Harley-Davidson CEO Jochen Zeitz retiring amid – Business News
Harley-Davidson’s Jochen Zeitz plans to retire as CEO in 2025, the company mentioned Tuesday, ending a five-year tenure marked by efforts to revive the American bike maker fighting plummeting demand.
Zeitz, who had helped revive German footwear model Puma’s near-bankrupt business, joined Harley’s board in 2007 and was tapped as CEO in May 2020.
Zeitz, 62, launched the “Hardwire” strategy in 2021 to show across the storied bike maker trying to join with younger riders as its key buyer base of child boomer aged.
Harley-Davidson is fighting plummeting demand. Getty Images
The five-year strategy concerned prioritizing high-margin merchandise, exiting worldwide markets with low gross sales quantity and modernizing the model’s appeal.
“Jochen has done a nice job of shrinking Harley’s global footprint and refocusing the company on its core Touring bikes and large Cruisers,” mentioned 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 bike income to be flat to down 5% as shoppers 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 mentioned.
He mentioned prospects for significant progress seem additional out of attain at Harley because it will get caught within the crossfire of an rising world commerce battle.
Jochen Zeitz, who had helped revive German footwear model Puma’s near-bankrupt business, joined Harley’s board in 2007 and was tapped as CEO in May 2020. REUTERS
Harley’s shares had been down about 1% at $22.90 in noon trading amid a rebound within the broader markets.
They are up more than 11% by Monday’s close since Zeitz took charge, in contrast with the 77% rise within the benchmark S&P index.
Harley’s board mentioned it has launched a search course of and Zeitz is predicted to stay till a successor is known as.
