(Note: many of you have asked for the exact sales figures of Harley Davidson’s new Pan America, given their boast that it topped the charts shortly after its debut. We’ve sent our request for those figures to the brand, so be sure to stay put for those results. By the way, the Pan America should be a part of the 2021 figures below, so you can eyeball it a bit while you wait.)
Had Harley-Davidson had to pay the 56% tax imposed by the EU government, the American motorcycle manufacturer estimated that “the impact of additional EU tariffs [would have been] approximately $200 million to $225 million (USD) on annual basis after 2021, assuming a total EU tariff rate of 56%.”
Today, the report states that “the Company now estimates the impact of the additional EU tariffs (the 31% imposed as of April 19 that will last until the end of this year, as well as the 9% tariff they had to pay at their infamous Thailand facility) in 2021 to be approximately $61 million (USD), including approximately $44 million recognized in the first nine months of 2021.”
Now that everything is cleared up in the Central Hemisphere, we’re told that “the additional tariffs imposed by the EU on the Company’s motorcycles…[will reduce] the total EU tariff rate on the Company’s motorcycles from 31% to 6%, effective January 1, 2022.”
Here’s a comparison of the overall figures from 2019 to the present. Keep in mind, the rise and fall of these sales do not completely depict the success of Harley-Davidson, seeing as they’ve had to pay for the influx in EU taxes from the earnings stated below, leaving less in their pockets than in previous years of income.
“The Company expects Financial Services segment operating income growth in 2021 over 2020 of 95% to 105%, up from the previous range of 75% to 85%. The improved outlook takes into account the favorable credit loss experience through the first nine months of 2021, as well as the outlook for the remainder of the year.”
Projected Units Sold
“The Company expects to ship approximately 22,000 to 29,000 motorcycles at wholesale.”
The report (MarketScreener) also leaves us an idea of how much extra cash is flowing in now that H-D isn’t pinned with the EU levy.
“At the end of the third quarter of 2021, the Company had $3.4 billion of available liquidity through cash, cash equivalents, and availability under its credit and conduit facilities. The Company continues to closely monitor its liquidity in light of the COVID-19 pandemic; however, during 2021, the Company has gradually reduced its cash and cash equivalents from the elevated December 2020 levels.”