Harley-Davidson FLTRXS Road Glide Special Billiard Red patriotic costs loan pull

Harley-Davidson plans big loan

Harley-Davidson has announced it now has access to a loan of up to $US350 million (about $A500 million) over the next year.

While it has not committed to the entire amount of the loan, it is committed to draw at least $US150m (about $A215m).

The company believes the loan is consistent with its intentions regarding liquidity.

Loan plan

What the loan would be used for we are not sure and there has been no announcement about their purpose, but it could be to help mitigate the effects of the pandemic.

It follows recent measures announced by new CEO and president Jochen Zeitz to ride out the pandemic recession including:

The new measures are in addition to Jochen’s Rewire strategy.

Jochen Zeitz with LiveWire rewire shares
Jochen Zeitz with the electric LiveWire

Harley in the news

Harley has been in the news the past couple of months ever since CEO Matt Levatich was sacked in February Jochen was appointed interim CEO and then announced as CEO on 8 May 2020.

In May, it was revealed that Jochen senior VP and CFO John A. Olin bought millions in shares of HOG stock.

This seems to show a vote of confidence in the company by its executives, although some say it may be just for show to prop up the share price.

There is still no statement from Harley about the share purchases and no record of Jochen’s salary.

However, the previous boss was paid a record $11m last year.

Jochen’s five-year “Rewire”strategy also involves expanding “profitable iconic heritage bikes” while committing to branching out to adventure touring, the new Streetfighter range and electric motorcycles.

Harley’s sales have been on the slide for several years. This video gives an entertaining history of the American icon’s problems.

  1. It’s simple. The electric bike is ugly. It makes the Harley brand altogether unattractive, aimless and lost. The new website sucks. Harley needs to scale back and make the company lean and simple as it was in the mid-90’s. Small and rare homegrown shops. And most important, they need to advertise to “everyman” and “regularman”. The plumbers, the WFH’rs, the Tennis coaches, the hip-hoppers, cops, soccer dads. Easy Riders are all dead and skater punks won’t ever have enough money. Either way I won’t ride anything else because all other bikes suck when it get’s down to the real road so I want them to succeed.

  2. If that money goes back into the company, happy days. lf it goes into share buy backs for the executives so they can sell to a potential cashed up buyer, that would sux. I have little trust in the people who make up the boards of multi nationals 🙁

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