Title: Harley in $5 billion talks to sell finance arm to Pimco, KKR: Report
As the world’s largest motorcycle manufacturer, Harley-Davidson has been a beloved brand for over a century. Known for its iconic motorcycles, Harley-Davidson has a loyal following of enthusiasts who swear by its bikes. However, the company has been facing some tough times lately, and it appears that it is exploring ways to stay ahead of the curve.
According to a recent report by Bloomberg, Harley-Davidson is in advanced talks to sell its finance unit and loan book to Pimco and KKR in a $5 billion deal. The move comes as the company braces for the impact of tariffs, CEO transition, and slowing sales.
The tariff costs have been a major headache for Harley-Davidson, as the company has been struggling to absorb the increased costs without passing them on to its customers. The company has been trying to find ways to mitigate the impact of tariffs, but it seems that selling its finance unit and loan book may be the best option.
Pimco, the investment management company, and KKR, the private equity firm, are both considered heavyweights in the financial industry. They have a strong track record of investing in and managing companies, and their involvement in the deal could be a major boost for Harley-Davidson.
The talks between Harley-Davidson, Pimco, and KKR are said to be advanced and could conclude in weeks. If the deal goes through, it would be a major coup for Harley-Davidson, and it could help the company to stay ahead of the competition.
Despite the stock being down 20% in 2025, retail sentiment remains extremely bullish. Investors are optimistic about the company’s prospects, and they believe that the sale of the finance unit and loan book could be a major game-changer for Harley-Davidson.
The sale of the finance unit and loan book would allow Harley-Davidson to focus on its core business of manufacturing motorcycles. The company could then use the proceeds from the sale to invest in new products, technologies, and marketing initiatives.
In addition to the financial benefits, the sale of the finance unit and loan book could also help Harley-Davidson to reduce its debt burden. The company has been struggling with high levels of debt, and the sale of the finance unit and loan book could help it to reduce its debt-to-equity ratio.
The deal is not without its challenges, however. Harley-Davidson will need to convince investors that the sale of the finance unit and loan book is in the best interest of the company. The company will also need to ensure that the deal does not impact its relationships with its customers, dealers, and suppliers.
In conclusion, the report that Harley-Davidson is in talks to sell its finance unit and loan book to Pimco and KKR is a major development in the company’s history. The deal could be a major game-changer for Harley-Davidson, and it could help the company to stay ahead of the competition.
As the talks between Harley-Davidson, Pimco, and KKR are said to be advanced and could conclude in weeks, investors will be keeping a close eye on the developments. If the deal goes through, it would be a major coup for Harley-Davidson, and it could help the company to stay ahead of the competition.
