AMD 253 August 2020 American Motorcycle Dealer 253

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Harley Fires CFO John Olin as Zeitz
Announces More Job Losses and
"Overhaul of Global Operating Model"
AUG 2020
ISSUE #253
In what initially sounded
more like an announcement
that it "plans to have a
plan," July 9th saw Harley-
Davidson issue an update on its
"comprehensive efforts to
rewire the company" - The
Rewire.
The company says it plans to share a
summary of The Rewire, including
additional costs and expected
savings, when it releases its Q2 results
at the end of July 2020, with a new
2021-2025 strategic plan "expected
to be shared in Q4."
Described as an "overhaul of its
global operating model, including a
leaner, more nimble organization,"
Harley says that "initial Rewire
actions are expected to result in
restructuring costs of approximately
$42m in Q2 2020.
"We've taken a hard look at our entire
set-up, our spending, and how work is
getting done, to align our operating
model, structure and processes. We
are building a strong foundation to
drive a high- performance
organization in the future," said
Jochen Zeitz, Chairman, President and
CEO.
Changes to the company's operating
model under The Rewire will include
"all areas of the business globally,
from commercial operations to
corporate functions." Changes have
also occurred in the company's
leadership, among them, Chief
Financial Officer John Olin has left his
role, with current VP Treasurer Darrell
plan for
a plan
Thomas assuming duties as interim
CFO until a successor is appointed.
"Significant changes are necessary,
and we must move in new directions.
I thank John for his commitment
during his 17 years with the company
and for his leadership during this
critical phase of The Rewire," Zeitz
said.
Harley is saying that, overall, the
streamlined structure requires
approximately 700 fewer positions
across the company's global
operations, with approximately 500
employees expected to exit the
organization through 2020. It is not
clear if all 700 of the positions being
eliminated include or exclude the 150
job losses already announced at York,
Pennsylvania and Tomahawk,
Wisconsin.
Harley says that the "key elements of
The Rewire" will be to "enhance core
strengths and better balance
expansion into new spaces; prioritize
the markets that matter; reset product
launches and product line-up for
simplicity and maximum impact; build
the Parts & Accessories and General
Merchandise businesses to full
potential; adjust and align the
organizational structure, cost
structure and operating model to
reduce complexity and drive efficiency
to set Harley-Davidson up for stability
and success."
Wall Street response to this
announcement was muted with it
barely registering on the share price
either way.
H-D IN SEARCH OF
SUSTAINABILITY
MARC MCALLISTER,
PRESIDENT
TUCKER
POWERSPORTS
PENNIE LANE
Only the finest craftsmanship will do for Tim Dixon -
say hello to 'Pennie Lane', his 1959 Panhead 2018
'AMD' entry - see pages 32-33...