Harley-Davidson is a brand that used to scream freedom, rebellion, and rugged Americana. Now, if you listen very quietly, you’ll hear actual screaming outside its Milwaukee headquarters.

This week, Harley found itself in the headlines for all the wrong reasons. Jared Dourdeville, a board member representing 9% shareholder H Partners, abruptly resigned from his position.

And boy, did he go out swinging. In his letter, Dourdeville accused the company of “cultural depletion,” constant executive turnover, and a broken product strategy that has turned into a guessing game of which bikes will sit unsold on showroom floors.

Oh, and in case that wasn’t enough heat, he flat-out demanded the immediate resignation of CEO Jochen Zeitz and two longtime board members, four days before his own mic-drop moment. Now, to be fair, Harley did respond… but not before the stock dove 12% (now down 36% in the last six months).

Harley Davidson’s counter is that Zeitz will step down… eventually. You know, just as soon as they find someone willing to take over a company in the middle of a full-blown identity crisis. No rush.

His resignation wasn’t about poor performance… it was about a company that, in his words, has lost its foundation. He cited a lack of transparency and accountability at the leadership level and questioned whether the current board is aligned with Harley’s long-term goals.

And sure, Harley’s PR team is out here spinning it… saying Dourdeville only dissented once, when his own CEO pick got the boot. But when your second-largest shareholder rage-quits with a letter that could double as an HR lawsuit draft, maybe it’s time for a little self-reflection.

Underneath all of this is a much larger challenge: Harley-Davidson is facing an identity crisis. It’s trying to balance its legacy as an iconic motorcycle maker with the pressures of a changing market. That means appealing to new, younger riders who care about sustainability, price, and performance… without alienating its core audience of long-time loyalists.

One major step in that direction was LiveWire, Harley’s electric motorcycle spinoff. It was launched with hopes of redefining the brand for a new generation. But the results haven’t matched the ambition. In Q4 2023, LiveWire delivered just 117 bikes. For context, that’s a tiny number in an industry that counts deliveries in the thousands.

At the same time, Harley’s dealerships have been left with way too much inventory… especially of traditional cruiser models. In February, the company announced it would cut production to match slower demand. That decision came after another disappointing sales stretch and growing frustration among retail partners.

Harley-Davidson’s core customer base (primarily Gen X and Baby Boomers) is aging fast. The average Harley buyer is now in their early 50s, and the pipeline of younger riders just isn’t there. According to the Motorcycle Industry Council, the percentage of U.S. motorcycle owners under the age of 30 has dropped from 22% in 1985 to just 10% today. Millennials and Gen Z simply aren’t buying heavy cruisers the way previous generations did.

Of course, Wall Street is watching all of this closely. Bank of America recently lowered its price target on HOG from $45 to $35, citing weak product execution and long-term demographic headwinds (you don’t say). And they’re not alone… over at Morgan Stanley, they called Harley a “legacy brand at a strategic crossroads” and warned that without clear leadership and a real growth story, the stock could remain rangebound… or worse. In my opinion, this shouldn’t be so hard… just continue to lean into what made Harley… Harley. It’s clear the company needs leadership that “gets” its customer base.

Stocks.News has positions in Harley Davidson.