Harley Davidson Moving Some Production Overseas

[Shabibilicious]

DJT is upset at Harley's move, when he should realize he's playing with people's livelihoods with his trade war.....Maybe he should find a way to put Trump products in the firing line as a show of good faith to the American people.  Most companies and their share holders will not stand idly by and "hope" good things will happen.  As always, just my opinion.

 

https://www.washingtonpost.com/news/business/wp/2018/06/25/harley-davidson-moves-work-offshore-to-limit-blow-from-trumps-trade-war/?noredirect=on&utm_term=.4be60744c2c9

 

GO RV, then BV

[bostonangler]

It's global economy... People who think you can go back to the 1930s and live on an island are in for a bad ride... And yes if our president led by example and had his products made in America it might make a difference, but having his stuff made in China shows he wants cheap labor and bigger profits... So for him to rag any other company for going overseas is really ridiculous...  JMHO

 

B/A

[Shabibilicious]

I myself think Harley's are an ultra cool, quality made, American product....though somewhat pricey.  That said, it's no secret that HD has had it's problems over the years and that their margins are not as wide as some people may believe.  Therefore, any disruption in material prices is felt almost immediately and the company brass obviously feels that proactive moves must be made to insure company survival.  

 

GO RV, then BV

[bostonangler]

36 minutes ago, Shabibilicious said:

I myself think Harley's are an ultra cool, quality made, American product....though somewhat pricey.  That said, it's no secret that HD has had it's problems over the years and that their margins are not as wide as some people may believe.  Therefore, any disruption in material prices is felt almost immediately and the company brass obviously feels that proactive moves must be made to insure company survival.  

 

GO RV, then BV

 

Also, their sales have been increasing in Europe while declining here in the USA.... So they have to go where the money is and that is Europe... Funny isn't it? In Europe American products are cool, like Harley Davidson, Jack Daniels, Levi's, but in America people want imports, go figure.

Personally, I'll put on my Levi's, take out my Road King and when I'm done I'll sit on the tailgate of my Chevy pick-up and sip my Gentleman Jack, but hey that's just me!!!

 

B/A

Edited June 26, 2018 by bostonangler

[bostonangler]

President Trump's trade war with the rest of the world rages on, and businesses are bearing the brunt of the repercussions.

 

Companies across multiple industries are expected to be affected by the growing number of tariffs the U.S. has placed on other countries and retaliatory tariffs that have been levied against the U.S. Some companies are already feeling the effects and have had to find a way to offset the damages.

 

The companies below offer up a taste of what could lay ahead for investors when second quarter earnings season kicks off in July.

Daimler AG

 

The first company to change its financial forecasts because of tariffs, Daimler (DMLRY) turned heads when it offered an unexpected profit warning in mid-June.

 

The luxury car manufacturer expects profits for its Mercedes-Benz vehicles for the year to be slightly lower than in 2017 "because of increased import tariffs for U.S. vehicles into the Chinese market." The company sees China's retaliatory tariffs to lead to fewer sales, and predicts it will have higher costs.

 

Chinese demand for vehicles is too great for Daimler to make up "by the reallocation of vehicles to other markets," the company said in a statement.

MillerCoors

 

Most American brewers stand to be affected by aluminum tariffs that will cut into profit margins, and for MillerCoors, that loss will total $40 million.

 

CEO Gavin Hattersley told Bloomberg that raising prices by 50 cents per 12-pack to offset the tariffs would be detrimental to the beverage industry.

"I can't just go to the shareholders and say, 'You're going to have to accept my profit's going to be $40 million less," Hattersley. "It doesn't work that way."

 

By some estimates, the tariff itself would be equal to $347.7 million in taxes for the brewing industry and could lead to over 20,000 jobs being lost.

Harley-Davidson

 

Milwaukee-based motorcycle manufacturer Harley-Davidson (HOG - Get Report) plans to move part of its production for Europe-bound bikes to international facilities. The company estimates the increase in trade tariffs will add an estimated $2,200 per motorcycle exported to the EU.

 

The company wrote that it would prefer to keep production state-side, but the costs associated with the trade tariffs make the option unfeasible if it still wants to conduct business in Europe.

• 3 Investing Tips From Jim Cramer That Will Help You Survive a Market Correction

 

"Harley-Davidson believes the tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region, reducing customer access to Harley-Davidson products and negatively impacting the sustainability of its dealers' businesses," the company said in a statement.

Jack Daniel's

 

Many Europeans will have to pay 10% more for each bottle of Jack Daniel's Tennessee Whiskey in the coming months after the maker of the brand, Brown-Forman Corp. (BF.A - Get Report)   (BF.B - Get Report) raised prices in late June. 

 

The price hike came after the EU and Mexico imposed 25% tariffs on American whiskey in retaliation to trade measures levied by the Trump administration. Phil Lynch, a Brown-Foreman spokesperson, said the company just raised prices on its whiskey in Mexico and doesn't anticipate another boost there anytime soon.

 

More than a one-fourth of Brown-Foreman's revenue comes from Europe, according to FactSet data.

https://www.thestreet.com/investing/stocks/these-companies-have-come-out-with-warnings-amid-trump-trade-war-14632986

 

B/A

[Shabibilicious]

Trump Fumes At Harley-Davidson

 

https://www.yahoo.com/news/never-trump-fumes-harley-davidson-tariff-tweetstorm-135246192.html

 

One question, Mr. Trump....Where are your Trump brand products made?

 

GO RV, then BV

[markb57]

HD has been teetering on bankruptcy for years. As far as tariffs, it's ok for the US to pay extreme tariffs and other countries not to?? I say fair is fair and all countries eliminate tariffs and see where that goes.

[bostonangler]

5 minutes ago, markb57 said:

I say fair is fair and all countries eliminate tariffs and see where that goes.

 

Call your senator or congressman.... 

 

B/A

[GregHi]

MAGA one lie at a time.. 

[umbertino]

27 minutes ago, markb57 said:

HD has been teetering on bankruptcy for years. As far as tariffs, it's ok for the US to pay extreme tariffs and other countries not to?? I say fair is fair and all countries eliminate tariffs and see where that goes.

 

Agreed

[bostonangler]

Donald Trump warns he will tax Harley-Davidson 'like never before' in relocation response

President Donald Trump has warned he will tax Harley-Davidson "like never before" if it goes ahead with plans to move production outside the US, saying the company's motorcycles "should never be built in another country".

Harley-Davidson had on Monday announced it would be moving its production of motorcycles for EU destinations from the US to its international plants, which are located in Thailand, Brazil, India and Australia, citing the escalating trade war between the US and EU.

Last week, EU tariffs were imposed on $3.3bn (£2.5bn) in US imports, including motorcycles, in response to US duties on steel and aluminium imports from the EU – a move Harley-Davidson said would increase the cost of its bikes for European customers by around $2,200 each. 

Harley-Davidson had said it was seeking to "address the substantial cost of this tariff burden long-term", and expected to ramp up production in international plants within the next nine to 18 months.

However, Mr Trump branded the company's move a "white flag" and an "excuse", and said he had "fought hard for them".

He said he had met with executives from the company earlier this year and they had said then that they would be moving a substantial part of their operations to Thailand.

"That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced & unfair trade is, but we will fix it," he wrote on Twitter. 

"If they move, watch, it will be the beginning of the end – they surrendered, they quit!" he said. 

His comments come amid mounting tensions between the two trade blocs, as rhetoric ramps up on both sides of the Atlantic. 

Mr Trump last week threatened he would introduce new 20pc tariffs on imports of EU cars, and on Tuesday said the US was close to finishing its report into "tariffs on cars from the EU in that they have long taken advantage of the US in the form of trade barriers and tariffs".

"In the end it will all even out – and it won't take very long!" he said. 

EU officials over the weekend said, should these additional tariffs be imposed, it will take further retaliatory measures against the US.

Currently the US taxes imports of EU passenger cars at a rate of 2.5pc, and of 25pc for imported pickup trucks, while the EU imposes tariffs of 10pc on US imported cars. 

Why Trump's trade war with the EU and China could end in disaster

The ongoing ***-for-tat tariffs have led to warnings from international bodies, including the International Monetary Fund and credit ratings agency Moody's, over how they are putting global economic growth at risk. 

Chancellor Philip Hammond echoed those comments on Tuesday, when speaking to CNBC, cautioning that a full-blown trade war would be a "disaster for everyone, not least for the United States".

Speaking to CNBC, he said: “What I can say is this: whatever happens the UK will remain an outspoken proponent of open markets and free trade, low tariff barriers and low non-tariff barriers.

https://www.yahoo.com/finance/news/donald-trump-warns-tax-harley-155709247.html

 

 

B/A

[yota691]

Harley Davidson is an American name, but majority of the parts are made by Honda now days....I guess Indian Motorcycle will take it place...

[bostonangler]

What's the big deal if Harley builds in Europe. There are Trump Towers across the world. Should he tax them like never before? We have Toyota, Nissan, BMW, Mercedes Benz, Kia, Hyundai, and Volkswagen building here and putting Americans to work. That's what is called a global economy... Do we want to boot those companies out and lose those jobs??? How many people do you know who make their living by suppling parts to those manufacturers, or drive trucks that deliver to those factories? Come on people time to stop playing ostrich and get your heads out of the sand.

The world is shrinking and there is no turning back to the days of isolationist... President Trump needs to stop playing politics and be the business man he tells us all he is.... No businessman is going to risk all those paychecks to soothe his ego.  JMHO

 

B/A

[bostonangler]

32 minutes ago, yota691 said:

Harley Davidson is an American name, but majority of the parts are made by Honda now days....I guess Indian Motorcycle will take it place...

 

I've driven the new Indian Chieftain… It is a nice ride.

 

B/A

[Karsten]

The new line of HD is pretty bad design wise compared to bike of the past and even just last year.

 

The new Fat bay is more reminiscent of the Honda 305 Dream of the 60's that that of the FB just last year.  The same can be said for a few of the other models.

 

Way too many Sportster Models and they completely dropped the Dyna.

 

I will stick to my old ones and be happy.

 

 

 

Harley have not been American Made for years....as a lot of the are made in China and Japan and assembled here.

 

Karsten

[bostonangler]

1 minute ago, Karsten said:

The new line of HD is pretty bad design wise compared to bike of the past and even just last year.

 

The new Fat bay is more reminiscent of the Honda 305 Dream of the 60's that that of the FB just last year.  The same can be said for a few of the other models.

 

Way too many Sportster Models and they completely dropped the Dyna.

 

I will stick to my old ones and be happy.

 

 

 

Harley have not been American Made for years....as a lot of the are made in China and Japan and assembled here.

 

Karsten

 

Nice rides Karsten… My 02 Road King is truly a classic which I will own forever.... Yota brought up Indian. I drove one last fall, it was pretty sweet..

 

B/A

[umbertino]

 

Beautiful rides....Congrats to the owners (and makers, obviously)

[bostonangler]

1 hour ago, bostonangler said:

, it will be the beginning of the end

 

Trump words, however the only beginning to the end I'm seeing is the end of the bull market that's been running since 2009... 18 months and his business prowess is coming to light. Not many people can bankrupt a casino... I'm just saying.

 

B/A

[bostonangler]

MINNEAPOLIS (AP) — President Donald Trump asserts that Harley-Davidson is using retaliatory tariffs by the European Union as an "excuse" to move some of its production overseas. Trump argues that Harley was already pursuing plans to shift some operations abroad before it announced this week that it would make motorcycles for the EU market outside the U.S.

On Tuesday, the president tweeted incorrectly that Harley was shifting its operations in Missouri to Thailand. Still, Harley has said previously that a long-term goal is to expand its international business and that it faces excess capacity in the U.S., where sales of the iconic American brand have declined as its core market has aged.

Milwaukee-based Harley said Monday that EU tariffs on its American-made motorcycles jumped between 6 percent and 31 percent as a result of the escalating trade war, adding about $2,200 in cost to the average Harley sold in the EU. The company said it would absorb those costs instead of raising prices.

A look at how Trump's tweets on Harley compare with the facts:

TRUMP: "Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced & unfair trade is, but we will fix it....."

THE FACTS: Harley said no such thing. The company said in January that it would close its motorcycle plant in Kansas City, Missouri, in a cost-cutting move. It said it would shift those operations to its plant in York, Pennsylvania. The company also said it would close a wheel plant in Adelaide, Australia. Harley said it expected to eliminate 800 jobs in Kansas City, plus 90 in Australia, while adding 450 jobs in York by mid-2019. The company did not say it was moving any Kansas City operations to Thailand

In May 2017, the company did announce plans to build a plant in Thailand to make motorcycles for Asian markets. But that was months before it announced the closure of the Kansas City plant. Harley officials denied when they announced the Kansas City closure that it was because of the plant in Thailand, though union officials have made that allegation. The company has more recently cited Trump's decision to pull the U.S. out of the Trans-Pacific Partnership for building the Thai plant, which is expected to open later this year.

Harley's announcement Monday did not say where it will build the motorcycles that it will sell in European Union countries. Michael Pflughoeft, a spokesman, said in an email to The Associated Press only that it would be at the company's "existing international facilities." The company said it would provide more details during its next quarterly earnings announcement July 24.

The company already operates assembly plants in Manaus, Brazil, and Bawal, India, to make motorcycles for those local markets, where tariffs on imported bikes are steep. The India plant also makes certain models for other markets outside North America. Those plants receive many of their parts from Harley's plants in the U.S., primarily from Wisconsin.

Worldwide sales of new Harleys in the first quarter of this year were down 7.2 percent compared with the first quarter of 2017. And they fell 12 percent in the U.S. compared with a rise of 0.2 percent in international markets. Sales were up strongly in Europe and Latin America. The company sold nearly 40,000 new motorcycles in Europe last year and says its revenue from EU countries is second only to the U.S.

While Harley says it has a goal of creating 2 million new riders in the U.S. by 2027, it's also banking on boosting its international business to 50 percent of its annual sales volume, compared with 39 percent last year.

TRUMP: "....When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high. Companies are now coming back to America. Harley must know that they won't be able to sell back into U.S. without paying a big tax!"

THE FACTS: Pflughoeft said Harleys sold in the U.S. will continue to be made in the U.S.

____

Find AP Fact Checks at http://apne.ws/2kbx8bd

 

Why does he insist on continual lies? The truth is scary enough.

B/A

[Shabibilicious]

Half truths?.....Wow, put the liar on a pedestal why don't you.  

 

GO RV, then BV

[bostonangler]

This what fascism looks like boys and girls. Harley Davidson is a private company and none of his business. Now he threatens government intervention which is what fascists do. Force private companies to follow government orders, or pay the consequence. Very typical fascist move, here in the land of the free. True patriots should be outraged that government is becoming so intrusive into their lives.

[Shabibilicious]

Trump-supporting Harley Owners Speak Out

 

https://www.yahoo.com/finance/m/1926c0a2-b471-33b7-8858-2ad55258431c/ss_what-trump-supporting-harley.html

 

GO RV, then BV

[yota691]

3 hours ago, bostonangler said:

This what fascism looks like boys and girls.

Keep pushing your narrative...and Please don't refer to Me or Others here as children again....

 

3 hours ago, bostonangler said:

Force private companies to follow government orders

 Where have you been all your life, I run two business and I'm force to provide Financially statements, pay taxes, monthly yearly...Heck I gotta go stroke a couple checks today..

 

3 hours ago, bostonangler said:

True patriots should be outraged that government is becoming so intrusive into their lives.

Yes I agree the gov and other municipality intrude all the time and it gets stressful, but this has been going on way before Trump, In which you have so much hatred for as it Shines and Glows here @DV everyday..

[Shabibilicious]

8 minutes ago, yota691 said:

Where have you been all your life, I run two business and I'm force to provide Financially statements, pay taxes, monthly yearly...Heck I gotta go stroke a couple checks today...

 

Wow....85 thousand threads/posts AND two businesses.....your time management skills are off the chain, Master Yota.  

 

GO RV, then BV

Edited June 28, 2018 by Shabibilicious

[Shabibilicious]

3 hours ago, bostonangler said:

This what fascism looks like boys and girls. 

 

Please don't refer to Me or Others here as Guys and Dolls again.....  

 

GO RV, then BV