Harley-Davidson's new CEO Jochen Zeitz has unveiled a bold plan to quadruple profits by 2029, even as the iconic motorcycle brand faces declining sales and dealer closures. The strategy, dubbed 'Back to the Bricks,' focuses on operational efficiency and attracting younger riders.
Harley-Davidson’s new CEO Jochen Zeitz has announced an ambitious plan to quadruple the company’s profits by 2029, according to a report by RideApart. The target comes at a time when the American motorcycle manufacturer is grappling with a decades-long sales decline and the closure of numerous dealerships.
What is the ‘Back to the Bricks’ strategy?
Zeitz’s plan, named ‘Back to the Bricks,’ aims to revive Harley-Davidson’s core values while modernizing its product lineup. The strategy focuses on improving operational efficiency, cutting costs, and concentrating on the most profitable markets. Key initiatives include restructuring the dealer network, developing new motorcycles for younger riders, and expanding in emerging markets like Asia.
How will Harley-Davidson achieve a 4x profit increase?
The company plans to boost margins by reducing discounts and improving inventory management. It will also streamline its dealer network, potentially closing underperforming outlets. New models targeting a younger demographic are in development, and the brand aims to strengthen its presence in high-growth regions.
Why are Harley-Davidson sales declining?
Sales have been falling for decades due to shifting consumer tastes. Older riders, once the core customer base, are buying fewer new bikes, while younger generations find Harley’s heavy, expensive cruisers less appealing or affordable. Intense competition from lighter, cheaper Japanese and European brands has also eroded market share.
Will more dealerships close in the Gulf?
The restructuring plan may lead to further dealer closures, particularly in areas with weak demand. However, Harley-Davidson has not specified which regions will be affected. The Gulf market remains important for the brand, and new models are expected to arrive in the region by 2026 or shortly after, pending global rollout.
What do analysts think of the plan?
Opinions are mixed. Some analysts consider the 4x profit target overly ambitious given Harley’s structural challenges. Success hinges on attracting a new generation of riders, something the company has struggled with. Others believe focusing on profitability rather than sales volume is a smart move in the current climate.
Frequently Asked Questions
What is Harley-Davidson's new plan?
The 'Back to the Bricks' strategy aims to quadruple profits by 2029 through operational efficiency, new products, and dealer network restructuring.
Why are Harley-Davidson sales declining?
Sales are falling because older riders are buying fewer bikes, and younger generations prefer lighter, cheaper motorcycles from competitors.
Will Harley-Davidson close more dealerships?
Yes, the restructuring plan may close underperforming dealers to improve efficiency, though specific locations have not been announced.
When will new Harley models reach the Gulf?
New models are expected globally by 2026, with Gulf arrival likely in the same year or shortly after.
Sources
- RideApart — Harley-Davidson Thinks It Can Quadruple Profits Even As Dealerships Close And Sales Plummet
