THE CEO OF HARLEY-DAVIDSON has resigned as the motorcycle manufacturer braces for upcoming tariffs affecting the automotive sector.
In light of these industry shifts, company leaders have indicated that they plan to hike the prices of their motorcycles accordingly.
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Credit: AFP
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Credit: Getty
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Credit: Getty
The motorcycle manufacturer is actively searching for a new CEO, as reported by The Wall Street Journal.
Jochen Zeitz has held the CEO position for five years and announced his retirement plans on Tuesday.
While Zeitz succeeded in boosting company profits, the popularity of Harley bikes has continued to wane.
Harley-Davidson confirmed that Zeitz will remain as CEO until a replacement is appointed, in line with The Wall Street Journal’s report.
This news follows the motorcycle company’s declaration that it would implement price increases for its products.
Senior executives told a Congressional subcommittee that Harley-Davidson is facing “devastating” and “indefensible” tariffs from the European Union.
The tariffs will affect numerous American-made motorcycles, including those from Harley-Davidson, as they prepare for this significant shift.
American-made bikes sold in Europe could incur a massive 56% tariff.
If these tariffs are enacted, prices of Harley-Davidson motorcycles could potentially soar to six figures, according to The Wall Street Journal.
Jonathan Root, the CFO of Harley, noted that the tariffs would have a significant financial impact on the company’s products.
“My request today is straightforward: fairness,” he stated to the subcommittee.
“It is evident that Harley-Davidson is being unfairly targeted and discriminated against by the EU and Canada.”
Root emphasized that the proposed tariffs would make it nearly impossible to sell their motorcycles.
The price of a Harley-Davidson Road Glide sold in Denmark could escalate to $124,000, a significant increase from its initial $28,000 price point in the US.
Harley-Davidson closures in 2024
There are more than 650 Harley-Davidson dealerships across the United States.
However, several establishments have shut their doors for a variety of reasons this year, often with little explanation.
Here’s a list of some Harley-Davidson locations that have closed in 2024 and their reasons:
A San Francisco outlet shut down in June 2024 after 110 years due to “chaos” caused by new management.
Miracle City Harley-Davidson in Titusville, Florida, closed in September 2024 with no explanation provided.
Harley-Davidson’s historic location in New York City closed its doors on September 28, 2024, with the owner citing economic challenges.
Reiman’s Harley-Davidson dealership in Kewanee, Illinois, closed in October 2024 after the owners sold the business to the Walter Brothers Harley Davidson dealership in Peoria, Illinois.
Another Illinois dealership shut down in November 2024.
Additionally, the dealership in West Bend, Wisconsin, is temporarily closing for the season from November 2 until April 1, 2024.
In 2025, Hideout Harley-Davidson in Missouri indicated it would close at the end of March.
He also mentioned that the company incurred a significant loss in 2018 when it absorbed a $166 million cost.
Root emphasized that the company chose to bear the cost of the tariffs rather than passing them onto customers.
Harley-Davidson already obtains the majority of its auto parts from domestic suppliers.
The company employs 4,500 workers in the US, out of a total of 5,500 employees.
As Trump’s tariffs loom over the auto industry, many consumers are concerned about affording new vehicles.
Automakers are scrambling to adjust to these changes, with some companies attempting to increase domestic manufacturing of their models.
Harley-Davidson has yet to respond to The U.S. Sun’s inquiry for comment.