Anyone who follows the motorcycle industry, especially Harley-Davidson Owners, knows how poorly Harley is doing in the market. But not all people realize how badly Trump damaged Harley Davidson (HD) in his first presidency.
The bottom line, was that by imposing tariffs (which trump clearly doesn’t understand), it essentially destroyed Harley Davidson’s overseas sales, and committed HD to close a plant in the US and start producing motorcycles overseas. As well, a partnership with Indian Motorcycle Company, HERO was finalized four years ago. Hero Motors began producing motorcycles in Thailand in 2020 for Harley Davidson.
Trump, after praising Harley Davidson as a ‘great, great, American company’, it immediately impacted Harley Davidson’s bottom line.
Trump then fumed when Harley Davidson, losing money hand-over-fist moved some production to Thailand in order to avoid the Trump induced tariffs.
Then Trump actually denigrated Harley Davidson, chastizing then for taking the necessary measures to stop the bleeding. Suggesting that HD’s motorcycle buyers were the problem, not buying HD products in anger over HD’s necessity to improve sales.
Trump neither provided HD with any of the tariff funds collected, nor did he recognize that Trump’s tariffs were the cause of financial devaluation that in one year would accumulate to 1.4 Billion, 19.2% of Harley Davidson’s Market Cap.
What Trump started in 2016, he will likely finish, along with the possible destruction of Harley Davidson, by instituting a trade war that will increase HD’s costs markedly, and destroy any sales outside of the United States.
The last quarter of 2024 for Harley was again, in a word, terrible. It shipped 39% fewer bikes than the year before, (27,500, down from 43,300 in 2023) with worldwide sales down 13%.
Harley-Davidson was already braced for a decline, though its projection was for lost revenue of up to 9% over 2023. After the Q3 report dropped last week, the Motor Co. revised that forecast, projecting a 14-16% loss. As for retail sales, Harley had originally forecast sales to remain flat to a 3% loss for 2024, but has revised that percentage to be negative 7 to 10 percent. Full-year global shipments are now expected to be down 16-17% rather than the projected 7-10 percent.”
https://www.advpulse.com/adv-news/harley-davidson-faces-q3-losses-amid-slumping-sales/
Which brings us to maybe the worst news for Harley Davidson, Trump’s incoming tariffs. Since Harley’s buyers of historical baggers are aging out and dying out, Harley’s sales domestically have continued to fall. It was hoped that by embracing electric motorcycle technology and building motorcycles in Thailand, Harley would make up for the ever increasing losses on the ICE side of the business. It hasn’t turned out that way. But now that Hero Motorcycles of India are making Harley’s smaller motorcycles, slapping tariffs on imported goods may well add additional costs to assembly plants it operates in Manaus, Brazil and Rayong, Thailand.
Plus foreign nations, including Canada, Mexico and China will have tariffs slapped on their exports to America. It’s obvious that major tariffs will be placed on American goods as well. Seeing as it is the consumer who actually pays for tariffs when they purchase a foreign product, anyone considering buying a smaller Harley will now find that any tariffs placed on foreign products, like Harley’s smaller motorcycles, will be reflected in the United States, as those can really only be passed on to the consumer.
Harley’s electric bikes have fared even worse, with a total of 99 units, including the kids bikes they make as well in 2024 being sold through the first nine months. It’s beyond dismal.
Projected losses on Livewire will amount to between $105-115 million dollars.
And it isn’t that all motorcycle companies are in a slump as worldwide motorcycle sales are projected to be up 1.7%. CFMoto, Honda, Ducati and Suzuki are all seeing positive sales growth.
There are significant winners in relation to the global motorcycle market, but Harley Davidson is not one of them. Nor is KTM and the Pierer Group of companies, who just today filed for bankruptcy protection. An article will be coming shortly that looks at what’s gone wrong at KTM.
Ciao…
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