Murka. China. IT'S ON. [US Dials Up On Another $200 Billion Plus Another Possible $200B For $450B]

[nac386]

Harley Davidson is failing, Americans aren't buying Harleys like they used to.

this move has probably been in the works for a while. They're just using Trump as an excuse to sell their overpriced bikes in Europe.

Just to be clear, you think that Harley Davidson is blaming Donald Trump just for an excuse? You don't think most Harley Davidson customers are Trump supporters? That seems like it would be an exceptionally bad business decision. I think the more realistic explanation, is that Harley Davidson is being honest.

 

[Seano]

Just to be clear, you think that Harley Davidson is blaming Donald Trump just for an excuse? You don't think most Harley Davidson customers are Trump supporters? That seems like it would be an exceptionally bad business decision. I think the more realistic explanation, is that Harley Davidson is being honest.

Wasn't that the implication of the poster I quoted?

No, I think they are just trying to tap into the euro market while not losing face back home.

 

[SaiWa]

Harley Davidson is failing, Americans aren't buying Harleys like they used to.

this move has probably been in the works for a while. They're just using Trump as an excuse to sell their overpriced bikes in Europe.

They've already been selling their overpriced bikes in Europe. But more of them will be produced outside of the United States now thanks to the tariffs...

That massive tax cut they receive is certainly helping Harley Davidson American workers heh?

 

[Seano]

They've already been selling their overpriced bikes in Europe. But more of them will be produced outside of the United States now thanks to the tariffs...

That massive tax cut they receive is certainly helping Harley Davidson American workers heh?

Tax cuts do nothing if people aren't buying their product.

 

[SaiWa]

Tax cuts do nothing if people aren't buying their product.

people are buying their product.. just not as much (in the US).

The massive dropoff in sales went into full effect in 2017. They had been doing okay and were actually planning on buying Ducati before poor sales catapulted those efforts. yes they're not making as much money but it's not as if they're going bankrupt tomorrow and the tax cut should have helped them keep production stateside. It has everything to do with the fact that foreign sales (especially Chinese market) is going up while US sales are going down. It makes all the financial sense to produce outside the US because it's cheaper and closer to your customers.

So yeah they're taking the extra money from their tax cut and investing outside the US.

MAGA.

 

[Seano]

people are buying their product.. just not as much (in the US).

The massive dropoff in sales went into full effect in 2017. They had been doing okay and were actually planning on buying Ducati before poor sales catapulted those efforts. yes they're not making as much money but it's not as if they're going bankrupt tomorrow and the tax cut should have helped them keep production stateside. It has everything to do with the fact that foreign sales (especially Chinese market) is going up while US sales are going down. It makes all the financial sense to produce outside the US because it's cheaper and closer to your customers.

So yeah they're taking the extra money from their tax cut and investing outside the US.

MAGA.

Thats what companies do when costs exceed profits.

 

[SaiWa]

Thats what companies do when costs exceed profits.

Cost exceed profits?...

profit margin for Harley Davidson is sitting at 39% for this past quarter. their best quarter ever was at around 42% in 2015.. They're still making money. Average quarter for last year is around 38% so they actually jumped up a bit. They average 38-39% since 2005 (based on a simple glance at the data).

There's plenty of profits and yet they're still shipping jobs outside the US..

you got any other excuses for HD?


edit - btw... I know that net profit is much more important for large companies but last I checked they're still in the positive, they're flush with cash (near a billion) and that's after a $700 million stock buy back to reward their shareholders thanks to the tax cut and they're not changing course in shipping out jobs.

 

[Prutfis]

Harley Davidson is failing, Americans aren't buying Harleys like they used to.

this move has probably been in the works for a while. They're just using Trump as an excuse to sell their overpriced bikes in Europe.

Lol.

 

[Gunny]

Here's an interesting bit of trade war news from my industry. Apparently Restoration Hardware is planning on reducing its Chinese imports from 40% of all product sold in 2017 to 25%-30% in 2019. While they claim this is specifically in response to tariffs on products they import I don't believe the current list of tariffs warrant a shift this drastic. Rather, I think they're making a calculated bet that Chinese sourcing is a long term losing proposition. In this sense I'd say the real impact of the trade war, so far anyway, may be to fast track sourcing decisions that I've seen in the pipeline for years.

http://ir.restorationhardware.com/n...ourcing-china?field_nir_news_date_value[min]=