Meltdown at Harley-Davidson

Harley Davidson, the iconic brand that is synonymous with American culture, faces dramatic slowing sales. It is also currently facing a crisis of governance and executive leadership. The next CEO would be the company’s third in less than six years. Whoever takes over will need to improve relationships with its employees, 1,200 worldwide dealers and win back loyal riders.

According to recent reporting in the Wall Street Journal, Teddy Morse, CEO of Ed Morse Automotive Group, has acquired six Harley dealerships over the past three years. Morse said the next leader needs to be personable, passionate and focused on dealers, many of whom have sunk their fortunes into their businesses.

“Connect with the people,” he said. “Make us believe that you care as much about the brand as we do.

Connect with people! Wise words from a prominent Harley dealer. I find it so interesting that with all the emphasis on operating efficiency and artificial intelligence, in the quest for sustainable success, so may executives at the top of the house, especially board directors, forget that the number one priority should be PEOPLE! Regardless of the dramatically changing environments, the best organizations find a way to be people first.

Apparently, one of the board level issues causing governance angst at Harley has been a controversy about remote work and “wokeness.” When one hears these two issues dominating fiduciary board responsibility, it’s a warning sign that the board is likely out of touch with employees and consumers. Great cultures and ultimately sustainable business success comes from listening to what deeply matters to people and not over simplistic, hygienic antidotes that come from financial asset managers that have never built or run anything.

As always Connect with People. They are the source and way to ongoing success!

Think Big, Start Small, Act Now,

- Lorne

One Millennial View: It’s interesting to read that Harley-Davidson has dialed back on their signature chrome features and built quieter engines. If that’s true, what an oversight! In an increasingly safe world, where perhaps motorcycle riding is deemed irresponsible and dangerous, you still have to keep your identity. Harley-Davidsons are for the rebels, outlaws and the leather vest wearing folks who still make an annual pilgrimage to Sturgis, South Dakota (if you don’t know what takes place there, look it up). Even if I’ve never ridden a motorcycle, it’s a sad day when Harley and their people are no longer flourishing.

- Garrett

AI Response:Harley-Davidson's challenges are underscored by stark statistics: U.S. sales dropped 20% in Q1 2024, continuing a decade-long decline as its core baby boomer riders age out. Meanwhile, the company’s global market share in heavyweight motorcycles fell to 30% (down from 50% in 2010), with competitors like Indian Motorcycle gaining ground. Employee morale and dealer relations are critical, as 42% of Harley’s revenue comes from parts, accessories, and merchandise—categories heavily reliant on brand loyalty. The governance turmoil, including debates over remote work (a priority for 76% of employees post-pandemic, per Gallup), risks alienating younger workers and riders, a demographic Harley desperately needs—only 12% of Gen Z views motorcycles as "cool" (Piper Sandler survey). As Teddy Morse emphasizes, reconnecting with people—riders, dealers, and employees—isn’t just cultural; it’s financial. Harley’s next CEO must bridge this gap to revive the brand.

Meltdown at Harley-Davidson

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