Thread: trump tariffs will hurt Harley Davidson

pops42 - 3/12/2018 at 03:01 PM

http://www.newsweek.com/harley-davidson-tariffs-trade-war-donald-trump-paul -ryan-steel-aluminum-833087

[Edited on 3/12/2018 by pops42]


nebish - 3/13/2018 at 01:36 PM

Harley is already in trouble. Not that I wish for them to get deeper in trouble necessarily. They either have or are closing the St Louis facility and combining it with one in NY or PA. Their new-age core customer base that evolved their profile and boosted sales, baby boomers, no longer want their motorcycles and the former core base of biker enthusiasts (the guys who work on their own bikes) often build or restore older bikes rather than buying new ones.

They will be opening a plant in Thailand to serve the Asian market (rather than exporting from here). The potential negative impact European tariffs could have on their sales could be real, although if somebody wants a Harley, they likely will still want a Harley the only question is will or won't an increase in price change their decision from wanting it to passing on it. Maybe if the US imposed greater tariffs on Honda, Kawasaki, Suzuki and Yamaha motorcycles imported into the US that might have a favorable impact on Harleys.

It is just like anything else, trade barriers we levy on foreign made goods works to rebalance trade and our labor and our production. If Harley has to down-size and shed jobs, those jobs should be able to be reabsorbed back into the economy as other industries and sectors here grow.


pops42 - 3/13/2018 at 05:53 PM

Last nail in the coffin for H.D.


StratDal - 3/13/2018 at 08:02 PM

quote:
Last nail in the coffin for H.D.


Harley charges a lot of $ for its products, just like Gibson. I don't know if Harley is as leveraged out like Gibson but I too think it (and Gibson) will have a difficult time surviving in the long run.


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