strategy

Harley-Davidson to cut hundreds of jobs as part of turnaround strategy

by Rajesh Kumar Singh from https://www.reuters.com CHICAGO (Reuters) – Harley-Davidson Inc (HOG.N) on Thursday said it will lay off 500 employees this year as part of new Chief Executive Jochen Zeitz’s efforts to revive the struggling motorcycle maker. As part of the overhaul, Chief Financial Officer John Olin will leave the company effective immediately. Darrell Thomas, treasurer, will become interim chief financial officer, it said. Harley-Davidson’s sales have been declining for the past five years in the United States, its largest market, as its baby-boomer customer base ages. The economic pain caused by the coronavirus pandemic has further dented retail demand. In response to weak sales, the Milwaukee-based company has cut production, leading to 140 job cuts last month at its factories in Pennsylvania and Wisconsin. The latest cuts are in addition to those layoffs, a company spokeswoman said. Zeitz, who took over in February, is hailed for turning around the Puma brand’s near-bankrupt business. His restructuring strategy, dubbed The Rewire, is aimed at making Harley a leaner and more nimble organization. It seeks to reset product lines, focus on the company’s core strengths and prioritize profitable markets. “Significant changes are necessary, and we must move in new directions,” Zeitz said. Harley said the measures announced on Thursday will lay the foundation for a five-year strategic plan to revive sales that the company expects to share in the fourth quarter. In all, the restructuring will eliminate 700 positions globally. It will result in a $50 million restructuring charge in 2020, including $42 million in the second quarter. While the overhaul is expected to be completed by the end of the year, Harley said it will likely cause additional restructuring charges in 2021. The company will provide more details of the financial impact in its second-quarter earnings report later this month. […]

Harley-Davidson to cut hundreds of jobs as part of turnaround strategy Read More »

Harley-Davidson appoints Jochen Zeitz as President & CEO: New plan to redefine brand

by Rahul Kapoor from https://www.financialexpress.com With Matt Levatich stepping down, Harley Davidson had appointed Jochen Zeitz to lead the brand in the interim. But Zeitz has now been appointed as the president and CEO for the Milwaukee based motorcycle manufacturer. Harley-Davidson, the iconic American motorcycle brand has elevated interim President and CEO Jochen Zeitz as the new President and CEO of the company. Zeitz was appointed into the interim position after the former head of the brand Matt Levatich stepped down after a dismal sales performance of the brand that it witnessed in recent years. Zeitz who is currently the chairman of the board of Harley-Davidson brings his experience as the CEO of the sports apparel and goods brand Puma to the role. He also has plans to restructure the company and also redefine Harley Davidson. In a press statement, Zeitz said “Over the next few months, we will re-wire the business and redefine a new 5-year strategic plan later this year. I will then oversee the implementation of these changes and re-ignite Harley-Davidson as one of the most revered and iconic brands in the world,” Zeitz is working towards an all-new brand strategy called “The Rewire” that would allow Harley-Davidson to enter new markets and segments as well. The plan is said to develop further in the coming months which will incorporate key products, and initiatives from the current ongoing strategy for the brand, but with a key focus on markets and products that can help drive profits and growth. Harley-Davidson has found the last few years to be difficult in terms of unit sales. This has been more prominent in its home market – the USA as the modern consumers have moved away from heavyweight cruisers to adventure touring models or ADVs. Zeitz has been on the board

Harley-Davidson appoints Jochen Zeitz as President & CEO: New plan to redefine brand Read More »

Harley-Davidson to hold virtual annual meeting, acting CEO says More Roads plan is working

by Margaret Naczek from https://www.bizjournals.com Amid the instability of the COVID-19 pandemic, Harley-Davidson Inc.’s acting president and CEO Jochen Zeitz reflected back on the advancements made in the More Roads to Harley-Davidson strategy in 2019. 2020 already was a pivotal year in the company’s strategic plan to grow more riders and expand dealership reach, but the year became a lot more crucial as the Harley-Davidson (NYSE: HOG) looks to also overcome the difficulties during a pandemic. With concerns over public health and travel restrictions, Harley-Davidson organized its 2020 annual shareholders meeting to be conducted virtually via a live audio webcast on May 21, 2020. The annual meeting will elect nine directors to the board, approve the compensation of the company’s executive officers, approve amendments to the company’s restated articles of incorporation, approve the company’s 2020 incentive stock plan and ratify the selection of Ernst & Young LLP as Harley-Davidson’s independent registered public accounting firm. “As we embark on our next chapter and seek new leadership, we are steadfast in our belief that we have both much to be proud of and much to look forward to,” Zeitz said in his letter to shareholders. On Feb. 28, Harley-Davidson announced former CEO Matt Levatich had stepped down and Zeitz would assume the role of acting president and CEO. The company is currently engaged in a search for new CEO. In his letter to shareholders, Zeitz shared some of the company’s accomplishments in 2019. While U.S. motorcycle sales continue to decline over consecutive quarters, Zeitz noted that in 2019 the rate of decline significantly tempered. “After four years of accelerating declines, such improvement was supported by our More Roads actions, notably in how we’re Amplifying our Brand and delivering on our New Products catalysts for growth,” Zeitz said in the letter. Recommended Some

Harley-Davidson to hold virtual annual meeting, acting CEO says More Roads plan is working Read More »

Harley Davidson: The Road Only Goes Downhill

Harley-Davidson delays its first $30,000 electric motorcycle after unexpected findings during final quality checks The company delayed the motorcycle after ‘non-standard conditions’ were discvoered during final quality checks Dealers had begun selling pre-orders of the bike in January Harley-Davidson had forecast shipping 1,600 bikes Harley-Davidson has delayed production on its first electric motorcycle, called LiveWire. In an email sent to dealers last week, the company announced it had found a ‘non-standard condition’ in its final quality checks but didn’t elaborate further. The LiveWire was officially announced for commercial release last fall with a planned price of $29,799. ‘We recently discovered a non-standard condition during a final quality check; stopped production and deliveries; and began additional testing and analysis, which is progressing well,’ the company said in a statement. The Wall Street Journal reported that the decision came after a problem with the vehicle’s battery charging was discovered. The manufacturer did not say when they planned to resume production. The company had already begun delivering models of LiveWire to dealers in September. The company had expected to ship around 1,600 bikes, or an estimated 1 percent of the company’s total big shipments. The LiveWire is said to go from 0-60 mph in three seconds and reach top speeds of 110 mph. Harley-Davidson recommends users go to dealers to charge the vehicle rather than trying to use standard electrical outlets in their homes. It is powered by a 15.5 kWh battery and has a 105 horsepower magnetic engine and a range of 146 miles city driving on a single charge. Harley-Davidson had told potential customers to charge the bike only at registered dealers and not in their homes. The bike was first shown in The Avengers: Age of Ultron as a sleek prototype ridden by Scarlett Johansson’s Black Widow character. The LiveWire

Harley Davidson: The Road Only Goes Downhill Read More »

Scroll to Top