A 2025 earnings report showed that Harley-Davidson has been struggling with persistent declines in sales over the past several years.
According to the website Ride Apart, this decline reached 26%. While sales have seen slight growth in the United States, Donald Trump’s tariffs greatly disrupted the global export of its vehicles.
Given this, it is clear that Motor Co needs a new strategy. Fortunately, the company’s new CEO, Artie Starrs, appears optimistic about the brand’s future.
“I am confident that there is a clear path to get Harley-Davidson back on track, and I now have a sharper vision of what will be needed to redefine the business and reach a more stable operational future for 2026,” Starrs stated during an investor call.
It seems Starrs is already working to improve the tense relationships Harley has had with its dealers over the past few years by adding promotions to reduce old inventory and cutting motorcycle production.
“The health of the dealer network today is uneven, with some dealers facing challenges. Dealer health is not optional. It is a critical foundation for our long-term growth and earning power,” Starrs emphasized.
However, the production cut of Harleys is new information, with Starrs saying he expects production to “fall below wholesale, creating operational de-leverage.”
This means that Harley will apparently limit the production of new motorcycles to align inventory levels with customer demand.
Fortunately for Harley-Davidson, the brand’s lineup is relatively new in terms of model year and engineering. This allows it to survive a bit on the novelty of its motorcycles while putting operations in order. But this cannot last forever.
Additionally, Harley desperately needs to diversify its brand while marketing adapts to an aging demographic. Harley is reportedly still working on an entry-level motorcycle that, hopefully, will attract new riders.
Whether Starrs’ strategy will actually work remains to be seen. The company is expected to present its new strategic plan in May, but for now, the market continues to watch Harley with a skeptical eye.
Photo: Harley-Davidson. This content was created with the help of AI and reviewed by the editorial team.
