Harley-Davidson CFO Abruptly Resigns
Submitted by Northwest Harley Blog
I’m fascinated by the decline or some might say the “fallout” of the Harley-Davidson management team.
HD announced a couple days ago that effective immediately the CFO, Tom Bergmann was leaving the company. Labeling the hasty departure with the all too familiar and politically correct words; “seeking other career opportunities” to describe his abrupt exit. Mr. Bergmann had been CFO since 2006 and in January 2009 it was announced he would take on the additional responsibility as president of Harley-Davidson Financial Services (HDFS) after Sy Naqvi’s sudden departure. So it’s rather odd that on the very first day that the new CEO, Keith Wendell comes to work Mr. Bergmann would choose it as the most optimal time to leave?!
I smell “Mr. Clean”… and I even provided Keith a 10-step success plan, but forcing out the CFO in the first 8 hours on the job was not on the list!
On the day of his departure, Tom had just completed a transaction that would provide about $1B in funding capacity that the company could use for consumer lending in 2009. The new funding was important, since the firm finances roughly one of every two HD motorcycle purchases. HDFS increased the size of an existing $500 million asset-backed commercial paper conduit facility to up to $1.2B, based on the level of outstanding receivables. The facility expires April 29, 2010. In addition, Tom negotiated to have replaced a 364-day, $950M bank credit facility expiring July 31 with a new 364-day, $625M credit facility expiring April 29, 2010. Together, the two agreements provide additional available credit of up to approximately $375M over the term of the agreements for the lending activities of HDFS.
Getting the funding covered is a monkey off their back and a fairly impressive accomplishment to tell the new boss on day #1, but to turn around and say “Hasta la vista, baby”…I’m outta here. WTF? Whether Mr. Bergmann was run off the road or decided no more black leather, but instead it’s time for touring suits with leg guards and time to gear-up for a sound different than a low rumble…we’ll never know.
The HD press release stated that Controller John Olin would serve as interim CFO at the company. Bergmann also served as President of Harley-Davidson Financial Services (HDFS) and Treasurer Perry Glassgow would take over on an interim basis. Lastly it named Mark Kornetzke, senior director of financial reporting, as the company’s chief accounting officer.
Photo courtesy Henny Ray Abrams/Reuters.
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May 6th, 2009 at 6:09 am
Oh mommie! I can see the handwriting on the wall, and it ain’t pretty. I am going to reluctantly predict that a filling of bankrupcy and reorganization are within eyesight. Harley’s biggest problem is not the fact that their overpriced hardware is not selling, because it is. The bigger problem by far is the fact that outside lenders are not willing to pony up the money for would be Harley buyers. Most want an arm, leg and at least one testicle for a down payment. Harley’s biggest problem is for their financial arm to obtain outside sources of quatro to loan out to would be buyers. People are leaving the halls of Harley at an alarming rate, many of them just happen to be the old fashioned green eye shade beancounters. Any time I have seen that in the past I immediately begin a regimen of Immodium and cheese. If I was cashing HD paychecks I think I would be polishing up the old resume.