Mexican Media Brands
Harley-Davidson May Move Bike Output to Avoid EU Tariffs
Harley-Davidson Inc. says it may shift some production of its iconic motorcycles out of the U.S. to avoid punitive import tariffs announced by the EU in response to U.S. tariffs on foreign aluminum and steel.
#economics #aluminum
Share
Harley-Davidson Inc. says it may shift some production of its iconic motorcycles out of the U.S. to avoid punitive import tariffs announced by the EU in response to U.S. tariffs on foreign aluminum and steel.
Harley estimates the EU tax will hike the average price of its bikes by $2,200 (€1,900), Bloomberg News reports. The manufacturer estimates the tariff will cost $30 million-$45 million this year and as much as $100 million in 2019 if the levy continues that long.
Harley says it will absorb the cost of the EU tariffs rather than pass it along to dealers or customers to avoid creating an “immediate and detrimental impact.” The company didn’t say how many jobs in the U.S. could be affected by the production shift, a process it says would take at least nine months.
Bloomberg notes that Harley has overseas assembly operations in Australia, Brazil and India and expects to open a factory in Thailand later this year. The company hasn’t said which of those facilities might be used to supply the European market.
Last year Harley sold nearly 40,000 motorcycles across Europe, capturing 16% of the market there.
RELATED CONTENT
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.