American motorcycle giant Harley-Davidson has been grappling with declining global sales, as highlighted in its fourth-quarter report for the previous year. The company attributes the downturn primarily to unfavorable market conditions and rising interest rates, which have collectively made consumer financing more challenging.
In the latest quarter, Harley-Davidson reported sales of just 14,000 motorcycles, resulting in a staggering 35% drop in revenue, down to $688 million. Throughout 2024, the iconic motorcycle brand experienced a 17% decline in sales, with nearly 149,000 units sold.
“2024 presented significant challenges, especially for luxury items like our motorcycles. Elevated interest rates hampered consumer confidence, severely impacting our financial performance,” remarked Jochen Zeitz, CEO of Harley-Davidson.
Looking ahead, Harley-Davidson remains cautious, refraining from speculating on the potential impact of trade rates proposed by President Donald Trump. The company, which was previously affected by the trade disputes between the United States and the European Union during Trump’s initial presidency from 2017 to 2021, continues to navigate these geopolitical challenges.
In that period, Harley-Davidson struggled with import tariffs imposed by the EU and China, which were retaliatory measures against the U.S. tariffs on Chinese and European products. Moreover, the company faced additional costs due to U.S. tariffs on foreign components critical to their manufacturing process.
As President Trump once again threatens to impose import duties on EU products, Harley-Davidson must brace for potential disruptions that could further complicate its path to recovery.