mom and dad fight,” Jason Bremer, who owns three Harley dealerships, told the Wall Street Journal.
“What good does it really do?”
The association, which has raised concerns over poor management and excessive inventory, has had enough of Harley’s lack of response to their grievances over the last four years.
The push to overhaul the board comes as the company continues to struggle with underwhelming performance.
Investors and dealers alike are calling for new leadership to rescue the brand.
H Partners, which holds a 9.3% stake in the company, recently backed up its call for a board shakeup with support from two major proxy advisory firms: Glass Lewis and Egan-Jones Ratings.
Both firms have recommended that shareholders withhold votes for Zeitz, Linebarger, and Levinson, citing poor financial performance and a lack of accountability from the current leadership.
Glass Lewis criticized the trio’s track record, claiming they’ve overseen “suboptimal shareholder returns” and failed to hold the company accountable for its underperformance.
They also pointed out that despite the company’s failures, the board continues to maintain that things are going well, Milwaukee Journal Sentinel reported.
“The board routinely faults external factors and declares success despite a raft of performance misses,” Glass Lewis said.
Harley-Davidson’s uncertain future
- May 2020: Jochen Zeitz replaces Matthew Levatich as the company’s CEO
- April 2021: Zeitz implements the “Hardwire” five-year plan, in which the company focused on revamping its core touring line-up and focused on online sales through the HD-1 Marketplace
- April 2021: Harley-Davidson lost millions after it was threatened by a 56% tariff from the EU, which never came to fruition, Reuters reported
- December 2024: In the fourth quarter, the company reported a loss of $117 million, with domestic market share shrinking by 13 percent in the same period
- February 2025: The trade war between Europe and the Trump administration leads Harley-Davidson’s CEO to say the company would “fight aggressively” against any tariffs, Milwaukee Journal reported
- April 1, 2025: Board member Jared Dourdeville wrote a letter announcing he would resign from the board and called for Zeitz to retire, blaming him for the “cultural” depletion of the company
- April 8, 2025: Zeitz announced he planned to step down and will remain the CEO until a replacement is found
Egan-Jones was equally critical, stating that the compensation given to CEO Zeitz, despite the company’s lackluster performance, raised questions about the alignment of executive pay with shareholder value.
“ In our view, the apparent disconnect of executive pay and company performance is troubling,” Egan-Jones said.
This intense scrutiny of Harley’s leadership has dealers and investors at odds, forcing them to take sides on the future of the brand.
While some believe the current board should be given more time to turn things around, others are adamant that fresh leadership is needed to reestablish the company’s strength.
The decision will likely come to a head at the company’s upcoming annual meeting on May 14, 2025, where shareholders will vote on the proposed changes.
Last week, Harley-Davidson pulled its full-year forecast and announced it faces a crushing $175 million tariff hit and tumbling sales.
President Donald Trump’s tariff on Chinese imports, now up to 145%, has forced Harley-Davidson to brace for a steep bill, even though most of its suppliers are US-based.
The brand still relies on key parts from China, which are now significantly more expensive to import.
Its global motorcycle sales tanked 21% compared to last year.
In the meantime, Harley’s fate remains uncertain, as its dealers, investors, and proxy advisors continue to debate the future of the iconic brand.
