Jochen Zeitz of Harley-Davidson announced that he will step down as CEO in 2025, capping a five-year tenure during which the American motorcycle manufacturer has been trying to turn around its faltering sales.
After helping to turn around the nearly bankrupt German footwear company Puma, Zeitz joined Harley’s board in 2007 and was appointed CEO in May 2020.
In 2021, Zeitz, 62, introduced the “Hardwire” strategy to revitalise the iconic motorcycle manufacturer by reaching out to younger riders as its primary clientele of baby boomers grew older. Prioritising high-margin products, leaving low-volume foreign markets, and updating the brand’s appeal were all part of the five-year plan.
Raymond James analyst Joe Altobello said, “Jochen has done a nice job of shrinking Harley’s global footprint and refocusing the company on its core Touring bikes and large Cruisers. Sadly, several issues have plagued the industry, such as rising interest rates; at the same time, consumers seem to favour more reasonably priced and smaller bikes, which is not Harley’s strong suit.”
In February, Harley predicted that 2025 motorcycle sales and profit would be flat to down 5% as consumers cut back on expensive purchases.
Longbow Research Analyst David MacGregor said, “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.”
He claimed that as Harley becomes entangled in the escalating global trade war, chances for significant advancement seem more distant. Compared to the benchmark S&P index’s 77% increase, the stocks have increased by more than 11% since Zeitz took over.
According to Harley’s board, Zeitz is expected to stay until a successor is found.
Who Is Jochen Zeitz
Born in Mannheim, Germany, Zeitz was influenced by progressive ideas and environmental consciousness because he was raised in a family with strong ethical values. He became interested in environmentalism after spending time at his family’s lodge in the Odenwald forest and being exposed to the Green Party’s ascent and the anti-nuclear movement in Germany at a young age. Although he was initially drawn to medicine, he took a business course to pass the time before medical school, which eventually ignited his interest in business.
Jochen Zeitz started his career in Hamburg and New York with Colgate-Palmolive. He became the Business Manager of Marketing Footwear at Puma in 1990. In just three years, at 30, he was named Chairman and CEO, becoming the youngest CEO to lead a publicly traded company in German history. At the time, Puma was having financial difficulties. Puma became one of the top three sporting goods brands in the world after Zeitz oversaw a thorough reorganisation and the implementation of a long-term development plan that increased the company’s share price by about 4,000 per cent over 13 years.
He presented PUMAVision in 2008, an ethical framework that emphasises honesty, fairness, positivity, and creativity in all business operations. As a result of his dedication to sustainability, Puma’s Environmental Profit and Loss Account was established in 2011—a ground-breaking programme that measured the supply chain’s environmental impact. His conviction that environmental factors should be incorporated into business plans was strengthened by these initiatives.
Jochen Zeitz’s impact went beyond Puma. While he was the Chief Sustainability Officer at Kering, Zeitz started PPR HOME, a comprehensive sustainability initiative that integrates leadership, ecology, humanity, and creativity. Co-founding The B Team in 2014 alongside Sir Richard Branson, he promotes sustainable business practices in a variety of industries. Among his charitable activities are the establishment of the Segera Conservancy in Kenya and the Zeitz Foundation for Intercultural Ecosphere Safety, which emphasise community development and conservation.
Zeitz joined Harley-Davidson as President, CEO, and Chairman in 2020, contributing his experience in sustainability and brand transformation to the venerable motorcycle manufacturer. Harley-Davidson launched “The Rewire,” a strategic plan to revitalise the brand, under his direction.
Additionally, Zeitz was in charge of transforming Harley-Davidson’s electric motorcycle division, LiveWire, into a stand-alone publicly traded business, demonstrating his dedication to sustainability and innovation in the automotive sector.
Boardroom Drama Affects Harley-Davidson
A major Harley-Davidson shareholder is asking for an overhaul of the motorcycle maker’s leadership, training guns at Jochen Zeitz and two long-serving board members.
Investment firm H Partners, which holds a roughly 9% stake in Harley, plans to urge shareholders to withhold votes for Zeitz and directors Thomas Linebarger, Sara Levinson, at the company’s annual meeting in May 2025, a Wall Street Journal (WSJ) report said.
H Partners is calling for Zeitz’s immediate resignation, arguing the company needs an external replacement who can better connect with customers and dealers. Jared Dourdeville, an H Partners executive who recently resigned from Harley’s board, had criticised the company’s work-from-home culture and leadership turnover, warning of “cultural depletion.”
Harley responded by saying the activist campaign could disrupt its CEO search and long-term strategy.
The compnay is meanwhile weighing the sale of its financial services division, Harley-Davidson Financial Services (HDFS), with a potential USD 1 billion deal on the table and private equity firms among the expected suitors. The company has engaged an advisor to explore strategic alternatives for HDFS, a key business unit that supports motorcycle sales through dealer inventory financing, consumer loans, and insurance services.
Private credit funds and regional banks are also reportedly evaluating the opportunity. However, no final decision has been made, and Harley-Davidson may ultimately opt to retain ownership of HDFS, reported Bloomberg. HDFS generated USD 248 million in operating income from approximately USD 1 billion in revenue in 2024, contributing nearly 20% of Harley-Davidson’s total revenue.
A sale of HDFS would mark a significant shift in the company’s structure, and private equity’s involvement could bring fresh capital and operational expertise to one of the firm’s most profitable segments.
Image Credits: Harley-Davidson