Harley-Davidson Shares Plunge Amid Deepening Sales Slump

Harley-Davidson faces a severe downturn with global registrations falling 20.2% in 2025. New CEO Artie Starrs cancels key events and restructures as trade wars and a 40% stock drop challenge recovery.

The iconic American motorcycle manufacturer Harley-Davidson is navigating a profoundly challenging period, with its 2025 performance marred by severe declines. A combination of plummeting global registrations and persistent international trade disputes has placed immense pressure on the legacy brand. As new leadership implements cost-cutting measures and a strategic overhaul, investors are questioning the company's ability to engineer a sustainable recovery independently.

New Leadership Charts a Restructuring Course

Appointed in October to succeed Jochen Zeitz, CEO Artie Starrs is spearheading a fundamental corporate restructuring. A significant casualty of this new austerity drive is the annual "Homecoming" festival in Milwaukee. The four-day event has been canceled and will now only be held for official company anniversaries, with the next gathering not scheduled until 2028 for the 125th-anniversary celebration.

Concurrently, management is striving to enhance efficiency within sales and marketing operations. Recent moves include forging a new partnership with the Milwaukee World Festival and completing the sale of the Farrow dealer group, the oldest dealership network in the United States. These steps are being taken against a persistently difficult market backdrop for heavyweight motorcycles, which continues to face macroeconomic headwinds.

Global Sales Data Reveals Steep Declines

The company's 2025 registration figures illustrate the scale of the downturn. Worldwide, new registrations fell by 20.2% to precisely 139,649 units. The situation appears particularly critical in Europe, where registrations collapsed by nearly 40%. In Germany, demand cratered, with a dramatic decline of 58.5%. Significant weakness was also evident in key Asian markets like India and China, as well as on the home turf in the United States, which saw a 12.9% drop.

Market analysts primarily attribute this negative trend to ongoing international trade conflicts. The associated retaliatory tariffs have substantially increased the cost of U.S.-manufactured heavyweight motorcycles in many regions, severely undermining their competitiveness.

Challenges and Market Performance Looking Ahead

Prospects for a technical recovery in sales during 2026 are currently viewed as firmly contingent on a de-escalation of global trade tensions. Should tariffs remain at their present levels, the sector faces the threat of a longer-term structural decline. The strained outlook is already reflected in the company's stock performance. Shares closed at €15.24, marking a new 52-week low and representing a loss of nearly 40% over the past twelve months.