If you didn’t know already, Harley-Davidson is in trouble. It all started when Harley’s annual report for 2024 revealed a revenue decline of more than 60%. Of course, media and public scrutiny followed thereafter, and this in turn set off a chain of events that have been hard to ignore since.

First, Trump’s latest tariffs came as a big blow to the American bikemaker. This was followed by the news of Jochen Zeitz, the company CEO, choosing to step down amid growing challenges. Soon after, a Harley-Davidson director resigned after expressing “grave concerns” about the company’s plight. And there doesn’t look to be an end in sight.

In the latest developments at the Milwaukee-based company, H Partners, Harley’s second-largest investor group, is preparing to remove three Harley-Davidson directors. The group holds a roughly 9% stake in the company.

The investment group plans to launch a withhold-the-vote campaign to force out the trio of Zeitz (who has been a director for 18 years), Thomas Linebarger (who has been a director for 17 years), and Sara Levinson (a board member for 29 years). This comes after the motorcycle manufacturer announced that it was going to raise the cost of its bikes, primarily as a result of 56% tariffs on American-made motorcycles sold in Europe.

Although Zeitz, who took over as CEO in 2020, was anticipated to retire this year, he had stated that he planned to stay until a replacement was found. Though to many that might have appeared an ideal solution, meaning the company could avoid searching for an interim CEO, H Partners wants to see speedier improvements at Harley-Davidson and has sought the immediate resignation of Zeitz instead.

Shortly after, Jared Dourdeville – the board member representing H Partners, Harley’s second-largest stakeholder – quit. He claimed in a letter that the company’s remote working practices and the departure of senior leaders had caused “cultural depletion” within the organization.

The company’s chief financial officer, Jonathan Root, advocated for extra backing for American automakers, arguing that motorcycles manufactured outside of the United States can be sold too cheaply to compete domestically, making Harley’s domestically produced bikes, some of which are built abroad, appear excessively expensive.

After Trump’s tariff hikes, other countries began imposing retaliatory tariffs on a wide range of US-made goods, and Harley’s American-made motorcycles are not exempt from the strain. According to the Wall Street Journal, Harley-Davidson motorcycle prices may reach six figures if the taxes are implemented.

Something similar panned out in Trump’s first term as president in 2018, when a trade war centered on metals resulted in tariffs. Harley-Davidson motorcycles were subject to a 25% levy as a result. In an effort to avoid future trade disputes, the company had to absorb a reported US$166 million during the three-year-long trade fight and establish a production base in Thailand for quite a few of its models.

Now, I don’t want to make it sound like it’s all gloom, but for a company that has as much history as Harley-Davidson, all of this doesn’t look good.

It’s not like every motorcycle brand is enduring hard times. The likes of Triumph, BMW, and Honda are all delivering strong results. All of them have big-capacity offerings, but a big chunk of their product ranges are also small-to-midweight focused.

Most of Harley’s bikes are big, bulky, heavy and too darn expensive for the modern-day motorcycle rider. Sure, they might be iconic, but you’ve got to adapt to survive. The company had an opportunity to diversify its portfolio by bringing the entry-level 350 to the States, but that’s not happened yet. Considering the recent demand for lower-capacity motorcycles, I don’t see how the company isn’t focusing on expanding its sub-1000cc offerings.

I sincerely hope the company finds a way forward, starting with the rejig in the boardroom. To see one of the world’s most historic motorcycle brands in such dire straits is not a good sight. So where does Harley-Davidson go from here? Let us know your thoughts in the comments.

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