Harley Davidson makes its move...

[IGIT]

hello and good morning everyone!

we've wondered how US companies will fare in the face of the trade war. would they buckle down and take their hits?

would they thrive with captain Trump at the helm and start winning?

here's what's happening at Harley Davidson;

Company shares slumped almost 3 percent before the opening bell on Monday.

https://www.cnbc.com/2018/06/25/har...not-raise-prices-to-cover-eu-tariff-cost.html

Harley-Davidson, the American motorcycle manufacturer, said on Monday that it was shifting some of the production of its bikes outside the United States to avoid European Union tariffs imposed as part of a widening trade dispute.

It did not say how jobs in the United States would be affected.

https://www.nytimes.com/2018/06/25/business/harley-davidson-us-eu-tariffs.html?rref=collection/sectioncollection/business&action=click&contentCollection=business&region=rank&module=package&version=highlights&contentPlacement=1&pgtype=sectionfront

- IGIT

 

[Big Nasty Edison]

Isn't them moving production out of the US exactly what most people expected?

 

[Higus]

Isn't them moving production out of the US exactly what most people expected?

Trump voters or people who actually understand the economy?

 

[SaiWa]

Isn't them moving production out of the US exactly what most people expected?

They were already shifting production out to Thailand and closed down some plants (post tax break declaration) but with the EU tariffs they were going to shift even more production...

HD was already in trouble with their sales so hopefully it's only just that they are being forced to make this kind of adjustment due to recent tariff hikes but I strongly doubt it and there will be more...

 

[Billy no mates]

Making Thailand great again .

 

[Big Nasty Edison]

Trump voters or people who actually understand the economy?

If I had to make a wild guess, I would assume most Harley Davidson employees and fanboys in the US are likely Trump voters.

 

[Misfit23]

MAGA

 

[jamel]

Why buy a harley when I can get this Hyosung that looks just like a Harley, with warped rotors and a poorly attached cushion for 4000?

Yall really want one of those big ass bikes to be made with chinese metal?

Kickstands aint gon be worth a shit...

Fat folks are going to have to lose weight or mod the shit.

 

[Quequeg]

Are libruls angry about this?

 

[Roljo]

Well that was always going to happen, not the last company to do so either

 

[Big Nasty Edison]

Are libruls angry about this?

Does this emoji convey anger or more expected disappointment?

 

[Quequeg]

And Trump voters actually thought he was going to keep jobs in Murica, LOL Rubes.

 

[Not A Theist]

Honestly, however much I'd like to blame Trump for this, I'd guess that it's more like the fact that HD's business model caters towards a juvenile notion of masculinity which is falling out of style in our culture. Trump himself is a part of that culture to a degree but I think as we have generations of more balanced and less insecure young men growing up we'll see companies like Harley Davidson continuing to flounder.

They'd best take a lesson from a company like Budweiser and start making the bike version of light beers and mixed beer drinks before they're swept under a tide of hybrid scooters and battery powered bikes.

 

[IGIT]

If I had to make a wild guess, I would assume most Harley Davidson employees and fanboys in the US are likely Trump voters.

hola Edison,

Matt Levatich, the CEO of Harley Davidson, seemed pretty cozy with Mr. Trump - he was gushing after he met with the new POTUS in 2017;

"I think it was a wonderful opportunity to engage with the administration. What I was most impressed with is how engaged they were with what we had to say as a great invested American manufacturer, they really wanted to know what we thought,"
https://www.thestreet.com/story/139...ow-the-trump-administration-impressed-me.html

hmmm. so far, here is how i see the "winners and losers" regarding the massive tariffs Harley is facing in Europe;

Japanese motorcycle manufacturers - Big Winner, since they aren't facing these draconian counter tariffs that Harley is being challenged with

foreign Harley production facilities in Thailand, Brazil, India and their employees - Winner

Harley CEO Levatich - Winner (with the hefty tax cuts he's received on both the personal and corporate side, he wins no matter what.) assuming these jobs end up being outsourced to nations with lower production costs, he wins big time.

domestic Harley production facilities in Wisconsin, Missouri and Pennsylvania and their employees - Loser

*ponders*

i'd say that's 3 wins and 1 loss. a net positive!

- IGIT

 

[Seano]

Trump voters or people who actually understand the economy?

Pretty sure that Harley struggling is not news and that most people were aware. No one had special info or a lack of based on their political affiliation.

 

[IGIT]

Honestly, however much I'd like to blame Trump for this, I'd guess that it's more like the fact that HD's business model caters towards a juvenile notion of masculinity which is falling out of style in our culture. Trump himself is a part of that culture to a degree but I think as we have generations of more balanced and less insecure young men growing up we'll see companies like Harley Davidson continuing to flounder.

They'd best take a lesson from a company like Budweiser and start making the bike version of light beers and mixed beer drinks before they're swept under a tide of hybrid scooters and battery powered bikes.

hi and well met, Not A Theist,

Harley has been sending production overseas, just like all manufacturing has - but this response is new, and directly a result of the European counter tariffs.

the tariff on Harleys used to be 6%. its now 31%. this move was not one that was on the drawing boards - the company itself has stated that it could take as long as eighteen months to complete.

regarding Harleys themselves...they are what they are. huge, loud, rather cumbersome bikes that cost over 20k. that's their niche - and they dominate it - but its still a niche bike. no one is going to want to ride a Harley Davidson moped or a Harley Davidson electric scooter.

- IGIT

 

[IGIT]

Pretty sure that Harley struggling is not news and that most people were aware. No one had special info or a lack of based on their political affiliation.

hiho Seano,

that Harley has been struggling is not news.

that they're sending production overseas as a direct result of the spike in tariffs? that is news.

- IGIT

 

[jamel]

I need to hurry up and buy a Bobber...

It's got to be a bitch getting dreads into a helmet.

 

[IGIT]

Are libruls angry about this?

hi there Quequeg,

i am not angry.

i think its kind of funny. as our POTUS said...

trade wars are good, and easy to win

https://www.cnbc.com/2018/03/02/trump-trade-wars-are-good-and-easy-to-win.html

the term "winning" is taking on a kind of a elastic quality nowadays. apparently it can mean just about anything.

- IGIT

 

[Not A Theist]

hi and well met, Not A Theist,

Harley has been sending production overseas, just like all manufacturing has - but this response is new, and directly a result of the European counter tariffs.

the tariff on Harleys used to be 6%. its now 31%. this move was not one that was on the drawing boards - the company itself has stated that it could take as long as eighteen months to complete.

regarding Harleys themselves...they are what they are. huge, loud, rather cumbersome bikes that cost over 20k. that's their niche - and they dominate it - but its still a niche bike. no one is going to want to ride a Harley Davidson moped or a Harley Davidson electric scooter.

- IGIT

Hello IGIT,

You have a very formal and polite way of addressing people. This is nice! Thank you for that.

The insights you presented causes me to reconsider my presuppositions. Thank you for providing it. I do believe that the niche you mention is likely going to shrink over time for the reason I mentioned above, but apparently Trump is directly responsible for what you brought attention to. This is good to know, and shows a bitter fruit of his policies.


Have a good day,
Not a Theist.