Harley got in the trade dispute between the fronts: The EU punitive tariffs on US-motorcycles reduce the gains. The company has now revised its business forecasts for the current year-to-bottom.
According to the published on Tuesday quarterly balance sheet Harley-Davidson expects because of the “expected impact of the tariffs” to” only with a so-called Ebit margin of between nine and ten percent. Previously, the target had still been between 9.5 and 10.5 percent.
In the case of the Ebit margin is the percentage of profit on sales, however, before the deduction of interest and taxes. The margin is a measure of the profitability of a company.
An American icon: The motorcycles of Harley-Davidson – become immortal by the movie “Easy Rider”.
Spanking from the President
Harley-Davidson is affected by the spreads on various US products, which the EU 22. June as a reaction to the US President, Donald Trump has imposed punitive tariffs on steel and aluminum from the European Union had adopted. The rate of duty on motorcycles increased from six to 31 per cent – in order to be around 2200 dollars more expensive if they are shipped from the USA.
As a consequence, Harley-Davidson wants to relocate part of its production abroad, as the company already in June had announced. This attracted the IRE of Trump. He accused the company to use the trade conflict with the EU as an “excuse” for the already planned relocation of Production. Trump threatened the company recently with the “beginning of the end”, it should move really, because he has instigated the trade dispute with the EU a part of their production abroad.
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As the President was still proud
At Harley-Davidson of the US President is particularly sensitive. Because, before the falling out he had ensnared the company as the epitome of “Made in America”. After his arrival, he invited the Harley-heads to the White house and cheered them: “We are proud of you!”.
The charm Offensive came about: Harley is with his “Easy Rider”Image, while still remaining as a Symbol of love of Freedom and individualism. As a regular customer, no left Althippies, but rather conservative white men are but United in the Initiative “Bikers for Trump”, the election campaign for 2020.
“Harley-Davidson is the perfect brand for President Trump, to your community,” said Marketing expert David Langton of the Langton Creative Group last year, the British newspaper “the Guardian”.
Harley suffers from no Trump
The attacks are coming from Washington for the traditional company at the worst possible time. The 115-year-old company is already hit economically. This has to do, among other things, that Harley-Davidson has on the home market, the difficulties to attract younger customers. This is also the most recent balance sheet shows. In the second quarter, sales in the U.S. decreased compared to the same period last year by 6.4 percent to just 46.490 sold motorcycles. Abroad, he increased 0.7 percent on 31.938 motorcycles.
Now trump’s attacks could push the sales even further, while the second most important sales market in Europe groans under the new duties. In addition, the reputation suffers.
For although the radical trade policy course of the President in the USA is highly controversial, there are quite a lot of Americans see the debt, rather, in the case of Harley-Davidson. Even US employees of the company’s strengths Trump the back. Harley search merely an excuse to reduce the production in the United States, said an employee in Wisconsin, in June, the “Financial Times” and added hinz: “you will push Trump into the shoes.”
dk/kle (afp, rtr, dpa)