President Trump to Harley Davidson (NYSE:HOG), “Don’t play cute”
President Donald Trump said Harley-Davidson Motorcycles Inc. (NYSE:HOG) risks losing customers if it shifts production overseas.
“I think they’re going to take a big hit,” President Trump said in an interview with Maria Bartiromo taped on Friday and broadcast on Sunday. “Those are my voters,” he added. “They don’t want Harley Davidson getting cute to make 2 dollars more.”
“I devoted a lot of time to Harley Davidson. I treated them good,” President Trump said. “I guarantee you: everybody that ever bought a Harley Davidson voted for Trump. I don’t know if you know that. …
“They call them bikers for Trump,” President Trump said. “I think that Harley is an American Bike, it’s an American Motorcycle, and they should build them in this country. They shouldn’t play cute. … I have feeling that maybe Harley – I think they’re going to take a big hit. I just think it’s a great American product and our people have more pride then they used to have. I really believe that Harley’s going to take a – the people that are buying Harley Davidson, they don’t want it built in another country.”
The EU’s retaliation to President Trump’s steel and aluminum levies will cost about $2,200 per motorcycle shipped to Harley’s 2nd-biggest market in the world, the company has estimated. So it’s shifting the production of bikes for European riders to unspecified overseas plants.
Milwaukee-based Harley sells no motorcycles in the US that are built overseas, and the company has said that’s not going to change.
President Trump tweeted about Harley-Davidson on 3 straight days last week, including a lament that “I’ve done so much for you, and then this.”
But the company has long produced motorcycles in foreign countries for other markets, including at an assembly plant in Brazil opened 20 years ago.
The planned production shift is about products destined for EU markets to avoid 31% tariffs on those made in America. The company’s stock is down 17% YTD.
Asked if he should, as President, be calling out specific companies by name when he disagrees with their actions, President Trump said “yes, I should.”
“Every one who ever bought a Harley-Davidson voted for Trump,” he said.
|NYSE:HOG||42.33||29 June 2018||0.43||41.98||42.39||41.94||318,524|
|HeffX-LTN Analysis for HOG:||Overall||Short||Intermediate||Long|
|Neutral (-0.02)||Neutral (0.05)||Neutral (-0.10)||Neutral (0.00)|
Have a terrific week.