http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
Why Is Harley Davidson Moving Production Out of the USA?
Who would have thought? Harley Davidson, an American icon, is going to build motorcycles outside of America! Why is Harley Davidson moving production facilities out of the USA? As the Trump trade war between the USA and everyone else ramps up Harley Davidson is looking at Europe where they sell about 40,000 bikes a year. This is second only to their sales in the USA. Harley would be an obvious target for tariffs by the EU. It is an iconic American brand and it started in a state, Wisconsin, that voted for Donald Trump. Harley Davidson is looking to remain competitive in Europe. But, how big of a change is this for the company?
Harley Davidson Production Facilities
The company was founded in Milwaukee, Wisconsin in 1903 and its corporate offices remain on the original manufacturing site. But Harley Davidson has many manufacturing facilities according to the Harley Davidson Website.
USA, Missouri, Kansas City – Vehicle and Powertrain Operations.
USA, Pennsylvania, York – Vehicle Operations.
USA, Wisconsin, Menomonee Falls – Powertrain Operations.
USA, Wisconsin, Tomahawk – Tomahawk Operations
Australia, Adelaide – New Castalloy
Brazil, Manaus –Harley-Davidson do Brasil Ltda Assembly Plant
India, Bawal – Harley-Davidson India Bawal Assembly Plant
Thailand, Rayong – Thailand Sales Office and Assembly Plant
How Does a Trade War Hurt Harley Davidson?
An interesting article in the Manchester Guardian writes that the trade war is a threat to Harley Davidson.
2. Who would have thought? Harley Davidson,
an American icon, is going to build
motorcycles outside of America!
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
3. Why is Harley Davidson moving production
facilities out of the USA?
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
4. As the Trump trade war between the USA and
everyone else ramps up Harley Davidson is
looking at Europe where they sell about
40,000 bikes a year.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
5. This is second only to their sales in the USA.
Harley would be an obvious target for tariffs
by the EU.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
6. It is an iconic American brand and it started in
a state, Wisconsin, that voted for Donald
Trump.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
7. Harley Davidson is looking to remain
competitive in Europe.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
8. But, how big of a change is this for the
company?
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
10. The company was founded in Milwaukee,
Wisconsin in 1903 and its corporate offices
remain on the original manufacturing site.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
11. But Harley Davidson has many manufacturing
facilities according to the Harley Davidson
Website.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
12. USA, Missouri, Kansas City – Vehicle and
Powertrain Operations.
USA, Pennsylvania, York – Vehicle
Operations.
USA, Wisconsin, Menomonee Falls –
Powertrain Operations.
USA, Wisconsin, Tomahawk – Tomahawk
Operations
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
13. Australia, Adelaide – New Castalloy
Brazil, Manaus –Harley-Davidson do Brasil
Ltda Assembly Plant
India, Bawal – Harley-Davidson India Bawal
Assembly Plant
Thailand, Rayong – Thailand Sales Office and
Assembly Plant
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
14. How Does a Trade War Hurt
Harley Davidson?
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
15. An interesting article in the Manchester
Guardian writes that the trade war is a threat
to Harley Davidson.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
16. Harley-Davidson is not having a great year. In
January, the legendary bike company,
struggling to reverse a four-year slide in sales,
had to close its Kansas City factory.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
17. Now Donald Trump – who seems as if he’d like
to be a Harley man – has added to its woes.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
18. This week’s announcement of steel tariffs on
US imports could add $30m to the company’s
costs, according to Wedbush Securities, an
investment firm.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
19. Worse still, European leaders are threatening
retaliation, and several symbols of Americana
– including Kentucky whiskey, Levi’s and
Harley-Davidson motorcycles – are on their
list.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
20. The point is that steel and aluminum tariffs
raise the cost to Harley of making a bike.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
21. Now they will be directly in the crosshairs of
the Europeans who will slap tariffs on well-
known American brands.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
22. And the company was already struggling to
remain profitable.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
23. Why Harley Davidson is moving production
out of the USA is to remain viable as a
company.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
24. In May of 2014 Harley Davidson stock sold for
$71 a share. Today it trades at $44.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
25. What Is the Broader Picture?
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
26. Stocks are down across the board as the
likelihood of a trade war increases.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
27. CNBC notes that the Dow falls 400 points as
Trump announces plans to bar Chinese
investment in US tech companies. The
concern is Chinese retaliation.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
28. Shares of chipmakers Intel, Micron Technology
and Nvidia all fell at least 3 percent.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
29. Boeing, Caterpillar and General Motors – all
companies with significant exposure to China
– also fell by 2.2 percent, 2.1 percent and 0.8
percent, respectively.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
30. Boeing, Caterpillar and GM were also on track
to post large monthly losses.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa
31. The pain has just begun to be felt.
http://profitableinvestingtips.com/stock-investing/why-is-harley-davidson-moving-production-out-of-the-usa