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Harley Davidson in Brazil Presentation
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$9.644B in 1996Grown to $18.778B in 2002Transportation specific:
$286M in 1996 Grown to $1.809B in 2002
Reporting Countries Import Statistics (Partner Country: World)
Commodity: 871150, Motorcycles With Reciprocating Piston Engine Displacing More Than 800 Cc
Calendar Year: 2005 - 2007
Reporting Country
United States Dollars % Change
Data Availability
2005 2006 2007 2007/2006
Reporting Total $ 4,917,937,740 $ 5,768,534,699 $ 6,322,601,259 9.6 01/04 - 12/07
United States $ 1,140,116,096 $ 1,484,318,869 $ 1,212,222,793 -18.33 01/95 - 06/08
Mexico $ 30,337,309 $ 30,323,841 $ 38,687,649 27.58 01/95 - 05/08
Brazil $ 19,446,919 $ 38,852,736 $ 51,417,195 32.34 01/97 - 07/08
Chile $ 2,809,515 $ 5,048,510 $ 7,809,718 54.69 01/97 - 06/08
Venezuela $ 3,151,462 $ 5,856,353 $ 9,574,030 63.48 01/99 - 12/07
Argentina $ 3,337,255 $ 5,704,210 $ 16,493,180 189.14 01/97 - 06/08
Reporting Countries Export Statistics (Partner Country: World)
Commodity: 871150, Motorcycles With Reciprocating Piston Engine Displacing More Than 800 Cc
Calendar Year: 2005 - 2007
Reporting Country
United States Dollars % Change
Data Availability
2005 2006 2007 2007/2006
Reporting Total $4,879,084,092.00 $5,757,793,503.00 $6,374,659,082.00 10.71 01/04 - 12/07
United States $ 704,063,188.00 $ 897,043,690.00 $1,125,647,531.00 25.48 01/95 - 06/08
Mexico $ 1,228,377.00 $ 151,711.00 $ 759,006.00 400.3 01/95 - 05/08
Colombia $ 67,754.00 $ - $ 59,734.00 01/95 - 04/08
Argentina $ 71,445.00 $ 23,000.00 $ 58,500.00 154.35 01/97 - 06/08
Brazil $ 34,233.00 $ 35,580.00 $ 37,449.00 5.25 01/97 - 07/08
Chile $ 5,836.00 $ 25,940.00 $ 19,803.00 -23.66 01/97 - 06/08
Venezuela $ 55,323.00 $ 31,728.00 $ 19,312.00 -39.13 01/99 - 12/07
High Inflation Ranks 95th
3.6% for consumer products Global Competitiveness
Ranks 72nd
China (34th), India (48th), and Mexico (52nd) Economic Freedom
Ranks 101st
Ranks 21st of 29 countries in Latin America
Social Disparity/Unrest Risk: Target as North American icon
Poverty/Crime
Risk: Personnel Security
Corruption Risk: competitive disadvantage
Presidency
Lula’s Term ends in 2010, after 8 years Stabilizing force
Chaotic Legal System Scholars often shape law; not judges. Many laws ignored or forgotten.
Poor “Ease of Doing Business” Rankings World Bank’s Doing Business 2009 Brazil 125 out of 181 for “Ease of Doing
Business.” Brazil 100 out of 181 for “Enforcing Contracts.” Brazil 111 out of 181 for “Registering
Property.”
Overcoming Challenges Obtain top-quality local legal
representation. Focus on enforcing local supplier
contracts. Vigorously enforce any possible
intellectual property infringement. Work with lobbyists to ensure passage of
pro-business laws.
Founded in 1903 in Milwaukee, WI Since beginning focused on speed and
performance James Ziemer CEO
Expert in trade relations International focus
Revenue $5.7 Billion Profit $933 Million
Global Area Corporation
Harley opens production plant in Brazil-1999 Lower import costs▪ Brazil protected domestic sales▪ Clinton Administration intervened for H-D
Export base for Latin America▪ Bikes and Merchandise
$2 million invested in Joint Venture – Izzo Motors▪ Limit risks and get local knowledge
Small Scale- 5 bikes a day
Small, affluent, macho target marketMaintain healthy joint venture
relationshipResponding to changing consumer
tastes without massive market research V-Rod
Three broad functional circles
Assists in making a collaborative and coordinated decision making
Create Demand – marketing and sales, HOG group, motorcycle styling
Produce Products – engineering, Manufacturing, cost and quality control
Provide Support – finance, HR,
Information systems, strategic planning
Combination of these three – Leadership and Strategy Council (LSC)
Organizational structure aids in increasing clarity, stimulates dialogue and trust
Eliminated an entire layer of management hierarchy – Executive VP’s
Salaried and unionized employees are involved in key business decisions
Continuous improvement involving team based efforts
Power Distance Open Door Management Policy
Long-Term Index Steady Long-Term Growth vs. “NOW” Results