Harley-Davidson Parts Ways with President and CEO Matt Levatich
After nearly five years, Levatich is out as president and CEO while the company attempts to right the ship.
Late on Friday, Harley-Davidson made the announcement that they had parted ways with president and CEO Matt Levatich. Asphalt and Rubber reports that Harley-Davidson board member Jochen Zeitz will serve as acting president and CEO while the company hunts down a suitable replacement.
Zeitz has also been named Chairman of the Board. He will retain that post when Harley-Davidson finds its new president and CEO.
It’s telling that the announcement came late on a Friday. Harley-Davidson stocks are not doing well at the moment, and the market overall has taken a substantial hit due to fears regarding the Coronavirus.
Simply put, if a company is not doing well, firing its president and CEO and starting fresh may be a great idea, but it will hurt stock prices in the short term. Announcing a change like this late on a Friday may help to avoid a mass panic sell-off.
According to CNBC, stock prices actually went up 5% in after-hours trading after the announcement was made on Friday. It’s a distinct possibility that a lack of investor confidence is what doomed Levatich to his fate.
Levatich’s Legacy
Levatich took on his role as Harley-Davidson president and CEO on May 1, 2015. Since then, stock prices have dropped 46%, with new motorcycle sales dipping nearly 20%.
There’s a strong argument to make that that’s not entirely Levatich’s fault. Things had been trending in that direction when he took the helm. In fact, Levatich was the driving force behind the “More Roads to Harley-Davidson” plan for growth.
Under his stewardship, the company has been hard at work to turn itself around and attract a new crop of younger riders who will revitalize the company’s often dismal sales numbers. Products like the LiveWire and the upcoming Bronx and Pan America are a major part of that plan.
Time will tell if those choices had the intended effect. Unfortunately for Levatich, he won’t be around to see his plans come to fruition. After a 26 year career at Harley-Davidson, he’s gone. However, time will tell how his legacy at Harley-Davidson is remembered.
Photos: CNBC; Harley-Davidson
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