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The Harley-Davidson motorcycles could cost more expensive in Canada, courtesy of the trade war with the United States.
“We are worried. This is not good news for us. It will not help the motorcycle industry “, said yesterday the Newspaper the owner of three concessions Harley-Davidson in Quebec, Laurent Prémont.
The latter feared that the surcharges announced Thursday by Ottawa and Washington on the steel products and aluminium have a real impact on its sales.
“There are already enough taxes as it is. It may still affect us, ” he suggested. Result : the price of Harley-Davidson motorcycles produced in the United States with steel and aluminum will be higher.
Good year, bad year, one-third of sales of Harley-Davidson in Canada is made in Quebec. Harley-Davidson says more than 3000 motorcycles new in quebec each year.
“We are currently assessing the various options that are available to us in order to manage the potential increase in costs due to an increase of customs tariffs. We support free and fair trade and hope that this issue is dealt with quickly “, argued yesterday the management of Harley-Davidson Canada.
Warning to investors
The mother house of Harley-Davidson, located in Milwaukee, in the State of Wisconsin, however, has issued a warning to investors.
The company expects to see its production costs increase and its sales decline because of this trade war that promises to be challenging.
“The surcharges were announced will have a significant impact on our sales, our dealers and our suppliers,” said on Thursday the leadership of Harley-Davidson by way of press release.
In Europe, the european Union has already announced that the by-products of Harley-Davidson will be directly targeted by new tariffs.
Since the beginning of the year, the title of Harley-Davidson is down 22 % on the New York stock Exchange.
Worldwide sales of Harley-Davidson fell 6.7 % last year, to 8.5 % in the United States, its principal market.
Harley-Davidson recently announced cuts. Its plant in Kansas City will close its doors soon, while 800 jobs will be eliminated.
To meet these headwinds, the manufacturer, founded in 1903, has promised to launch an electric motorcycle in the near future and has invested in march in Alta Motors, a company in Silicon Valley that manufactures two-wheeled electric.