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workinclasszero

(28,270 posts) Mon Jun 25, 2018, 02:09 PM Jun 2018

Harley-Davidson's stock sinks, sees EU tariffs adding $2,200 to average motorcycle cost

Published: June 25, 2018 7:17 a.m. ET

Shares of Harley-Davidson Inc. HOG, -6.45% sank 2.7% in premarket trade Monday, after the motorcycle maker said the European Union tariffs on the company's motorcycles increased to 31% from 6%, and will increase the cost of the average motorcycle to the EU from the U.S. by about $2,200.

The company said it won't raise its suggested retail prices or wholesale prices to dealers to cover the costs of the tariffs, because it believes passing on the tariff costs would have an "immediate and lasting detrimental impact" to its business in the region.

Harley-Davidson expects the tariffs to cost about $30 million to $45 million for the rest of 2018, and could cost $90 million to $100 million on an annual basis. The company said it plans to shift production of EU-bound motorcycles to international facilities from U.S. facilities to avoid the tariff burden.

https://www.marketwatch.com/story/harley-davidsons-stock-sinks-sees-eu-tariffs-adding-2200-to-average-motorcycle-cost-2018-06-25?mod=bnbh

14 replies

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Highlight:

Harley-Davidson's stock sinks, sees EU tariffs adding $2,200 to average motorcycle cost (Original Post) workinclasszero Jun 2018 OP

WOW, that much. Iliyah Jun 2018 #1

A total luxury item; EU buyers will likely pay the premium. Ron Green Jun 2018 #2

I'm a Harley rider but you are right.... vi5 Jun 2018 #11

MAGA JI7 Jun 2018 #3

Motorcycles Are Going Away lame54 Jun 2018 #10

Meh. That is what Trump loyalty and false patriotism gets you. Freethinker65 Jun 2018 #4

Yup wave goodbye to those middle class jobs America MAGA! workinclasszero Jun 2018 #5

Understand these Bikes are Wellstone ruled Jun 2018 #7

You got it workinclasszero Jun 2018 #9

Harley is seeing the Sales Hand Writting on the Wall, Wellstone ruled Jun 2018 #12

I predict Harley-Davidson will become a Chinese company. hunter Jun 2018 #6

Or they will do what foreign motorcycle companies do mitch96 Jun 2018 #8

WTF I thought it was all American Iron! wasupaloopa Jun 2018 #13

Ryan's weak ass statement on this sunonmars Jun 2018 #14

Iliyah

(25,111 posts)

1. WOW, that much.

Reply to workinclasszero (Original post)

Mon Jun 25, 2018, 02:11 PM

Jun 2018

Damn.

Ron Green

(9,825 posts)

2. A total luxury item; EU buyers will likely pay the premium.

Reply to workinclasszero (Original post)

Mon Jun 25, 2018, 02:13 PM

Jun 2018

A HD motorcycle is surely one of the least useful machines in the world.

vi5

(13,305 posts)

11. I'm a Harley rider but you are right....

Reply to Ron Green (Reply #2)

Mon Jun 25, 2018, 02:42 PM

Jun 2018

In fact most experienced bikers can almost always find what they are looking for on the used/second hand/re-sell market. Go into any Harley dealership now and it's almost all white middle to upper class white dudes going through their mid-life crisis. Those types don't last more than a few years(if that), then look to unload the bikes. I can't speak to how it is outside the US but I'm guessing that like a lot of things as you said they will gladly pay the premium for classic US authenticity (HA!)

This has been happening pretty gradually over the past 10 years since Harley decided to become a "lifestyle brand" rather than doing what they are good at and known for. And the same exact thing is also happening to Gibson guitars.

Both companies made shit decisions to try to increase shareholder value and both failed miserably. I say good. Lay down with dogs, and all of that.....

JI7

(89,289 posts)

3. MAGA

Reply to workinclasszero (Original post)

Mon Jun 25, 2018, 02:14 PM

Jun 2018

lame54

(35,359 posts)

10. Motorcycles Are Going Away

Reply to JI7 (Reply #3)

Mon Jun 25, 2018, 02:41 PM

Jun 2018

Freethinker65

(10,118 posts)

4. Meh. That is what Trump loyalty and false patriotism gets you.

Reply to workinclasszero (Original post)

Mon Jun 25, 2018, 02:15 PM

Jun 2018

I feel some sympathy for the U.S. based employees and suppliers.

workinclasszero

(28,270 posts)

5. Yup wave goodbye to those middle class jobs America MAGA!

Reply to Freethinker65 (Reply #4)

Mon Jun 25, 2018, 02:28 PM

Jun 2018

The company said it plans to shift production of EU-bound motorcycles to international facilities from U.S. facilities to avoid the tariff burden.

Wellstone ruled

(34,661 posts)

7. Understand these Bikes are

Reply to workinclasszero (Reply #5)

Mon Jun 25, 2018, 02:32 PM

Jun 2018

to be made in Thailand which has a special Export agreement with the E U with zero Tarriff's.

So that Red State Plant is about to be another Rust Belt casualty.

So much friggen winning .

workinclasszero

(28,270 posts)

9. You got it

Reply to Wellstone ruled (Reply #7)

Mon Jun 25, 2018, 02:40 PM

Jun 2018

Wellstone ruled

(34,661 posts)

12. Harley is seeing the Sales Hand Writting on the Wall,

Reply to workinclasszero (Reply #9)

Mon Jun 25, 2018, 02:50 PM

Jun 2018

and it says,my Target Consumer is Older White Guy's that tend to be Conservative with extra disposable Income or Savings to Purchase my Bikes.

If one has been paying Attention over the last ten years,one of the Key Management People warned about today's actions. Their Sales Demographic is screw six ways to Sunday.

Anyone remember the Story about Excelisor Henderson? They gave it one hell of a try,but in the end,they realized it was not to be. Polaris came to the same conclusion with their Bikes two years ago.

Honestly,both Companies Bikes seemed to be better quality built,state of the art Electronics,fabulous ride,the only Bike I thought was close to this was Honda Gold Wing.

hunter

(38,353 posts)

6. I predict Harley-Davidson will become a Chinese company.

Reply to workinclasszero (Original post)

Mon Jun 25, 2018, 02:30 PM

Jun 2018

Probably sooner than any of us expect.

mitch96

(13,948 posts)

8. Or they will do what foreign motorcycle companies do

Reply to hunter (Reply #6)

Mon Jun 25, 2018, 02:34 PM

Jun 2018

Honda for years put in 51% American parts to get around the tariff. Also shipped the parts into Marysville and had them assembled here... aka made in USA... At one point the Honda Goldwing had more American parts in it than Harley! There will be ways..
I wonder if Levi's are gonna get hit too?? Hummmm fake Levi's logo tags are gonna go for a price... Now bourbon could be a problem...
m

wasupaloopa

(4,516 posts)

13. WTF I thought it was all American Iron!

Reply to workinclasszero (Original post)

Mon Jun 25, 2018, 02:52 PM

Jun 2018

sunonmars

(8,656 posts)

14. Ryan's weak ass statement on this

Reply to workinclasszero (Original post)

Mon Jun 25, 2018, 02:56 PM

Jun 2018

Link to tweet

The statement from Paul Ryan's office on the news that Harley-Davidson will shift some production overseas to avoid retaliatory tariffs in response to Trump’s trade moves. (Harley-Davidson is based in Ryan's home state, Wisconsin. Trump is traveling there Thursday.)

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