In a filing made Monday with the Securities and Exchange Commission, Wisconsin-based Harley-Davidson disclosed plans to move some of its manufacturing facilities from the Rust Belt to the Old World in the hopes of avoiding higher costs created by new European Union tariffs that target American-made motorcycles, along with other cultural products like whiskey and blue jeans. But instead of asking its customers to make do with the price hike, Harley-Davidson will instead absorb these costs.
Harley said ramping up production at its overseas worldwide plants will require incremental investments and could take at least nine to 18 months.
European sales of Harley-Davidson motorcycles, the company pointed out, amounted to almost 40,000 bikes in 2017. Harley-Davidson maintains a strong commitment to US -based manufacturing which is valued by riders globally.
Harley-Davidson sold nearly 40,000 motorcycles in European Union member countries a year ago.
"Harley-Davidson's announcement today is the latest slap in the face to the loyal, highly-skilled workforce that made Harley an iconic American brand", IAM president Robert Martinez said in a statement, adding that the decision to close down the Kansas City, Missouri plant was made before the European Union announced its tariffs. The US added a 25 per cent tariff on imported steel and 10 per cent on aluminium.
Last week German automaker Daimler AG cut its 2018 earnings outlook, a change that it says is partly due to increased import tariffs for US vehicles in China.
"Unfortunately, this confirms my concerns and is a far too predictable outcome of policies that give companies like Harley-Davidson incentives to make their products elsewhere", Johnson said in a statement.
Rows of motorcycles are behind a bronze plate with corporate information on the showroom floor at a Harley-Davidson dealership in Glenshaw, Pennsylvania, April 26, 2017.
Falleció Violeta Rivas, un ícono de la música nacional
Le dije: 'Vas a darme tanta plata todos los meses y así vas aprender lo que quiere decir la palabra ahorrar'. Luego emprendió una larga y exitosa carrera como actriz y cantante.
Mid-Continent's orders for July are only 30 percent of what they were previous year, and Skarich is afraid that many of his lost customers will never return.
Harley Davidson, based in Milwaukee, is now planning to move the production of some of its motorcycles overseas.
In addition to being a possible economic harbinger, the loss of Harley-Davidson's production also comes as a symbolic blow to Trump.
"We are now assessing the potential impact on our United States facilities", said Harley-Davidson spokesman Michael Pflughoeft.
Struggling to overcome a slump in USA demand, Harley has been aiming to boost sales of its iconic motorcycles overseas to 50% of total annual volume from about 43% now.
The tariffs will hit home for House Speaker Paul Ryan. AshLee Strong says the best way to help American workers, consumers and manufacturers is to open new markets and not raise barriers.
"Harley-Davidson expects ramping up production in worldwide plants will require incremental investment and could take at least 9 to 18 months to be fully complete". Who knows? Since no one in the White House seems to understand how global trade works, and we've seen how capricious and easily distracted The Donald is, it's 50/50 whether or not the tariffs go into effect or he gets distracted by a squirrel and forgets all about them.
It believes that cost to be about $2,200 per bike it exports from the U.S. to the EU.