Harley-Davidson Announces CEO Jochen Zeitz's Retirement and Search for New CEO

Harley-Davidson's CEO, Jochen Zeitz, plans to retire in 2025, with the company restarting its CEO search in April of that year. Heidrick & Struggles is leading the recruitment, and Zeitz's preferred successor is Jonathan Root, CFO and President of Commercial. No announcement is expected before the October dealer meetings.

Harley-Davidson is preparing for a significant leadership change as CEO Jochen Zeitz plans to retire in 2025. The company has restarted its CEO search, with Heidrick & Struggles leading the recruitment. Zeitz's preferred successor is Jonathan Root, the current CFO and President of Commercial. No official announcement is expected before the October dealer meetings.

The company is also considering a strategic move to sell its financial services arm, Harley-Davidson Financial Services (HDFS). According to recent reports, Harley-Davidson is in advanced talks to sell a stake in HDFS, along with its existing motorcycle loan portfolio, to Pacific Investment Management Company and KKR in a deal valued at $5 billion [1]. The deal would include Harley-Davidson’s existing portfolio of motorcycle loans managed by HDFS, with Pimco and KKR also aiming to buy future originations. Discussions, led by the private credit arms of both firms, could reportedly result in an agreement within weeks, though terms may still change.

The sale of HDFS comes amid Harley-Davidson's struggles with slow sales and rising competition from Honda and BMW. The company has also warned of challenging financial results due to tariffs tied to U.S. President Donald Trump’s trade policies. Harley-Davidson took a $9 million hit in the first quarter and now expects full-year cost headwinds of $130 million to $175 million, prompting it to suspend prior earnings guidance.

The company delivered a stronger first quarter than expected, thanks to solid demand for its large touring bikes and cost-cutting measures. Zeitz, who is set to retire, said the company is reworking its supply chain, ramping up production, and introducing smaller, more affordable bikes in an effort to attract younger riders.

Harley-Davidson's stock has declined by 20% so far in 2025, reflecting investor concerns about the company's financial outlook and leadership transition. The company's stock price dropped significantly following the resignation of board member Jared Dourdeville, who cited concerns about Harley-Davidson's "winning culture" and long-term outlook [2].

References:
[1] https://stocktwits.com/news-articles/markets/equity/harley-davidson-in-5-b-talks-with-private-credit-heavyweights-to-sell-finance-arm-loan-book-report/cho9WpER5x8
[2] https://www.jsonline.com/story/money/business/2025/04/11/harley-davidson-mulls-selling-its-financial-services-arm-for-1-billion/83040602007/