Harley-Davidson board member steps down, citing serious worries for company

A Harley-Davidson board member has stepped down from his position, citing significant concerns about the company’s current state of affairs. In a strongly-worded letter addressed to Harley-Davidson, the departing member highlighted issues such as “severe underperformance” and a noticeable “cultural depletion” within the organization. These criticisms come amidst mounting uncertainties about the future of the 122-year-old motorcycle giant.

The recent resignation comes on the heels of the company’s confirmation that they have been actively seeking a replacement for their CEO. The outgoing CEO, Jochen Zeitz, took the reins in 2020 and unveiled an ambitious strategic plan named “The Hardwire” aimed at bolstering profits and expanding their customer base. However, as the plan nears its completion this year, doubts have been cast on the effectiveness of the company’s overarching direction under his leadership.

A major shareholder in Harley-Davidson, investment firm H Partners, appointed Jared Dourdeville to the board in 2022. Dourdeville’s scathing letter to the Board of Directors outlined several critical issues plaguing the company, including poor sales performance, excess dealership inventory, declining profits, and a lack of accountability under Zeitz’s “The Hardwire” strategy. This prompted Dourdeville’s resignation, as he expressed deep concerns about the trajectory of the company.

In response to Dourdeville’s assertions, Harley-Davidson asserted that he had not dissented on critical matters during his time on the board. The company noted that the decision to not extend an offer to H Partners’ preferred CEO candidate was the only instance where Dourdeville opposed the majority. They also outlined the sequence of events leading up to Dourdeville’s resignation, emphasizing their efforts to engage in dialogue with the departing member prior to his decision.

Despite his resignation, Dourdeville, along with H Partners, have reiterated their commitment to Harley-Davidson’s success. The departure of a key board member has raised concerns about potential long-term implications for the company. Experts suggest that H Partners’ significant shareholding may lead to changes in the board composition, potentially influencing the company’s strategic direction moving forward.

As Harley-Davidson navigates this period of transition and uncertainty, the looming prospect of a new CEO and the departure of a prominent board member may herald a period of upheaval for the iconic motorcycle manufacturer. The company’s ability to address the concerns raised and chart a clear path forward will be crucial in determining its future success and investor confidence.