Case: Harley-Davidson 2018: Trump, Tariffs and the Future
Case Description
In June 2018 Harley-Davidson Inc. (NYSE: HOG), the iconic American manufacturer of motorcycles-hogs as they were affectionately referred to – announced that it would shift some United States-based production to a foreign country. Harley explained it had little choice if it was to remain competitive in foreign markets, specifically, Europe. The EU (EU) had the previous month announced an increase in the import duty imposed on Harley-Davidson motorcycle manufactured in the U.S. in retaliation to President Donald Trump’s imposition of increased tariffs on European steel and aluminum. But Harley’s problems went much deeper than simply European import duties. Harley was suffering from a decade-long slump in sales and profitability. Would shifting production out of the U.S. be the appropriate solution?
Case Analysis & Discussion Questions:
4. What did the Trump administration think of Harley’s new international strategy? Should Harley care about President Trump’s criticism?
5. What do you think Harley should do moving forward?
Please make a word document expaining these questions after reading the case and create powerpoint slides for summerizing each question please and thank you!