Harley-Davidson Seeks New CEO, While Grappling With Sales Slump, Tariffs

Wanted: CEO for iconic (but challenged) motorcycle maker.

Harley-Davidson is seeking a replacement for Chief Executive Jochen Zeitz, who the company said Tuesday plans to retire after five years on the job.

Harley said it retained an executive search firm late last year after Zeitz expressed interest in retiring. He will remain in his position until a successor is chosen.

During his tenure, Zeitz has boosted Harley’s profit but has seen sales of the bikes continue to decline . The company last year sold 151,000 motorcycles worldwide, less than half as many as it sold in 2008.

Shares in Harley and other power-sports manufacturers dropped sharply Tuesday as investors’ worries about tariffs and a possible recession mounted. Harley stock closed at $20.82, down nearly 9%.

Zeitz, a longtime board member, took over in 2020 as the Covid-19 pandemic took hold and kept the Milwaukee-based company running , despite factory closings and supply-chain tangles. As CEO he has prioritized profits over volume, cutting money-losing entry-level bikes from the lineup to focus on more expensive cruising and touring models.

The strategy was different than one implemented by his predecessor, Matt Levatich, whose “More Roads to Harley-Davidson” plan called for dozens of new models to broaden the brand’s appeal. Levatich left the company after an activist investor said the approach had led to poor financial performance.

Zeitz has said Harley is faring better than its competitors, as the industry suffers from high interest rates and low consumer confidence. Harley’s prospects have also been shaken in the trade war launched by the Trump administration, with the European Union threatening to impose 50% tariffs on the company’s bikes .

The motorcycle maker said in March that bikes imported into the U.S., which receive a 2.4% tariff at most, should face reciprocal duties to even the playing field.

Harley’s network of dealers often criticized Zeitz as being out of touch with the brand’s distinct culture. He grew up in Germany and had made his name rescuing sportswear company Puma , but as sales continued to decline, some said he didn’t understand what made Harley riders tick.

“This company has a great future under someone else’s direction,” said Mark Forszt , a dealer with six locations in Indiana. “Hopefully they’ll bring someone in with knowledge of Harley-Davidson culture.”

Justin Johnson, operating partner at St. Paul Harley-Davidson in Minnesota, gave Zeitz credit for kick-starting the development of popular new touring models that came out last year.

“That was the fastest I’ve ever seen Harley bring something to market,” Johnson said.

Harley faces numerous challenges, including an aging customer base. Dealers say entry-level models have failed to capture the appeal of their predecessor, the Sportster, which was phased out to comply with tightening air-quality standards.

The company’s electric-motorcycle spinoff, LiveWire , which launched in 2019, has seen losses in excess of $100 million while shipping fewer than 700 bikes in each of the past two years. Zeitz indicated on a quarterly conference call in February that he was losing patience with the project.

Zeitz was thrust into America’s culture wars last summer when conservative activist Robby Starbuck accused Harley of becoming “totally woke” under the CEO’s leadership. That stirred up a whirlwind of social-media criticism, including some from elected officials, and the company backed away from some initiatives.