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Powersports Business • June 2025 • 7

Harley-Davidson charted a new course at its annual shareholders’ meeting on Tuesday, May 14, approving a series of transformative initiatives to revitalize the iconic motorcycle brand. Despite overwhelming shareholder support for the board’ s proposed strategy, the meeting was not without drama, as activist investor H Partners continued its campaign against the company’ s current leadership.

A NEW VISION At the core of the shareholder vote was a sweeping restructuring plan designed to push Harley-Davidson into the future. The company is betting on electric motorcycles, a broader product lineup for younger and more diverse riders, and expanded global market penetration, particularly in Asia. Key elements of the plan include:

Significant investment in electric motorcycles: Harley-Davidson is doubling its investment in the LiveWire brand, even though the division only sold 33 units in Q1. The company aims to lead the charge in the electric motorcycle market with new highperformance models and enhanced manufacturing capacity.

Product revamp to attract younger riders: The company plans to introduce more affordable, customizable models that cater to urban commuters and explore alternative fuel options. It will also rejoin the entry-level market in the near future.

Expansion in global markets: Harley-Davidson is focusing on increasing its presence in emerging economies, particularly in Asia, where motorcycle ownership is on the rise.

Enhanced shareholder returns: Along with the strategic pivot, Harley-Davidson plans to increase its dividend payouts and implement stock buybacks to appease investors during this period of transformation.

H PARTNERS’ OPPOSITION Despite the board’ s vision for a bold future, not all shareholders were on board. H Partners, a prominent activist hedge fund with a significant stake in Harley-Davidson, campaigned vigorously against the board’ s proposal and urged shareholders to vote against re-electing current board members.

H Partners opposed the incumbent leadership, as one of its partners resigned from Harley’ s board due to issues it deemed detrimental to the iconic brand.

In an open letter to investors, H Partners criticized the company’ s current leadership for a“ lack of accountability” and a failure to deliver results in recent years. The firm, which has been an outspoken critic of Harley-Davidson’ s strategic direction, argued that the company’ s current management was too focused on expanding into new markets and electric motorcycles, rather than strengthening its core business and returning to its roots as a premium brand for motorcycle enthusiasts.

“ Harnessing the power of electric vehicles is important, but the future of Harley-Davidson lies in its heritage,” said H Partners’ managing director, Jason Smith, during a press conference ahead of the vote.“ The board’ s focus on diversifying the brand and chasing after younger riders risks alienating the very loyal customers who have built this company into a global icon. We believe Harley-Davidson needs to double down on its traditional strengths

— craftsmanship, quality, and the unique American spirit that has defined the brand for over a century.”

H Partners also accused the board of failing to address key performance issues, including declining sales in North America, an aging customer base, and poor financial performance relative to peers in the motorcycle industry. The hedge fund suggested that a fresh board with more experience in opera-

See Davidson, Page 8

In what was a very public and contentious fight against Harley’ s board and leadership, shareholders overwhelmingly supported the incumbents, but with the promise to make core changes that were highlighted by the opposition.( Staff photo)

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