Challenges of recent years
The last few years have been anything but easy for many Harley-Davidson dealers. The brand lost its appeal, the main target group grew older, and the overall economic conditions—including rising interest rates, trade disputes, political controversies, and outsourcing—made business even more difficult. Many people today are unable or unwilling to spend as much money on a hobby as previous generations. While in the past a motorcycle costing $30,000 (equivalent to around €28,300) was still affordable for many, today’s cost of living is a much greater priority.
Internal decisions also caused discontent. Dealers had to implement costly modernizations and updates, even though the financial resources were often lacking. In this context, the measures taken by outgoing CEO Jochen Zeitz were particularly criticized. His “Hard Wire” strategy was intended to revitalize the brand, but according to dealers, it fell short of expectations. Many dealers held Zeitz directly responsible for their difficult situation.
Dealers express optimism about Artie Starrs
Artie Starrs, who has experience outside the motorcycle industry—most recently at Top Golf and Pizza Hut, among others—is now taking over as CEO. At a meeting with franchise dealers, Starrs explained that he wanted to reverse some of the measures introduced by Zeitz, including certain inventory financing requirements and incentive programs. However, he left open whether the controversial investments in showroom modernization would also be discontinued in the future.
Dealers’ reactions to Starrs’ appearance were overwhelmingly positive. Charlie Cole, operator of a Harley-Davidson dealership in West Virginia, told the Milwaukee Business Journal: “Everyone I talk to says this man is authentic – he really wants to improve the company. He knows a lot about marketing, is humble, and listens.“ George Gotto of Three Rivers Harley-Davidson in Pittsburgh also confirmed: ”He said exactly the right things.”
The new CEO’s key tasks
Despite the cautious optimism, the starting position remains challenging. Harley-Davidson must not only take dealers’ wishes seriously, but above all create a range of products that convinces buyers and is also affordable. Under Zeitz, the brand image was shifted towards luxury goods – Harley-Davidson developed more in the direction of a brand like Bentley and moved away from its role as a motorcycle manufacturer accessible to the masses. This strategy is now being questioned in many quarters.
The main points of criticism are the high prices for heavy motorcycles and electric models, which dealers say are too expensive and not technically attractive enough. Many consider the current model range to be too exclusive and no longer in keeping with the times.
New approaches and cautious optimism
However, there are initial signs of change. In addition to a revised Pan America model, new, beginner-friendly motorcycles are reportedly in the works. Two new members have also been added to the board of directors, including one from Yeti. Harley-Davidson’s riding training program is also currently experiencing strong demand.
The future of Harley-Davidson remains uncertain, but the change in mood among dealers following the change in leadership is noticeable. Many hope that Artie Starrs will implement the urgently needed changes and thus restore the brand to its former strength.
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