Harley-Davidson Addresses Upcoming Production Move to Europe

Harley-Davidson caused controversy this past June after stating that it would move some of its production to Europe due to President Trump’s trade wars.

On Tuesday, the company directly addressed the effects of tariffs on their products and remained unclear regarding whether American jobs will be lost due to the move.

The company’s chief financial officer gave a vague answer to both questions, stating:

We are looking at all of our options there. We’ve got three international faciilties, and we’re looking at the best opportunity to supply the EU (European Union countries) out of those facilities…When we have the plan we’ll provide it to you.”

Harley-Davidson was naturally concerned about the upcoming EU tariffs, which will be raised from six to thirty-one percent. The EU primarily imposed the tariffs in response to Trump’s trade wars.

The joint efforts have caused the company to raise the price of each of its bikes by $2,200.

Harley-Davidson has found itself in a difficult position, as the company is attempting to maintain international sales to combat a loss in domestic profits. Therefore, the EU’s tariffs would have drastically decreased the company’s international revenue.

Harley-Davidson’s focus on international sales proved itself to be effective earlier this year, as the company stated that its sales in Europe increased by almost 5%.

The company will still have to face the challenge of sending all previously manufactured motorcycles to Europe.  Harley-Davidson’s financial officer addressed these challenges, stating:

We never contemplated moving our European volume out of the United States. Consequently we’re analyzing the capacity options that we have… and we are working on the overall plans, and when we have them we’ll provide more information. That includes working with political partners. We are working with the administration, we are working with all governments we can to do the best we can to get these tariffs removed.

When Harley-Davidson announced its decision to move production out of the U.S., President Donald Trump was eager to threaten the company.

He stated:

“Please build those beautiful motorcycles here in the USA again. Don’t get cute with us. Your customers won’t be happy if you don’t.”

 

Featured Image via Pixabay

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