Harley-Davidson has had a tumultuous year so far, and it's only halfway through it. There was a major blowup within its boardroom, leading to a failed coup. Ongoing will-they-won't-they tariffs have caused massive fluctuations within the market, including where it sources parts and assembles motorcycles. And its long-standing trend of sales declines just hasn't halted.
And that's with a lineup of solid machines doing their damndest to attract more of the public—the company still needs a more entry-level-friendly motorcycle, but they've finally admitted that, too.
Likewise, CEO Jochen Zeitz announced he'd be departing at the end of the year, with the search for a new CEO already ongoing. However, the hits haven't really stopped, as though it's couched in more positive language, Harley-Davidson will sell a portion of its main campus headquarters to a local distillery, with construction on the large tract to begin later this year.
Central Standard Craft Distillery is the buyer of the 73,000 square-foot section of Harley-Davidson's main campus just outside of Milwaukee, and will be moving its entire operations to the location with an opening targeted for next Summer.
"We started Central Standard Craft Distillery to be a part of Milwaukee and grow with it. This partnership and expansion continue to affirm that mission," said Central Standard’s co-founder and president, Pat McQuillan, in the press release, adding, "With this purchase, we’re excited to deepen our roots in the city we love, and to show our commitment and investment in the Milwaukee community." The purchase allows the company to expand its operations by "20 times" its current size, says the brand.
As for Harley's side of the story, the Motor Co. says that its recent investments in its Juneau facility are designed to rejuvenate the area, and make it a destination hub from around the country and world for newcomers and old-time fans alike.
"There is no brand more synonymous with Milwaukee than Harley-Davidson – with more than 120 years of continuous operations in the city, we could not be more proud to be investing in Juneau Avenue," stated Tori Termaat, Chief Human Resources Officer, Harley-Davidson and President of the Harley-Davidson Foundation, adding, "Building on the great work spearheaded by the Harley-Davidson Foundation to rejuvenate the Juneau campus, we’re looking forward to it entering its next chapter. And as we enter our next phase of investment at Juneau Avenue, we’re excited to be welcoming Central Standard to the campus."
The timing of the sale, however, and the size of the tract, is interesting. Sales, as I said before, are down. Revenue has fallen drastically. And the brand's senior management is being pressed for cost savings as well as ways to fix the historic marque's financials. I do wonder if this sale is partially to do with those realities, though I can't say for certain they are.
Harley is entering an interesting chapter, for sure, though. And it'll be fascinating to watch to see where it comes out.
