Harley ponders HDFS sale, according to Bloomberg
Harley-Davidson is evaluating options for its financing unit, Harley-Davidson Financial Services (HDFS), including a sale, which could bring the company at least $1 billion.
According to Bloomberg, potential buyers could include banks, private equity firms, and private credit firms. However, no decision has been made yet, and Harley could choose to retain ownership of HDFS, which has brought in substantial revenue for the company and a popular way for consumers to finance its premium models.
In an email to the Milwaukee Journal Sentinel, Harley-Davidson said it would not comment on market rumors or speculation. However, Bloomberg cites unnamed sources familiar with the matter in its piece. The Motor Company is said to be using an adviser to generate interest in HDFS.
Harley hasn’t made a final decision to sell the financing division, and reports state that the manufacturer is merely weighing its options and may ultimately decide to keep it. Reaction to the news has been mixed, with some saying it would be a mistake to pull that part of the business out of the company’s control, especially as the price of its bikes continues to rise.
The potential sale of HDFS comes as Harley has experienced considerable internal turmoil. It was announced on April 8 that CEO Jochen Zeitz plans to step down after five years. And shortly after, board member Jared Dourdeville, a partner of major shareholder H Partners, abruptly resigned, sending a widely circulated letter to the SEC about his discontent with the current management at the Motor Company. H Partners is also caught up in a proxy fight with Harley for control over the board and is asking for three members, including Zietz, to step down immediately.
Entirely predictable. It’s a story as old as business itself. A high ranking manager at the Motor Company told me some years ago that “it had stopped being a fun company to work for” and he moved on. New CEO steps in, puts spin on increasingly deteriorating performance and does not listen to the market. After a while that CEO steps down or gets fired. Next CEO comes onboard and starts selling assets. Next stop is bankruptcy. At the end of the day it’s the employees that take the brunt. I hope I’m dead wrong!
Never has a company been more loved and so poorly managed. Harley loves shooting themselves in the foot.
You’re going to sell the one component of the company that is making money? Just stop the e-motorcycle division, trim some executive compensation, and offer allot more paint options (with lower pricing). Bring the real Sportster back- even unchanged! It will still sell more than all the Revmax and Livewire motorcycles combined.
Bring back the dyna line. Sportster as well. Stopping the dyna line was a mistake!!
Bring back the Road King in a “Standard” trim model and price it $18,999…Done!