HARLEY-DAVIDSON PROTOTYPES 2021 AND THE HD SHARE PRICE
HARLEY-DAVIDSON IS IN THE MIDDLE OF THE STRESS TEST
Two new prototypes have been punctured! EU patent documents were only known to investors. Should they ensure positive news on the stock market?
These are particularly difficult times for the traditional manufacturer Harley-Davidson It has a little to do with the coronavirus, because it is ravaging the stock market. But it only exacerbates the current situation; the causes of the problems lie elsewhere.
The management of Harley-Davidson has been moving around since the spring and the major investor Impala would like to have more say in who should sit on the board in order to steer the direction of the brand differently, but they were unable to assert themselves with their preferred candidates.
In January, Impala pushed to fire CEO Matt Levatich, and on February 28, 2020, it was announced that Matt Levatich was stepping down after five years as Harley-Davidson CEO. Harley-Davidson has lost massively in value over the last five years. On February 20, 2020, the stock market began to plummet; its lowest value was briefly at 14.00 euros at the end of March. First the nosedive, then the drop, that's how it works.
Donald Trump railed against Harley-Davidson on Twitter
Sales have plummeted, particularly in the USA. Donald Trump was not at all enthusiastic about the idea that Harley-Davidson wanted to concentrate more on the booming market in Asia and had built a new factory in Thailand. Especially after he invited the HD leadership to the Oval Office of the White House, he was a bit piqued by the news, because his motto is “America first” . This led to Trump appealing to the patriotic hearts of his loyal biker fan community to stop buying a Harley-Davidson.
In this context, it should be mentioned that Trump even persuaded Apple to produce the new Macbook Pro 16 in the USA again; he is building up a lot of pressure to achieve his goals. The second reason for the factory in Thailand is to assemble the parts produced in the USA there in order to avoid the EU punitive tariffs that Harley-Davidson has to pay as a US company when they export to the EU.
And the other way around, Harley-Davidson has to pay US tariffs on imported raw materials, so it wasn't just Matt Levitach's fault. Ultimately, the customs dispute is fought out on the backs of Harley-Davidson and is left alone to deal with the problem. Large investments in the future are reflected, but HD investors have still received a good dividend compared to other companies according to financial trends in this industry.
The European Harley-Davidson dealers should actually act together against the EU because of the punitive tariffs, because in the end it affects them the same way, even if the company pays the bill, the Harley-Davidson dealers pay their taxes in the EU and offer many good jobs you could ever come up with the idea of doing theater.
On April 2, 2020, the Harley-Davidson share was at €15.00; in February it was still around €32.00. Analysts recommend watching the shares and the current sentiment is Hold according to financial trends.
Current Harley-Davidson share price
The nine-member Harley-Davidson board of directors and the investor Impala agreed last week to calm things down for the time being. Harley-Davidson is currently led by Jochen Zeitz, the former CEO of Puma. The new Harley-Davidson CEO will certainly adjust the current business strategy to get the share price up again and try to reassure investors with positive news. If the DAX price is chasing you, the adjustment screws have to be turned.
That's why it's certainly no coincidence that two new prototypes have just been launched. There are no official photos yet and when asked, Harley-Davidson remains tight-lipped on the subject of new products.
Harley-Davidson Cafe Racer
A lot of positive news about the company is important for the stock price, so we can assume that more new positive news will appear soon. Production has just stopped in the USA, but Harley-Davidson has a full European warehouse and many models are available. The corona crisis will only have a lasting impact later, depending on how long it lasts and how long it continues to restrict the company internationally.
The Harley-Davidson dealers are still available
The Harley-Davidson dealers continue to sell and advise, although you need an appointment in advance, but things have now worked out very well and work continues in the workshops.
The Harley-Davidson Flat Tracker
Harley-Davidson is planning a new Sportster series for 2021, the EVO Sportster will no longer meet the new EURO 5 standard from 2021, so it will fare like the Dyna series.
The Cafe Racer and Flat Tracker models could belong to the new 2021 Sportster series.
The Cafe Racer and the Flat Tracker model could be two models from the new Sportster series, the frame structure and style of the bike definitely speak for it. The European patent documents reveal both Harley-Davidson models presented to investors last year, so we know which way the wind is blowing.
The new Revolution Max engines
will also find their place in the Bronx and the Pan America All of this is coming with the 2021 model year and if the coronavirus doesn't slow us down for months, we'll see something in the summer.
Harley-Davidson will also be making improvements to e-bikes, the LiveWire is just the beginning, and it will only be clear in a few years where the e-trend will ultimately prevail in the world. Harley-Davidson is particularly popular in Thailand, you wouldn't think so, but if you're on holiday in Bangkok you should take a look at one of the stores. And you shouldn't forget that Harley-Davidson has invested a lot in the development of new drive engines in recent years. Many of the company's investments will only generate income over the years; new model series and investments in Asia will have a negative impact on returns.
Donald J. Trump's re-election on November 3, 2020 would force Harley-Davidson to rethink
The most important thing, however, will be that Harley-Davidson comes to an agreement again with Donald Trump and increases sales figures on the domestic market. If Trump is re-elected, future direction will be one of the most important and lasting decisions for Harley-Davidson.
Photo credits: Harley-Davidson, Harleysite
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Why does only Harley Davidson produce or assemble in Thailand? Indian didn't follow suit here, did they? In the past it was always called the “Mythos HD” and it costs 30t DM and the machine is on top of that. I THINK THAT WILL DETER A LOT OF ENTHUSIASTS AND BUYERS IN THE LONG TERM. I wouldn't buy a Porsche made in China either. Where is the good old value here? No offense, but Harley should be 100% Made in the USA.
Hello Anton, thank you very much for your comment.
Harley-Davidson assembles some models in Thailand because the EU has imposed punitive tariffs of over 20% on Harley-Davidson models that were produced in the USA.
This motivated Harley-Davidson to produce for the European market in Thailand. For the US market, Harley-Davidson continues to produce in the USA. The Sportster is also produced in the USA until the end. The CVO models continue to come from the USA. This is also not welcomed in the USA, Trump in particular is disrupting the factory in Thailand.
My personal guess is that if Trump wins again, it is quite possible that Harley will have to somehow come to an agreement with the President because he is putting pressure on the patriotism channel in the media. I have no idea what India does, but there are other manufacturers who produce their motorcycles in the neighborhood.
Greetings Volker