Harley-Davidson’s Jochen Zeitz plans to retire as CEO in 2025, the corporate stated Tuesday, ending a five-year tenure marked by efforts to revive the American motorbike maker scuffling with plummeting demand.
Zeitz, who had helped revive German footwear model Puma’s near-bankrupt enterprise, joined Harley’s board in 2007 and was tapped as CEO in Might 2020.
Zeitz, 62, launched the “Hardwire” technique in 2021 to show across the storied motorbike maker seeking to join with younger riders as its key buyer base of child boomer aged.
The five-year technique concerned prioritizing high-margin merchandise, exiting worldwide markets with low gross sales quantity and modernizing the model’s enchantment.
“Jochen has done a nice job of shrinking Harley’s global footprint and refocusing the company on its core Touring bikes and large Cruisers,” stated Raymond James analyst Joe Altobello.
“Unfortunately, the industry has been challenged by several factors, including higher interest rates; at the same time, consumers appear to prefer smaller and more affordable bikes, which is not Harley’s strength.”
Harley in February forecast 2025 revenue and motorbike income to be flat to down 5% as customers mood big-ticket purchases.
“Lack of end-market demand looks likely to continue for the foreseeable future and has undermined the turnaround plan and shaken the confidence of dealers & investors,” Longbow analysis analyst David MacGregor stated.
He stated prospects for significant progress seem additional out of attain at Harley because it will get caught within the crossfire of an rising international commerce battle.
Harley’s shares have been down about 1% at $22.90 in noon buying and selling amid a rebound within the broader markets.
They’re up greater than 11% via Monday’s shut since Zeitz took cost, in contrast with the 77% rise within the benchmark S&P index.
Harley’s board stated it has launched a search course of and Zeitz is anticipated to stay till a successor is known as.
