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[RoadTrip]

Zeitz (the new guy) is worth reserving judgment on.  For one of my side gigs I did some basic research on him just two or three years ago.  The track record is significant.

He took charge of Puma when he was young (30-ish) and the company was in trouble.  It's now an international powerhouse and doing much better than the German economy more generally.  He stayed with new ownership after Puma was acquired several years after his tenure began and reports suggest good work there as well. 

For a generation or so the guy has preached sustainability and eco-sound production in large business and doing that in ways that don't contradict business efficiency.  He was (if you believe the press) a big reason Harley is now doing the LiveWire.

He's only announced as a placeholder so far.  No clarification on how long-term he'll hold the reins.  Hell, there's no clarity on whether Harley's reins are worth holding for another generation; at least not without a major re-boot that would leave all of us old farts scratching our heads and wondering what the company and all its young whippersnapper new customers had become.

Hell, I wish just about any new guy luck and any company good fortune; both for its employees and its shareholders and its customers.  So for a short trip or a longer ride good fortune to the new German and any vision / change that might lead the company forward such that it can once again find ways to even get out of its own way.

I concur with your assessment of Zeitz, but don't believe he is the long-term player in the CEO role. My bet is he will orchestrate an acquisition of a strategic player (think KTM, Zero or some other metric brand that is appealing to the younger riders) and after a few years, the new CEO will come from there.

[Threephase]

"...the company took some dramatic measures and announced on February 28, 2020, that CEO Matt Levatich was stepping down. LiveWire advocate and Puma sport brand savior Jochen Zeitz stepped in as the struggling company’s new commander in chief, charged with the mission to turn things around."


Apparently Zeitz is the reason Livewire is on the salesfloor.

[marko61]

"...the company took some dramatic measures and announced on February 28, 2020, that CEO Matt Levatich was stepping down. LiveWire advocate and Puma sport brand savior Jochen Zeitz stepped in as the struggling company’s new commander in chief, charged with the mission to turn things around."


Apparently Zeitz is the reason Livewire is on the salesfloor.

exactly ... and it is also one of the reasons for the losses of HD .... it has always been mr. Puma wants certain abortions like Pan America and I'm sure that if he stays he will do even more damage than poor Matt

[bbrown]

Where is Willey G when we need him??  I thought Bill Jr would step up but I guess he is got his millions so doesn't need or want a leadership role.   

[iski]

"...the company took some dramatic measures and announced on February 28, 2020, that CEO Matt Levatich was stepping down. LiveWire advocate and Puma sport brand savior Jochen Zeitz stepped in as the struggling company’s new commander in chief, charged with the mission to turn things around."


Apparently Zeitz is the reason Livewire is on the salesfloor.

Looking back at Harley through the decades & bike changes especially since WWII, the company has changed a lot. It had to in order to survive. The challenge is twofold: create new bikes that appeal to new riders while not alienating their existing customer base.  At this point, neither one of these appears to be going that well.

[Ironhorse]

Levatich made several moves that I thought were well intended. Knowing that we Baby Boomers are disappearing, he made efforts to lure Latinos, blacks and women with marketing. He was a proponent of the electric bikes resulting in the LiveWire. He supported the move to build bikes overseas to avoid tariffs and fees. He cut back in the areas of HOG and Ladies of HOG to try and save money. Smartly he introduced the buy back program where a rider can buy a Sportster, then a year later return it to the dealer who will buy it back at 100% of sale price if they buy another larger bike. Those are all traditional actions CEOs take to save money and turn a company around.

What he failed to do is address the fact that the bikes are all overpriced. He failed to correct manufacturing issues like overheating, cheap parts that grenade engines, and out dated engine and motorcycle designs. People don't have the liquid cash to buy these overpriced bikes, and those who do feel angry and resentful when the bike keeps going into the shop.

But I could be wrong

[mark]

Ironhorse, I couldn’t agree more with your second paragraph.  I don’t think the public balks at paying a premium price for a premium product...just look at Lexus, Mercedes, BMW, etc.  However, with the out-the-door cost of a CVO nipping at the heels of a fully loaded pickup truck, it better perform excellently, be reliable, and the dealership bend over backward to fulfill my needs. 

[FLSTFI Dave]

What he failed to do is address the fact that the bikes are all overpriced. He failed to correct manufacturing issues like overheating, cheap parts that grenade engines, and out dated engine and motorcycle designs. People don't have the liquid cash to buy these overpriced bikes, and those who do feel angry and resentful when the bike keeps going into the shop.

But I could be wrong

I pretty much agree.  I can afford the bikes.  The issue is, you do not acquire enough income or money to pay 40K for a bike, and be okay with chitty quality.

I am on my 7th CVO since 2009, put 45K on them.  Each one has had more issue and troubles than the one before it.

I love the paint scheme and color on my 2019 CVO RG red pepper.  It has been a quality nightmare.  The number of quality issues is astronomical.

1.  on the 2nd set of replacement front rotors at 21K miles and the set on the bike are wrapped again.
2.  Seat was replaced as it was very worn at 12K miles and my older bikes with way more miles seats had no wear, seat is showing wear bad again, 21K miles
3.  Saddle bag lid replaced as paint was flaking off.
4.  Speedometer is being replaced due to drips on inside of glass.
5.  Left had switch housing replaced as it quite working
6.  Volume control does not work, looks to be BCM
7.  Fork legs replaced as paint all was falling off
8.  Shifter lever was replaced, all the paint was gone.

Seriously, this bike as had 2 times as many issues as my 03 Fatboy and my 13 CVO King combined.

No excuse for quality this bad, especially on a 42K bike.

This is what Harley needs to fix.

[BigLock]

I agree with you Dave. I had issues with my 18 one of the front speakers was bad from the factory,lid speaker went out, switch lock button for bags wouldn't work from factory and fork legs look like they are pitting now . I guess they just skip the QS9000 part.

[Indenial]

https://advrider.com/breaking-harley-davidson-ceo-president-steps-down/?utm_source=newsletter&utm_medium=email&utm_campaign=editorial&utm_content=03_05_2020

I'm trying to substantiate this article.  Has anyone else heard it.

I'm a week late. I should have checked the "News" thread first.  Sounds like Harley has a lot of adjustment coming up.  You all make good points. And that, I guess, is why I'm still riding my 2009 and lovin' it.

[iski]

Yes.

https://www.bing.com/search?q=matt%20levatch&qs=n&form=QBRE&sp=-1&pq=matt%20levatch&sc=8-12&sk=&cvid=7FCB3A33B5B8439D89AF7A60F9CA9BF2

[charles05663]

I am sure that Matt had a nice golden parachute packed and ready to go when he left.
 

[Twolanerider]

While killing some time at the desk hiding from the StellaArtoisVirus this afternoon and early evening just saw the following.  Maybe already re-thinking how much personal "leash" the new CEO gets from my personal perspective.

His Board rather forcefully turned down the idea of any new board members as was suggested from a major investor and in the same SEC filing Zeitz was attributed with the following:

As further evidence of this transformation, in 2020 we will expand our focus from heavyweight motorcycle unit shipments to revenue from motorcycles and related products segment as a primary objective and measure for the year. This measure best reflects our comprehensive efforts to expand into new product segments and foster a customer-creation culture - one that is laser-focused on our riders and fans who are passionate about our great brand. Looking forward, our efforts will only intensify.

So now as a formal declarative the company no longer pays attention to motorcycles as its first and best metric of whether it, as a motorcycle company, is successful.  As declared to the SEC it's now just "revenue" with everything secondary to that as a goal.

If that could be conjured to mean better bikes = more bikes = more revenue and everything else follows on that one might feel some comfort in the idea.  That's chimerical to what Mother Harley has done for a generation though.  Or, to put it all in the HD mother tongue; is it that they hope to sell a butt ton of expensive t-shirts?

https://investor.harley-davidson.com/static-files/26da57ca-18dd-4b15-be2c-33dbb7b656dc

[J.D.]

Basically sounds like mgmt is conceding the bike sales in favor of merchandising the HD brand.  You don't need a lot of industry background to do that.

[charles05663]

As further evidence of this transformation, in 2020 we will expand our focus from heavyweight motorcycle unit shipments to revenue from motorcycles and related products segment as a primary objective and measure for the year. This measure best reflects our comprehensive efforts to expand into new product segments and foster a customer-creation culture - one that is laser-focused on our riders and fans who are passionate about our great brand. Looking forward, our efforts will only intensify.

No offense, but WTF does that mean?  The paragraph is simply marketing babble.