Decoder with Nilay Patel Recode Decode: Harley-Davidson CEO Matthew Levatich (Live at Code 2019)
Jul 12, 2019
Former Harley-Davidson CEO Matthew Levatich reveals the impact of trade wars and tariffs on the motorcycle industry. He discusses the company's shift towards electric bikes, showcasing a live demo of their first electric model. Levatich explains the challenges of maintaining U.S. manufacturing expertise and balancing tradition with innovation. He also explores the emerging scooter market and how Harley's omnichannel strategy adapts to changing consumer behaviors while addressing sustainability in transportation.
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Tariff Trouble
- Harley-Davidson, despite being a U.S.-based manufacturer, faced significant challenges due to retaliatory tariffs imposed by the EU.
- These tariffs, a response to U.S. steel and aluminum tariffs, increased Harley's costs by $100 million annually.
Uncertainty in Trade Wars
- Levatich emphasizes the uncertainty surrounding trade wars as the biggest challenge for business leaders.
- This uncertainty makes it difficult to plan and deploy capital effectively.
Navigating Trade Wars
- Focus on the facts and circumstances specific to your company when navigating trade wars.
- Each company is affected differently based on its sourcing, sales, and commodities.