Washington: Harley-Davidson plans to shift some motorcycle production away from the US to avoid the “substantial” burden of European Union tariffs.
Last week, the EU imposed retaliatory tariffs on US goods, including bourbon, orange juice and motorcycles, international English news channel reported on Monday.
The measures are a response to new US duties on steel and aluminium imports.
Wisconsin-based Harley-Davidson said the increased cost from the tariffs threaten its international sales, which it has been trying to expand.
The company has assembly plants in Australia, Brazil, India and Thailand as well as in the US.
It said it would raise investment in its international plants, though it did not say which ones.
“To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for EU destinations from the US to its international facilities to avoid the tariff burden,” the company said.
Harley-Davidson said it expected the ramp-up in production to take nine to 18 months.
Now Harley-Davidson to make more motorcycles outside America:
US President Donald Trump tweeted his disappointment at Harvey-Davidson’s decision which he characterised as the company waving the white flag of defeat.
The company’s move is one of the most visible consequences of the trade disputes triggered by Trump’s decision to levy tariffs on steel and aluminium imports.
Trump says the duties are necessary to protect the US steel and aluminium industries, which are vital to national security.
They have drawn retaliation from the EU, Canada, Mexico, India and others while driving up the cost of metals for manufacturers in the US.
US companies that range from boat-builders to nail manufacturers have warned about the consequences of escalating trade tensions.
However, the tariffs have also helped to spur investment in US steel plants.
For example, British-owned GFG Alliance, has said it plans to invest $5 billion over several years to reopen a shuttered steel plant in South Carolina. The firm says the move will put about 125 people back to work “immediately”.
Zomato acquires UberEats India for nearly Rs 2,500 crore
New Delhi: Zomato on Tuesday announced that it has acquired Uber’s Food Delivery Business in India in an all-stock deal and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.
According to sources close to the deal, it is in the range of over $350 million or nearly Rs 2,500 crore.
Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective from Tuesday.
“We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category,” said Goyal, Founder and CEO, Zomato.
According to company sources, for the first three quarters of 2019, “our Uber Eats business comprised 3 per cent of our global Eats gross bookings, but was more than 25 per cent of our global Eats Segment Adjusted EBITDA losses”.
Uber started its food delivery service in India around mid-2017, but has not been able to scale up in the face of big players like Zomato and Swiggy.
It currently has nearly 26,000 restuarants listed on its platform from over 40 cities.
The market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.
Uber CEO Dara Khosrowshahi said that the Uber Eats team in India has achieved an incredible amount over the last two years.
“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader,” said Khosrowshahi.
“We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” he added.
On January 10, Zomato had announced that it has secured $150 million in fresh funding from Ant Financial, a subsidiary of China-based giant Alibaba.
The latest round of funding in Zomato, which currently value the company at $3 billion, is part of $600 million funding round announced by Zomato CEO Goyal at a Delhi event last December.
The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date.