HARLEY-DAVIDSON PROTOTYPES 2021 AND THE H-D SHARE PRICE
HARLEY-DAVIDSON IS IN THE MIDDLE OF A STRESS TEST
Two new prototypes have been pierced! EU patent documents were only known to investors. Are they supposed to provide 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, which is raging on the stock market. But it is only exacerbating the current situation; the cause of the problems lies elsewhere.
Since the spring, the Harley-Davidson management board has been in a state of upheaval and the major investor Impala would like to have a greater say in who sits on the board in order to change the direction of the brand, but they were unable to push through their preferred candidates.
In January, Impala pushed for the dismissal of CEO Matt Levatich and on February 28, 2020, it was announced that Matt Levatich would step down after five years as Harley-Davidson CEO. Harley-Davidson has lost massive amounts of value in the last five years. On February 20, 2020, the stock market plummeted, briefly hitting a low of 14.00 euros at the end of March. First the nosedive, then sold off, that's how it can go.
Donald Trump railed against Harley-Davidson on Twitter
Sales have collapsed in the USA in particular. Donald Trump was not at all enthusiastic about the idea that Harley-Davidson wants to focus more on the booming market in Asia and has built a new factory in Thailand. Especially after he invited the H-D management to the Oval Office of the White House, he was somewhat piqued by the news, as his motto is „America first“. This has led to Trump appealing to the patriotic heart of his loyal biker fan community to stop buying Harley-Davidson.
In this context, it is worth mentioning that Trump has even persuaded Apple to produce the new Macbook Pro 16 in the USA again; he is certainly 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 punitive EU tariffs that Harley-Davidson, as a US company, has to pay when exporting to the EU.
And vice versa, Harley-Davidson has to pay US punitive tariffs on imported raw materials, so it wasn't just Matt Levitach's fault. Ultimately, the tariff dispute is being carried out on Harley-Davidson's back and it is being left alone with the problem. Major investments in the future are having a negative impact, but H-D investors have nevertheless received a good dividend compared to other companies in this sector, according to Finanztrends.
Actually, the European Harley-Davidson dealers should take united action against the EU because of the punitive tariffs, because in the end it affects them just as much, even if the company pays the bill, the Harley-Davidson dealers pay their taxes in the EU and provide many good jobs, so you could get the idea of making a fuss.
On April 2, 2020, Harley-Davidson shares stood at €15.00, compared to around €32.00 in February. Analysts recommend monitoring the shares and the current sentiment is Hold according to Finanztrends.
Current Harley-Davidson share price
The nine-member Harley-Davidson board of directors and the investor Impala agreed last week to bring calm for the time being. Harley-Davidson is currently headed by Jochen Zeitz, the former CEO of Puma. The new Harley-Davidson CEO will certainly readjust the current business strategy to get the share price back up and try to reassure investors with positive news. When the DAX share price is chasing you, you have to make adjustments.
So it is certainly no coincidence that two new prototypes have just been leaked. There are no official photos yet and when asked, Harley-Davidson keeps a low profile on the subject of new products.
Harley-Davidson Cafe Racer
A lot of positive news about the company is important for the share price, so we can assume that more new positive news will emerge soon. Although production in the USA has just been halted, Harley-Davidson has a full European warehouse and many models are available. The corona crisis will only have a lasting effect later, depending on how long it lasts and how it continues to restrict the company internationally.
The Harley-Davidson dealers are still available
The Harley-Davidson dealers continue to sell and advise, but you need an appointment in advance, but this has now become very well established 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 suffer the same fate as the Dyna series.
The Cafe Racer and the Flat Tracker model could be part of the new 2021 Sportster series.
The Cafe Racer and the Flat Tracker model could already be two models from the new Sportster series, the frame construction and style of the bike certainly speak for it. The European patent documents reveal both Harley-Davidson models were presented to investors last year, so we know which way the wind is blowing.
The new Revolution Max motors
The engines are the 975 cc and 1,250 cc Revolution Max engines, which 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 another few months, we'll get to see something in the summer.
Harley-Davidson will also follow up with e-bikes, the LiveWire is just the beginning, where in the world the e-trend will ultimately prevail will only become clear in a few years' time. Harley-Davidson is very popular in Thailand in particular, you wouldn't think so, but if you're ever on vacation in Bangkok, you should take a look at one of the stores. And don't forget that Harley-Davidson has invested a lot in the development of new drive motors in recent years. Many of the company's investments will only generate returns over the years, and 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 its approach
The most important thing, however, will be for Harley-Davidson to Donald Trump and boost sales figures on the domestic market. If Trump is re-elected, the future direction will be one of the most important and lasting decisions for Harley-Davidson.
Picture credits: Harley-Davidson, Harleysite
[amazon bestseller=“Harley-Davidson“ items=“3"]
Why does only Harley Davidson produce and assemble in Thailand? Indian is not followed here, is it? It used to be said that the „Mythos HD“ costs 30t DM and the bike comes on top. I THINK THAT WILL put off MANY ENTHUSIASTS and BUYERS in the long term, and 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 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 produced in the USA. This has prompted Harley-Davidson to produce in Thailand for the European market, and Harley-Davidson continues to produce in the USA for the US market. The Sportster is also produced in the USA until the end. The CVO models also continue to come from the USA.
This is also not welcome in the USA, and Trump is particularly annoyed by the factory in Thailand. My personal guess is that if Trump wins again, it is quite possible that Harley will somehow have to come to an agreement with the president because he is putting pressure on the media on the patriotism front.
I have no idea what India does, but there are also other manufacturers who produce their motorcycles in the neighborhood.
Best regards, Volker