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Posts Tagged ‘CEO’

Some numbers to start your day and it’s not pretty.

The coronavirus pandemic, social unrest, and a scarred economy has created a tipping sentiment toward many jobs NOT coming back.

According to a Harley-Davidson press release, “The ReWire” strategy will now eliminate 700 positions globally of which 500 of the layoffs will occur this year. It will result in a $50 million restructuring charge in 2020, including $42 million in the second quarter. According to new Chief Executive Jochen Zeitz, getting the company on “a path to winning” also includes CFO John Olin leaving the company effective immediately.

Flashback – remember this abrupt CFO departure in 2009?

Some news outlets have reported Mr. Olin’s departure as a “retirement,” but color me skeptical since most retirements have a longer celebratory departure than immediately exit through the door. The current VP Treasurer, Darrell Thomas assumed duties as interim CFO until a successor is appointed.

I’m not sure why, but the CEO press release declaration of “a path to winning” reminded me of that time Charlie Sheen was winning HERE … maybe I just needed some humor?!

Harley-Davidson is not alone on the layoffs.  Below are just a few of the latest examples:

  • Macy’s announced it would lay off about 3,900 and shutter stores
  • AT&T will lay off 3,400 and shut down more than 250 stores.
  • Hilton Hotels announced it would lay off 2,100 corporate employees amounting to 22% of its corporate workforce.
  • Chevron announced it will cut 10% – 15% of its 45,000 global workforce.
  • Boeing announced it would lay off nearly 7,000 employees.
  • Uber announced it is cutting 3,700 jobs (14% of its workforce), then a month later announced they will cut 3,000 additional jobs and close 45 offices.
  • Airbnb announced it is laying off about 25% of its workforce, or 1,900 employees.
  • Virgin Atlantic (now part of Alaska Airlines) announced it would cut 3,150 jobs.
  • Hertz plans to lay off 10,000 employees.
  • Under Armour announced that it will lay off about 6,700 employees.
  • United Airlines will send layoff warnings to 36,000 employees — nearly half its U.S. staff.
  • ZipRecruiter laid off 443 employees.
  • GE announced it will be reducing approximately 10% of its aviation unit’s workforce, amounting to about 2,500 employees.
  • Cirque du Soleil announced it is laying off 95% of its 4,679 person staff.

You get the point.  Sadly, a lot of employees are expected to exit various organizations. In fact, since February, about 4.6 million Americans have stopped actively looking for work, and another 2.2 million are unemployed NOT on layoff.

And, then there are those companies that have taken an extremely tacky and classless route of laying off employees via Zoom.  Looking at you Bird, the electric scooter company, who laid off 30% of its staff via a 2-minute Zoom call.

Talk about a Nobel Prize-winning way to “Put a Bird on It” — From the “Portlandia” TV show.

Photos courtesy of Harley-Davidson, Great Art and IMDb.

All Rights Reserved (C) Northwest Harley Blog

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Q1’20 Harley-Davidson Retail Motorcycle Sales + Motorcycles and Related Products Segment Results

Let’s jump right to that impressive Q1’20 financial result:

  • Harley-Davidson (NYSE:HOG) posted earnings of $69.7 million compared with $127.9 million in the same period a year ago.
  • The dividend was slashed to 2 cents a share from 38 cents.
  • The motor company is in talks with major U.S. banks to secure $1.3 billion in liquidity.
  • Harley’s U.S. retail sales were down 15.5% compared with the same period a year ago.
  • International retail sales were down 20.7% compared with 2019.
  • Harley’s U.S. heavyweight motorcycle market segment share was down 2.2 percentage points, to 48.9%.

Another quarter, another poor performance from Harley-Davidson, though the market seemed to buy into the promise that this time it will be able to turn things around.

Déjà vu…

Management promising to fix things again by “crafting strategy accelerants” to deliver improved sales and better returns.  However, it admitted that its efforts thus far haven’t worked and also said it was “refining” the plans it had already devised, but it wouldn’t reveal how it was going to achieve them until this summer. Granted the financial problems Harley-Davidson encountered this quarter aren’t necessarily all of its own making, though it hasn’t helped itself along the way.

It’s important to note that the Harley-Davidson trends in the U.S. have been weak for years despite the economy being strong for so long. That is a major problem and the acting Harley-Davidson CEO, Jochen Zeitz, remains vague on what the motorcycle company is going to do to change that dynamic.

The “ReWire” Board

The fact that management chose the term “ReWire”, emphasizing the electric future to describe their refining plans reads like a satirical article in The Onion.  It’s as if CEO, Jochen Zeitz said, “I’ve heard some concerns going around, and I want to impress upon each and every one of you that I’m taking every possible step to ensure that we tap into a market that has traditionally been neglected by motorcycle manufacturers, Harley-Davidson is announcing a new line of motorcycles designed specifically for men.”

The “ReWire” plan consists of five main points:

  • Enhance core strengths and better balance expansion into new spaces.
  • Prioritize markets that matter.
  • Reset product launches and product line-up for simplicity and maximum impact.
  • Build the Parts & Accessories and General Merchandise businesses to their full potential.
  • Adjust and align the organisational structure, cost structure and operating model to reduce complexity and drive efficiency, to set Harley-Davidson up for stability and success.

The ReWire playbook abandons some of the previously ratified “More Roads” plan, but there is so much “CEO Speak” — “designed to address top priority opportunities, drive consistent execution and reset the company’s operating model in order to reduce complexity, sharpen focus and increase the speed of decision making.” — in that investor call its difficult to know what exactly remains “committed” to or what will stop.

Little is certain these days, but there’s one sure thing: in a situation where 30+ million people were laid off or furloughed in the past 6-weeks, people are definitely thinking about their wallets.  And living with ever-present, crushing uncertainty and the knowledge that people all around us are dying isn’t the stimulus to rush out and purchase a new motorcycle.

Let us face facts.  It’s going to be a different world for a while. After all, temperature checks, touch-less payments, masks, wipes, take-out and distancing were not part of the Harley experience before the March closures.

If Harley-Davidson is about anything, it’s about bringing people together. Lots of them. And really, really close — with motorcycle rallies, music festivals, HOG events and all the cross country rides.  Looking at you Sturgis!

The whirlwind of 400,000+ motorcycle enthusiasts half-hearted adherence to CDC guidelines, while gathering all week in a number of local bars, and eating VEGAN-burgers could be viewed as a controlled experiment to determine the virus’s true incubation rate.

I have some gray in my hair and beard, something you will see in a majority of Harley enthusiasts.  I find the idea of a Harley specifically aimed at men deeply patronizing.

Photos courtesy of Harley-Davidson.

All Rights Reserved (C) Northwest Harley Blog

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Harley-Davidson’s Entrepreneur and New Mastermind

Jochen Zeitz — Harley-Davidson interim President and CEO

The ultimate maverick has been hired to preserve and renew the freedom to ride.

I’m talking about Jochen Zeitz — the entrepreneur and new mastermind in charge of Harley-Davidson until he is offered the position permanently or a recruitment committee finds a replacement CEO.

So, what do we know and who is this man?

Jochen Zeitz at Segera Retreat Lodge

As a slacker who would debate a good life is better than a good job, paint me truly inspired for that list of accomplishments!

Talk about an extreme producer with a missionary zeal!  And, I haven’t mentioned the best part… a profile of his “day job” achievements.

Mr. Zeitz represents qualities too good to be true and the idea of him shilling for some corporation to hawk motorcycles deflates the “HERO” excitement.  It’s clear, Mr. Zeitz won’t be satisfied until he has done everything to promote his vision of a new, better world.

LiveWire — Jochen Zeitz — Milwaukee, WI

With his multi-millions in fortune, Jochen Zeitz is likely the richest person in history to run Harley-Davidson as interim president and CEO.

So, again, who is the 57-year old sandy-haired, 6’1’’ athletic build of a man?

Mr. Zeitz was born in Mannheim, Germany, in 1963, to a gynecologist father and dentist mother.  He grew up in a time when the Green Party and the anti-nuclear movement were enjoying strong support in Germany.  Along with the time he spent at the family’s lodge in the Odenwald forest, the outdoor exposure planted seeds of interest in environmentalism.  He was educated at Karl-Friedrich Gymnasium, Mannheim, south-west Germany, and then international marketing and finance at the European Business School of Oestrich-Winkel near Wiesbaden.

Jochen Zeitz and wife Kate Garwood

Mr. Zeitz began his professional career with Colgate-Palmolive in Hamburg in 1986. He then moved to Herzogenaurach in the Franconian countryside to work for sporting goods manufacturer Puma (Bio) in 1988. From there, he rose rapidly though the ranks to become head of marketing in 1991 and vice president — international and head of the global marketing and sales department.  In 1993, at the age of 30, he became chairman of the board of Puma, making him the youngest CEO of German firms with commercially traded stock. He dramatically reduced staff numbers, took production to Asia, made English the corporate language, started sponsoring African football teams and was credited with turning around the near-bankrupt business into one of the world’s top three sports brands.

The Zeitz Museum of Contemporary Art Africa (Zeitz MOCAA) — Cape Town

In 2003, he insightfully signed 16-year-old future Olympic champion sprinter Usain Bolt to Puma.  In 2007, he was appointed to the Board of Harley-Davidson.

Puma was acquired by luxury goods conglomerate Kering in 2007, and a few years later Mr. Zeitz served as Kering’s Chief Sustainability Officer.  In 2011, he set up a sustainability committee for Harley-Davidson, which he also chaired.

Also in 2011, he wanted to step back and focus on his environmental work and resigned as CEO of Puma.  He became a director of parent company Kering and chairman of the group’s sustainability committee.  He co-founded ‘The B Team’ with Sir Richard Branson in 2013.  That same year he launched the Kenyan Segera Retreat with a focus on his foundation’s 4C philosophy for sustainable tourism.

In 2020, he was hungry for something much more and became Harley-Davidson’s interim president and CEO.

Jochen Zeitz — 1929 Gypsy Moth Airplane Photo credit: Eric M Rojas

On a personal level — he divorced his first wife Birgit Jöris in 2012 following an 18-year marriage.  He is currently married to LA-based producer Kate Garwood‚ 41‚ producer of the 2016 movie “Race”‚ about U.S. track star Jesse Owens.  They have two children; 4-year old Jesse born September 2017 and a three year old. He keeps homes in Switzerland, Santa Fe, Los Angeles, a 50,000-acre ranch in Kenya and has property in west London.

When researching material for this blog post, I was blown-away on the amount of information published about Mr. Zeitz.

In a 2013 interview with the International Bar Association, he stated no plans to marry again, although at the time he was in a long term relationship with Kate Garwood. He was adamant about no intention of having children. ‘No, definitely not,’ he stated emphatically. ‘Never say never, but it’s very unlikely. It’s not something that fits with my daily life and I’ve never believed that having children without a father around is a good idea. It’s not really something I would get excited about.’  Just a short four years later both occur.

Jochen Zeitz at Segera, his 50,000-acre ranch. Photo credit: David Crookes

In recent press interviews, he’s stated the joy of his decision to have children late in life, because now he can see them grow up versus having such a busy schedule in running a company and traveling for 10 months in a year.  An interesting side bar: Speculation swirled that Jesse, their first child, was named after the 1930s athlete and fueled by the fact that Jessie Owens was provided with shoes for the 1936 Olympics by the Dassler brothers‚ who went on to found Adidas and Puma. 

But, I’ve digressed and want to return to connecting the Harley-Davidson dots… Mr. Zeitz’s experience at Kering was a critical influence and the driving force behind Matt Levatich’s (the recently fired Harley-Davidson CEO) pivot to sustainability that led him to think much more about environmental profit and loss at Harley-Davidson.  Mr. Zeitz had devised an environmental profit-and-loss account method at Kering which, put a figure on what a company’s air pollution, land use, water use and carbon consumption cost the planet.

Jochen Zeitz’s Favorite Thing — A Scottish Bailey — Photo credit: Charlotte Haden

While Mr. Zeitz — wealthy, world-view philosophy, competitive, over-achiever and relatively young — has the luxury of carving out grandiose, acronym-fueled sustainable ‘visions’, that struggling businesses like Harley-Davidson, desperate to increase motorcycle sales, might find distracting or even an irritant.

We’ll have to read the biography when ex-CEO Levatich publishes the book, but as an outside observer, one distraction example is: it took eight years, millions of dollars and the work of over a thousand engineers to fully realize a product that few want — the Harley-Davidson LiveWire — the Milwaukee company’s first premium electric motorcycle to go on sale in September 2019.  As a long-serving Harley-Davidson board member, Mr. Zeitz convinced executive management to focus not just on the moral justification for electric engines, but on the needs of Harley-Davidson customers to have healthy natural landscapes in which to ride. The logic behind this claim, was that “what every rider loves about the ride – it’s the environment they’re riding in, isn’t it?”  Soon afterward, the marketing and brand alignment teams marched in unison to support sustainability as a major part of the brand.

Segera Retreat — Laikipia, Kenya

The result?  A new mission, twisting the brand’s historic celebration of freedom into a desire “to preserve and renew the freedom to ride” and TWELVE quarters of sales decline.  Along with a $2,152,500 million severance payment to Matt Levatich.

Mr. Zeitz believes and is on record, stating there is more to corporate life than the relentless pursuit of profit. Wait, what?!  Isn’t profit what got Matt Levatich fired?

I’ve watched “An Inconvenient Truth” and the sequel. The oceans are heating and the poles melting, but color me skeptical of environmental groups with sustainable-for profit-business interests.  We’re all too aware of what the world needs: another multi-millionaire telling others how to behave better once they have made their own fortune while flying private and choppering into a rich man’s playground.

Jochen Zeitz GQ Article — in German

The motor-head scholars, bankers, real estate agents, lawyers and fashion designers who gather not to drink cheap brew, but to sip $15 “born to be wild” martinis and straddle $40,000 motorcycles might pontificate on the value of sustainability, but I just don’t see grizzled leather-clad loyalists describing Harley-Davidson as the world’s most sustainable manufacture over a beer at the Sturgis rally.

But, sometimes there’s a man. I won’t say a hero – ’cause what’s a hero? – but sometimes there’s a man – and I’m talking about Jochen Zeitz here – sometimes there’s a man who, well, he’s the man for the time and place.

A man who will improve the brand that is unique, exciting and one that gives value to it’s riding customers.

But wait, there’s more… An incentive if he kicks a field goal… according to the company 8-K regulatory filing, the interim Harley-Davidson, CEO Jochen Zeitz, is eligible and will receive a $3 million bonus (in the form of restricted stock units (RSU’s)) that would vest one year after the grant date and become payable if his employment continues to the date of the installation of a new CEO.  That $3 million would come on top of the annual base salary of $2.5 million he is receiving now after taking over for Matt Levatich. I don’t think this will be too difficult since Mr. Zeitz has served on Harley-Davidson’s board since 2007.

UPDATED: April 17, 2020 — Due to the ongoing COVID-19 pandemic and sales impact, Harley-Davidson announced that its acting president and CEO Jochen Zeitz and the company’s board of directors would forgo any salary or cash compensations. As mentioned above, Zeitz currently has an annual base salary of $2.5 million.

Photos courtesy of Harley-Davidson, Jochen Zeitz, Twitter, Eric M Rojas, David Crookes, and Charlotte Haden

Information Source & References: IBA, Independent,Wired,Business Daily Africa, Milwaukee Business Journal, Adventure Rider, Infosys, Telegraph, Financial Times, Angama Blog

All Rights Reserved © Northwest Harley Blog

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Matthew S. Levatich — Ex Harley-Davidson President and CEO

Harley-Davidson, Inc. announced yesterday that Matthew Levatich has stepped down as President and CEO and as a member of the Board of Directors. The Board of Directors appointed current Board member Jochen Zeitz as interim President and CEO following the abrupt resignation of Levatich.  A search committee is being formed, and the Company will utilize an external search firm to undertake the process to find a new CEO. The press release also stated that Levatich would assist with the transition through the end of March.

Levatich had a 26-year career at Harley-Davidson with the last five years as President and CEO. The abrupt departure marks 5-years of sliding sales and the value of the Milwaukee motor company has been cut in half.  It was not a cheerful week at Harley-Davidson!

The board and the CEO share responsibility for corporate performance, so it stands to reason that when a CEO fails, the board has failed as well.  I would speculate the company board is reacting to pressure from shareholders and seeks to appease investors in the short term by handing them the CEO’s head on a platter.  The investment community will want a replacement CEO who’s both promising and reassuring—and they’ll want him fast.

Jochen Zeitz — Harley-Davidson interim President and CEO

If we were to step into a time-machine and journey back to the future… from the V-Rod to the Buell Blast. Who can forget the MV Agusta dumpster fire and in the parlance of our time, there is now a green machine— LiveWire—a motorcycle short on juice, and one that few people want or can afford to buy.  Harley’s attempts to branch out has with out a doubt shown mixed results, at best.  In fact, some observers wonder if the company is “asleep at the switch.”

It would seem that “seeing the problem is easier than fixing it!”  Levatich’s mantra that Harley-Davidson doesn’t build motorcycles, it builds riders, always seemed a bit odd.  That’s like saying, “It’s not about horsepower, but more ideas per horsepower.”  Or “we don’t build motorcycles, we’re a lifestyle merchant company.” It’s that line of reasoning which is nice for marketing collateral, but when you actually dissect its meaning, it’s a  “wait, huh?” moment.

Harley-Davidson Five-Year Sales Slump

Levatich was promoted when Harley announced in February 2015 that he would succeed Keith E. Wandell as President and CEO of Harley-Davidson, Inc. upon Wandell’s retirement on May 1st.

You might even recall that back in August 2008, Matt Levatich, who at that time was vice president and general manager of parts and accessories and custom vehicle operations (CVO), was named managing director of its newly acquired premium Italian motorcycle company MV Agusta Group.  I blogged about this $108 million acquisition being a train wreck (Go Italian) back in 2008.  That deal was heavily promoted as a major part of Harley’s bid to increase its presence in Europe, where it had seen sales grow in the double digits the previous three years, offsetting weaker performance in the US.  The $108 million included $69 million paid to erase MV’s debts and included the Cagiva brand.

Just 14 months later, the Milwaukee “jetsetters” revealed during the Q3’09 financial results, the motor company would divest from the Italian national symbol of motorcycling and the real gut punch was—they would discontinue the Buell® product line.  I don’t recall seeing a lot of MV Agusta T-shirts, coffee and dog collars so, I guess it wasn’t a good fit.  Unfortunately, Levatich will go down in the motorcycle history books as the man that shut down Buell.  Granted the previous CEO, Keith E. Wandell, started unwinding the process caught up in the axel, but Levatich concluded the 16-years of collaboration.  It never added up as a smart business decision and every time I go back and research the articles and press releases it sounds more like someone had a vendetta they wanted to settle.

It’s my view that the blame for Harley-Davidson’s poor results lies squarely with the board of directors!

Poor performing companies don’t get that way because of any single decision or for that matter any single leader. Patterns of historical decisions, strategic neglect, and misallocation of resources all contribute to the deterioration in performance; some contributing factors may even lie outside the company’s control—looking at you tariffs!

Typically a CEO is dismissed not because the board has thoughtfully and deliberately concluded that it’s time for a change at the top, but because investors, concerned about poor performance, demand a change.

Let’s hope Mr. Zeitz and the board of directors have a blueprint for success.

UPDATED: March 1, 2020 — added sales chart and text on length of Levatich career.

UPDATED: March 4, 2020 — According to the company’s 8-K regulatory filing on Monday, March 2nd, Levatich will receive a severance in line with the company executive severance plan.  The company’s 2019 proxy statement states; top company officers will receive a cash severance of 24 months of base salary and 18 months continuation of certain employee benefits, such as life insurance, medical, dental, vision, as well as outplacement and financial planning benefits, if employment is terminated for reasons other than for cause.  The Milwaukee motor company had 12 previous quarters of sales decline, and Levatich’s severance payment will be $2,152,500.  Assuming a 2018 base salary of $1,076,250.

Photos courtesy of Harley-Davidson.  Sales chart courtesy of Bloomberg news.

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CEO’s That Made Harley-Davidson

Recently it was reported that the typical CEO at the biggest U.S. companies received an 8.5 percent raise last year, taking in $11.5 million in salary, stock and other compensation, according to a study by executive data firm Equilar for the Associated Press.

Over the last 5-years, median CEO pay has jumped by 19.6 percent not accounting for inflation.  That’s nearly double the 10.9 percent rise in the typical weekly paycheck for full-time employment across the country.

It could be, but this isn’t a rant about the typical line worker vs. CEO wage-gap.

If we’re being intellectually honest, CEOs today are required to master a broader range of skills than in the past, when top executives might have climbed the ranks with just one discipline. Companies are bigger, more global and increasingly complicated, and there’s accelerating competition in countries such as China, India and Brazil. Executives must also adapt to quicker technological change, including shifts brought on by autonomous driving, electric vehicles and the widening use of mobile devices.  And then there is the Board, and the increasing requirement that CEOs push their stock price ever higher to collect their maximum possible payout.

So, who are those CEOs at Harley-Davidson, that made Harley-Davidson?  Below is a historical snapshot of the motor company leadership:

Jochen Zeitz — Credit: Liam Sharp

Jochen Zeitz — born in Mannheim, Germany, the 57-year old was appointed May 7, 2020 as President and Chief Executive Officer (CEO). Zeitz served as Acting President and CEO since February 2020 when the previous CEO, Matt Levatich resigned. Zeitz also continues to serve as Chairman of the Board.

For more background please see this post.

Prior to being named Chairman, Acting President and CEO in February, Zeitz was a member of the Harley-Davidson Board of Directors since 2007 and established the Company’s Brand and Sustainability Committee. He served as Chairman and CEO of Puma for eighteen years from 1993 to 2011 and was also PUMA’s CFO from 1993 to 2005. Zeitz remained Chairman of Puma after being appointed CEO of the Sport and Lifestyle division at luxury goods company Kering (formerly PPR) from 2011 to 2012. He then served as a director on Kering’s Board of Directors from 2012-2016.

He also sits on the boards of financial services company Cranemere, and the Kenya Wildlife Service, as well as running his own charitable foundation (The Zeitz Foundation) and co-chairing The B Team, a non-profit that he co-founded with Richard Branson in 2012 to promote sustainable business practices. He has won the Financial Times Strategist of the Year award three times, been awarded the German Federal Cross of Merit, and co-authored two books – one of which, a dialogue with Benedictine monk Anselm Grün called The Manager and the Monk: A Discourse on Prayer, Profit and Principles, has been translated into 15 languages.

About fifteen years ago, he started his own business – Segera, a 50,000-acre luxury resort retreat on the Laikipia plateau in Kenya’s central highlands.  In addition, Zeitz launched other projects in Africa: The Zeitz Collection of contemporary art from Africa and its diaspora; the Zeitz Museum of Contemporary Art Africa, a complex of 100 galleries in a 1920s granary in Cape Town converted by Thomas Heatherwick, which houses work from both its own and Zeitz’s collections: and The Long Run, which rates sustainable tourism projects according to Conservation, Community, Culture and Commerce (4Cs).

On a personal level — he divorced his first wife Birgit Jöris in 2012 following an 18-year marriage.  He is currently married to LA-based producer Kate Garwood‚ 41‚ producer of the 2016 movie “Race”‚ about U.S. track star Jesse Owens.  They have two children; 4-year old Jesse, born September 2017 and a three year old. He keeps homes in Switzerland, Santa Fe, Los Angeles, the ranch in Kenya and has property in west London.  One would also assume he now has a home in Milwaukee!  His favorite thing is a Scottish Bailey.

Matthew S. Levatich

Matthew S. Levatich — Resigned on February 28, 2020 after a 26-year career at Harley-Davidson with the last 5-years as CEO.  For more info see this post HERE.

Harley-Davidson promoted Levatich to President/CEO in May 2015 when Keith E. Wandell retired.  Mr. Levatich was named COO during CEO Keith Wandell’s tenure.

Mr. Levatich, joined Harley-Davidson in 1994. Prior to becoming COO in May 2009, he held wide-ranging roles in the U.S. and Europe. Those roles included Vice President and General Manager of Harley-Davidson’s Parts and Accessories business, Vice President of Materials Management, and President and Managing Director of the Company’s former MV Agusta business. In addition to an undergraduate degree in mechanical engineering from Rensselaer Polytechnic Institute, Levatich holds a graduate degree in engineering management and an MBA from Northwestern University. He has served on the board of directors of Emerson, a St. Louis-based global manufacturing and technology company, since 2012.

Mr. Levatich is known as an avid rider and an engineer, that demonstrates a clear vision for the company and talks constantly about focus and alignment and helping the organization remain clear on what it is they’re here to do.  No longer is the motor company the “voice of the executive” rather it’s the “voice of the customer.

Interestingly, Harley-Davidson has evolved from platform teams. Dyna platform, Softail platform, which was largely modeled like the automotive industry. Each platform team was competing for the next big capital investment so they could say now it’s Dyna’s turn to have a major refresh. Or now it’s Softail’s turn. Or now it’s Touring’s turn.  And that doesn’t exist anymore.

In an interview with Cycle World Mr. Levatich stated: “We’re not really in the business of manufacturing motorcycles. We’re in the business of building customers.”  

Keith Wandell

Keith Wandell —  hired from Johnson Controls to serve as Harley-Davidson President/CEO in 2009 — retired May 1, 2015 — only 6-years later.

Credited for leading Harley-Davidson back to profitability by cutting jobs and making its production more efficient he transformed manufacturing through a restructuring plan that generated more than $300 million in annual savings.

Mr. Wandell cut millions of dollars in costs and eliminated several thousand jobs in the manufacturing plants. He brought a sense of urgency to the company, saying he did not want it to be like General Motors and the auto industry that had fallen into deep trouble.

Under his leadership, Harley made significant gains in reaching new customers through growth in international markets and sales to “outreach” segments in the U.S., including young adults, women, African-Americans and Hispanics.  Mr. Wandell also was credited with stoking excitement for a planned electric bike, called Project LiveWire.

Mr. Wandell has been the Non-Executive Chairman of Dana Incorporated since October 27, 2016 and served as its Interim Chairman from September 9, 2016 to October 27, 2016.

James Ziemer

James Ziemer — served as President/CEO from 2005-2009.  Retired in 2009.  Mr. Ziemer is a native Milwaukeean who grew up in the neighborhood next to Harley-Davidson’s original Milwaukee factory location on the city’s west side.

He started with the motor company in 1969 as a freight elevator operator while attending the University of Wisconsin-Milwaukee. He worked at Harley-Davidson for 40 years.  Upon earning his undergraduate degree in accounting at UWM, he joined the accounting department where he spent the majority of his career. He was named the Company’s Chief Financial Officer in 1990. In 2005, he was named President and Chief Executive Officer of Harley-Davidson.  When he retired, employees presented Mr. Ziemer with the original wood doors from the freight elevator he operated when he first was hired at Harley-Davidson.

As a sidebar, also in 2009, eleven years after being bought by Harley-Davidson, Erik Buell leaves the company to establish Erik Buell Racing.

Jeffrey L. Bleustein

Jeffrey L. Bleustein — retired as Chairman of the Board of Harley-Davidson in April 2009.  He was Chairman from December 1998 to April 25, 2009.  Previously, he served as CEO from June 1997 to April 2005.

He served at Brunswick Corp in many capacities and was President of Trihawk, Inc., a subsidiary of Harley-Davidson, 1984 to 1985. Remember Trihawks?

Mr. Bleustein was a technology consultant with American Machine and Foundry Co. (AMF).  In 1969, AMF merged with Harley-Davidson and in 1975, AMF assigned him to help reorganize Harley-Davidson engineering operations.  Led by AMA Hall of Famer Vaughn Beals Jr., and 11 other Harley-Davidson executives (including Willie G. Davidson), Bleustein helped execute an $81.5 million leveraged buyout of the company from AMF on June 16, 1981.

To commemorate the buy-back, approximately two dozen company officers, along with their wives and select motorcycle press, made a cross-country motorcycle trek from the production facilities in York, PA to Harley-Davidson’s main offices on Juneau Avenue in Milwaukee. This 900-mile independence journey was also a ride to support the Muscular Dystrophy Association, now the official charity of Harley Owners Group (HOG). The ride followed a host of ceremonies at York which included the signing of documents that marked the ownership change, and pulling the first “new Harley-Davidson” motorcycle off the assembly line. This 4-day celebration began a new chapter in the company’s “new” future.

Mr. Bleustein was responsible for notable engineering innovations which included the rubber engine mounts, redesign of the V-Twin and introduction of the Kevlar drive belts.

During Mr. Bleustein’s tenure (circa: 1998), Harley-Davidson bought Buell Motorcycle Company and named founder Eric Buell Chairman of Buell Operations. The first Buell’s hit showrooms in late 1999.

Rich Teerlink

Rich Teerlink  — served as Chairman and CEO until 1999 at Harley-Davidson until he retired.  Mr. Teerlink joined Harley-Davidson in August 1981 as CFO where he enjoyed great success over his 18-year career.  He started with the company just two months after the group of 13 Harley-Davidson managers had bought the company from its then parent company, American Machine and Foundry Co. (AMF), in a leveraged buyout.

Mr. Teerlink’s greatest accomplishment was establishing the Harley Owners Group (HOG) in 1983.  Mr. Teerlink joined the Vertex Board in 2002, and while serving on the Vertex Board, he also served on the Boards of Johnson Controls, Snap-on Tools and Quad Graphics.

Mr. Teerlink is also a notable author of More Than a Motorcycle, The Leadership Journey at Harley Davidson book.  Mr. Teerlink retired from the Vertex Board of Directors, effective February 4, 2015.

Mr. Teerlink was inducted to the AMA Motorcycle Museum Hall of Fame in 2015.  Mr. Teerlink was awarded an Honorary Degree, Doctor of Laws from Marquette University on May 22, 2005.

Vaughn L. Beals Jr.

Vaughn L. Beals Jr. — served as CEO of Harley-Davidson from 1981-1989 and as Chairman from 1981-1996.

In June 1981, it was a challenging time as American Machine and Foundry Co. (AMF) wanted to cut and run, but no one wanted to buy a company with a limited line of high-priced, obsolete products and a reputation for unreliability.  Vaughn Beals Jr., and 13-other** Harley-Davidson executives (including Willie G. Davidson), led an $81.5 million leveraged buyout of the company from American Machine and Foundry Co. (AMF).

Mr. Beals previously served as a research engineer for North American Aviation and Cummins Engine Company where he negotiated the purchase of logging equipment manufacturer Formac International as he was a minority owner and CEO.  This proved to be valuable during the AMF Harley-Davidson buyout.  He was named Harley-Davidson CEO after the buy-out option.

In 1982, the motor company won an anti-dumping judgment from the International Trade Commission (ITC). This led then-U.S. President Ronald Reagan to impose additional tariffs on imported heavyweight Japanese models, as allowed by the ITC.  The additional tariffs–45 percent on top of an existing 4.4 percent measure–were meant to decrease gradually over five years, until April 1988.

In June 1986, Harley-Davidson went public with a stock offering to raise capital to help pay off the buy-out option.  This was very successful increasing share price from $11 to $24.  Harley-Davidson  used some of the stock sale revenues to buy Holiday Rambler, a U.S. maker of recreational vehicles, for $150 million.  The Holiday Rambler sale pushed Harley-Davidson into the Fortune 500 category for the first time at number 398.  In March 1987 the company asked the ITC to remove the tariffs imposed on Japanese motorcycle imports a year earlier than scheduled.

Willie G. Davidson, V.P. Styling (Left); Vaughn Beals Jr., CEO and Charles Thompson, President (Right)

Mr. Beals was inducted to the AMA Motorcycle Museum Hall of Fame in 2008.

Charles Thompson — served as President and CEO of the restructured Harley-Davidson after American Machine and Foundry Co. (AMF) buy-out option.

Mr. Thompson was a long-time Harley-Davidson employee, well-liked throughout the motorcycle industry and served as president and CEO of the restructured company until his health failed in 1982.

William Herbert “Bill” Davidson — was president of Harley-Davidson Motorcycles from 1942 to 1971.  He was the son of William A. Davidson who quit his regular paying job with the Milwaukee Road railroad in 1903 to get into the business of making motorcycles.

William Herbert “Bill” Davidson

Bill Davidson, started working on the Harley-Davidson shop floor of the family business in 1928 after attending the University of Wisconsin.  He won the AMA National Enduro Championship in 1930 and when he wasn’t winning motorcycle races, Bill worked his way up through the company, becoming a foreman, manager of many departments, and finally president of Harley-Davidson in 1942.

In 1963, Bill brought in his son William Godfrey Davidson (Willie G.) on to head up the styling department of the company. Willie G. would end up creating some of the company’s more popular designs, including the legendary Low Rider and the Super Glide which was inspired by the ideas of bike customizers.

In 1965 Harley-Davidson went public as the two families decided to give up control and put the company’s shares on the market.

In 1969, Harley-Davidson was bought by American Machine and Foundry Co. (AMF), a leisure equipment manufacturer.  The arrangement proved, at least initially, to be a good one for Harley-Davidson, for it was in the mid-1960s that the company experienced its first real competition after Indian went out of business. The financial resources and stability that AMF was able to provide helped the company battle Japanese motorcycle manufacturers, who had begun exporting their vehicles around the world, placing themselves in direct competition with Harley-Davidson.

Bill stayed on as president under the control of AMF reporting to it’s then current chairman and CEO Rodney C. Gott (Mr. Gott served as AMF president, starting in 1962, and chairman and chief executive, from 1968. He retired in 1978).  Mr. Gott was a Harley-Davidson rider and big motorcycle fan.  As a sidebar: In World War II, Mr. Gott was a decorated veteran who served in Gen. George S. Patton’s Third Army and on the staff of Gen. Lesley James McNair, chief of ground forces, and was also commander of the 79th Infantry Division Artillery.

In 1971, Bill Davidson was made Harley-Davidson chairman, but reported that he had little power while under AMF’s control.  It was noted that he was chairman of the Harley-Davidson board that never met.  Conflicts with AMF’s strategy and chaotic market conditions led to Bill Davidson’s resignation in 1973.

It was a period of high CEO turnover at Harley-Davidson.  During this time, AMF named John O’Brian and then Gus Davis as president, marking the first time someone other than a Davidson would sit in the company presidents chair.  Other Harley and Davidson family members continued on at the company under AMF’s ownership.  Bill Davidson’s son John was vice president of Sales, and then moved up to become president after Gus Davis.  William J. Harley was engineering vice president until his death in 1971.  His brother John Harley remained at the company until his death in 1976 as the last Harley at Harley-Davidson.

In 1975, AMF put Vaughn Beals Jr. at the head of Harley-Davidson, and Jeff Bleustein was named chief engineer. Bleustein was charged with making manufacturing improvements, which had  become increasingly necessary as production grew and quality declined.  A limited line of high-priced products and a reputation for unreliable motorcycles marked this timeframe in history.  AMF began to lose interest in keeping the struggling motorcycle business afloat.

Rodney C. Gott (Left) and John Davidson, President Harley-Davidson

In a bit of irony, (circa: 09/1977), the motor company unveiled a motorcycle museum in York, PA., that was named after AMF’s CEO — Rodney C. Gott Motorcycle Museum.  A video HERE.

In June 1981, to save the company, and to effect a turnaround, thirteen Harley-Davidson executives, led by Vaughn Beals Jr., put together a plan for a leveraged management buyout. With the financial support of Citicorp, the management team succeeded in taking control of Harley-Davidson from AMF on June 16, 1981, at a cost of $81.5 million.

The role of the new officers after the company buy-out option included: Charles Thompson, president and chief operating officer; Jack Hamilton, Chris Sartalis, Jim Paterson, Kurt Woerpel, Peter Profumo, Jeffrey Bleustein, Thomas Gelb, William Davidson, and Tim Hoelter, all vice presidents. The president of the various divisions were: John Davidson, golf; David Caruso, parts and accessories; Ralph Swenson, York; and David Lickerman, Harley-Davidson International.

Even though he was no longer actively involved with the company, Bill Davidson lived to see the renewal and success that Harley-Davidson enjoyed starting in the late-1980s.

Bill Davidson died in 1993.  He was inducted into the AMA Motorcycle Museum Hall of Fame in 1999.

Walter Davidson — was president from 1907 to 1942.  Bill Harley was chief engineer and treasurer. Author Davidson is secretary and general sales manager and William A. Davidson is the works manager.

In 1936, six sons of the founders are working at Harley-Davidson.  Walter Davidson’s sons Gordon and Walter C.; and William Davidson’s sons, William Herbert “Bill” and Allan; and Bill Harley’s sons, William J. and John.

In 1942 from his death bed,  Walter Davidson named his nephew William Herbert “Bill” Davidson as president and his own eldest son Gordon, as vice president of manufacturing.

Historical Principal H-D Subsidiaries: Holiday Rambler Corporation; Utilmaster Corporation; B&B Molders; Creative Dimensions; Nappanee Wood Products.

Article References:

Vaughn Beals Jr. – Wikipedia
Growing Up Harley-Davidson – Jean Davidson
Harvard Business Review – Harley Leadership U-Turn
Jeffrey Bleustein – Wikipedia
The Morning Call – Harley Is A Classic Turnaround Story
Rodney C. Gott Obituary
Gus Davis Obituary
Cycle World Magazine – Interview with CEO, Matthew S. Levatich
Cycle World Magazine – Rodney C. Gott Motorcycle Museum
Chicago Tribune – The Real Harley-Davidson Story
James Ziemer – Northwest Harley Blog
People – Buy Back Article
Rick Barrett – Journal Sentinel
Richard Benson – Wired UK

Harley-Davidson (Buyout) Management Team

**The Harley-Davidson managers post buy-out option: left to right standing: John Hamilton, Dr. Jeffrey Bleustein, Kurt Woerpel, Chstopher Sartalis, and William G. Davidson.  Left to right, seated: James Peterson, Timothy Hoelter, David Lickerman, Peter Profumo, David Caruso, Ralph Swenson, Charles Thompson, and Vaughn Beals Jr.

 

Photos courtesy of Harley-Davidson

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Matthew S. Levatich

Matthew (Matt) S. Levatich

Harley-Davidson announced that the current CEO of Harley-Davidson, Keith Wandell (age 65) is retiring after taking over the position back in May 2009.  Matthew S. Levatich (age 50), who has served as the President and Chief Operating Officer since May 2009 is scheduled to take over as the next CEO on May 1, 2015.

Mr. Levatich served as President and Managing Director of MV Agusta, a former subsidiary of the Company. In his 15 years at Harley-Davidson, Matt has held positions of increasing responsibility in the U.S. and Europe. He served as General Manager of Parts & Accessories and Custom Vehicle Operations and Vice President of Materials Management.

Matt joined Harley-Davidson in 1994 through its Leadership Development Program and serves on the executive advisory board of the MMM Program at the J.L. Kellogg Graduate School of Management and Robert R. McCormick School of Engineering and Applied Sciences at Northwestern University.  He is a trustee on the Milwaukee Institute of Art and Design and a Regent at the Milwaukee School of Engineering (MSOE). Mr. Levatich holds an Undergraduate Degree in Mechanical Engineering from Rensselaer Polytechnic Institute. He holds ME in Engineering Management and MBA in Marketing, Finance and Organizational Behavior from Northwestern University.

Matt will take the helm of the company at a much better stage than it was during the tenure of Wandell where coincidentally, Harley-Davidson has reported consecutive profits for six years in tandem, which shows how key the effects of Wandell were on the company.

Congrats are in order.  There are challenges ahead which need to be overcome by the company as a whole and it will be interesting to watch advances in the pipeline made by Mr. Levatich.

Photo courtesy of H-D.

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Indian TankCoincidence? 

On Friday, August 9th, three days after the Indian launch, the Harley-Davidson Chief Financial Officer, John Olin sold 11,104 shares of HOG stock.  The stock was sold at an average price of $59.00, for a total transaction of $655,136.00. Following the transaction, the CFO now directly owns 12,702 shares in the company. The sale was disclosed in a filing with the Securities & Exchange Commission, at this link.

Just a couple of days later Harley-Davidson CEO, Keith Wandell sold 77,102 shares of the stock in a transaction dated Tuesday, August 13th. The shares were sold at an average price of $58.82, for a total transaction of $4,535,139.64. Following the sale, Mr. Wandell now directly owns 70,545 shares in the company.  Those stock options must be working out for him as he now owns three motorcycles; a Street Glide CVO 2011; Road King Classic; and Dyna Wide Glide. 

Well-heeled Riders

Well-heeled Riders

As is often the situation with an executive selling  stock it was likely in the pipeline for weeks prior to the actual sale.

But, after the Great Recession began, the lingering impact of the worst downturn in a half-century continues to deplete the standard of living on the middle-class American household.  Let’s face it, the big factor in the market for anything expensive nowadays is that the only people who have disposable income are the super-rich… and THEY have more of it than anyone has ever had in all of human history.

Sure it’s become trite to slam the rich and I’m trying not to be repetitive.

But, it’s not about being ostentatious:  the super-rich don’t care about impressing the rest of us, because they never see us. They glide from the gated community to the private jet to the island vacation home without encountering any “downscalers.”  They mix exclusively with the other super-rich, and those are the only people they care about impressing.

And that’s tough, because when you’ve got enough money to buy about anything that’s ever been made without a second thought, you have to realize that the guy living next door to your McMansion can buy it too.  So, you’ve just ordered a one-off custom color CVO with a turquoise ostrich-skin seat with matching hand-made gloves and boots?  He’ll give it a glance and say, “Not bad. I think I’ll get a couple for my kids to use when they’re home from prep school.”

So, if really you want to one-up your neighbors by owning something they can’t, your choices are restricted to items with a built-in limited supply, such as art works, and a U.S. Congressmen. Or in keeping with a narrower interpretation of that custom motorcycle style genre, just minimize the amount of tchotchkes on that bone stock H-D motorcycle.

Simple is the new chrome and when your well-heeled fellow riders guffaw, you just have to learn to smirk in a superior way and say, “I guess you don’t grasp the irony…”

Photos courtesy of Indian Motorcycle and Flickr.

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NOAA-MapYou’re the CEO and going down your quarterly earnings check list:

  1. Still in business after 110 years – Check
  2. Secured music talent for 110th Anniversary Party – Check
  3. Number one seller of motorcycles to young adults (18-34) – Check
  4. Increase 2013 first quarter revenue to $1.57B (up 10%) vs. $1.43B a year earlier — Check
  5. Increase 2013 first quarter income to $224.1M vs. $172M a year earlier – Check
  6. HOG shares up 2.1% to closed at $54.31 – Check
  7. U.S. dealers sold 34,706 new motorcycles, down 12.7% from a year earlier – Ooops!

Colder temperatures and the wet climate set the stage for the quarterly sales miss.  At least according to Harley-Davidson CEO, Keith Wandell who stated in last week’s earnings call… “By far, the vast majority of the (sales decline) was weather related”.

Temp2-MapInteresting.  The earnings call didn’t signal any major marketing changes for the brand, instead pinning some of the losses on external factors such as rainfall in many parts of the country, the weak economy and the unseasonably cold weather.

Are the only unemployed consumers who keep getting rained on Harley-Davidson consumers?!

Generally speaking home sales and auto sales are up.  It would seem that management neglected to remind us about Superstorm Sandy, how federal tax returns have been delayed and how fuel prices are unsettling to consumers.  To be fair some retail outlets selling spring apparel, home and garden were depressed due to wintry conditions, but looking at the weather for an impact on Harley-Davidson consumer spending seems a bit trivial.

I spent the last week in Arizona and if you plotted temperatures from dawn until noon, you’d observe an alarming warming trend.  If you extended that trend line for the next 4-months, you’ll clearly notice that ice caps will melt and the poor polar bears will be swimming more.

We’ll soon know if the good weather in the upcoming quarter provides a recovery to more normalized sales volume.

Photo courtesy of NOAA

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110th Anniversary Logo

Well not officially, but according to this site, they’ve obtained a double top secret (read: “leaked”) list of the new Harley-Davidson 2013 model lineup.

No sources were provided, no color schemes or was there any validation via a photo or a scanned copy of the leaked list provided so take all this with a grain of salt.

Motorcycle enthusiasts are well aware that 2013 is the 110th Anniversary for the motor company and similar to the 100th and 95th anniversary celebrations there were a lot of special color combinations and special badging on a broad range of models so we can expect the same for 2013.

For 2013 in the top-of-the-line CVO’s, there will be the CVO Road Glide Custom Anniversary Edition, the CVO Road King, the CVO Road King Anniversary Edition and the CVO Ultra Classic Electra Glide Anniversary Edition. The 2012 CVO Softtail Convertible and CVO Street Glide are dropped.

That last one means the price just went up for any stragglers in the dealer showroom floors on this year’s 8-speaker, 1000 Watt, aural bubble machines, i.e., the CVO Street Glide!

Moving down from the CVOs there’s the new 2013 Road King Anniversary Edition and for “trike” crowd there will even be a three wheel Tri Glide Anniversary Edition.

On the Sportster line-up, there is the Sportster 1200 Custom Anniversary Edition, and the Nightster is being dropped.  On the Dyna and Softail lines there’s the new Fat Boy Special Anniversary Edition, Heritage Softail Classic Anniversary Edition and Super Glide Custom Anniversary Edition.  According to the report the “Anniversary Edition” means black paint and some special badges.

In related news, on Monday (June 25th) the Harley-Davidson CEO, Keith Wandell and members of his management team will be in New York to ring the closing bell at the NYSE commemorating the company’s 25th anniversary on the exchange.  It wouldn’t be unheard of them to take Experience Square and transform it into a mini-showroom and have some 2013 models on display.

When I get more information I’ll update this post.

UPDATE: September 9, 2012 – An updated post on the 110th models is HERE.

Photo courtesy of H-D.

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By now you’ve likely read the Q1’12 financial report about how Harley-Davidson Inc. blew away the key financial metrics for the quarter.

You know – Financial Reports – the documents and records pulled together by the motor company to track and review how much money the business is making (or not) with the purpose to update the lenders and shareholders.  These reports are not very friendly or helpful explanations.  More often they require an accounting degree because of the use of financial derivatives, contracts and instruments.

At any rate, not only did H-D report strong gains in earnings for the first quarter of 2012, but motorcycle and related products revenue for the quarter jumped to $1.27 billion, compared with $1.06 billion for the year-ago period.  Consolidated revenue for the quarter, which includes revenue from H-D’s financial services unit, rose to $1.43 billion for the quarter, compared with $1.22 billion in the year-ago quarter.  Most important was the fact that retail sales of new motorcycles grew 20.3 percent worldwide in the quarter compared with the prior-year period and it was led by a strong 25.5 percent increase in the U.S.

Is Harley-Davidson becoming cool to work for again?

It’s a big place and I’m sure some would say yes its cool.  However, what they’ve been through the last couple years has been painful and the process of getting rid of a lot of old bad habits has some maybe thinking no.  The Harley-Davidson chairman, president and CEO, Keith Wandell’s willingness to take on the risks took a lot of courage and it now seems to be paying off.

In other words, it takes 10,000 hours to become world class.  This is a key point in Malcolm Gladwell’s book called “Outliers” which has popularized the theory of 10,000 hours to excellence.  Clearly Mr. Wandell has put in his 10,000 hours, but that doesn’t mean anyone will notice.  Many will just shrug their shoulders at his accomplishments, or they might not even care.

I’ve taken notice and wonder if Harley-Davidson is ahead of its time or is the outlook less optimistic because they’re very good at setting targets that they are confident of being able to hit?

I would suggest that their success this quarter has been largely dependent on “baggers” and the discretionary spending situation improving versus bold new designs.  Meaning the whole motorcycle industry is running on conventional wisdom. People keep doing it the way everybody else is doing it, not expecting a different result so much as being desirous of converting people over to their brand or getting the few remaining conventional buyers left in the business.

You might disagree, but from my vantage Harley-Davidson hasn’t busted out a new “hit” (model) with worldwide success in long time despite the daily onslaught of promotions and publicity.  I’m talking about a stand in the line type of hit!  The conventional orthodoxy of the motorcycle industry is that H-D’s are styled conservatively.  This is typical market research talking.  It’s conventional wisdom saying don’t take a risk on design.  Just accept safe.  A blacked-out bolt here and a new red glitter color there.

Independent of this most recent financial report, the issue is that “safe” doesn’t consistently move the needle in terms of sales.

John Krafcik, President and CEO of Hyundai Motor America

If that were true then Hyundai sales wouldn’t be burgeoning or would they be the most feared major car company in the U.S.  Do you remember when Hyundai’s used to be a joke? Jay Leno said you could double a Hyundai’s value by filling it up with gas.  No one’s laughing now as Hyundai’s John Krafcik steered it from joke to contender. It took a risk.

So, when will we see some of that product “risk” that Harley-Davidson refers to in the quarterly financial reports?  Or has it all come down to being safe and going after the number of “likes” on social networking sites?  Hey, Harley… 1999 called and said they want the true-to-self artistry back!  We can smell the hype.  We know when you’re working it.  What’s sup with all the emphasis on tweeting and hyper-vomiting facebook “fans” over everyone’s networking profiles.  It all adds to the dissonant fray of self promotion and it’s hard to hear when everyone is yelling.

If you have a hot product, people want it.  We know when something impacts us, when we believe it’s great.  And when we find something good, we want to get closer, we want to tell everybody we know.  You don’t have to tweet, you don’t have to Facebook, you don’t even need a website. But it’s got to be different, it’s got to challenge conventional wisdom, it’s got to appeal to people’s hearts more than their pocket books.

Harley-Davidson is at a point where they can make the transformation from the perennial also-ran to a motorcycle industry jauggernaut that pushes the envelope in its designs while other companies try to catch up.  Or the Hyundai equivalent will…

Photos courtesy of H-D and Richard Drew/AP.

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