The renowned motorcycle manufacturer Harley-Davidson is exploring the possibility of selling its financial services division, a move potentially valued at $1 billion, following the announcement of its CEO’s resignation.
Insiders, who requested anonymity, are gauging market interest in the sale of its Financial Services, which comprises regional banks, private equity firms, and private credit entities.
6
6
6
6
Weak sales growth, declining stock prices, and fierce competition from brands like Honda and BMW have unsettled investors, as reported by Business Times.
While the choice to terminate its financial arm isn’t definitive, the company is actively exploring potential buyer interest.
This development follows the announcement of Harley-Davidson‘s CEO, Jochen Zeitz, planning to step down after a five-year tenure.
On April 10, Harley-Davidson stocks dropped 9.3%, closing at $21.49 in New York, resulting in a market valuation of $2.7 billion.
Last year, the share price nearly halved, plummeting by 48%, a decline likely worsened by Trump’s tariff policies.
Harley-Davidson Financial Services (HDFS) assists dealers in financing their inventory and aids consumers in purchasing motorcycles, including the LiveWire bikes.
This division also collaborates with third parties to offer motorcycle insurance, facilitating entry into the world of two wheels.
Representatives from the Milwaukee-based firm declined to comment on the matter.
In 2023, the boutique manufacturer produced only 1,600 units of their impressive machines, with merely 20 available in the UK.
Notable fan of the brand, Jason Momoa, has been seen riding his £28,000 electric Harley, complete with a machete holder.
Recent reports suggest that the escalating trade war and impending tariffs imposed by the European Union on American-made motorcycles, including Harley-Davidson, could compel the storied brand to move production.
A report from Biz Journals indicated that a senior Harley executive recently cautioned Congress about the possibility of a “devastating” 56% tariff on bikes manufactured in America and sold in Europe.
Consequently, they have urged Congress to advocate for equitable trade agreements with the European Union, Canada, and Asian nations.
The EU responded earlier this month, announcing that, in retaliation for the 25% tariffs imposed by President Donald Trump’s administration on steel and aluminum imports, they would increase tariffs on American-made products, including motorbikes, boats, and bourbon.
Jonathan Root, the company’s CFO and president of commercial, stated that tariffs could rise to a total of 56% on American-made Harleys sold in the EU.
Root told the subcommittee, “My request today is straightforward: fairness.”
“It’s evident that Harley-Davidson is facing discrimination and being targeted politically by the EU and Canada.”
He asserted that these tariffs are unjustified, discriminatory, and politically driven, noting that Harley-Davidson has already absorbed a significant cost from a 2018 tariff, amounting to about $166 million.
He emphasized that the company chose to absorb these costs rather than passing them on to consumers.
6
6
Harley-Davidson closures in 2024
There are over 650 Harley-Davidson dealerships across America.
However, multiple stores have closed for various reasons throughout 2024 – often without explanation.
Below is a list of some Harley-Davidson locations that have shuttered this year along with reasons for their closures:
A San Francisco location closed in June 2024 after 110 years due to ‘chaos’ brought by new management.
Miracle City Harley-Davidson in Titusville, Florida, closed in September 2024 with no reason given.
Harley-Davidson’s legacy location in New York City closed on September 28, 2024, with the owner citing economic challenges.
Reiman’s Harley-Davidson dealership in Kewanee, Illinois, shut its doors in October 2024 after the owners sold the business to the Walter Brothers Harley Davidson dealership in Peoria, Illinois.
Another Illinois dealership closed 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 announced it would close at the end of March.
