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Harley-Davidson warns that motorcycle sales are slow



The company delivered nearly 69,000 bicycles for the quarter, down 5% compared to the same period last year. Total sales fell 6% to $ 1.4 billion.

Harley-Davidson ( HOG ) has tried to keep costs down by moving some of the production to Thailand, where it can avoid some tariffs and build motorcycles closer to European and Asian customers that shows more interest in Harley's products than American customers. Harley has transported bicycles worldwide from the United States.

The company recently received the necessary regulatory approvals to send Thailand-built motorcycles to the EU, which will reduce the amount of customs Harley has to pay. But that approval process took "considerably longer" than the company had planned and ate, which fell 1

9% to $ 195.6 million the previous quarter.

Weaker demand than expected in Europe ate the company's sales forecast. The company reduced the number of bikes it expects to ship this year between 212,000 and 217,000. The company, based in Milwaukee, said earlier it expected to deliver between 217,000 and 222,000 motorcycles for 2019.

Harley's sales have fallen in several years as interest decreases among younger people. President Donald Trump supported a boycott when Harley announced plans to change some production overseas in response to tariffs.

In an effort to increase business, Harley focuses on international sales and new bikes.
Earlier this year, Harley released images of two light electric vehicle concepts that resemble slimmed motorcycles, or electric bicycles without pedals. It declined to say whether the prototypes will come on the market.
The company also entered into an agreement in June to create small motorcycles in China. The country is a bright spot for Harley: Sales in the country increased 27% in 2018 compared to the previous year.

Harley's stock fell more than 4% in early trading Tuesday.


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