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Published by: Harvard Kennedy School
Published in: 1987
Length: 12 pages
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Abstract

This is part of a case series. In September 1982, Harley-Davidson, the only remaining US-based motorcycle manufacturer, petitioned the International Trade Commission for temporary relief, in the form of steep tariffs, from high levels of Japanese heavyweight motorcycles and motorcycle components. Harley claimed that Japanese manufacturers had exported a great many more heavyweight motorcycles to the US than market demand warranted, and as a result were selling models at prices so low that Harley could not compete. Japanese cycle manufacturers countered that their products were not competitive with Harley cycles, which appealed to a different market segment, and that Harley's financial troubles stemmed from the 1981-82 economic downturn rather than foreign competition.

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Abstract

This is part of a case series. In September 1982, Harley-Davidson, the only remaining US-based motorcycle manufacturer, petitioned the International Trade Commission for temporary relief, in the form of steep tariffs, from high levels of Japanese heavyweight motorcycles and motorcycle components. Harley claimed that Japanese manufacturers had exported a great many more heavyweight motorcycles to the US than market demand warranted, and as a result were selling models at prices so low that Harley could not compete. Japanese cycle manufacturers countered that their products were not competitive with Harley cycles, which appealed to a different market segment, and that Harley's financial troubles stemmed from the 1981-82 economic downturn rather than foreign competition.

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