BillyB
04-07-2009, 02:23 PM
Can't say that I am surprised by this move...not so much that Ziemer has been doing a bad job in my opinion but more so that the buck has to stop somewhere when numbers are falling short. Ziemer probably got more praise than he deserved when bikes were flying off the showroom floor and is probably getting more blame than he deserves now that the economy has hit the skids.
Harley-Davidson names new chief executive
NEW YORK (AP) — Motorcycle maker Harley-Davidson Inc. said Monday its chief executive will step down May 1 and will be replaced by an executive from car battery and interiors maker Johnson Controls Inc.
Keith E. Wandell, 59, replaces James L. Ziemer, who is retiring after 40 years at Harley and four years as its CEO.
Wandell is currently president and chief operating officer at Milwaukee-based Johnson Controls, where he has worked the past 21 years. He said some of his first priorities for the job are establishing long-term goals for the 106-year-old company.
"We have to set a course for where we are going to be five years from now, 10 years from now and 20 years from now," he said in an interview.
Wandell will take over Harley during a challenging time for the motorcycle maker. Sales of its iconic heavyweight bikes have been in a slump recently as the tough economy keeps buyers out of dealerships and the credit crisis continues to make it difficult for some customers to get financing.
Harley, which is also based in Milwaukee, said in January its 2008 profit fell 30 percent to $654.7 million, or $2.79 per share. Its motorcycle shipments fell 8 percent to 303,479 during the same period.
At the same time, the company's financing arm, Harley-Davidson Financial Services, has been struggling due to the lockup in the credit markets. The unit swung to an operating loss of $24.9 million in fourth quarter, hurt by write-downs totaling $63.5 million.
Harley faces other challenges as well, including bringing newer, younger riders to diversify its aging customer base. Wandell said he hopes for the company to find new areas into which to expand.
"I know we are sort of a leader in the heavyweight segment, but I think there are a lot of opportunities in the sport bike segment, both in the U.S. as well as around the world," he said, adding that the company also needs to seek out "other demographic areas, such as the younger riders, female riders, as well as minority riders."
Harley has recently been rolling out sportier bikes, like the V-Rod Muscle, in its bid to capture new riders. It has also been aggressively expanding abroad in search of new markets, and last year acquired the Italian sports bike maker MV Agusta Group to expand its presence in Europe.
Ziemer's departure next month will end a lifelong career with the company. A native Milwaukeean, Ziemer, 59, grew up in the neighborhood next to Harley's original factory on the city's West Side. He joined the company in 1969 as a freight elevator operator while still attending the University of Wisconsin-Milwaukee, then joined its accounting department after graduating. He was named chief financial officer in 1990.
Harley also announced a series of other leadership changes. Matthew S. Levatich was named president and chief operating officer of Harley-Davidson Motor Co., James A. McCaslin will take on the newly created role of executive vice president for corporate product planning and Enrico D'Onofrio will become managing director of MV Agusta.
Shares of Harley finished Monday up 54 cents at $17.10. Shares have traded between $7.99 and $48.05 in the last 52 weeks.
Copyright © 2009 The Associated Press. All rights reserved.
Harley-Davidson names new chief executive
NEW YORK (AP) — Motorcycle maker Harley-Davidson Inc. said Monday its chief executive will step down May 1 and will be replaced by an executive from car battery and interiors maker Johnson Controls Inc.
Keith E. Wandell, 59, replaces James L. Ziemer, who is retiring after 40 years at Harley and four years as its CEO.
Wandell is currently president and chief operating officer at Milwaukee-based Johnson Controls, where he has worked the past 21 years. He said some of his first priorities for the job are establishing long-term goals for the 106-year-old company.
"We have to set a course for where we are going to be five years from now, 10 years from now and 20 years from now," he said in an interview.
Wandell will take over Harley during a challenging time for the motorcycle maker. Sales of its iconic heavyweight bikes have been in a slump recently as the tough economy keeps buyers out of dealerships and the credit crisis continues to make it difficult for some customers to get financing.
Harley, which is also based in Milwaukee, said in January its 2008 profit fell 30 percent to $654.7 million, or $2.79 per share. Its motorcycle shipments fell 8 percent to 303,479 during the same period.
At the same time, the company's financing arm, Harley-Davidson Financial Services, has been struggling due to the lockup in the credit markets. The unit swung to an operating loss of $24.9 million in fourth quarter, hurt by write-downs totaling $63.5 million.
Harley faces other challenges as well, including bringing newer, younger riders to diversify its aging customer base. Wandell said he hopes for the company to find new areas into which to expand.
"I know we are sort of a leader in the heavyweight segment, but I think there are a lot of opportunities in the sport bike segment, both in the U.S. as well as around the world," he said, adding that the company also needs to seek out "other demographic areas, such as the younger riders, female riders, as well as minority riders."
Harley has recently been rolling out sportier bikes, like the V-Rod Muscle, in its bid to capture new riders. It has also been aggressively expanding abroad in search of new markets, and last year acquired the Italian sports bike maker MV Agusta Group to expand its presence in Europe.
Ziemer's departure next month will end a lifelong career with the company. A native Milwaukeean, Ziemer, 59, grew up in the neighborhood next to Harley's original factory on the city's West Side. He joined the company in 1969 as a freight elevator operator while still attending the University of Wisconsin-Milwaukee, then joined its accounting department after graduating. He was named chief financial officer in 1990.
Harley also announced a series of other leadership changes. Matthew S. Levatich was named president and chief operating officer of Harley-Davidson Motor Co., James A. McCaslin will take on the newly created role of executive vice president for corporate product planning and Enrico D'Onofrio will become managing director of MV Agusta.
Shares of Harley finished Monday up 54 cents at $17.10. Shares have traded between $7.99 and $48.05 in the last 52 weeks.
Copyright © 2009 The Associated Press. All rights reserved.