Harley-Davidson has reached an agreement with its exclusive dealer in Brazil, HDSP/Grupo Izzo, to open new dealers in the South American country.
Harley-Davidson continues to bolster its activities in the international marketplace with the announcement that it is expanding its dealer network in Brazil. An agreement has been reached with HDSP/Grupo Izzo, Harley’s exclusive Brazilian dealer, to bring new retailers into the fold according to a filing with the Securities and Exchange Commission. The Motor Company opened a commercial office in Sao Paulo recently and stated its goals are to enact a “subsidiary operating structure in Brazil” comparable to ones it has established in other markets. H-D has sold bikes in Brazil since 1993 and currently lists nine Brazilian dealers on its website.
It also has a factory in Manaus, Brazil that has been operating since 1999 where it assembles motorcycles for sale in the country.
The announcement sent Harley-Davidson shares up thee percent today, but costs associated with the Brazilian expansion is projected to reduce profits this quarter by five to six cents per share.