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Harley-Davidson warns that motorcycle sales are slowing down



The company delivered nearly 69,000 bicycles during the quarter, down 5% from a year ago. Total revenue decreased 6% to $ 1.4 billion.

Harley-Davidson ( HOG ) has attempted to reduce costs by shifting part of its manufacturing to Thailand, where this can be avoided. Some tariffs and motorcycles are nearer European and Asian customers who are more interested in Harley's products than American customers. Harley has shipped bicycles from the US all over the world.

The company has recently received the necessary regulatory approvals to ship Thailand-made motorcycles to the European Union, reducing Harley's tariffs. However, this approval process took "significantly longer" than planned and impacted earnings, which fell 1

9% to $ 195.6 million last quarter.

The weaker than expected demand in Europe followed the company's sales forecast. The company has reduced the number of bicycles expected to ship this year to between 212,000 and 217,000. The Milwaukee-based company had previously announced it would deliver between 217,000 and 222,000 motorcycles in 2019.

Harley's sales have been declining for several years as interest among younger people is falling. President Donald Trump supported a boycott when Harley announced plans to move overseas manufacturing facilities in response to tariffs.

To revamp his business, Harley focuses on international sales and new bicycles.
Earlier this year, Harley published photos of two concepts for light electric vehicles reminiscent of slimmed-down motorcycles or electric bicycles without pedals. It was refused to say if the prototypes will be launched.
The company also signed a contract in June to manufacture small motorcycles in China. The country is a bright spot for Harley: Sales in the country rose 27% year-on-year in 2018.

Harley's shares fell more than 4% on early trading Tuesday.


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