Canton, Georgia-based private investment firm Purple Chip Capital plans to support a campaign launched by New York-based H Partners Management aimed at changing the leadership structure within Harley-Davidson.
The campaign, called “Free the Eagle,” hopes to convince Harley-Davidson shareholders to withhold re-electing three members of the Harley-Davidson board: CEO Jochen Zeitz, board member Sara Levinson, and board member Tom Linebarger.
H Partners, which owns a 9.1% stake in Harley, is also calling on the board to immediately remove Zeitz as CEO and install a senior leader to the position temporarily.
In a Tuesday announcement, Purple Chip Capital, which is one of Harley-Davidson’s top 25 investors, said it is supporting the H Partners campaign due to current leadership “neglecting” Harley’s culture.
“Under the current board of directors, (the company’s) culture has been neglected, weakening the engine that has motored Harley-Davidson forward for nearly 125 years in favor of online sales, egregiously off-brand product lines and a departure from the high-quality optionality that made each and every Harley-Davidson bike truly unique,” said Purple Chip Capital in Tuesday’s announcement. “Harley-Davidson deserves a board of directors that recognizes what makes the company special and that treats their dealers like the partners, customers and value-drivers that they are. Without financially successful dealerships, the community we are all proud to be a part of will fade and performance will continue to suffer.”
Purple Chip Capital cited further concerns with the launch of Livewire, the electric motorcycle business spun off by Harley-Davidson, by saying the launch of Livewire bikes was “horribly misguided.”
In the fourth quarter of 2024, Livewire reported revenue of just $10 million, down from $15 million during the same period in 2023. The business did narrow its operating loss from $35 million in 2023’s fourth quarter to $26 million in the most recent quarter.
“Harley-Davidson owners do not want an electric engine, they desire raw American power,” reads Purple Chip Capital’s statement. “Instead, the company needs to refocus its efforts on attracting the next generation of Harley riders, revamping the lineup, and bringing back the iconic Sportster 883 as an entry level motorcycle. Furthermore, an ongoing focus on cost reduction through the introduction of plastic accessories, trim, and customization has drastically reduced the appeal of the full Harley-Davidson line of products. It is time to reignite the pride that Harley-Davidson riders have always had in their bikes and the company, and to bring back the highest-quality parts and accessories made with chrome, steel and leather.”
Purple Chip Capital is the first shareholder to express support of H Partners’ campaign. Other large Harley-Davidson investors include The Vanguard Group; Boston Partners; Beutel, Goodman & Company; and Dimensional Fund Advisors.
“Harley-Davidson actively engages with and maintains an open dialogue with our shareholders, but today is the first time we have heard from this individual,” said a Harley spokesperson Tuesday. “The Board of Directors remains focused on overseeing the execution of the Hardwire strategic plan, leading a rigorous and comprehensive CEO search process and driving value for all shareholders.”
More articles about Harley-Davidson:
- H Partners says Harley-Davidson recommended CFO as next CEO candidate
- Harley-Davidson to occupy 160,000-square-foot warehouse space at former JCPenney distribution center in Wauwatosa
- Harley-Davidson board picks candidate to replace member who resigned
- Investment firm launches activist campaign against Harley-Davidson leadership
- Split vote on CEO candidate played role in Harley-Davidson board member’s resignation
- Harley-Davidson board member resigns citing ‘severe underperformance’ and ‘cultural depletion’ of brand
- Harley-Davidson searching for its next CEO with Jochen Zeitz planning to retire
- $365 million drop in Q4 leaves Harley sales down 11% for the year
- Harley revises some policies following DEI backlash on social media
- Harley-Davidson responds to online criticism of company’s policies and trainings
- Harley sees ‘customers sitting on the sidelines’ amid higher interest rates, uncertainty
- Harley CEO issues statement about company’s commitment to remote work, Milwaukee
