Wednesday, January 31, 2018

Harley Davidson Closes Plant with Tax Cut

epening slump in U.S. motorcycle demand is spurring more job cuts and a plant closure at Harley-Davidson Inc., a company President Donald Trump has cast as a model American manufacturer. The Milwaukee-based motorcycle maker will close its factory in Kansas City, Missouri, and consolidate production in York, Pennsylvania, according to a statement Tuesday. The restructuring will eliminate about 260 U.S. jobs, Chief Executive Officer Matt Levatich said on a conference call. Trump praised the company last year as a "great example" of a business creating jobs and building factories in the country. In closing the Kansas City plant, Harley will eliminate about 800 jobs; it will add 450 in York, a mix of full-time, part-time and contract positions.

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According to the company's press release: "Net income and EPS were adversely impacted by a $53.1 million income tax charge related to the enactment of the 2017 Tax Cuts and Jobs Act and a $29.4 million pre-tax charge for a voluntary product recall."

Comments

Sales are down 3 years straight in the US. They've fallen here more sharply than the rest of the world.

#1 | Posted by sitzkrieg at 2018-01-31 08:27 AM

They aren't the only company to use their tax cut to lay people off.

Best line FTA:

"Trump praised the company last year as a "great example" of a business creating jobs and building factories in the country."

He sure can pick 'em.

#2 | Posted by MrSilenceDogood at 2018-01-31 09:20 AM

The GOP tax scam rewards companies that invest in facilities and employees overseas with a 10% tax rate.

All you Trumpterds got hosed. Them jobs ain't coming back.

#3 | Posted by 726 at 2018-01-31 09:24 AM

They've fallen here more sharply than the rest of the world.

No shit. Wages are stagnant. No one has $15,000 to blow on a bike.

Especially when health care costs are the 20 foot tapeworm in the economies digestive tract.

#4 | Posted by 726 at 2018-01-31 09:37 AM

"Trump praised the company last year as a "great example" of a business creating jobs and building factories in the country."

Ah, the Trump kiss of death.

#5 | Posted by Danforth at 2018-01-31 09:51 AM

Especially when health care costs are the 20 foot tapeworm in the economies digestive tract.

#4 | POSTED BY 726 AT 2018-01-31 09:37 AM

Especially when healthcare siphons off 20% from the economy and siphons 20% of that for profits and another 20% for advertising and overhead.

#6 | Posted by hatter5183 at 2018-01-31 11:53 AM

"Trump praised the company last year as a "great example" of a business creating jobs and building factories in the country."

Job growth was better in 2016. www.npr.org

#7 | Posted by 726 at 2018-01-31 12:00 PM

#6 And health care costs are skyrocketing compared to wages. Look for more frivolities such as a Harley to begin to fail.

#8 | Posted by 726 at 2018-01-31 12:02 PM

Rofl. Now the medias has resorted to blaming the sitting President for slumping sales of a product which causes them to make cuts. So Trump is now responsible for millenia of supply and demand theoretics. That is actually very amazing if you think about it. One man alone that has lived for 70 years is the cause of something that has been part of economics since the beginning of economics. You guys don't even realize you are giving him way more credit as an influencer than any demeaning nature to your rhetoric. Partisan politics have gotten so bad that this is actually a thing.

#9 | Posted by humtake at 2018-01-31 12:04 PM

Since you are talking apples vs oranges, here are some facts [you know, those bothersome things libs hate]:

MILWAUKEE -- With U.S. sales still in a slump, Harley-Davidson's profits are sputtering. ... Harley reported $1.15 billion in revenue, down about 9% from the third quarter of 2016. The company said its worldwide retail motorcycle sales fell nearly 7%, primarily because of its U.S. slump.Oct 17, 2017

#10 | Posted by MSgt at 2018-01-31 12:13 PM

Yes, but we were told that tax cuts for the rich would result in them buying more crap, like H/Ds. Their sales should be up.

#11 | Posted by TFDNihilist at 2018-01-31 12:15 PM

"you know, those bothersome things libs hate"

good one. keeps the ignorant feeling less stupid.

#12 | Posted by BruceBanner at 2018-01-31 12:21 PM

What. No wing ding whining about a company who received 4 bailouts is failing becuase of OBAMA

#13 | Posted by ChiefTutMoses at 2018-01-31 12:22 PM

#11 | POSTED BY TFDNIHILIST AT 2018-01-31 12:15 PM | FLAG: Did you note that that the sales are down 'WORLDWIDE'? DH is not just sold in the USA. Additionally, why would the tax breaks affect anything at this time, as just instituted and no one yet seeing the increase in their paychecks.

#14 | Posted by MSgt at 2018-01-31 12:22 PM

[you know, those bothersome things libs hate]:

#10 | POSTED BY MSGT

Here's a fact:

There is a new thread about how we are all wiping with 10 dollar bill since your personal lord and savior cut his own taxes.

I guess it all happens in some weird, right wing, good things vacuum.

The bad stuff must be happening because Hillary won the popular vote..

#15 | Posted by MrSilenceDogood at 2018-01-31 12:25 PM

as just instituted and no one yet seeing the increase in their paychecks.

#14 | POSTED BY MSGT AT

You guys need to have a meeting and figure out if the tax cuts are creating jobs, resulting in bonuses, keeping jobs here, etc or if they haven't even happened yet..

Get back to us, let us know..

#16 | Posted by MrSilenceDogood at 2018-01-31 12:28 PM

LOL, this thread is exhibit A in how far DRtards like MaryTylerDouche have to dig to find bad news.
Interesting that somehow a "world wide slump in motorcycle sales" = "tax cuts."
Keep digging, it will further shield your brain from those pesky stories of a rapidly improving economy.

#17 | POSTED BY RIGHTOCENTER

Appears that missed how they used the tax break to consolidate and lay people off.

And I know you are begging us to ignore how the tax break isn't creating new jobs or trickling down to workers, but some of us actually care about calling out the idiocy in office.

You sure you aren't a Trumper?

#18 | Posted by Sycophant at 2018-01-31 12:40 PM

Rofl. Now the medias has resorted to blaming the sitting President for slumping sales of a product which causes them to make cuts.

#9 | POSTED BY HUMTAKE

Because you are illiterate...

People are blaming Trump with creating a new tax cut that incentivized companies like Harley Davidson to lay off workers and consolidate.

You should post less and people will think you are smarter.

#19 | Posted by Sycophant at 2018-01-31 12:43 PM

Appears that missed how they used the tax break to consolidate and lay people off.

#18 | POSTED BY SYCOPHANT

He doesn't have to read the articles, he's free to post whatever he wants to.

The last time I typed something that even closely resembled #17 I got banned for 30 days or so.

I'm not sure how that works.

#20 | Posted by MrSilenceDogood at 2018-01-31 01:22 PM

It's a notable case, but there is a lot more going on here than just the silly tax cut. Maybe they would be better served using the money to introduce smaller bikes to try to get into the Asian, European, and city markets. They just need to modernize in general -- their bikes are loud and inefficient.

#21 | Posted by LEgregius at 2018-01-31 03:13 PM

This is how it goes. When the media started attributing any good news related to employment to the tax bill, then it opened up the predictable blaming bad news related to employment on the tax bill.

Duh....

Tax bills like this one will have little impact on employment either way.

It's just politics.

#22 | Posted by eberly at 2018-01-31 03:20 PM

Tax bills like this one will have little impact on employment either way.

Mostly I agree with that.

My understanding is that it will provide just enough stimulus to make the economy look good come November.

Congress will probably be deadlock the rest of the year.

Then after the midterm elections, no matter who wins, the reality will set in and afterglow will wear off.

Taxes will start go up gradually on th "middleclass" folks and the economy (and the stock market (which is already feeling tremors) will see a downturn.

And if Dems win the House and Senate then we enter a new phase of Russiagate and we could even have a Constitutional crisis on our hands.

#23 | Posted by donnerboy at 2018-01-31 04:15 PM

No one has $15,000 to blow on a bike.

#4 | POSTED BY 726

I personally have never owned a harley (I've always had jap bikes), but i think 15K is only a down payment on a new harley. But, your point is very valid.

#24 | Posted by kudzu at 2018-02-01 07:18 AM

If the POTUS wants to take credit for everything that is good about the economy he also has to take responsibility for everything bad about the economy

#25 | Posted by hatter5183 at 2018-02-01 09:15 AM

"Tax bills like this one will have little impact on employment either way. "

Well, employment has been disincentivized under the new tax bill. Which way do you think it'll head?

#26 | Posted by Danforth at 2018-02-01 09:18 AM

26

I struggle with seeing this from a macro-level perspective. I look at my business and my client's businesses. We will hire folks as we need them, get rid of them as we need to, etc. The corporate tax rates don't play into it either way.

#27 | Posted by eberly at 2018-02-01 09:32 AM

"We will hire folks as we need them, get rid of them as we need to, etc. "

Well, yesterday you got a bigger refund than if you hire today. In the abstract, what do you believe that does? All other things being equal, are employers more likely to hire than yesterday, or less likely to hire?

#28 | Posted by Danforth at 2018-02-01 09:35 AM

I get your point and I don't disagree. I don't believe employers are more likely to pay more or hire more today versus yesterday....I just think the difference is minimal.

I will tell you that the minute this tax bill has passed, our CFO told all of us in mgt to search for things we can pay for in 2017 for obvious reasons.

#29 | Posted by eberly at 2018-02-01 09:48 AM

"If the POTUS wants to take credit for everything that is good about the economy he also has to take responsibility for everything bad about the economy"

I think he'd own all the economic uptick in the exchange for taking on a decrease in demand for motorcycles. The former he had a lot to do with and apparently his policies make people want fewer motorcycles ... makes sense. If HD didn't make such good machines, maybe people would need to replace them more.

#30 | Posted by Nuke_Gently at 2018-02-01 10:05 AM

"the minute this tax bill has passed, our CFO told all of us in mgt to search for things we can pay for in 2017 for obvious reasons."

Those same obvious reasons are now being used NOT to buy items.

For example, I'm telling all my W-2 clients to either get reimbursement from the employer for needed items, or don't buy them. In some extreme cases, I'm advising asking for a lower salary and reimbursements, instead of salary, since the worker ends up with more, all while costing the bosses less. And clients with both W-2 and 1099 income, I'm telling to identify what type of income that expense will generate, and if it's W-2, skip it, if at all possible.

My point is, every change in the code has some effect. Will restaurants be affected by the elimination of Business Meals? Of course, although you or I might not see it. Will luxury boxes prices be affected, since Business Entertainment is no longer deductible? Definitely. Will moving companies be used less because companies can't deduct reimbursement anymore? Sure, but other forces might make the change more or less pronounced. Will violin prices drop? Quite probably, since every violinist getting a W-2 is now being told that very expensive instrument isn't depreciable any more.

Ultimately, there will be thousands of behavioral changes specifically due to this new tax bill. This isn't just a butterfly flapping its wings in the Amazon.

#31 | Posted by Danforth at 2018-02-01 10:07 AM

Danforth, those changes you referenced....are those on a personal level? You're not saying my company can't write off business meals in the same manner they were before, right?

#32 | Posted by eberly at 2018-02-01 10:30 AM

The Bollock Brothers--"Harley David (Son of a B*tch)"

#33 | Posted by madscientist at 2018-02-01 10:54 AM

"You're not saying my company can't write off business meals in the same manner they were before, right?"

I'm not sure about corps, but I do know the deduction for company cafeterias has been cut in half.

ALL business expenses incurred by W-2 employees have been eliminated, including travel, supplies, uniforms, dues, education, cell use, etc. (I wonder how it's going to play when cops discover their union dues, uniforms, gear, and firing range ammo aren't deductible any more.)

For the self-employed, what used to be a deductible business meal expense--say, taking a prospective client for a cup of coffee--is no longer deductible. Nor is taking a client to a ballgame or other events.

#34 | Posted by Danforth at 2018-02-01 01:18 PM

Danforth, thanks for he insight.

I just stumbled onto this. I'm on a phone now and can't look very well at

www.inc.com

#35 | Posted by eberly at 2018-02-01 01:48 PM

More bad news [for the dems] on the tax changes: List Of Tax Reform Good News atr.org

#36 | Posted by MSgt at 2018-02-01 02:29 PM

"List Of Tax Reform Good News" - #36 | Posted by MSgt at 2018-02-01 02:29 PM

Pushing state propaganda.

Good work, Comrade Sargent.

#37 | Posted by Hans at 2018-02-01 02:32 PM

#37 | POSTED BY HANS AT 2018-02-01 02:32 PM | FLAG: Guessing you do not work for any of those listed companies, but worry not, as more companies will be announcing in the near future and you too may become a 'winner' 👍🏻

#38 | Posted by MSgt at 2018-02-01 02:58 PM

"Guessing you do not work for any of those listed companies" - #38 | Posted by MSgt at 2018-02-01 02:58 PM

Most people don't, Comrade Sergeant.

#39 | Posted by Hans at 2018-02-01 03:26 PM

"I just stumbled onto this"

He basically says self-employed folks--Owners-- have nothing to worry about. And he's right: in the scheme of things, losing business meals & entertainment isn't that huge (the 20% reduction in profits more than makes up for it), and you're really only losing half a deduction: it's only 50% deductible in the old code.

The author then barely mentions that ALL the same deductions which remain for business owners, cease for employees.

Of course most folks don't have employee business expenses. But for those who have, and whose industries demand it, it can be a huge hit.

The central tenet in this area of the new tax code is clear: Owners should be able to deduct legitimate expenses, but their employees shouldn't: If the owner belongs to the CoC, the fees are still written off by the business. If the worker pays union dues, they're no longer deductible.

#40 | Posted by Danforth at 2018-02-01 03:41 PM

Most people don't, Comrade Sergeant.

#39 | POSTED BY HANS AT 2018-02-01 03:26 PM | FLAG: That's so cute Herr Hans ;)

#41 | Posted by MSgt at 2018-02-01 05:08 PM

HANS: I apologize for my obtuse #41 post above as I should have been more formal and 'said' Herr Gruber 😎

cf.broadsheet.ie

#42 | Posted by MSgt at 2018-02-01 09:18 PM

"HANS: I apologize..." - #42 | Posted by MSgt at 2018-02-01 09:18 PM

Your grovelling is unbecoming of a Comrade Sergeant

#43 | Posted by Hans at 2018-02-01 10:00 PM

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