MILWAUKEE, April 19, 2021 /PRNewswire/ -- 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.
Company Background
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.
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SOURCE Harley-Davidson, Inc.