Harley-Davidson Board Faces Possible Proxy Fight

As Harley-Davidson looks to appoint a new Chief Executive Officer after Matt Levatich stepped down from the post last month, the board of the iconic American motorcycle brand is facing a potential proxy fight. One of Harley-Davidson's investors, called Impala Asset Management, is now looking to install two directors at America's best-known motorcycle brand. Impala, a 1.2 per cent shareholder in Harley-Davidson, has filed a proxy statement that claims that former CEO Levatich was fired shortly after Impala expressed concerns with the direction of the company.

donald trump harley davidson ceo matthew levatich afp

US President Donal Trump seen shaking hands with former Harley-Davidson CEO Matthew Levatich (AFP)

Also Read: Harley-Davidson Shuts Down US Production Over Coronavirus

According to the $2.8 billion hedge fund, "Impala approached the Board and advocated for the removal of then CEO Levatich and a modest refresh of the Board itself. We believed then, and still believe, that the Company underperformed its potential under Mr. Levatich and that the Board should have taken action on its own."

Impala blames the decline of the Harley-Davidson brand in recent years on poor marketing decisions, the move to close the Kansas City plant and the board reacting slowly to a changing market. Impala says in recent years, it had grown concerned about the leadership and strategic direction of Harley-Davidson. Two potential options put forward by Impala to supersede Levatic have been been rejected by Harley-Davidson. Instead, Harley has placed Jochen Zeitz as interim CEO.

Also Read: Matt Levatich Steps Down As Harley-Davidson CEO

"We believe the candidates proposed by Impala would not add additional skills or diversity to the board as their stated skill sets are already well-represented among our nine candidates. We are confident that we have the right leadership and the right strategy in place to continue creating value for shareholders and to achieve Harley-Davidson's long-term strategic objectives."

Impala has criticized the company for losing market share and the board for being slow fixing poor returns. It also pushed for ouster of former CEO Matt Levatich in January.



from CarandBike - Latest News

Comments

Post a Comment

Popular posts from this blog

Harley-Davidson Streetfighter Spotted In Flesh For The First Time

Image
Harley-Davidson unveiled a range of new motorcycles last year that included an adventure tourer, streetfighter and Custom range. This, along with the LiveWire electric motorcycle defines the new-age 21st century offerings from the manufacturer as it taps into newer markets and caters to an evolving customer base. Now, giving a glimpse of the new models out in the open, the new Harley-Davidson Streetfighter was spotted in the prototype version at what seems to be a trade show in the US, giving a good glimpse at motorcycle looks like in flesh. While board says 'Styling Prototype', the production-spec version of the Streetfighter is likely to stay identical to the model showcased here. In addition to the Streetfighter, the Pan America was also showcased at the same event. The production spec versions of both bikes could be unveiled at EICMA this year. Also Read: Harley-Davidson Livewire To Be Unveiled In India In August The Harley-Davidson Streetfighter is a completely new mot
Read more

Brixton 1200 To Rival Triumph Bonneville T120

Image
A 1200 cc modern classic with similar design lines as Triumph's iconic Bonneville series, has reportedly been cleared for production. The bike was showcased as a concept at last year's EICMA motorcycle show, and from the looks of it, this is a model developed in China with the Triumph Bonneville T120 in its sights. The Brixton brand though is part of Austria's KSR Group, which imports bikes from several Chinese manufacturers, including CF Moto. And while the new Bonneville rival will be manufactured in China, the design and engineering has been created at KSR's design centre in Krups, Austria. Also Read: Triumph Bonnville T120 First Ride Review The Brixton 1200 cc motorcycle has not been named yet, or a launch timeline announced So far, the company has not committed to a launch date yet, but says that it will eventually make it to production. And from the looks of it, that may well be sometime later this year, maybe even at the EICMA 2020 show in Milan, Italy, in
Read more

Zongshen Cyclone RX6 Based On Norton 650 Nearing Completion

Image
While there still doesn't seem to be a buyer for iconic British brand Norton Motorcycles which went into administration in January this year, the firm's 650 cc parallel-twin seems to be finding life in China. While Norton apparently sold off the engine rights of its 961 engine to China's Jinglang just before the brand went into administration, the deal for the 650 cc engine was finalized way back in 2017 with Chinese giant Zongshen. The 650 cc parallel-twin engine was due to be used in Norton's Atlas and Superlight models, but now it looks like that engine platform will make its debut in a Zongshen motorcycle, called the Cyclone R6. Also Read: How Much Is Norton Motorcycles Worth Now? One of the patent designs shows the Cyclone RX6 with full touring accessories and luggage Two prototypes fitted with the 650 cc parallel-twin engine were shown in China late last year, on the Zongshen Cyclone RX6 adventure bike and the RX6 sport tourer. Both bikes used Zongshen-made
Read more