I have been watching Harley-Davidson tales carefully ever for the reason that model’s CEO, Jochen Zeitz, introduced his retirement earlier this week. When one thing like that happens, there’s at all times fallout to come back. So after I noticed the story of a Harley board member resigning, I figured this was simply a part of that. However after I learn his resignation letter, it felt…off.
I have been writing in regards to the automotive and powersport industries for many years now. In that point, I’ve learn resignation letters from a number of executives. Most, even in dour circumstances not of their selecting, stay skilled. They provide criticism, positive, however they’re nonetheless taking care of the corporate’s greatest pursuits. Plus, it is by no means an excellent look to badmouth of us.
However the letter from Jared Dourdeville of H Companions Administration, one of many Motor Co’s greatest companions, felt extra according to disgraced and disgruntled former Nissan CEO, and present fugitive from the Japanese authorities, Carlos Ghosn. I went to RideApart’s slack and informed the positioning’s editors, “This appears like he received handed over for CEO, and fewer in regards to the points he says brought about his departure.”
As such, we did not instantly report on the previous govt’s letter of resignation or the contents inside. However now, with some extra context being reported and my theorizing being validated by a letter Harley-Davidson filed with the Securities and Trade Fee, we are able to discuss how this entire saga is extra of a tantrum than something substantial.
Yeah, in keeping with Harley-Davidson, Dourdeville is mad he did not get to select the model’s new CEO.
Now, earlier than I am going into Dourdeville’s points with Harley-Davidson’s board, and his subsequent departure, I’ll specific that in his letter of resignation, he raises most of the similar considerations I’ve raised during the last 12 months. Harley wants a small-displamcent, extra cheap, entry-level motorbike. The model’s response to the idiotic “Harley’s gone woke” marketing campaign was lackluster at greatest, tone-deaf at worst, and they need to’ve been extra forceful in denying such lunacy.
Likewise, the emphasis the corporate’s placed on cruisers, in addition to the constant funneling of money to LiveWire as a separate model, haven’t had the meant results that Harley’s board would’ve favored to have seen. Diversification is required, however EVs might not maintain the reply for Harley. He and I agree on these factors, and I’ve stated such issues up to now in these very pages.
That stated, he additionally will get into the weeds of company politics and decries work-from-home insurance policies. A typical bullshit declare solely leveled when middle-managers cannot put their thumb on working individuals and wish “butts in seats” to allow them to make their lives and work worse. Harley’s WFH insurance policies aren’t what’s inflicting the model’s points. Simply say you do not like individuals being completely satisfied and good at their jobs, Jared.
However this is the rub about all of this, in keeping with Harley’s personal statements: ” In over three years on the Board, Mr. Dourdeville by no means voted in opposition to the Director majority on any matter.”
In an announcement filed with the SEC, Harley-Davidson stated, “Up till December 2024, Mr. Dourdeville and representatives from H Companions had been requesting Presiding Director, Tom Linebarger, and Chairman and Chief Execuve Officer, Jochen Zeitz, to increase their dedication to proceed main the Firm transformation for a number of extra years,” and “At a Board assembly in February 2025, Mr. Dourdeville voted in favor of all present Firm Administrators standing for reelection, with out dialogue or objection. At the moment, whereas the Board was within the means of trying to find a successor to the Chief Govt Officer, Mr. Dourdeville and H Companions continued to assist a long-term dedication from Presiding Director Linebarger to proceed main the Firm’s transformation.”
So he resoundingly agreed with the board all through his tenure, why then ship a letter decrying the corporate’s board? Properly, whereas Dourdeville agreed with the board on a regular basis “Besides one – the Board’s determination to not prolong an offer to his most well-liked CEO candidate.”
“In late March 2025, the Board evaluated three candidates for the CEO position and determined to not offer any of the candidates the position,” Harley’s SEC assertion reads. The corporate then drops a sequence of occasions surrounding Dourdeville’s actions after his most well-liked candidate was handed over.
“On Wednesday, March 26, 2025, the Board met with three CEO successor candidates. On Friday, March 28, 2025, a Board assembly was held with every Director understanding their fiduciary obligation to behave independently and in the perfect curiosity of all shareholders. After every Board member had the chance to weigh in on the three CEO candidates, the Board determined to not prolong an offer to any of the candidates.On Tuesday night, April 1, 2025, Mr. Dourdeville despatched a letter to the Board demanding the rapid resignation of three Administrators. On Thursday, April 3, 2025, the Firm filed its proxy assertion recommending the reelection of all present Administrators. That very same day the Board e-mailed Mr. Dourdeville advising him that it was within the means of totally evaluating the factors raised in his letter and proposing occasions for your complete Board to fulfill to formally focus on them. Mr. Dourdeville didn’t reply to this e-mail or object to the proposed plan. On Friday, April 4, 2025, Mr. Dourdeville agreed to attend a gathering of the Board to be held on Monday, April 7, 2025, at 7:00 a.m. central, to debate his April 1, 2025 letter anddemands. The next day, Saturday, April 5, 2025, Mr. Dourdeville resigned from the Board earlier than the agreed Board assembly was capable of happen.”
Principally, this SEC submitting is Harley’s method of displaying that Dourdeville’s actions had been petty at greatest. He did not get his method, he did not get to select Harley-Davidson’s subsequent CEO, and now he is mad on the firm, so he is airing grievances that he by no means introduced as much as the board’s face throughout his three years as one in all its administrators. And Harley’s SEC submitting went additional, denouncing practically each one in all Dourdeville’s claims. Whoever put this SEC submitting collectively clearly had some enjoyable after what needed to be a shit-storm at company when the media began to select up on Dourdeville’s abrupt resignation.
I will not say that Harley-Davidson would not have issues; it does. However a disgruntled board member resigning is not precisely the canary within the coal mine that many others in my occupation made it out to be.
