Harley-Davidson Officially Names New Chief Legal Officer as Another Executive Departs
Interim CLO Paul Krause got the job as chief lawyer. Now, he has to help Harley bounce back from bruising tariffs, declining sales, leadership changes and factory closures due to COVID-19.
March 31, 2020 at 03:50 PM
3 minute read
The original version of this story was published on Corporate Counsel
Harley-Davidson motorcycle. Photo: Alex Erofeenkov/Shutterstock
Harley-Davidson Inc., which has been grappling with tariffs, slumping retail sales, leadership changes and the COVID-19 pandemic, has elevated Paul Krause from assistant general counsel to chief legal and compliance officer and secretary.
The Milwaukee-based motorcycle maker announced Krause's promotion Monday in a Securities and Exchange Commission filing that also revealed that Michelle Kumbier will step down April 3 as senior vice president and chief operating officer of Harley subsidiary Harley-Davidson Motor Company Inc.
Kumbier has been responsible for Harley's worldwide sales, which dropped by 4.3% from 2018 to 2019.
Her departure follows the exit of Harley president and CEO Matthew Levatich, who stepped down in late February. Harley chairman Jochen Zeitz now serves as acting president and CEO as the company searches for Levatich's successor.
Zeitz announced March 18 that Harley was temporarily halting U.S. production at its U.S. facilities after an employee at a Wisconsin plant tested positive for COVID-19.
"We recognize the unprecedented nature of this global crisis," Zeitz said in a statement. He added, "We will continue to monitor the situation and take necessary steps to prioritize employee health and safety."
The factory closures deliver another hit to a company that has been battered during the trade war. In 2018, Harley chief financial officer John Olin told investors during an earnings call that the company was bracing for $43 million to $48 million in increased costs related to U.S. tariffs on imported steel and aluminum and European Union tariffs on Harley motorcycles.
While Krause will be leading Harley's legal department during a challenging time, he shouldn't have much trouble transitioning into the chief lawyer role. He's served as interim CLO since November 2019, when his predecessor, Paul Jones, headed for Harley's well-trodden exit.
Attempts to speak with Krause or a Harley representative were not immediately successful.
Krause joined Harley in 2016 as senior legal counsel after having served as senior counsel of litigation and employment for ArcelorMittal, a global steel and mining company based in Luxembourg.
He began his career at Littler Mendelson in 2004, after graduating from Marquette University Law School.
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