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Harley-Davidson Investors Push to Eliminate EVs, Lacking Understanding of Industry Dynamics

The battle for who holds the reins at Harley-Davidson continues, with H Partners Management—the investment group that had representation on the company’s board until their representative resigned out of frustration over not being able to choose a new CEO—now securing another backer for their initiative.

In fact, Purple Chip Capital, which has approximately a 1% stake in Harley-Davidson, is joining forces with H Partners Management in their challenge against retiring CEO Jochen Zeitz, along with board members Thomas Linebarger and Sara Levinson. They are essentially accusing them of corporate missteps, particularly criticizing the brand’s “misguided” Hardwire strategy, which they claim diverges from the brand’s core principles and undermines its culture.

Their objective is to publicize their concerns in hopes of influencing other investors and stakeholders. They are demanding the immediate removal of those three executives and the termination of Harley-Davidson’s LiveWire electric motorcycle division. They also advocate for a return to Harley-Davidson’s traditional image, characterized by chrome and leather, when their investment returns were significantly greater.

Unfortunately, that reality has ebbed away, having been left behind in the ’90s.

On a side note, before diving deeper into their claims, it’s worth mentioning that Purple Chip Capital’s statement not only neglected to include the dash in Harley-Davidson every single time, but it also misspelled Harley-Davidson on one occasion. While it’s a minor detail, it seriously irked me by the time I finished reading their statements and only strengthened my belief that they seem disconnected and uninformed about the brand, compelling me to counter their arguments.




Harley-Davidson Investors Push to Eliminate EVs, Lacking Understanding of Industry Dynamics

Photo by: Harley-Davidson

As stated by Purple Chip Capital, “As long-term shareholders and customers of Harley-Davidson, we have watched with dismay as the Company strayed significantly from the foundational principles that created its lasting legacy as an American icon. Owning a Harley-Davidson is about more than just the bike; it is about being part of a unique culture and community recognized nationwide.”

The firm further emphasizes the importance of dealerships as the company’s lifeblood, lamenting the neglect of the brand’s culture, asserting that the shift to online sales (which Harley does not yet engage in) has virtually harmed the company, and bemoaning the board’s preference for “egregiously off-brand product lines” which stray from the high-quality options that made every Harley truly unique.

And sure, 800 pages of accessories might not seem enough in terms of options. However, this is where they start pushing for the discontinuation of the LiveWire.




Harley-Davidson Investors Push to Eliminate EVs, Lacking Understanding of Industry Dynamics

“In terms of product offerings,” they assert, “the company must recognize that its electric LiveWire product line is fundamentally flawed and should be ceased. Harley-Davidson enthusiasts do not desire electric engines; they crave raw American muscle. The focus should instead shift to appealing to a new generation of Harley riders, revitalizing the lineup, and reintroducing the iconic Sportster 883 as a beginner motorcycle.”

To start with, electric motorcycles do have a place. I’m actually working on a piece discussing what I think Harley should pursue in that realm. Nonetheless, I agree that the LiveWire’s product strategy has been…misguided. But to discontinue it? Absolutely not. There’s a route ahead for this, and it’s crucial for Harley-Davidson’s survival for the next 125 years. Research and development are vital for any company’s long-term success, and the LiveWire division could be key to that.

Secondly, the idea of “raw American power” is a naive viewpoint given Harley’s current financial troubles. A significant portion of Harley’s new clientele is aging out of the biking scene, as most individuals under 50 can’t shell out $30,000 to $50,000 for a hog. And those who can afford it usually already possess one. Moreover, younger audiences are largely indifferent to the notion of “raw American power.” What they seek is affordability, which Harley only provides through its pre-owned models. Even these models can be pricey.

Regarding the suggestion to revive the Sportster 883, it’s absurd to think anyone could see it as an entry-level motorbike by today’s standards. Take a closer look at what’s thriving in the entry-level segment. The focus is on small-displacement, budget-friendly bikes that are easy for newcomers to handle without the fear of accidents. These motorcycles are also easier to maintain and lighter on insurance costs. Successful models include Triumph’s 400s, Royal Enfield’s complete range, and various 300 to 500cc offerings from Japanese manufacturers.

None of this aligns with the 883. And that’s where things start to spiral further.




Harley-Davidson Investors Push to Eliminate EVs, Lacking Understanding of Industry Dynamics

Photo by: Royal Enfield

“It’s time to rekindle the pride that Harley-Davidson riders have always felt for their bikes and the brand, and to bring back the premium-quality parts and accessories crafted from chrome, steel, and leather,” they conclude. I highlight that as it captures such a simplistic understanding of what Harley-Davidson truly embodies, as if you asked a child, “What is a Harley?”

Because let’s face it, the market has evolved beyond that era of motorcycling. We are not living in an Easy Rider narrative any longer. The landscape is not predominantly tailored for a Boomer audience. Harley-Davidson’s economic and sales struggles stem not from a divergence from its roots, but rather a reluctance to evolve significantly. Baggers remain a fundamental aspect of the lineup. Softails and Hardtails are still popular. Cruisers continue to be integral to its offerings. Nevertheless, the older white male demographic is still Harley’s primary audience. In essence, very little has shifted since “the golden years.”

Purple Chip Capital concludes, asserting, “We believe that removing those three directors, who seem out of touch with what Harley-Davidson is built upon, would be a significant first step in steering the company back to its former glory for the benefit of its riders, dealers, and shareholders.”

Ironically, they use the term “clearly disconnected,” when in reality, both Purple Chip Capital and H Partners Management appear to be the ones out of touch. Their inability to recognize this indicates they should not be taken seriously.

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Harley Davidson News

Harley-Davidson Executive Claims Bikes Will Be Priced at $124,000 Amidst ‘Devastating’ Industry Shift with a ‘Simple Request’

HARLEY-Davidson may soon increase the prices of its motorcycles as the industry undergoes significant changes.

A worsening trade dispute and subsequent tariffs enforced by the European Union on American-manufactured motorcycles, including those from Harley-Davidson, might prompt the well-known brand to shift its production operations.


Harley-Davidson Executive Claims Bikes Will Be Priced at 4,000 Amidst ‘Devastating’ Industry Shift with a ‘Simple Request’

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Harley-Davidson is preparing for substantial transformations within the industry due to significant tariffs on their motorcycles.
Credit: Reuters

Mr. Root testifying at a hearing.

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Jonathan Root warns of a disruptive industry shift and asserts that the historic American brand is being “targeted.”
Credit: YouTube/WaysandMeansCommittee

As reported by Biz Journals, a leading Harley executive recently informed a Congressional subcommittee that the firm is at risk of facing a “devastating” and “indefensible” 56% tariff on American-made motorcycles sold in Europe.

Consequently, the company has requested Congress to negotiate fair trade agreements with the European Union, Canada, and Asian nations.

However, earlier this month, the EU stated that in retaliation to President Donald Trump’s administration imposing a 25% tariff on all steel and aluminum imports, it would increase tariffs on American products—including motorbikes, boats, and bourbon.

Jonathan Root, the firm’s chief financial officer and president of commercial operations, indicated that this situation would lead to a 56% tariff on American-manufactured Harleys sold in the EU.

Root addressed the subcommittee, stating: “My request today is straightforward—fairness.”

“It is evident that Harley-Davidson is being unjustly discriminated against and politically targeted by the EU and Canada.

Root contends that these tariffs are unjust, discriminatory, and driven by political motivations, highlighting that Harley-Davidson has already incurred significant costs from a previous 2018 tariff amounting to around $166 million.

He mentioned that the company managed this impact without passing the costs onto consumers.

“We are not seeking protectionism, merely fairness,” he emphasized.

“A 56% tariff is indefensible and will hinder our capacity to sell motorcycles in Europe.”

Harley-Davidson’s Accessory Mode

Root pointed out how other foreign markets impose luxury taxes reaching up to 150% and additional non-tariff barriers, citing Denmark as an example, where a 25% value-added tax and a 150% luxury tax are applied.

If any supplementary EU retaliatory tariff is applied, the price of a Harley-Davidson Road Glide sold in Denmark could soar to $124,000, significantly higher than the $28,000 starting price in the U.S.

This situation arises as Harley registered 25,860 new motorcycle registrations in Europe in 2024, compared to 94,383 in the U.S.

The figures encompass motorcycles sold in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland, and the United Kingdom according to the latest Form 10-K annual report from the company.

Root also highlighted that Harley sources 70 to 80% of its parts from U.S. suppliers and provides jobs for 4,500 American workers out of a total workforce of 5,500.

He reinforced the company’s commitment to manufacturing in the U.S. and urged for a level playing field in international trade.

Harley-Davidson Closures in 2024

There are over 650 Harley-Davidson dealerships throughout America.

Nonetheless, numerous stores have closed down for various reasons in 2024—sometimes without even providing an explanation.

The following is a list of some Harley-Davidson locations that have closed this year along with the reasons for their closure:

A location in San Francisco shut down in June 2024 after 110 years, citing “chaos” resulting from new management.

Miracle City Harley-Davidson in Titusville, Florida, closed its doors in September 2024 with no explanation given.

Harley-Davidson’s historical location in New York City shut down on September 28, 2024, with the owner citing economic challenges.

Reiman’s Harley-Davidson dealership in Kewanee, Illinois, ceased operations in October 2024 after the owners sold the business to Walter Brothers Harley Davidson in Peoria, Illinois.

Another Illinois dealership also closed in November 2024.

Moreover, the dealership in West Bend, Wisconsin, is temporarily closing for the season from November 2 until April 1, 2024.

As of 2025, Hideout Harley-Davidson in Missouri announced it would close at the end of March.

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Harley Davidson News

Harley-Davidson President Sounds Alarm on Industry Disruption, Claims Iconic American Brand is Being ‘Targeted’

The chief financial officer and president of commercial operations at HARLEY-DAVIDSON Inc. has criticized the European Union for its “indefensible” taxation on the company’s products.

Jonathan Root addressed the US House of Representatives on Tuesday, detailing the extreme “retaliatory” taxes imposed by the EU on the company.


Headshot of Harley-Davidson president.

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CFO Jonathon Roots spoke to the House of Representatives about EU tariffs targeting Harley-Davidson
Credit: Harley Davidson

Harley-Davidson motorcycles in a showroom.

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The American motorcycle brand is best known for its heavyweight American made motorcycles
Credit: Getty

Harley-Davidson Cycles sign in Berlin, Germany.

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The company said it found itself caught in the middle of the US and EU trade war
Credit: Getty

The American motorcycle brand generates most of its revenue in the United States, with over 90,000 motorcycles sold last year.

However, Root emphasized that increasing EU taxes significantly restrict its international market opportunities.

“The US has historically been, and continues to be, the primary market for heavyweight motorcycles,” Root began in his prepared statement.

“The US is home to our largest workforce, our main production site, and accounts for the majority of Harley-Davidson’s global sales.”

READ MORE ON HARLEY-DAVIDSON

“Nevertheless, we face tremendous pressures both domestically and internationally due to uneven and unfair trade practices.”

Root’s address comes just a week ahead of the European Union’s decision to impose $28 billion in tariffs on US goods, including motorcycles.

These tariffs stem from an escalating trade war with the US, placing the iconic American motorcycle brand directly in its path.

The conflict began when Trump announced a 25 percent tariff on all steel and aluminium imports to the US.

“We are committed to a pragmatic approach and are actively negotiating a broader economic agreement with the US to eliminate additional tariffs and support UK businesses and our economy,” stated UK Business Secretary Jonathon Reynolds, referring to the new tariff as “disappointing.”

Root pointed out the trade imbalance: “The EU has prepared a staggering total tariff of 56% for Harley-Davidson motorcycles. This comprises a retaliatory tariff of 50 percentage points plus a base import duty of six percent, regardless of the manufacturing location.”

Harley-Davidson riders point to glaring ‘oversight’ by brand after chain’s stock plummets & dealerships close for good

“This stands in stark contrast to the 0 to 2.4% import duty that international motorcycle brands can leverage when entering the US market.”

“From 2018 through 2021, Harley-Davidson’s exports to the EU incurred an extra 25% tariff, tallying an estimated cost of $166 million,” he elaborated.

“A 56% tariff is unacceptable and will hinder our ability to market motorcycles in Europe…an obvious attempt to target Harley-Davidson as a symbol of Americana.”

Root cited motorcycle prices in Denmark to illustrate the potential impact on the company. He stated that under current tariffs, a motorcycle already costs customers $77,000 USD.

With the impending 56% retaliatory tariff, prices could soar to $124,000, which is over four times the price for US customers.

What are the new and refreshed Harley-Davidson motorcycles for 2025?

The lineup of all-new 2025 models includes:

The Street Glide Ultra designed for long-haul touring and the Pan America 1250 ST, a dynamic adventure sport motorcycle.

Harley-Davidson has also refreshed six iconic Cruiser models for 2025: the Low Rider S; Low Rider ST; Breakout; Heritage Classic; Fat Boy; and Street Bob.

The brand’s Sportster S has also received upgrades.

A limited-production collection of Custom Vehicle Operation (CVO) motorcycles includes four models: CVO Street Glide; CVO Road Glide; CVO Road Glide ST; and CVO Pan America.

The company stated that the new models complete the 2025 Harley-Davidson Grand American Touring, Cruiser, Sport, Adventure Touring, and Trike motorcycle range.

Root noted that the rising prices will undermine the essence of Harley-Davidson.

“What was once a dream of personal expression and freedom on the road has transformed into an unattainable luxury for numerous potential Harley-Davidson customers in Europe.

“My request here today is straightforward: we seek fairness.”

The tariffs come on the heels of Harley-Davidson’s CEO Jochen Zeitz’s remarks indicating that the company’s sales have been “significantly impacted” due to an aging customer demographic, elevated prices, and intense competition, especially from younger riders attracted to lighter, more affordable motorcycles.

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Harley Davidson News

Lazydays Holdings Appoints Marine Industry Veteran Jeff Needles as Chief Financial Officer

TAMPA, Fla., Jan. 6, 2025 /PRNewswire/ — Lazydays Holdings, Inc. (“Lazydays” or the “Company”) (NasdaqCM: GORV) has announced the appointment of Jeff Needles as Chief Financial Officer (“CFO”), effective January 6, 2025. Mr. Needles, previously CFO at Warbird Marine Holdings, LLC, will manage the Company’s financial operations, which encompass finance, accounting, treasury, SEC reporting, and financial planning and analysis. He will report directly to Ron Fleming, Interim CEO of Lazydays.

Mr. Needles takes over from Interim CFO Jeff Huddleston, whose resignation is also effective on January 6, 2025.

“I am excited to welcome Jeff to Lazydays at this critical juncture,” said Mr. Fleming. “His experience across complementary markets and business models, including multi-location retail in the marine and powersports sectors, will significantly benefit Lazydays.”

Mr. Fleming added, “I would also like to extend my gratitude to Jeff Huddleston for his contributions during his tenure as Interim CFO.” Mr. Huddleston will remain available in a consulting role to assist with the transition.

“Having recently completed a series of financing transactions and discussing further transformative measures to secure future success, I’m thrilled to be joining the Lazydays team,” commented Mr. Needles.

With over 20 years of financial management expertise, Mr. Needles has a strong background in financial planning and analysis, cost analysis, and enhancing operational efficiency. Along with his tenure as CFO for Warbird Marine Holdings, he held similar roles with United Enertech Holdings, LLC, Schnellecke Logistics USA, as well as in financial leadership at Mastercraft Boat Company and Harley Davidson Motor Company.

Mr. Needles is a Certified Public Accountant, earned an MBA from Washington University, and holds a Bachelor of Science in Business Administration from Saint Louis University, John Cook School of Business.

ABOUT LAZYDAYS RV

Since our establishment in 1976, Lazydays RV has been a key player in the RV industry, acclaimed for providing outstanding RV sales, service, and ownership experiences. Our dedication to excellence has fostered long-lasting relationships with RVers and their families, who depend on us for their RV needs.

With a vast selection of RV brands from leading manufacturers, state-of-the-art service facilities, and a broad assortment of accessories and parts, Lazydays is the ultimate destination for RV enthusiasts seeking everything necessary for their journeys. Whether you are an experienced RVer or just beginning your adventure, our devoted team is ready to offer exceptional support and guidance, making your RV lifestyle truly remarkable.

Lazydays is publicly traded on the Nasdaq stock exchange under the ticker “GORV.”

FORWARD LOOKING STATEMENTS

This press release contains “forward-looking statements” as defined by the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect our goals, plans, projections, and guidance related to our financial standing, operational results, market position, potential financing transactions, and business strategies, often using terms such as “project,” “outlook,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “may,” “seek,” “would,” “should,” “likely,” “goal,” “strategy,” “future,” “maintain,” “continue,” “remain,” “target,” or “will,” among others. Examples of forward-looking statements in this release include planned transformative actions and the potential success thereof.

Due to their nature, forward-looking statements involve risks and uncertainties as they pertain to events contingent on future circumstances. Forward-looking statements are not guarantees of future performance; our actual operational results, financial condition, liquidity, and industry development may differ significantly from those anticipated or implied by these statements. Factors that could lead to actual results diverging from projections include various risks related to economic and financial conditions (both nationally and locally), shifts in customer demand, our relationships with vehicle manufacturers and suppliers, indebtedness risks (including our ability to secure further waivers or adjustments to credit agreements, lender actions or inactions, available borrowing capacity, compliance with financial covenants, and our capacity to refinance or repay debt on acceptable terms), unforeseen incidents that could negatively affect our operations and financial performance, government regulations, and other factors discussed under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in our latest Quarterly Report on Form 10-Q, Annual Report on Form 10-K, and other filings with the U.S. Securities and Exchange Commission. We encourage you to carefully consider this information and avoid placing undue reliance on forward-looking statements. We assume no obligation to update our forward-looking statements, which are accurate as of the date of this release.

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SOURCE Lazydays RV