Harley-Davidson CEO Steps Down After Five Years of Declining Sales
Long-time employee Matthew Levatich is stepping down as board begins search for turnaround leader.
The decision was seemingly amicable and understandable. Harley-Davidson, while still a respected name within the motorcycle industry, has seen sales and earnings steadily dwindle since 2014's peak for both. Last year's top line fell another 8%. Zeitz commented in the press release, "The Board and Matt mutually agreed that now is the time for new leadership at Harley-Davidson."
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Bernstein analysts noted as far back as 2018 that millennials weren't as interested in motorcycles as their predecessors were at the same age, and to the extent they were interested in two-wheeled transportation, they weren't all keen on big, loud, heavy bikes. Consumers are increasingly interested in more convenient, lower-maintenance motorcycles, including electric bikes. While Harley-Davidson has responded to that shift with its all-electric LiveWire, the high price point of just under $30,000 has already proven a major hurdle.
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Harley-Davidson shares were up more than 5% in Friday's after-hours action following the announcement.
Long-time employee Matthew Levatich is stepping down as board begins search for turnaround leader.
The decision was seemingly amicable and understandable. Harley-Davidson, while still a respected name within the motorcycle industry, has seen sales and earnings steadily dwindle since 2014's peak for both. Last year's top line fell another 8%. Zeitz commented in the press release, "The Board and Matt mutually agreed that now is the time for new leadership at Harley-Davidson."
...
Bernstein analysts noted as far back as 2018 that millennials weren't as interested in motorcycles as their predecessors were at the same age, and to the extent they were interested in two-wheeled transportation, they weren't all keen on big, loud, heavy bikes. Consumers are increasingly interested in more convenient, lower-maintenance motorcycles, including electric bikes. While Harley-Davidson has responded to that shift with its all-electric LiveWire, the high price point of just under $30,000 has already proven a major hurdle.
...
Harley-Davidson shares were up more than 5% in Friday's after-hours action following the announcement.
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