Industry Archives - H Touring Bikes

The chief financial officer and president of commercial operations at HARLEY-DAVIDSON Inc. has criticized the European Union for its “indefensible” taxation on the company’s products.

Jonathan Root addressed the US House of Representatives on Tuesday, detailing the extreme “retaliatory” taxes imposed by the EU on the company.

CFO Jonathon Roots spoke to the House of Representatives about EU tariffs targeting Harley-Davidson
Credit: Harley Davidson

Harley-Davidson motorcycles in a showroom. — The American motorcycle brand is best known for its heavyweight American made motorcycles
Credit: Getty

Harley-Davidson Cycles sign in Berlin, Germany. — The company said it found itself caught in the middle of the US and EU trade war
Credit: Getty

The American motorcycle brand generates most of its revenue in the United States, with over 90,000 motorcycles sold last year.

However, Root emphasized that increasing EU taxes significantly restrict its international market opportunities.

“The US has historically been, and continues to be, the primary market for heavyweight motorcycles,” Root began in his prepared statement.

“The US is home to our largest workforce, our main production site, and accounts for the majority of Harley-Davidson’s global sales.”

READ MORE ON HARLEY-DAVIDSON

“Nevertheless, we face tremendous pressures both domestically and internationally due to uneven and unfair trade practices.”

Root’s address comes just a week ahead of the European Union’s decision to impose $28 billion in tariffs on US goods, including motorcycles.

These tariffs stem from an escalating trade war with the US, placing the iconic American motorcycle brand directly in its path.

The conflict began when Trump announced a 25 percent tariff on all steel and aluminium imports to the US.

“We are committed to a pragmatic approach and are actively negotiating a broader economic agreement with the US to eliminate additional tariffs and support UK businesses and our economy,” stated UK Business Secretary Jonathon Reynolds, referring to the new tariff as “disappointing.”

Root pointed out the trade imbalance: “The EU has prepared a staggering total tariff of 56% for Harley-Davidson motorcycles. This comprises a retaliatory tariff of 50 percentage points plus a base import duty of six percent, regardless of the manufacturing location.”

Harley-Davidson riders point to glaring ‘oversight’ by brand after chain’s stock plummets & dealerships close for good

“This stands in stark contrast to the 0 to 2.4% import duty that international motorcycle brands can leverage when entering the US market.”

“From 2018 through 2021, Harley-Davidson’s exports to the EU incurred an extra 25% tariff, tallying an estimated cost of $166 million,” he elaborated.

“A 56% tariff is unacceptable and will hinder our ability to market motorcycles in Europe…an obvious attempt to target Harley-Davidson as a symbol of Americana.”

Root cited motorcycle prices in Denmark to illustrate the potential impact on the company. He stated that under current tariffs, a motorcycle already costs customers $77,000 USD.

With the impending 56% retaliatory tariff, prices could soar to $124,000, which is over four times the price for US customers.

What are the new and refreshed Harley-Davidson motorcycles for 2025?

The lineup of all-new 2025 models includes:

The Street Glide Ultra designed for long-haul touring and the Pan America 1250 ST, a dynamic adventure sport motorcycle.

Harley-Davidson has also refreshed six iconic Cruiser models for 2025: the Low Rider S; Low Rider ST; Breakout; Heritage Classic; Fat Boy; and Street Bob.

The brand’s Sportster S has also received upgrades.

A limited-production collection of Custom Vehicle Operation (CVO) motorcycles includes four models: CVO Street Glide; CVO Road Glide; CVO Road Glide ST; and CVO Pan America.

The company stated that the new models complete the 2025 Harley-Davidson Grand American Touring, Cruiser, Sport, Adventure Touring, and Trike motorcycle range.

Root noted that the rising prices will undermine the essence of Harley-Davidson.

“What was once a dream of personal expression and freedom on the road has transformed into an unattainable luxury for numerous potential Harley-Davidson customers in Europe.

“My request here today is straightforward: we seek fairness.”

The tariffs come on the heels of Harley-Davidson’s CEO Jochen Zeitz’s remarks indicating that the company’s sales have been “significantly impacted” due to an aging customer demographic, elevated prices, and intense competition, especially from younger riders attracted to lighter, more affordable motorcycles.

TAMPA, Fla., Jan. 6, 2025 /PRNewswire/ — Lazydays Holdings, Inc. (“Lazydays” or the “Company”) (NasdaqCM: GORV) has announced the appointment of Jeff Needles as Chief Financial Officer (“CFO”), effective January 6, 2025. Mr. Needles, previously CFO at Warbird Marine Holdings, LLC, will manage the Company’s financial operations, which encompass finance, accounting, treasury, SEC reporting, and financial planning and analysis. He will report directly to Ron Fleming, Interim CEO of Lazydays.

Mr. Needles takes over from Interim CFO Jeff Huddleston, whose resignation is also effective on January 6, 2025.

“I am excited to welcome Jeff to Lazydays at this critical juncture,” said Mr. Fleming. “His experience across complementary markets and business models, including multi-location retail in the marine and powersports sectors, will significantly benefit Lazydays.”

Mr. Fleming added, “I would also like to extend my gratitude to Jeff Huddleston for his contributions during his tenure as Interim CFO.” Mr. Huddleston will remain available in a consulting role to assist with the transition.

“Having recently completed a series of financing transactions and discussing further transformative measures to secure future success, I’m thrilled to be joining the Lazydays team,” commented Mr. Needles.

With over 20 years of financial management expertise, Mr. Needles has a strong background in financial planning and analysis, cost analysis, and enhancing operational efficiency. Along with his tenure as CFO for Warbird Marine Holdings, he held similar roles with United Enertech Holdings, LLC, Schnellecke Logistics USA, as well as in financial leadership at Mastercraft Boat Company and Harley Davidson Motor Company.

Mr. Needles is a Certified Public Accountant, earned an MBA from Washington University, and holds a Bachelor of Science in Business Administration from Saint Louis University, John Cook School of Business.

ABOUT LAZYDAYS RV

Since our establishment in 1976, Lazydays RV has been a key player in the RV industry, acclaimed for providing outstanding RV sales, service, and ownership experiences. Our dedication to excellence has fostered long-lasting relationships with RVers and their families, who depend on us for their RV needs.

With a vast selection of RV brands from leading manufacturers, state-of-the-art service facilities, and a broad assortment of accessories and parts, Lazydays is the ultimate destination for RV enthusiasts seeking everything necessary for their journeys. Whether you are an experienced RVer or just beginning your adventure, our devoted team is ready to offer exceptional support and guidance, making your RV lifestyle truly remarkable.

Lazydays is publicly traded on the Nasdaq stock exchange under the ticker “GORV.”

FORWARD LOOKING STATEMENTS

This press release contains “forward-looking statements” as defined by the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect our goals, plans, projections, and guidance related to our financial standing, operational results, market position, potential financing transactions, and business strategies, often using terms such as “project,” “outlook,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “may,” “seek,” “would,” “should,” “likely,” “goal,” “strategy,” “future,” “maintain,” “continue,” “remain,” “target,” or “will,” among others. Examples of forward-looking statements in this release include planned transformative actions and the potential success thereof.

Due to their nature, forward-looking statements involve risks and uncertainties as they pertain to events contingent on future circumstances. Forward-looking statements are not guarantees of future performance; our actual operational results, financial condition, liquidity, and industry development may differ significantly from those anticipated or implied by these statements. Factors that could lead to actual results diverging from projections include various risks related to economic and financial conditions (both nationally and locally), shifts in customer demand, our relationships with vehicle manufacturers and suppliers, indebtedness risks (including our ability to secure further waivers or adjustments to credit agreements, lender actions or inactions, available borrowing capacity, compliance with financial covenants, and our capacity to refinance or repay debt on acceptable terms), unforeseen incidents that could negatively affect our operations and financial performance, government regulations, and other factors discussed under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in our latest Quarterly Report on Form 10-Q, Annual Report on Form 10-K, and other filings with the U.S. Securities and Exchange Commission. We encourage you to carefully consider this information and avoid placing undue reliance on forward-looking statements. We assume no obligation to update our forward-looking statements, which are accurate as of the date of this release.

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SOURCE Lazydays RV