Send by email

your name: email to: message:
Username: Email: Password: Confirm Password:
Login with
Confirming registration ...

Edit your profile:

Country: Town: State:
Gender: Birthday:
Email: Web:
How do you describe yourself:
Password: New password: Repite password:

Friday, July 6, 2018

Trump chokes Harley's engine –Davidson

Por dbloggers

Donald Trump believes in the vendetta or his tantrums of spoiled child come to adulthood are too strong, because he has announced "attractive" for motorcycle manufacturers wishing to move to US territory. The called came after Harley-Davidson announced the relocation of its assembly plants abroad. "Now that Harley-Davidson is moving part of its operation out of United States, my Administration is working with other motorcycle companies that want to move to the US”, twitted the president. So far the president has not specifically named any interested company, nor the White House has commented on it, but it is possible that Trump has launched the bait to attract investors.

"We will not forget and neither will your customers and your now very HAPPY competitors!”; wrote Trump at Twitter.

The president recently has twitted has warned Harley-Davidson about the possible consequences of his transfer.

It is known that "Donny" is not good at being contradicted, and now, the motor icon and representative of popular culture in the United States: Harley-Davidson has got into big trouble.

Previously, Donald Trump touched with a silk glove the Milwaukee-based company by skipping the company's total $ 15 million fine imposed for selling engine control devices that falsified emissions levels into the environment. The Trump administration pardoned 3 million dollars under the commitment to finance an anti-pollution program. That is why the president constantly brought out the favors done to Harley.

However, now Donald Trump promises to accelerate Harley with taxes that will undoubtedly break Davidson's resilient engine. "They will have to pay a tax like never before." They will not be "able to sell in the United States without paying a large tax," the president threatened.

The argue has had as a fundamental point the imposition of high tariffs on the costs of steel and aluminum that has been imposed on foreign producers and that logically affect the direct production of Harley. Although Trump has said that it is only an excuse and a direct blow to his measures, the reality is different.

Actually, Harley-Davidson is presenting major economic, financial and sales problems. The only market that is being profitable is the outsider, specifically the European one. With the impositions of Donald Trump, along with the tariffs of the European Union in response to the president's punishments, the costs of the Harley-Davidsons rose much more and there will be a resounding fall in sales. Which in themselves already went badly.

According to the president of the corporation, Matt Levatich, the strategy is to reduce production costs in order to face the future with solvency. "The decision to consolidate our assembly plants was taken after very careful consideration considering our current business landscape."

Clearly the company wants to save itself, but the closure of its four production plants in the US will mean the loss of 800 jobs, which will represent savings of between 170 and 200 million dollars in the next two years. Something that is not too funny to Donald Trump, and it is against to his "America First."

Contradictorily, Trump's announcement also goes against his campaign slogan that tries to prioritize national over international products. Perhaps as a kind of "vendetta" the US president has made such a statement to affect the sales of the motorcycle giant.

The ruler Donald Trump has all the tools to disarm in a snap a Harley-Davidson who had a 7 percent impact last year on their sales. Matt Levatich, does not want to continue adding losses due to the high tariffs that the president has put on steel and aluminum.

Although Trump announced that his government is driving some motorcycle manufacturers to go to US territory, it is unlikely that foreign competitors will "cheer up."

The picture is very complex for Trump, unless it offers great incentives. Japanese brands such as the Kawasaki Vulcan and Suzuki Boulevard are dethroning Harley in the market. These Japanese competitors have forced Harley-Davidson to reduce their shares in the market. The high costs of steel and aluminum tariffs would also not "turn on" the Yamaha, Honda and Suzuki engines out of Japan. Japanese manufacturers, the main competitors in South America and Asia, would not risk acquiring expensive raw material for their productions. Its flexibility, production capacity and supply are greater, compared to Harley, who refuses to lower the prices of his motorcycles despite the sales crisis he faces, according to experts.

Meanwhile, European firms such as Ducati and similar brands are preferred by new generations, millennials who prefer similar brands with more technology, more modern and affordable styles. "Their big bikes are too expensive for millennials, who seem to be interested in their model and everything that the brand implies," said Bill Miko, former Harley´s salesman and expert mechanic.

For this seller interviewed by El Mundo, "Harley-Davidson is condemned to die." It would be very sad and a blow for Harley-Davidson that after 114 years of history represented freedom, nonconformity and feudal rebellion in the hands of the president of the United States that has most defended American nationalism.