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Harley Davidson Named Worst Executive Board Hot

Harley  Davidson

It was announced today by MSN that Harley Davidson, arguably one of the most popular motorcycle manufacturers, was named as having one of the most poorly run corporate boards in the US. Frankly, it's not a huge surprise that H-D landed on the list, just look at the company's numbers over the past year. They've been struggling to reach the younger demographic, losing money hand-over-fist, and no one really knows what to do about it. Well, I do have one piece of advice H-D, sure as hell don't have a meeting about it. That seems to be the losing formula that has driven marketing into the toilet, failing to capture a new audience of buyers. So, what actually makes you one of the worst boards in the US?

  • Allowing directors to do too much business with the companies they are supposed to oversee.
  • Letting the CEO chair the board, which is supposed to oversee the CEO.
  • Overpaying board members and keeping them on too long.
  • Allowing directors to miss too many meetings to do an effective job.

At the end of the day, these corporate slackers are affecting the future of one of the biggest motorcycle names around. H-D is set to release Q1 financials on April 20th, hopefully rebounding from their dismal Q4 of 2009, where they managed to post a loss of 147 million dollars. Now, can we blame the crappy board for 147 million dollar loss? Absolutely not. But when your brand is struggling, the last thing you need is an overpaid, lazy legion of suits compounding the problem. It all starts at the top, and the proverbial crap continues to roll down hill. Harley Davidson, wake up.

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Comments  

 
+1 # H-D Rider 2010-04-06 01:44
why not link to the source so we don't have to search

http://articles.moneycentral.msn.com/Investing/CompanyFocus/5-of-the-worst-corporate-boards.aspx?page=3
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-1 # Sick of HD 2010-04-06 23:56
I agree. If you really follow the stupid things they have done in just the past year, it’s really amazing.
I got really involved with the details after HD decided to close Buell and MV Augusta, and there is even a very interesting story behind that. April Cycle world magazine has a good story on it.
I’m also personally tired of my dealerships antics. I have a list of things that have gone wrong from purchase to service. I’m never going buy another Harley. Victory is my new brand for that sort of bike.

I also own 09 Buell which I paid 11500. About 5 months later HD decides to close Buell and cut the sales price in half. It’s nice to know that I threw 5g out the window. And they have no remorse about it, or the 180 employees that lost their jobs. I’m still not sure why they closed Buell after winning the AMA Daytona class in the US, a third place in some European class, and a top ten place in another European superbike class. Also the planned 2011 Buell Barracuda was scraped, the entire R&D along with the bikes. It looked to be an attractive bike that would have surely sold well; especially after their stellar race season. Screw you HD. You just lost one of your 40-ish and under age group.
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0 # Audrey Menarik 2010-04-08 03:48
Even though they're Harley Davidson, they're still in the motorcycle business. And after being in the motorcycle business since 1987, it still amazes me at how unprofessional most every single company I do business with is.
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-1 # ron moats 2010-04-08 04:12
I agree with "Sick of HD" there have been to many corporate decisions made about Harley from the view point of the all mighty dollar instead of the almighty rider.
I just recently upgraded from an older FL to an 07 streetglide because I loved the looks of it, and coming from the mouth of someone who teaches engineering all I can say is what a road turd! It has become more than evident that they are building and designing with the idiot couch potato in mind instead of riders.
The fact they shut down the Buell line just further goes to prove this theory, what are they going to do? Increase fake tattoo sales to compensate their motorcycle sales? More Chinese t-shirts? They should back off of the franchising infractions, stop trying to copyright sounds and realize the YUPPI DINK WHORES (Young Urban Professionals, Double Income, We Haul Our Rides Everywhere) have gone back to the latest flavor of the day recreation like maybe golf or bowling but they are going to have to rely on motorcycle RIDERS to make it in business again.
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+1 # Garret 2010-04-08 04:47
This brought to us by the same guys who publish articles like, "Top ten reasons you don't know how to ride" filled with gems like, "If you wear more leather that a cow when it was alive..." Skewed reporting maybe? And to the commenter that reported H-D had shut down MV Agusta: Wrong, check you facts buddy.

This all makes me yearn for printed media...
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-1 # snoop69cares 2010-04-08 04:50
the reason why hd is going out of business is because they've been identied as being homosexual-all of them, just watch southpark
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0 # Jeff @ All About BIkes 2010-04-08 05:05
Hi Garret,

I just wanted to let you know that we also offer a printed magazine. It is free for you and delivery is even free.

Just sign up for our email and claim your subscription!

We like to have a fun here at All About Bikes. It does come out from time to time in our articles (especially online).

We appreciate the feedback! Keep it coming.

Jeff
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+1 # Enthusiast 2010-04-08 06:15
We do business with many OEMs and in our experience the staff there is more professional than most, as it has been for decades.

Enthusiasts are understandably upset with the dumping of Buell, and only history will be able to tell if that was the right business decision or not. If it was essential to keep the corporation afloat in these tough times, then they may have had little choice, although selling it seems better than dumping. But thats just MHO, YMMV.
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-1 # Glenn 2010-04-08 22:29
In my experience with HD, If you don't have tatoos and love chrome....well your not worth their time....unless you've got money!! I bought a Buell from them simply because I liked the look of the bike and it was " AMERICAN " something I am still proud of..... The people at HD ( not all ) but the majority of them in the sales department and in parts, never really seemed to take Buell seriously .....I think they might have blown it by dumping them, Yes Harley has it's nitch...but as a business you'd think always improving and reaching more people ...by having one foot in the race and sportbike venue ( and having success , Thanks to Eric and his drive ) they could have had the best of both worlds......We need an American presence in the sportbike arena.......
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-1 # Todziu 2010-04-08 23:55
I too will never buy another harley, there are so many better bikes out there, wake up and smell the oil, it's still under your bike.....
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0 # Bob Walters 2010-04-18 07:27
I wanted to have some work done on my bike at Patriot in Fairfax, VA and was told by a friend that I should check other dealers to compare prices. I discovered that they had the highest labor rate, $95/hr, compared to other dealers ($78/hr) who are located outside of the D.C. I understand that Fairfax has a higher cost of living but what the other dealers quoted me 2 hours to do the job and Patriot quoted me 3 hours. They stated that this was the guideline they were following from corporate. I asked the other dealers about this and they said that this was totally fabricated.
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+1 # Pav 2010-04-20 00:16
Used to own one... One of the biggest pieces of junk I've ever owned in the 32 years I've ridden motorcycles. The sales, service and parts departments have one theme in mind... Make as much money as possible and to hell with the customer. Like Todziu says, "There are so many better bikes out there..." Screw the image thing, I just want a bike that runs!
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+1 # Future ex-employee 2010-06-03 13:16
I work at the assembly plant in York, Pa and we have been trying to get the management to listen to the riders and stop designing for the old heads. Dropping Buell in my opinion was just a way to save money so they can appear profitable to prospective buyer. Yeah I said it! Just watching the way things have transpired inside the company, there seems to be an air of arrogance permeating the leadership that makes you feel like they don't really care whether anyone buys any of the new bikes. Outsourcing of all none "core" components, laying off of full-time employees to be replaced by "casual" employees(half the pay and no benefits), 7 year wage freeze with a contract that has wording in it's final paragraph that releases the company from all of the good faith agreement if any economic downturn should deem necessary. That frees any possible new owner of staying with the current workforce. The current attendance and work rules and regulation policy creates animosity between the lower level management and the union employees. Employee moral is at an all time low! Setting us all up for failure. We have been offered am opt out package in order to rid the company of "higher seniority" employees. This package will eliminate people with higher wages, more vacation and unfortunately more experience, but in turn will make the company appear more profitable. Maybe the next owners will take more of an interest in styling, performance and quality. The entire quality dept. has been eliminated and replaced by "built in quality". That is to say that each assembler is responsible for his/her own mistakes. Great idea but to error is human. There is no stop gate to ensure that mistakes haven't been made. There used to be an inspection station at the end of the assembly process that would help eliminate poor quality and the individual that made a mistake would be informed as to what was wrong and instructed on how not to repeat it. Problems with styling and appearance is judged on an "if the customer can see it or not" approach. Bikes that have defects are put before a group of potential customers and then they are asked if there is anything on the bike that they don't like or if there are defects that they feel need to be fixed. I liken it to this: If I'm screwing your wife and you don't know about it, does that make it alright? When Harley-Davidson became a company ran by bean counters and not by riding enthusiasts, the first nail was put into the coffin. Honda-Davidson may not be far off!
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# Dallas 2011-01-31 12:44
Maybe it's time for HD to go back to the beginning.
Blue jean, t-shirts & working in a barn instead of "corporate headquarters".
It seems that they have forgotten their roots.
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