Tag: Motorcycle

THE CEO OF HARLEY-DAVIDSON has resigned as the motorcycle manufacturer braces for upcoming tariffs affecting the automotive sector.

In light of these industry shifts, company leaders have indicated that they plan to hike the prices of their motorcycles accordingly.

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The motorcycle manufacturer is actively searching for a new CEO, as reported by The Wall Street Journal.

Jochen Zeitz has held the CEO position for five years and announced his retirement plans on Tuesday.

While Zeitz succeeded in boosting company profits, the popularity of Harley bikes has continued to wane.

Harley-Davidson confirmed that Zeitz will remain as CEO until a replacement is appointed, in line with The Wall Street Journal’s report.

This news follows the motorcycle company’s declaration that it would implement price increases for its products.

Senior executives told a Congressional subcommittee that Harley-Davidson is facing “devastating” and “indefensible” tariffs from the European Union.

The tariffs will affect numerous American-made motorcycles, including those from Harley-Davidson, as they prepare for this significant shift.

American-made bikes sold in Europe could incur a massive 56% tariff.

If these tariffs are enacted, prices of Harley-Davidson motorcycles could potentially soar to six figures, according to The Wall Street Journal.

Jonathan Root, the CFO of Harley, noted that the tariffs would have a significant financial impact on the company’s products.

“My request today is straightforward: fairness,” he stated to the subcommittee.

“It is evident that Harley-Davidson is being unfairly targeted and discriminated against by the EU and Canada.”

Root emphasized that the proposed tariffs would make it nearly impossible to sell their motorcycles.

The price of a Harley-Davidson Road Glide sold in Denmark could escalate to $124,000, a significant increase from its initial $28,000 price point in the US.

He also mentioned that the company incurred a significant loss in 2018 when it absorbed a $166 million cost.

Root emphasized that the company chose to bear the cost of the tariffs rather than passing them onto customers.

Harley-Davidson already obtains the majority of its auto parts from domestic suppliers.

The company employs 4,500 workers in the US, out of a total of 5,500 employees.

As Trump’s tariffs loom over the auto industry, many consumers are concerned about affording new vehicles.

Automakers are scrambling to adjust to these changes, with some companies attempting to increase domestic manufacturing of their models.

Harley-Davidson has yet to respond to The U.S. Sun’s inquiry for comment.