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Harley-Davidson's new CEO has refocused the company on its core mission. See what that means for the iconic motorcycle maker. (HOG)

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  • In early 2020, with the company under stress from Wall Street and with a demographic challenge looming as it struggled to attract new riders, Harley-Davidson CEO Matt Levatich stepped down, replaced on an acting basis by board member Jochen Zeitz, who eventually was named CEO.
  • Zeitz swiftly moved to replace Harley's growth strategy with a retrenchment around core products.
  • Harley has been here before, and Zeitz's strategy — "Rewire," as he calls it — could work, but it isn't without risk.
  • Visit Business Insider's homepage for more stories.

Former Harley-Davidson CEO Matt Levatich had an impossible job — and now no longer does, replaced earlier this year by Jochen Zeitz, onetime CEO of Puma and longtime Harley board member.

He wasted no time first as interim CEO, when on a first-quarter earnings conference call with analysts, he abruptly reversed course on Levatich's "More Roads" transformation plan.

"We've continued to move forward with the highest potential elements of More Roads, but our strategy must be reassessed," Zeitz said.

"As a result of my observations and assessment, I've concluded that we need to take significant actions and rewire the company now in terms of priorities, execution, operating model and strategy to drive sustained profit and long term growth. We're calling it The Rewire and it is our playbook for the next few months, leading to a new five-year strategic plan which we'll share when visibility to the future returns."

Soon after, the Harley board made Zeitz's appointment permanent. 

Here's what Harley's new direction means for the American icon:

Harley-Davidson has been building motorcycles in the USA for 117 years. In many ways, it's the definitive American company, with a product that combines both its own values and America's.Getty Images

Former CEO Matt Levatich hoped to ensure that heritage for another 100 years, so he undertook a transformational plan that would increase ridership, expand to new markets, and attack new opportunities.Rajesh Kumar Singh/Reuters

Read about Levatich's strategy.

It was a good example of dynamic leadership, and initially Harley, Levatich, and a newly elected President Donald Trump found common ground. But that relationship later soured.Reuters

Levatich wanted to build Harleys where there were sold, especially in Asia, and that strategy ran afoul of Trump's "build it here" bias. Harley also found itself a victim of Trump's trade wars, as the highly symbolic motorcycle maker was retaliated against when the Trump administration started to level tariffs on imports.



In early 2020, the Harley board made a change. Levatich resigned, replaced by board member Jochen Zeitz, who had served as CEO of Puma. Zeitz immediately abandoned Levatich's strategy.ullstein bild/Getty Images

"I will strongly believe we need to tie the focus on our core markets and as I had mentioned, you know there are some markets that our biggest profit-drivers," Zeitz told Wall Street analysts.

"[For] some of the international markets, not just from a profitability point of view, but from a potential point of view ... I think there will certainly be some de-emphasizing in order to create increased focus."



Harley has been here before. The company almost always seems to be up against balancing a growth mindset with a preserve-the-core attitude. The 2008-09 financial crisis meant that Harley shed the Buell sport bike sub-brand.David Cooper/Getty Images

See the rest of the story at Business Insider

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