Harley-Davidson Statement on E.U. Tariffs

Rhea-AI Summary

Harley-Davidson (NYSE: HOG) expresses commitment to contest the European Union's Binding Origin Information (BOI) decision after a recent announcement by Valdis Dombrovskis. The company is focused on fair trade and aims to maintain its competitive stance in Europe. CEO Jochen Zeitz highlighted the importance of preventing an increase in tariffs from 31% to 56%, which would disadvantage Harley-Davidson against European competitors. The company strives to ensure global access to its products, reinforcing its vision of being a leading motorcycle brand.

Positive

• Avoidance of tariff escalation from 31% to 56%.
• Commitment to contesting the EU's BOI decision, potentially safeguarding market position.

Negative

• Ongoing trade disputes may create uncertainty in European market.
• Potential competitive disadvantages from existing tariffs.

MILWAUKEE, May 17, 2021 /PRNewswire/ -- Responding to today's announcement by E.U. Executive Vice-President, Valdis Dombrovskis, Harley-Davidson, Inc. ("Harley-Davidson") (NYSE: HOG) reaffirms its commitment to defend its position in Europe. The company will continue to pursue its legal challenge to the Binding Origin Information (BOI) revocation, and its application for extended reliance.

Harley-Davidson remains committed to free and fair trade and is focused on remaining globally competitive in the interests of all its stakeholders, and is committed to ensuring its customers around the world have access to its products.

Jochen Zeitz, chairman, president and CEO of Harley-Davidson:
"We are encouraged by today's announcement that tariffs affecting our products will not escalate from 31% to 56%. This is the first step in the right direction in a dispute not of our making. Harley-Davidson employees, dealers, stakeholders and motorcycles have no place in this trade war. These tariffs provide other motorcycle manufacturers with an unfair competitive advantage in the E.U. European motorcycles only pay up to 2.4% to be imported into the U.S. We want free and fair trade. UNITED WE RIDE."

Company Background:
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Our vision: Building our legend and leading our industry through innovation, evolution and emotion. Our mission: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. Our ambition is to maintain our place as the most desirable motorcycle brand in the world. Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, experiences, motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road.

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SOURCE Harley-Davidson, Inc.

FAQ

What is Harley-Davidson's response to the EU tariffs announced on May 17, 2021?

Harley-Davidson reaffirms its commitment to contest the EU's tariff decisions and aims to prevent escalation from 31% to 56%.

What did Harley-Davidson CEO Jochen Zeitz say about the EU tariffs?

Jochen Zeitz stated that the tariffs create an unfair advantage for European manufacturers and emphasized the need for free and fair trade.

How does the EU's tariff structure affect Harley-Davidson?

Currently, Harley-Davidson faces a 31% tariff, while European motorcycles only pay up to 2.4% to import into the U.S.

What is Harley-Davidson's mission regarding trade?

Harley-Davidson aims to ensure global access to its products and maintain competitiveness in the face of tariff challenges.