Harley-Davidson "Made in EU"

[李伟王芳 + 77]

Harley-Davidson plans to shift a portion of its U.S. motorcycle manufacturing capacity to foreign markets after a trade spat between President Donald Trump and the European Union led to increased tariffs. The Milwaukee-based motorcycle manufacturer said Monday in a public filing that the move is necessary to preserve its second-biggest sales market.

[Meanwhile + 49]

Demand for Harley Davidsons has been slumping for a while, and I believe some cost cutting like this was around the corner anyway.

[Cokiga Damke + 53]

2 minutes ago, Meanwhile said:

Demand for Harley Davidsons has been slumping for a while, and I believe some cost cutting like this was around the corner anyway.

No. They will just increase production at non-US plants, which are located in India, Brazil and Thailand where economic growth will outstrip the arthritic protectionist EU.

[Stephen + 67]

1 minute ago, Cokiga Damke said:

No. They will just increase production at non-US plants, which are located in India, Brazil and Thailand where economic growth will outstrip the arthritic protectionist EU.

India Brazil and Thailand are way more protectionist and closed for trade than the EU. What they have is low cost labour.

[JohnAtronis + 78]

 American companies are moving out: GE moving plant to Canada, Chevy is bringing back the Blazer to a new plant in Mexico, Harley shipping work to Thailand. 

[Ja’Nako Bezze + 36]

10 minutes ago, 李伟王芳 said:

Harley-Davidson plans to shift a portion of its U.S. motorcycle manufacturing capacity to foreign markets after a trade spat between President Donald Trump and the European Union led to increased tariffs. The Milwaukee-based motorcycle manufacturer said Monday in a public filing that the move is necessary to preserve its second-biggest sales market.

Harley getting hit, plus all Wisconsin cheese makers shut out of EU markets thanks to tariffs. 

 

[Nigerian Price + 22]

"Thank you, Harley-Davidson, for building things in America. And I think you’re going to even expand...There’s a lot of spirit right now in the country that you weren’t having so much in the last number of months that you have right now." - Donald Trump, Feb. 2, 2017

[Hajga Loma DK + 47]

Trump is calculating that Europe and Canada will still side with America against China due to the double whammy of US tariffs— not only will EU and Canada sell less to the US, but whatever the Chinese can’t sell to Americans, they’ll dump into those other countries.

[Guillaume Albasini + 851]

36 minutes ago, Ja’Nako Bezze said:

Harley getting hit, plus all Wisconsin cheese makers shut out of EU markets thanks to tariffs. 

 

It should not be very high numbers... I've never seen a Wisconsin cheese in a european shop.

[Jan van Eck + 7,558]

38 minutes ago, Guillaume Albasini said:

It should not be very high numbers... I've never seen a Wisconsin cheese in a european shop.

The largest markets starved for cheese (and milk) right now are in the Middle East.  In particular, Gaza is pretty much out of cheese and milk.  Milk retail inside Gaza is going for $20 a gallon.  It all have to be smuggled in via tunnels connecting Gaza and Egypt, so you pay a Tunnel Transfer Tax on everything going in (or out, for that matter).  Some of those tunnels are big enough to drive an auto through, with  elevators at the ends.  

What happens is the Israeli have this total blockade, mostly because they loathe Hamas, which at this point is the elected government (and which is also in disputes with Mr. Abbas and his faction over in the West Bank).  So when a ship attempts to dock in Gaza  (which has to be done by lighter barge, as that port is not big enough to accept anything remotely larger than a scow), the Israelis send in helicopters with commandos who fast-rope down to the deck, shoot the resisters (as with the Turkish relief boat flotilla), and haul the boats to Israel itself, where the cargo gets unloaded and inspected, and if the Israelis choose (and they typically do not), transfer the stuff onto trucks and road freight it over to Gaza. The upshot of all that is that smuggling through the tunnels is pretty much the only way to bring goods into Gaza.  And that produces scarcity and high price levels. 

It would be a great place to unload US milk and cheese, but somebody has to figure out a way to persuade (or defy) the Israelis.  I don't see Trump doing that, so I predict the status quo will continue. 

Edited June 25, 2018 by Jan van Eck

[Hajga Loma DK + 47]

Worth adding that Harley were feeling the pinch, and a factory closure was announced before these tariffs were introduced. Only man in middle age crisis drives HD in Europe

Edited June 25, 2018 by Hajga Loma DK

[Ja’Nako Bezze + 36]

3 hours ago, Guillaume Albasini said:

It should not be very high numbers... I've never seen a Wisconsin cheese in a european shop.

famous Wisconsin cheese is famous in US only. 

[JohnAtronis + 78]

3 hours ago, 李伟王芳 said:

Harley-Davidson plans to shift a portion of its U.S. motorcycle manufacturing capacity to foreign markets after a trade spat between President Donald Trump and the European Union led to increased tariffs. The Milwaukee-based motorcycle manufacturer said Monday in a public filing that the move is necessary to preserve its second-biggest sales market.

HD was desperate to move jobs to their new Thai factory and Trump just handed them the perfect excuse.

[HermitMunster + 146]

2 hours ago, Jan van Eck said:

The largest markets starved for cheese (and milk) right now are in the Middle East.  In particular, Gaza is pretty much out of cheese and milk.  Milk retail inside Gaza is going for $20 a gallon.  It all have to be smuggled in via tunnels connecting Gaza and Egypt, so you pay a Tunnel Transfer Tax on everything going in (or out, for that matter).  Some of those tunnels are big enough to drive an auto through, with  elevators at the ends.  

What happens is the Israeli have this total blockade, mostly because they loathe Hamas, which at this point is the elected government (and which is also in disputes with Mr. Abbas and his faction over in the West Bank).  So when a ship attempts to dock in Gaza  (which has to be done by lighter barge, as that port is not big enough to accept anything remotely larger than a scow), the Israelis send in helicopters with commandos who fast-rope down to the deck, shoot the resisters (as with the Turkish relief boat flotilla), and haul the boats to Israel itself, where the cargo gets unloaded and inspected, and if the Israelis choose (and they typically do not), transfer the stuff onto trucks and road freight it over to Gaza. The upshot of all that is that smuggling through the tunnels is pretty much the only way to bring goods into Gaza.  And that produces scarcity and high price levels. 

It would be a great place to unload US milk and cheese, but somebody has to figure out a way to persuade (or defy) the Israelis.  I don't see Trump doing that, so I predict the status quo will continue. 

I need to figure out how to get cows to the Gaza Strip.

[Jan van Eck + 7,558]

1 minute ago, HermitMunster said:

I need to figure out how to get cows to the Gaza Strip.

Here's the problem with that  (aside from the possibility of invasive parasites):  there is likely little or no food for the cows if you got them there.  Remember, the population of Gaza is about 2.5 million.  You need a lot of cows plus a processing and cheese industry to milk that. 😁

The previous supplier, at least to the West Bank, was Northern Belarus.  That previous trading relationship seems to have fizzled.  I was thinking in terms of shipping from New England, specifically Vermont, which supplies most of New England  but makes almost nothing on the deal, as it would be a great market to build up.  But to do that you would need armed escort vessels from the US Navy, and a very strict statement to Netanyahu from Trump not to attempt to interfere.  I don't see the political part happening, now that Trump's daughter has converted to Judaism. 

[Rodent + 1,424]

3 hours ago, Guillaume Albasini said:

It should not be very high numbers... I've never seen a Wisconsin cheese in a european shop.

Canada is Wisconsin's biggest export market. Wisconsin produces about 25% of all cheese sold in the US. So I'm thinking the EU thing isn't going to crush them.

below are the 15 countries that exported the highest dollar value worth of cheese during 2017:

Germany: US$4.4 billion (14.5% of total cheese exports)
Netherlands: $4.1 billion (13.4%)
France: $3.5 billion (11.3%)
Italy: $3 billion (9.8%)
Denmark: $1.7 billion (5.6%)
United States: $1.5 billion (4.8%)
New Zealand: $1.4 billion (4.5%)
Belgium: $950.2 million (3.1%)
Ireland: $922.8 million (3%)
Poland: $799.5 million (2.6%)
Belarus: $792.2 million (2.6%)
United Kingdom: $791.4 million (2.6%)
Australia: $721.5 million (2.4%)
Austria: $629.6 million (2.1%)
Switzerland: $610.2 million (2%)

 

[HermitMunster + 146]

I'll just on ahead and say it: I don't really like Wisconsin cheese.

[李伟王芳 + 77]

3 hours ago, HermitMunster said:

I'll just on ahead and say it: I don't really like Wisconsin cheese.

I am lactose intolerant, so I am with you 

[Joanna + 68]

[Jan van Eck + 7,558]

1 minute ago, Joanna said:

Just think: The Donald and Mike can treat themselves to a BMW R-75 with sidecar and go roaring around on the Washington Mall!

[Jan van Eck + 7,558]

The Donald, Vermont version:

[Jan van Eck + 7,558]

The irony of Harley and their Thailand factories is that they could have easily set up a satellite plant just over the Border in Ontario, possibly at the Soo or Windsor or even in the suburbs of Quebec, and pick up plenty of well-trained industrial workers that can do quality manufacturing, and by paying in depreciated Canadian Dollars, knock their labor bill down by 20%.  And remember that in Canada they have that Province-run health insurance that costs the worker a pittance, mostly because (at least in Quebec) the huge sales of electricity to the Americans pays for their health insurance budget. And that way the managers would be in close contact with the main plant, and you don't have this vast inventory of parts sitting in permanent inventory as it is being shipped by container to the other side of the world, and back again. 

Meanwhile, their competitor Indian Motorcycles has set up in far Western Iowa and builds (among others) the Indian Spirit, at 999 cc and 78 hp. a really nimble (if large) machine that retails for only around $8,800.   Nice bike! 

Now, for a domestic 331.....

[Missy + 43]

3 hours ago, HermitMunster said:

I'll just on ahead and say it: I don't really like Wisconsin cheese.

Not even Munster?

[HermitMunster + 146]

6 minutes ago, Missy said:

Not even Munster?

lol

[HermitMunster + 146]

18 minutes ago, Jan van Eck said:

Just think: The Donald and Mike can treat themselves to a BMW R-75 with sidecar and go roaring around on the Washington Mall!

Pence will have to ask his wife first.