The controversy surrounding Harley's choices of Independent Board Directors shows no sign of abating - no lessons appear to have been learned and there are no signs of changes to what has become Harley-Davidson Boardroom orthodoxy despite the parlous state the business is in and the unprecedented boardroom brouhaha that another failed five-year strategic plan unleashed following the FY 2024 fiscal reveal earlier this year.
However, having resisted calls for them to leave straight away (voluntarily or otherwise), activist investor and Hedge Fund H Partners has now seen one part of the compromise struck with the board, with Independent Directors Sara Levinson and Norman Thomas Linebarger having now retired from the Board.
Harley's first female Board Member, Levison was a successful former entertainment, media (MTV), sports (NFL) and technology industry executive who had served on the Harley board since 1996. Linebarger, a former investment analyst who eventually became Chairman/CEO of Cummins (until 2002) joined in 2008. Both served on the Human Resources, Nominating and Corporate Governance and Sustainability and Safety Committees.
Their replacements as independent directors are Daniel Nova, a General Partner of Boston based Highland Capital Partners, a venture capital fund; and Matt Reintjes, President and Chief Executive Officer at YETI Holdings, Inc. (NYSE: YETI) - a Texas based seller of YETI brand products for the outdoor and recreation market - FMCG (low price, high volume) products like ice chests, vacuum-insulated stainless-steel drinkware, soft coolers, dry bags and the like.
time is not his friend
In a company news release that was additionally filed with the SEC, Presiding Director Troy Alstead 'talked both appointments up' of course, but neither has an engineering, manufacturing or motorcycle industry background or any discernible directly relevant segment experience.
Mr. Alstead added: "We are deeply grateful to Tom and Sara for their years of dedicated service to Harley-Davidson and our shareholders. Throughout their tenure, they have guided the company through significant challenges with steady leadership and unwavering commitment."
The period concerned also included declining unit sales, implementation of a disastrous dealer policy, resulting in a declining dealer network, withdrawal from many international markets, expansion of manufacturing and assembly into Brazil, Thailand, China and India, launch of the patently ill-fated money-pit that is the LiveWire EV, abandonment of the popular 883/1,200 cc "entry level" brand pathway, sale of much of the historic Juneau Avenue headquarters in Milwaukee, reduced headcount and declining share price and market cap and a second successive utterly failed five-year strategic plan.
Alstead concluded by saying "we thank them sincerely for their contributions and wish them the very best in their future endeavours." The Board has now added four new independent members to its nine-member line-up, with Presiding Director Alstead becoming Chairman of the Board 12 months ago.
With Artie Starrs having gotten his feet 'under the table' at the start of October (replete with new 117" Heritage Classic and Riding Academy course certificate courtesy of Maverick H-D in Dallas) it's tempting to hope that, expect that the new boss will be notably different to the old boss. But with Zeitz still expected to be the 'boss whisperer' for some time yet - through February 2026 in fact - these new Independent Director appointments do not scream revolution. Nor even evolution.
There have been some changes in direction recently - nudges and changes in nuance rather than a complete volte face though. Not least embracing new, lower displacement, lower price-point entry level model pathways - with a first announcement due any time now and an additional new $10k cruiser model slated for early 2026 announcement. The now re-dated MY2026 announcement cycle is expected to see most 2026 model range news, including a Harley-Davidson Sprint, released in October and on show for the first time at EICMA, in Milan, Italy in the first week of November.
It is certain though that dealers will be seeing it in October, but it is said that deliveries won't be starting until into 2026. Described as drawing on the heritage of the Aermacchi 250 cc and, later, 350 cc iteration Sprint that went out of production in 1974, the displacement capacity of the new model is not yet public domain information, or if it is I've missed it.
It will be a single though (so I'm told) and is likely to be a 450 built by Hero Motorcorp in India. It being on show at Milan is just exactly that, a theory. Even if shown it may not yet be ready for sale in Europe, indeed may never be sold in Europe. The $6k and equivalent price-point will make it disproportionately sensitive to a whole vehicle tariff of at least 15%, and then there is the small matter of Euro 5+ emissions compliance.
Even if only destined for domestic U.S. dealers initially, or at all, it is none the less a welcome new weapon in Dealer lockers - one that will certainly create door swings. Maybe the fact that it has apparently "been in development" (a single phrase with a thousand possible meanings) does point to European emissions compliance. We'll know soon enough. Either way, Harley's sales in Europe need just as much of a steroid injection as they do in the United States.
In fact, by year end it is likely that Harley's European market share may well be down to around 3-4% (at best) which is pretty much back down to where it was when I published the first edition of what became AMD (European Dealer News) in September 1993!
There have also been additional layoffs, in Wisconsin and Pennsylvania. Additional to those announced in 2024 when Harley projected dealership inventories to be reduced by 30% internationally and up to 35% in the United States. Plus, as yet unspecified additional broader based layoffs of up to 13 days and an economy and efficiency drive that is expected to save some $400m.
Personally, I do not see the sell-off of part of the Juneau Ave., former corp. HQ or the sales of 10% of the HDFA loan book to KKR and Pimco as long-term strategic positives, but more as acts of cash desperation. But if things really are as bad as that appears to signal then I guess that's better than not having the cash.
If the new boss thinks he's inheriting a viable playbook he's in for a rude awakening. Either way he cannot afford to be timid. Not in his first year. Not in his first quarter, first month or even first week. Time is not his friend.
