How Harley-Davidson used a crisis to rewire its business for the long term

Executive overview

Jochen Zeitz became Harley-Davidson's CEO in February 2020, weeks before the pandemic shut down its factories. Rather than retreat, he used the crisis to accelerate a restructuring that the company already needed. The result: a leaner product line, a clearer brand strategy, and a five-year plan built around long-term thinking rather than short-term recovery.

A crisis forces clarity — use it to eliminate complexity you'd otherwise leave in place.

Surviving the immediate crisis

• First priority was liquidity: planned for up to 12 months of cash reserves with factories closed
• Safety protocols for factory workers required physical remodeling of facilities before reopening
• Moving overnight to virtual operations worked well from the start
• Uncertainty about crisis duration made aggressive planning both harder and more important

Rewiring the product line

• The portfolio had too many bikes, including unprofitable models — streamlining was overdue
• Pandemic created the forcing function to cut complexity that would have been politically difficult in normal times
• Supply chain constraints (semiconductors, resin, raw materials) became the new constraint once demand recovered
• Strong pandemic demand for motorcycles — riding is inherently socially distanced — masked underlying portfolio issues that still needed fixing

The Hardwire strategy

• Five-year plan launched one year into the CEO tenure
• Equity grants extended to hourly factory workers — first time Zeitz had done this at a U.S. manufacturer
• Rationale: Harley's core customers are union workers and first responders; they should share in the upside
• Focus on fewer, more profitable segments rather than chasing volume

Expanding beyond the motorcycle

• Harley-Davidson is a lifestyle brand, not just a motorcycle manufacturer
• Apparel and general merchandise represent an underexploited opportunity
• Non-riders who identify with the brand are a pipeline to future riders
• The brand's core promise — freedom for the soul, timeless pursuit of adventure — does not require a motorcycle

LiveWire: the electric brand

• Launched as a separate brand from Harley, not a sub-model
• Reason: Harley's core customer is the long-distance touring rider; current electric range doesn't serve that use case
• LiveWire targets the urban consumer — a different customer, different positioning
• Over time, Harley-Davidson itself will also electrify its traditional core segments
• The separation lets Harley remain focused while still participating in electrification

Board member vs. CEO

• Zeitz served on the Harley board for a decade before becoming CEO
• Board view: high altitude, overall picture, limited visibility into what's actually working
• CEO view: direct access to team dynamics, organizational agility, and operational complexity
• Board members can disagree with a CEO but have little leverage beyond a voice in the room

Building a long-term foundation

• A 118-year-old company cannot be managed on a five-year horizon — the plan is to set foundations, not finish the job
• Agility and speed improved during the pandemic; the goal is to preserve those gains
• Cultural change — building a "winning team" mindset — treated as a strategic priority alongside product and market moves
• Heritage is an asset to innovate on, not a constraint to escape