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Harley-Davidson Unveils Major Updates Following CEO Departure and Shareholder Demands for Overhaul

HARLEY-Davidson has revealed significant updates following increasing calls for the CEO to be replaced.

The motorcycle giant’s second-largest stakeholder sought to remove three directors, including CEO Jochen Zeitz, in a bid for a major reorganization.

Harley-Davidson Unveils Major Updates Following CEO Departure and Shareholder Demands for Overhaul

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Criticism mounts for Harley-Davidson boss Jochen Zeitz (left) as the company faces declining salesCredit: Getty
Harley-Davidson Motorcycles logo sign.

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Investors are calling for leadership changes at the bike giant, pushing for an external candidate to succeed ZeitzCredit: Getty
Jochen Zeitz, Harley-Davidson CEO, standing next to a motorcycle in a field.

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German-born Zeitz has led the company since 2020, amid speculation about his potential retirement this yearCredit: free f

Despite the pressure, Zeitz has successfully retained his position in a closely contested board vote, described by Reuters as a “razor-thin outcome”.

Since taking the helm in 2020, Zeitz has faced growing scrutiny due to the company’s dwindling sales and plummeting stock prices.

In light of this, H Partners had advocated for bringing in an external replacement, but proxy advisory group Institutional Shareholder Services asserted they did not present “a compelling case for change”.

There are indications that Zeitz may retire this year, though the German CEO has committed to staying until a successor is found.

Challenges facing Harley are well-documented, with company shares—valued at $3 billion—dropping 31% over the past year.

Many attribute the struggles to the brand’s failure to connect with a younger generation of bikers.

This announcement follows shortly after Harley-Davidson unveiled a “bold new initiative” to engage a new demographic.

The well-regarded motorcycle manufacturer will gain heightened visibility in Europe by collaborating with MotoGP, the premier road racing series for motorcycles.

Furthermore, Harley-Davidson’s support championship will debut in 2026, featuring teams racing bagger motorcycles at grand prix events across both Europe and North America.

Participants will utilize race-prepped Harley-Davidson Road Glide bagger motorcycles, tailored for touring and long-distance journeys.

Harley-Davidson reveals brand new bike that pays homage to iconic model as fans rave over ‘masterpiece’

The 12-race series will take place at six grand prix locations on the MotoGP calendar, with expectations of six to eight teams, each with two riders.

No specific venues have been disclosed as of now, although speculation suggests that the Circuit of the Americas in Austin, Texas, is likely to be included.

In addition, a new Harley-Davidson dealership has recently launched in a prominent US location, successfully navigating several challenges along the way.

To celebrate the grand inauguration, a well-known personality made a special appearance to mark the dealership’s exciting new chapter.

The first day of operations was met with a large turnout of enthusiasts and locals, complemented by live music and food vendors.

The event culminated in a ribbon-cutting ceremony, signifying the official opening of the dealership.

Harley-Davidson Closures in 2024

Currently, there are more than 650 Harley-Davidson dealerships in the United States.

However, several locations have shut down in 2024, often without any announcements regarding the reasons.

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

A location in San Francisco closed in June 2024 after 110 years due to “chaos” from new management.

Miracle City Harley-Davidson in Titusville, Florida, ceased operations in September 2024 with no explanation provided.

The iconic location in New York City shut its doors on September 28, 2024, citing economic challenges as the reason.

The owners of Reiman’s Harley-Davidson dealership in Kewanee, Illinois, closed the establishment in October 2024 after selling it to the Walter Brothers Harley Davidson dealership in Peoria, Illinois.

Another Illinois dealership also closed in November 2024.

The West Bend dealership in Wisconsin is temporarily shutting down for the season from November 2 until April 1, 2024.

In 2025, Hideout Harley-Davidson in Missouri announced plans to close by the end of March.

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Major Harley-Davidson Shareholder Seeks Removal of CEO and Two Board Members

A significant shareholder in Harley-Davidson is demanding major changes to the company’s board, insisting that CEO Jochen Zeitz and two other longstanding members should be replaced.

H Partners Management announced on Wednesday that it is urging other Harley-Davidson shareholders to issue “withhold” votes at the upcoming shareholder meeting in May, where the re-election of Zeitz and two board members, Thomas Linebarger and Sara Levinson, is slated for a vote.

The firm holds approximately 9.1% of the motorcycle company’s shares. Jared Doureville, one of its principals, served on Harley-Davidson’s board from February 2022 until recently when he resigned.

Major Harley-Davidson Shareholder Seeks Removal of CEO and Two Board Members

The Harley Davidson Motorcycles corporate logo is featured at their store in Disney Springs at Walt Disney World on June 1, 2024, in Orlando, Florida. (Photo by Gary Hershorn/Getty Images / Getty Images)

Voting “withhold” would send a “strong message to the Board that shareholders are unhappy with the current situation and that significant changes are needed,” the investment firm stated in a filing with the Securities and Exchange Commission (SEC).

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In a publicly available letter, H Partners urged the Harley-Davidson board to “immediately replace” Zeitz with an interim CEO “until a permanent external CEO can be appointed.”

“An absentee CEO announcing his plans to retire should not be making decisions that affect the company’s long-term future,” the investment firm emphasized. “Furthermore, the current Board, which is heavily dominated by a few long-standing members, is not trustworthy when it comes to overseeing critical decisions, including those regarding CEO succession.”

TickerSecurityLastChangeChange %
HOGHARLEY-DAVIDSON INC.22.27+0.66 +3.03%

Earlier this month, Harley-Davidson announced that it was in the process of finding a new CEO to succeed Zeitz, who indicated to the board late last year that he intended to retire.

H Partners claimed that the motorcycle company has suffered from “poor performance” due to an “inability to adjust course,” which it partially attributed to Zeitz and Linebarger.

harley davidson

A close-up view of a Harley-Davidson motorcycle captured on Whyte Avenue in Edmonton, Alberta, Canada, on Sept. 10, 2023. (Artur Widak/NurPhoto via Getty Images / Getty Images)

It further alleged that both Zeitz and Linebarger had not maintained transparency with the rest of the Board. Zeitz, Linebarger, and Levinson are described as “entrenched” and “unable to hold one another accountable for subpar performance.”

In its SEC filing, H Partners expressed “deep concern that if the Board remains as is, it will choose the new permanent CEO and continue the current strategic path, ultimately leading to further degradation of shareholder value.”

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As of Wednesday, shares of Harley-Davidson have decreased by over 24% since the beginning of the year. In the past year, shares have fallen by 42.7%.

“It is crucial to appoint a leader who will mend relationships with dealers, connect with riders, honor and enhance the brand, improve corporate culture, restore the historic Milwaukee headquarters presence, and bring Harley-Davidson back to its former glory,” H Partners stated in their letter to shareholders.

FOX Business has reached out to Harley-Davidson for response.

Earlier in February, the company reported a revenue of $4.12 billion in 2024, marking a 14.9% decline from the previous year. Its annual net income also dropped to $455.36 million.

The Harley-Davidson logo is visible near a store in Krakow, Poland, on Jan. 24, 2024. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)

During that time, Zeitz noted that Harley-Davidson “saw our performance being greatly affected by the ongoing cyclical challenges for discretionary items, especially the high-interest rate environment impacting consumer confidence” in 2024.

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The company’s outlook for 2025 projects revenue to be “flat, or down by 5%.”