Skip to comments.On Harley-Davidsonís Big, Fat Mistake
Posted on 06/29/2018 9:34:30 AM PDT by Thalean
Harley-Davidson on Monday announced that it would move production for its European customers overseas, in order to avoid the European Unions (EU) new import duties. President Trump slammed the move and accused the company of raising the white flag of economic surrender on Twitter.
Trump is right. Harley-Davidsons decision is perhaps the most incompetent public relations blunder since Starbucks said it would replace 10,000 American workers with Syrian refugeesno doubt they will pay a heavy price.
In the meantime, Harleys loss is our gain, as every individual failure makes the whole stronger.
(Excerpt) Read more at amgreatness.com ...
Who is buying huge motorcycles these day?? Not the girlie Millenials.
HOG shares are nosediving. Bad business move boys.
That used to be trendy for the metrosexual fags but the fad is gone.
The article is absolutely right about why people by Harleys, it’s been proven with the Japanese where owning a hog is a status symbol in the land of high-end motorcycles. It’s all about the brand and perception, and HD will lose that.
Moreover they acted precipitously since anyone knows that Trump is using tariffs and threats of tariffs as a negotiating tool. And he has a habit of winning. Take away the tariff in a year and how smart does HD’s decision look? They could have held off 6 months or a year easily, and it’s entirely possible they will reverse this decision before any production even begins in Europe.
The EU is the most difficult, costly, inflexible place in the world for a manufacturing business. Decisions like this are not made overnight either, they’ve had this plan in the works for a long time and just found what they think is a convenient excuse to trigger it. HOG stock still hasn’t recovered.
And what happens when the trarrifs end. Do they move back?
The Golden Aspen Rally, held in
Ruidoso, NM, has had at least
30,000 attendees per/y since 1986.
I reside in Roswell and there
is a steady stream of bikes roaring
past my home in September. With
riders of all age groups. Not
every 30 year-old out there is
of the “Millennial” attitude.
Hah! Show us pictures of the ride where the vast majority isnt old bikers and far broads on the back. Every group of Harley riders Ive ever seen is in their sixties.
I live along Rt 66 and see group after group riding rental Harley’s. Most are in their 30’s and 40’s.
Now local riders on average do have gray beards and hair most the time but not all. Bike clubs attract a wide variety of age groups.
If Harley does move production overseas; it will be self-inflicted suicide for the brand. Maybe not right away but within 10 years for sure.
Polaris makes the Indian motorcycle now. It would replace Harley as the true American motorcycle. It’s even possible Polaris would bring the Victory brand back if it did well enough.
The big question is if there will be a market for it in America because Harley’s are ridden by the older crowd much of the time as you said. They are about the only ones who can afford to buy them new. Used Harley’s are going for very low prices right now though. Sometimes these things trend up and then down then back up again. Time will tell I guess. All it takes is one Millennial movie and bam; big street bikes are popular again. Look what “Easy Riders” did for Harley back in the 60’s and 70’s.
H-D screwed the pooch bigly here.
Trying to blame PDJT for their inability to plan, manage, and budget is not sitting well with engaged, informed Trump supporters.
I was considering a Harley to assuage my late-in-life crisis (blew right past the mid-life one), but now I’m looking at an Indian Scout.
As I understand it, they wanted to move Production there to manufacture Motorcycles for the European Market, not our Market.
This wasn’t due to POTUS Trump’s Trade Polices, but the Policies of the EU.
If what I understand is true, I don’t blame them one bit.
A few weeks ago I was staying at a nice resort up in the Blue Ridge Mountains. Saturday evening, about 40 Hogs with couples rolled up at the main entrance to unload. All 55-70 year old's in nice new leather, big beards and perfect bikes. Most reliving the childhood they never got anywhere near. When the guys came back out to park their rides, about half of them rode up and down the parking lot lanes like idiots with the reaction times, vision and balance of old men. And no helmets. I was embarrassed for my age group.
Harley-D has been moving ops overseas for years now. India. Brazil. Australia. And they announced the shutdown of KC factory back in January! Unions. Just cannot compete. Period.
Some people ride motorcycles to be seen. I ride to disappear. And that’s why I ride a KLR 650.
This is my KLR:
If they move Harleys and we import them they will be subject to our tariffs.
The is no tariff on exported motorcycles. So this mover has other political motives for such a dumb decision.
They have big hurdles IMHO, read on...
* They bought the design rights to the 3 wheel FWD TriHawk essentially a 3 wheel Lotus 7.
* With almost 100 built in the 80's they are a rarity.
* With an aging demographic, Polaris and Bombardier making 3 wheelers for this market, Harley hasn't produced the TriHawk.
* Why no TriHawk?
* I stand alone here on FR as I say an electric car revolution is coming, and that is for bikes too.
Yes Harley is tinkering and has a partner in this arena, but will they take it to the next level.
More on Electric Drive....
* VW gave 100 million dollars to San Jose Solid State start up QuantumScape.
* Go look at their non-descript website, hmmm...
* Research their CEO and his outstanding record of being a Startup Ace, my gosh, he is a phenom.
* I want you to think about that, that is a lot of money, from a German Manufacturer. Has anyone worked with or for from firms from their and their reputation? To let go of control like that and believe in exogenous expertise?
If we are on the verge of this and any other breakthrough batteries, what does that do to the Motorcycle Market? Yes I like the sound of many different types of bikes, including the Harley "potatoe-potatoe", however we have to ask, will Harley riders embrace this paradigm change....
Harley is dead. They banked on old 1938 engine design. It is over.
Are they under the delusion that union difficulties will cease by moving to the EU? These are idiots who should have nothing to do with HD.
And what is Harley supposed to do? Currently 40% of their market is overseas and that market, unlike the domestic market, is growing. In order to avoid being priced out of competition by tariffs they have no alternative except to manufacture in foreign countries for foreign consumers. Check that, they do have one other alternative. Bankruptcy and liquidation.
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