MILWAUKEE, WI – April 19, 2021 – (Motor Sports NewsWire) – Harley-Davidson, Inc. (“Harley-Davidson”) (NYSE:HOG) has received notification from the Economic Ministry of Belgium, that following a request from the European Union (E.U.), the company would be subject to the revocation of Binding Origin Information (BOI) credentials, effective April 19, 2021.
Harley-Davidson will be lodging an immediate legal challenge to this decision.
Since 2019, the company has operated with BOI regulatory credentials, allowing it to supply its E.U. markets with certain motorcycles produced at its international manufacturing facilities at tariff rates of 6%.
The E.U.’s new ruling will apply to the entire Harley-Davidson product portfolio and will effectively prohibit the company from functioning competitively in Europe. From June 2021, all Harley-Davidson products, regardless of origin, will be subject to a 56% import tariff within the E.U.
European OEMs, including motorcycle manufacturers, will continue operations with significantly lower import tariffs to the U.S. ranging from 1.2% for up to 800cc products to 2.4% for over 800cc products, and with automobiles at 2.5%.
Jochen Zeitz, chairman, president and CEO of Harley-Davidson: “This is an unprecedented situation and underscores the very real harm of an escalating trade war to our stakeholders on both sides of the Atlantic. The potential impact of this decision on our manufacturing, operations and overall ability to compete in Europe is significant. Imposing an import tariff on all Harley-Davidson motorcycles goes against all notions of free trade and, if implemented, these increased tariffs will pose a targeted competitive disadvantage for our products, against those of our European competitors.”
Notes to Editors – BOI Context
Notification was received from The Director General of Economic Analysis and International Economy, Federal Public Service Economy (the Economic Ministry of Belgium) at the request of the European Union, that pursuant to the Implementing Decision (EU) 2021/563 of the European Commission of March 31, 2021, Harley-Davidson would be subject to the revocation of the Binding Origin Information (BOI) credentials by the Belgian Economic Minister effective April 19, 2021.
In 2018, the European Union placed a 25% incremental tariff (31% total tariff) on motorcycles imported into the European Union from the U.S., including Harley-Davidson motorcycles. This tariff became effective June 22, 2018. The tariff is scheduled to increase to a 50% incremental tariff (56% total tariff) effective June 1, 2021.
Harley-Davidson remains committed to free and fair trade and is focused on ensuring it remains globally competitive, in the interests of its stakeholders and is committed to ensuring its customers around the world have access to its products.
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Our vision: Building our legend and leading our industry through innovation, evolution and emotion. Our mission: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. Our ambition is to maintain our place as the most desirable motorcycle brand in the world. Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, experiences, motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road.
Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company “believes,” “anticipates,” “expects,” “plans,” or “estimates,” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance, or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably, or favorably from those anticipated as of the date of this press release. Such risks and uncertainties include the following, among other factors: (i) uncertainties regarding the quantity and mix of motorcycles that the Company imports into the EU; (ii) uncertainties regarding the import prices of motorcycles; (iii) whether the Company will be granted temporary relief from the effect of the revocation of the BOI decisions; (iv) whether the Company will be successful in appealing the revocation of the BOI decisions; (v) uncertainties regarding the size and duration of the EU tariffs; (vi) uncertainties regarding the number of shipments that have commenced but are not physically in the EU at the effective time of revocation; and (vi) whether and to what extent the Company determines to attempt to pass on the impact of the revocation to dealers and its success in doing so. Shareholders, potential advisors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are only made as of the date of this press release and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Source: Harley-Davidson, Inc.