NOW
IN OUR
™
28 EA t R h
Y
T H E L E A D I N G B U S I N E S S M A G A Z I N E F O R T H E I N T E R N AT I O N A L C U S T O M M O T O R C Y C L E A N D PA RT S I N D U S T RY
Harley Shutdown Continues
as Unemployment and
Recession Forecasts Worsen
Having already extended the
shutdown of manufacturing
operations at least twice, as the
previously announced April 19
deadline approached Harley-
Davidson extended the suspension
of production through May 15 (at
least).
In an April 15 announcement of
additional actions Harley is taking in
response to the impacts of COVID-19 on
its business, acting President and CEO
Jochen Zeitz said: "The effects of COVID-
19 on economies around the world have
been swift and unprecedented.
"It is essential for us to respond quickly,
adapt and position the company to
manage near-term challenges while
preparing to re-energize the business for
the recovery and beyond." In response
to the near-term impacts of COVID-19,
the company announced that it was
taking actions to reduce its costs with
immediate effect.
This included "significantly reducing all
non-essential spending and temporarily
reducing salaries." While the salary cuts
affect all Harley-Davidson employees,
with a 10 to 20 percent reduction for
most salaried employees in the United
States, the CEO and Board of Directors
will "forgo salary/cash compensation"
and there will be a "30 percent reduction
for executive leadership."
The company also announced that there
would be "no merit increases for 2020,"
and that it was implementing a hiring
freeze. The statement did not, however,
clarify if this would include the hiring of
a new permanent CEO to replace Matt
Levatich and whether Jochen Zeitz
would therefore be continuing to fill the
role for longer than had been initially
intended.
The statement went on to say that
"outside of the United States, the
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company will take similar actions as
based on regulations governing each of
its operating locations" and that "salary
reductions will be reassessed at the end
of the second quarter as the company
continues to closely monitor business
conditions."
The majority of Harley's global
production employees are currently on
temporary layoff, but with medical
benefits remaining intact for all.
Zeitz went on to say: "We understand
that navigating this new reality has a real
impact on our employees. Their
dedication to Harley-Davidson is never
taken for granted, and we thank them
for supporting one another and rallying
together as we manage the profound
impact of COVID-19."
Previously (March 26) Harley announced
withdrawal of its financial guidance for
2020. Contrary to market trend and
despite imposing wage cuts, at the time
of writing, Harley had not yet announced
a suspension either of its dividend
payments or of its share buy-back
program - having doubled capacity to do
so in February.
MAY 2020
ISSUE #250
H-D XR750