Harley-Davidson Board Resignation Sparks Leadership Controversy Amid Financial Struggles

A director representing Harley-Davidson Inc.‘s HOG significant shareholder has resigned from the company’s board, leveling serious accusations against CEO Jochen Zeitz and other leaders amid ongoing financial challenges for the motorcycle manufacturer.

Resignation Details and Allegations

What Happened: Jared Dourdeville, of New York investment firm H Partners, which holds a 9.1% stake in Harley, filed a 13D with the U.S. Securities and Exchange Commission regarding the company’s stock. In his resignation letter dated Saturday, Dourdeville called for the immediate resignation of Zeitz, who holds both CEO and chairman roles, alongside directors Sara Levinson and Tom Linebarger.

Dourdeville accused the company’s leadership of making decisions that have harmed the storied brand. He highlighted the “cultural depletion” stemming from extensive work-from-home policies for white-collar employees and noted the departure of many senior leaders as detrimental to the firm’s identity.

Leadership Changes on the Horizon

The company announced on Tuesday that Zeitz plans to retire as CEO but will continue in the role until a successor is appointed.

Financial Context and Performance Challenges

Why It Matters: This leadership dispute unfolds as Harley faces significant financial challenges. In February, the company reported a 34.7% revenue decline, totaling $687.61 million for the fourth quarter of 2024, with global retail motorcycle sales dropping 15%. CEO Zeitz attributed these struggles to “continued cyclical headwinds” and elevated interest rates impacting consumer confidence.

Despite these challenges, Harley’s recently launched touring models have increased its market share to 74.5% in the U.S. touring segment for fiscal 2024.

Market Reactions and Future Price Targets

Harley-Davidson has a consensus price target of $35.18, based on input from 11 analysts, with estimates ranging from a low of $26 to a high of $45. Recent ratings from DA Davidson, Baird, and Citigroup suggest an average target of $28.33, indicating a potential upside of 19.25%.

On Wednesday, Harley-Davidson’s stock gained 13.74%, trading at $23.68, following an announcement by President Donald Trump regarding a pause on broad tariffs.

While Harley-Davidson’s stock faces challenges, it has shown stronger performance compared to key rivals like Polaris Inc. PII and its former electric unit LiveWire Group Inc. LVWR, according to Benzinga Edge stock rankings. HOG also maintains a better valuation score.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.