By John Keilman

Wanted: CEO for iconic (but challenged) motorcycle maker.

Harley-Davidson said it has engaged an executive search firm to find a replacement for Chief Executive Jochen Zeitz, who the company said Tuesday plans to retire after five years on the job.

Harley said it retained the search firm late last year after Zeitz expressed interest in retiring. He will remain in his position until a successor is chosen.

During his tenure, Zeitz has boosted Harley's profit but has seen sales of its bikes continue to decline. The company last year sold 151,000 bikes worldwide, less than half as many as it sold in 2008, and in the European Union, it might soon face higher duties on its motorcycles under new retaliatory tariffs.

Harley shares moved slightly lower in midday trading.

Zeitz, a longtime board member, took over in 2020 as the Covid-19 pandemic took hold, and kept the Milwaukee-based company running despite factory closings and supply-chain tangles. As CEO he has given priority to profit over volume, cutting money-losing, entry-level bikes from the lineup to focus on more expensive cruising and touring models.

The strategy was in direct opposition to that of his predecessor, Matt Levatich, whose "More Roads to Harley-Davidson" plan called for dozens of new models to broaden the brand's appeal. Levatich left the company after an activist investor said the approach had led to poor financial performance.

Zeitz has said Harley is faring better than its competitors, as the powersports industry suffers under high interest rates and low consumer confidence. But the company has been singled out in the trade war launched by the Trump administration, with the European Union threatening to impose 50% retaliatory tariffs on its bikes.

The company said in March that bikes imported into the U.S., which receive a 2.4% tariff at most, should face reciprocal duties to even the playing field.

Harley's network of dealers often criticized Zeitz as being out of touch with the brand's distinct culture. He grew up in Germany and had made his name rescuing sportswear company Puma, but as sales continued to decline, some said he didn't understand what made Harley riders tick.

"This company has a great future under someone else's direction," said Mark Forszt, a dealer with six locations in Indiana. "Hopefully they'll bring someone in with knowledge of Harley-Davidson culture."

Justin Johnson, operating partner at St. Paul Harley-Davidson in Minnesota, gave Zeitz credit for kick-starting the development of popular new touring models that came out last year.

"That was the fastest I've ever seen Harley bring something to market," Johnson said.

Harley faces numerous challenges, including an aging customer base. Dealers say entry-level models have failed to capture the appeal of their predecessor, the Sportster, which was phased out to comply with tightening air-quality standards.

The company's electric-motorcycle spinoff, LiveWire, which launched in 2019, has seen losses in excess of $100 million while shipping fewer than 700 bikes in each of the past two years. Zeitz indicated on a quarterly conference call in February that he was losing patience with the project.

Zeitz was thrust into America's culture wars last summer when conservative activist Robby Starbuck accused Harley of becoming "totally woke" under the CEO's leadership. That stirred up a whirlwind of social-media criticism, including some from elected officials, and the company backed away from some initiatives.

Write to John Keilman at john.keilman@wsj.com

(END) Dow Jones Newswires

April 08, 2025 12:25 ET (16:25 GMT)

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