Harley-Davidson In $5B Talks With Private Credit Heavyweights To Sell Finance Arm, Loan Book: Report

Harley-Davidson is reportedly in advanced talks to sell a stake in its finance arm, Harley-Davidson Financial Services (HDFS), along with its existing motorcycle loan portfolio, to Pacific Investment Management Company and KKR in a deal valued at $5 billion.

The deal would include Harley-Davidson’s existing portfolio of motorcycle loans managed by HDFS, with Pimco and KKR also aiming to buy future originations, Bloomberg reported.

Discussions, led by the private credit arms of both firms, could reportedly result in an agreement within weeks, though terms may still change.

HDFS, which helps finance motorcycle purchases and dealer inventory, was put up for sale earlier this year. CEO Jochen Zeitz confirmed in May that talks with multiple bidders were ongoing.

The move comes as Harley struggles with slow sales and rising competition from Honda and BMW. 

The company is also bracing for a challenging financial year, warning last week that tariffs tied to U.S. President Donald Trump’s trade policies could significantly impact 2025 results. 

Harley took a $9 million hit in the first quarter and now expects full-year cost headwinds of $130 million to $175 million, prompting it to suspend prior earnings guidance. 

The company delivered a stronger first quarter than expected, thanks to solid demand for its large touring bikes and cost-cutting measures. As CEO Jochen Zeitz prepares to step down, he said the company is reworking its supply chain, ramping up production, and introducing smaller, more affordable bikes in an effort to attract younger riders.

With Zeitz set to retire, Harley has hired a search firm to find his successor.

Private credit firms, such as Pimco and KKR, have increasingly targeted the $5.2 trillion asset-based finance market, acquiring both loan portfolios and equity stakes in originators. 

Harley-Davidson has previously securitized its motorcycle loans into asset-backed securities.

On Stocktwits, retail sentiment for Harley-Davidson was ‘extremely bullish’ amid ‘extremely high’ message volume.

Harley-Davidson’s stock has declined 20% so far in 2025.

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