What is happening: Tariffs are set to hit Harley-Davidson hard this year, as they expect between $100m and $120m worth of costs.
Q4: The company suffered a tough Q4 in 2018, with a year-on-year loss of $1.15 billion in revenue from tariffs, two recalls, and internal restructuring. Tariff costs in this quarter alone amounted $13.4 million.
Thailand: Harley-Davidson opened a new manufacturing plant in Thailand in Q3. They will now aim to produce EU, China, and Asia-bound motorcycles there by the end of the year to help relieve tariff stress.
Tariffs: The US and China are currently in trade talks, but tariff values on $200 billion worth of goods from China may rise from 10% to 25% by March 2 if the talks do not go well.
What did CFO John Olin say: “We intend to mitigate the impact of incremental EU and China tariffs by year end.”