Harley Davidson closes plant after Trump tax cuts, Shareholders got paid, which should trickle down.

[FacePunch]

Don't care. Harley's best bikes are 20 years behind them.

 

[bushman505]

Hey now. It's probably only 95%.

And trust me, no one hates a dickhead rider more than a responsible rider.

Rule #1 of being a sport bike owner: only wear black skin tight v-necks and get a tribal arm tattoo.

 

[bushman505]

This is the symptom of a serious disease

Hahahaha!!!!!

 

[zebby23]

Hahahaha!!!!!

It is. To think Hillary would have been as bad as Trump is a symptom of a serious disease in this country.

I did not support Hillary btw at all at any point.

 

[bushman505]

It is. To think Hillary would have been as bad as Trump is a symptom of a serious disease in this country.

I did not support Hillary btw at all at any point.

That’s simply it true. It’s cool you hate trump but to insinuate that things would be better with hillary is absolutely hilarious.

 

[VivaRevolution]

It's simple. If it's good, Trump did it, and if it's bad, it was liberals/Hillary/Democrats/Obama.

Easy peasy.

I’m pretty sure it’s the opposite of that.

If trump does anything....it’s bad, of it happens to be good and fit the liberal agenda...trump has nothing to do with it and it was going to happen anyways.

 

[zebby23]

That’s simply it true. It’s cool you hate trump but to insinuate that things would be better with hillary is absolutely hilarious.

I do hate Trump and didn't like Hillary but I also didn't want a sexual predator in office or a person who lies about everything and I mean EVERYTHING. I didn't want someone who is borderline facist and I didn't want someone who can't even bother to learn the issues. Oh and I didn't want someone who has almost 100% turnover in their cabinet and someone whose closest advisers are under indictment.

Oh and I didn't want an ongoing investigation that will never end because the person commits a new crime everyday.

But those damn emails I tell ya... THAT would have been terrible lol

 

[Tekk]

Harley Davidson. Yesterday's technology at tomorrow's prices.

 

[second sight]

We do?

Ok just dishonest

 

[cincymma79]

Has Trump ever done anything you disagree with? Ever? Or can you just admit that for some bizarre reason you hold a shit businessman who grabs women by the p&^87 and wants to date his own daughter on a pedestal?

What has trump got to do with harley that has been failing for two decades slowly? There is a whole aisle of products for your bleeding issue you’re having

 

[JonesBones]

Go fist yourself

Sorry man, you are alright. lol.

 

[Joe_Armstrong]

Explain the trickle down theory to me again please.

 

[ralphc1]

I can't blame Trump for Harley Davidsons problems but the tax cuts could have been used to diversify into building something more in demand. They were once in the golf cart business but sold out to AMF in 1969. The average age of motorcycle riders has been going up for 30 years. If Harley was tracking demographics they should have seen this coming. People who couldn't afford Harleys in their 20s could as they got older but fewer younger people were riding motorcycles from the 80s on so they were losing their market. As the older buyers aged, they sell those bikes which means fewer new bikes are sold. As always, management only looks to short term gains rather than long term success.

 

[AVX]

I'm pro tax cuts but I do think these corporate cuts should have came with some conditions. Not saying Harley is doing anything wrong here, just in general.

 

[Big Nasty Edison]

Explain the trickle down theory to me again please.

Rich people will get so tired of their money that they'll fly over America and just empty bags of cash over the rejoicing populace

 

[Cubo de Sangre]

The article in the OP didn't help me understand what tax cuts had to do with the plant closing.

 

[JonesBones]

Anyway, I said when these tax cuts happened they were unnecessary. The market was doing great. Corporations didn't need tax breaks. Then that clown Trump basically blew all those tax breaks with this tariff shit. Boeing is a perfect example. Stock was already doing good. Tax cuts. It goes up more. Boeing is about to invest a ton in R and D with tax cuts. Then Trump kills all the gains with tariffs. Now it is up decent again because of the new talks on tariffs. lol. I mean, it is just ridiculous. This is not a steady ship obviously. People are getting seasick.

I'm no economist but starting trade wars when the economy is good seems backwards. You rip out trade rhetoric to get the economy going, not when it is going good. Same thing with tax cuts. There was no need for a stimulus. Maybe Trump thought he was in a good position and had leverage to get these things done. But they are contradictory/counterproductive. You give tax cuts only to be eaten up by tariffs.

 

[Execute]

No amount of tax cuts will save Harley jobs. They hire a lot of rejects in the area and their products don't appeal to the younger generation.

 

[Ruprecht]

The articles include a quote:

Harley-Davidson attributes their earnings drop to ” a charge associated with President Trump’s tax cut and a $29.4 million charge for a voluntary product recall.”

But it doesn't seem to be attributed to anyone, and I can't find the source. It's a claim being repeated in most of the articles (with or without the quotation marks).
I'm guessing it's costs associated with the changing tax code.
The OP article references a Reuters press release.

* NET INCOME AND EPS IN QUARTER ADVERSELY IMPACTED BY A $53.1 MILLION INCOME TAX CHARGE RELATED TO ENACTMENT OF 2017 TAX CUTS AND JOBS ACT

Which isn't exactly long on explanation.

The Harley Investor brief indicates that the write down was in anticipation of much lower effective tax this year, so it's a poor excuse for closing a plant and offshoring.
I think blaming the tax cut seems a bit of a long shot, but clearly Trump going to bat for Harley in India and reducing taxes didn't change their corporate strategy of increased offshoring (which they started with their "street" series back in 2014).

 

[oldshadow]

HD is cutting because the weekend warriors and yuppies are not buying anymore. They are and have been selling their bikes cor a while now. So there is a glut of low millage used HD's out there. Great for bikers that were around before the craze and are still around.

This was not unexpected by anyone that has been around bikes for a good while.