Trump blasts Harley plan to shift U.S. production to avoid EU tariffs
(Reuters) - U.S. President Donald Trump on Monday slammed Harley-Davidson Inc after the motorcycle maker said it would move production for European customers overseas to avoid retaliatory tariffs that could cost it up to $100 million (£75.4 million) per year.
Trump said he has fought hard for the company and was surprised by its plans, which he described as waving the "White Flag."
Harley-Davidson, the dominant player in the heavyweight U.S. motorcycle market said earlier on Monday it would not pass on any retail or wholesale price increases in the EU and instead focus on shifting some U.S. production.
Harley shares closed down nearly 6 percent and analysts cut their profit forecasts on concerns about how quickly the company would be able to adapt to the 25 percent import duties the European Union began charging on June 22.
"I fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade, down $151 Billion. Taxes just a Harley excuse - be patient!" Trump said in a post on Twitter.
The United States earlier this month imposed tariffs on steel and aluminium imports from the European Union, provoking a "tit-for-tat" response from the trading bloc against U.S. goods.
In a regulatory filing the 115-year-old Milwaukee, Wisconsin-based company said the retaliatory duties would result in an incremental cost of about $2,200 per average motorcycle exported from the United States to the European Union, but did not provide more details on current motorcycle costs.
Harley's entry-level bike in France currently costs 7,490 euros ($8,766).
The company said it expects the tariffs to result in incremental costs of $30 million to $45 million for the rest of 2018 and $80 million to $100 million on a full-year basis.
"We think Harley's decision to protect EU demand is wise for the long-term health of the market," Baird Equity Research said in a note. "But we expect the near-term impact to weigh on estimates and sentiment until a clearer path to mitigation is outlined."
Trump vowed to make the iconic motorcycle maker great again when he took office last year. But since then the company has been counting the costs of his trade policies.
贝尔德股票研究（Baird Equity Research）在一份报告中表示：“我们认为，哈雷保护欧盟需求的决定，对于市场的长期健康而言是明智的。但我们预计，短期内会对评估和市场情绪产生影响，直到明确的缓解措施的出现为止。”
In late April, Harley said Trump's metal tariffs would inflate its costs by $15 million to $20 million this year on top of already rising raw material prices that it expected at the start of the year.
White House trade and manufacturing adviser Peter Navarro said on Monday the administration wants Harley to make more motorcycles in the United States.
"Remember, they came to us, for example, pointing out that India had a 100 percent tariff on Harley Davidsons. That's certainly not fair," Navarro told CNBC.
"We want Harleys made here, more made here, and that's going to happen under the president's trade policies."
In response to Navarro's comments, a Harley spokesman said the company has made its position clear in Monday's filing.
Harley has been aiming to boost overseas sales of its motorcycles to 50 percent of annual volume from about 43 percent.
In January, the company announced the closure of a plant in Kansas City, Missouri, after its motorcycle shipments fell to their lowest level in six years.
In 2017, Harley sold nearly 40,000 new motorcycles in Europe which accounted for more than 16 percent of the company's sales. The revenues from EU countries were second only to the United States.
Harley said ramping up production overseas could take at least nine to 18 months. It has three assembly plants outside the United States - one each in Brazil, India and Thailand.
The company decided to build the Thailand plant after Trump pulled out from the Trans-Pacific Partnership, which would have lowered import tariffs on its bikes in some of the fastest-growing motorcycle markets in Asia.
The company said it will provide more details on tariff-related plans when it reports second-quarter earnings on July 24.
Analysts at Baird Equity Research cut its 2018 profit estimates for Harley-Davidson to $3.70 per share from $3.90 and now expect 2019 profit of $3.85, down from $4.20.
CFRA Research lowered its 12-month price target for the stock to $47 from $49.
Harley-Davidson shares have lost about 9 percent since early March when the trade skirmish between the United States and the EU started, and are down over 18 percent since end-December 2017.
Mercedes-Benz maker Daimler last week cut its 2018 profit forecast citing growing trade tensions. Its German rival BMW said it was considering "possible strategic options" in view of the rising trade tensions between China and the United States.
Trump has also threatened to crackdown on auto imports. Analysts at Moody's reckon a 25 percent tariff on imported vehicles and parts would be negative for most of companies including Ford Motor Co and General Motors Co.
贝尔德证券研究（Baird Equity Research）分析师将哈雷戴维森2018年的利润预期从每股3.90美元下调至3.70美元，并预计2019年的利润将从每股4.20美元下调至3.85美元。
原创翻译: http://jblasi.com/45398.html 译者: Jessica.Wu
The world's biggest plane maker Boeing Co plans to open a new facility in China by the end of this year, to complete some of its 737 jets, financial news website MarketWatch reported Wednesday.
Boeing CEO Dennis Muilenburg said construction is under way on the new delivery and completion center in Zhoushan, Zhejiang province, and site preparation has been initiated.
"We're still driving toward a goal of beginning to have operational capability toward the end of this year," Muilenburg added.
据财经新闻网站《市场观察》周三报道，全球最大的飞机制造商波音公司(Boeing Co .)计划年底前在中国开设一家新厂，以完成部分737客机的生产。
Who knew trade could be so complicated?
We live in a global economy and shareholders are investing to make money not to please one party or person...
"Trade wars are easy to win".
So the President withdrawing from TPP was the first thing that pushed Harley toward increasing production overseas, the steel and aluminum tariffs were strike 2, pushing up material costs. Followed by strike 3 the EU's retaliatory tariffs on Harley's U.S. production. Add to that the Republican controlled Congress and the President just gave Harley a big tax cut to help pay for ramping up production overseas. So explain how the President's policies are "bringing the jobs back?"
TWINKLE DOWN EFFECT
Companies will do what is best for their shareholders. Not Trump.
What did Trump think would happen when he did not negotiate a fair trade deal and decide tp raise tariffs.
Are we great yet?
People should look into Trump taxes and business records to see what trump did to avoid taxes, permits, most all laws.
Many large company’s have announced moving production to other country’s after trumps tax giveaway. They now have the capital to do so !!
How's that tax and jobs act working out for you mr president ?
The other company Trump said he saved, Carrier Inc. have moved to Mexico. Harley-Davidson is just one of many that will be moving production out of the US because of these tariffs.
Great plan Mr. Trump, to save 70,000 american steel jobs at the cost of increasing cost for to products which employee 19million american jobs. Harley is just the first of many companies to start outsourcing to other countries.
Spacecowboy-20 hours ago
Expect more companys to do the same...
If he were in charge of HD, he'd be doing the exact same thing.
When is Ivanka moving her high priced stuff Made in Third World sweat shops to Made in America?
They got their tax break ………. and found a way to spend it...….
Trump brought this all on himself.
Anyone who has balanced a budget will understand this. Tax cuts reduce money going into the treasury and therefore increase the deficit. Trump and the Republicans increased the deficit by Trillions by giving one of the largest tax cuts for the wealthy in the history of the U.S. If you increase your tariff the cost of goods coming into the U.S. causes the prices of goods to go up to the consumer. If a country also increases their tariff then what you export is not purchased as much and you decrease U.S. production of products and that causes unemployment.
where are the Trump and Kushner products made again? Still in China or Nam?
There are dozens announcing they will be moving because of tariffs!!
Why is trump giving financial incentives for companies to move manufacturing away from America?
This is just the beginning good people. More companies will be following HD. A tax break for the wealth has never created more jobs for middle America. It only makes the rich richer. Who do you think will have to cover the short fall from the billions tRump gave the wealth?
This is just the first one, more will follow.
Oh I see only Trump and his family can mover businesses to other nations because it's cheaper to make products..
Wasn't Harley Davidson one of the companies he held up as a shining example of how his policies would help jobs?
It's Me Again Margaret-yesterday
Recession here we come. All that hard work to pull us out of the last Republican recession down the drain
Trump and company bringing there factories to the USA?
F20 hours ago
Thank you mr president....very nice of you to have jobless people at Harley Davidson ....
Harley is just making good business decisions based on the tax laws and tarrifs brought on by Trump. Their respois to shareholders not to Trump. Trump has all his products made overseas and hires as many temp immigrant workers as he can.
Simple solution: VOTE!
What does Trump expect HD to do? Just not sell in Europe?
When the going gets tough...
Make Asia Great Again
Trump is really bringing the jobs, back to Asia and Europe, in the case of Harley Davidson.