There are more nuanced ways to put this, but Harley-Davidson is in trouble. Sales continue to erode, dealerships are disappearing, and thousands of motorcycles remain unsold. The reasons are manifold, but I will focus on one primary reason: Harley allowed its corporate arrogance to hinder its understanding of its customers and the market as a whole.
In response, the Motor Company has taken two significant steps. First, it announced a $6,000 motorcycle, and second, it booted Jochen Zeitz from the CEO position and replaced him with Artie Starrs.
I’ve beaten the cheaper motorcycle issue to death in previous columns, so let’s talk about the new CEO.
Starrs left the CEO position at Topgolf International to take over the Harley handlebars. Topgolf is a multinational sports entertainment company primarily known for its “golf-based driving range game.” He is, apparently – this might be important – an avid golfer. Starrs has zero experience in either the motorcycle or automotive industries.
The H-D press release that announced Starrs as CEO is typical corporate boilerplate filled with hackneyed phrases that say nothing of consequence, including “accomplished business leader,” “record of delivering top and bottom-line growth,” and “experience in franchise-driven industries.” One sentence in particular stopped me: “Artie understands the special place Harley-Davidson occupies in culture and in the lives of our riders.”
Really? How does avid golfer Artie understand? Is it because of his lifelong love of motorcycles? Or because of the several cross-country trips he’s ridden? How about his many group rides to Sturgis, Daytona, and Laconia? The answers are no, no, and no. Artie may indeed be a great, stand-up guy, and I’m sure he’s done all the necessary homework, but “understand”? Nope. One point in his favor is golf. If he is truly avid about the game, then he understands passion, at least in a general sense.
I’ve heard it said that the top guy doesn’t need to understand the minutiae of the motorcycle business. Instead, he needs to bring financial acumen and big-picture vision to the position. I call B.S. Yes, those qualities are vital, but the position also requires intimate knowledge of the minutiae, especially the psychological and emotional reasons why we ride. No research study or essay can sufficiently convey the feeling of actually riding; you have to put your butt in the saddle and ride, and ride, and then ride some more.
The most pragmatic reason for him to fully understand is that he will be making far-ranging decisions that will impact the health of Harley-Davidson for years to come and, obviously, what we ride.
In early August, Starrs purchased a new H-D Heritage Classic from a Texas dealership and signed up for Harley’s Riding Academy. If he had asked me, I would have told him to start out with the new Harley Sprint. An excellent PR moment was missed here: A new CEO, a new rider on a new Harley-Davidson model.
Starrs is joining the Motor Company at a critical juncture in its history, when the current business model is no longer successful. Will he turn things around? I wish him the best, but I am not betting on this happening.