Harley-Davidson, stung by tariffs, shifts some production overseas
Harley-Davidson, stung by tariffs, shifts some production overseas
Harley-Davidson to shift some production out of US over EU tariffs
26 June, 2018, 16:14
Harley-Davidson plans to shift some manufacturing of its iconic motorcycles overseas to avoid retaliatory European tariffs imposed last week, the company said Monday.
Harley estimates the European tariff increase from 6 percent to 31 percent on motorcycles would add $2,200 to the cost of an average motorcycle exported from the U.S.to the EU. The total financial hit to the company will be in the range of $90 to $100 million per year, but the company said it would not pass those costs onto consumers in the form of higher prices.
"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". While Harley said it's committed to making motorcycles in the USA, it suggested it had no other choice but to move production from its home market. The company already has plants in Australia, Brazil and India, and it will soon open another facility in Thailand.
In addition, to address the substantial long-term cost burden from the tariffs the company plans to shift production of motorcycles for European Union destinations from the U.S.to worldwide facilities.
The EU targeted the American motorcycles as part of its rebuttal to President Donald Trump'stariffs on imported aluminum and steel, one aspect of his multi-front trade war.
A Harley-Davidson spokesman said the company had nothing to say in response to Trump's tweet beyond its filing with the U.S. Securities and Exchange Commission. Companies are now coming back to America.
Late Monday afternoon President Trump tweeted, "Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag".
"We are now assessing the potential impact on our U.S. facilities", said Harley-Davidson spokesman Michael Pflughoeft.
Harley's entry-level bike in France now costs 7,490 euros ($8,766).
"If Trump's trade policies are leading an iconic company like Harley-Davidson to move production out of the United States, then who exactly is benefiting?"
That's right Mark... the European Union imposed import duties of 25 percent on a range of American goods last week, including Harley-Davidson motorcycles.
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. Daimler, the maker of Mercedes-Benz luxury vehicles, warned last week that escalating tension between the United States and China will impair earnings from its Alabama sport utility vehicle plant and lower profit this year.
The company said it would not raise retail or wholesale prices for its dealers, and expects the tariffs to result in incremental costs of $30 million to $45 million for the rest of2018. US motorcycle sales peaked at more than 1.1 million in 2005 but then plummeted during the recession. "Europe is a critical market for Harley-Davidson", the company said in a statement.
The EU said Friday that it would counter the tariffs with penalties of their own on $3.2 billion of American-made goods.
In a terse editorial by the editors, the staid business-oriented paper held up the announcement that stalwart American manufacturer Harley-Davidson would be moving jobs to Europe - saying American workers are the "biggest losers" under Trump's policies.
In 2017, Trump welcomed executives and workers from Harley-Davidson to the White House, thanking them for building their vehicles in the United States and assuring them, "I think you're going to even expand".
"This is further proof of the harm from unilateral tariffs", AshLee Strong, a Ryan spokeswoman, said Monday.
And sure enough, the rumored couple flew to India together and while there, one insider told ET that Jonas met Priyanka's mother. Priyanka Chopra Unfinished She continued as, I've always wanted to write a book, but the timing never felt right.
After giving birth, Ardern will take a six-week maternal leave, during which her deputy Peters steps in as Acting Prime Minister . Asked earlier this month how the couple had been faring in their quest to choose a baby name , Ms Ardern responded: "Terribly".
Melania broke her silence on the detentions which have seen immigrant children separated from their families earlier this week. President Donald Trump signed an order ending the separations and keeping families together while in custody.
Gary Lineker described their performance the other night as exceptional. "They need to keep their feet on the ground. Loftus-Cheek is set to start for the Three Lions against Panama as Dele Alli is struggling with a thigh injury.
Trump's hardline stance on families trying to enter the USA from Mexico has hardened political differences across America. Other officials have been confronted over the Trump administration's immigration policy as they dined out this week.
They say they came to power in a popular revolt against corruption and are protecting the country from foreign invasion. The war has killed over 10,000 people, mostly civilians, and forced 3 million others out of their homes.
It's not clear how healthy he'll be for the match, and he skipped at least one training session this week. Costa Rica's only World Cup victory against a team from South America was four years ago against Uruguay.
" Immigration must be based on merit - we need people who will help to "Make America Great Again", Trump said in a tweet. He declared that his administration is "doing a far better job" than that of former presidents George W.
I was just thinking how I can return his serve and how I can get into play and position myself well in the next point. The BBC , who were televising the semifinal match between Kyrgios and Marin Cilic , apologised for that was seen.
For that to happen though, it is important that the iPhone be allowed to cross the USA and China borders unfettered by tariffs . The latest move raises the specter that seafood imported from China, including especially tilapia and shrimp, could be next.
Poland crash out of World Cup after 0-3 loss to Colombia
The team was overwhelmed in midfield and looked clueless in attack in another error-ridden display that resulted in an early exit. Radamel Falcao doubled Colombia's lead in the 70th minute, applying the clinical finish to a lovely team move.
Supreme Court Let States Tax Online Shopping
In theory, customers who shopped on those sites were supposed to pay taxes themselves, through the state's use tax , but few did. A new CT law goes into effect at the end of this year to collect taxes from some online retailers.
Talking Points As Nigeria Soar Past Iceland
The spot kick was awarded after a video-reviewed foul on Tyronne Ebuehi for clumsily bringing down Alfred Finnbogason in the area. Chukwu said that the Super Eagles showed "who we are and what we are really made of as Nigerians - a hard fighting people".
International Yoga Day 2018
This day is a reminder of how yoga started more as a spiritual ritual and is now a routine nearly every individual follows. Modi told ANI, that many JD (U) workers and leaders participated in the yoga event organised here earlier on Thursday.