Japan's Fair Trade Commission is considering fining the Japanese unit of U.S. motorcycle giant Harley-Davidson over imposing excessive sales quotas on dealers, informed sources said.
The FTC is mulling a surcharge of some ¥200 million ($1.4 million) on Harley-Davidson Japan over abusing a superior bargaining position, in violation of the antimonopoly law.
It is also considering a cease-and-desist order against the firm, which has already been notified of the planned penalty. The antimonopoly watchdog will make a final decision after hearing opinions.
According to the sources, Harley-Davidson Japan unilaterally set sales targets for new motorcycles at dozens of dealer stores in Japan since January 2023 at the latest. The targets were difficult to achieve under normal operations, and the company suggested that it would not renew contracts if certain target achievement rates were not met.
Some dealers purchased motorcycles under their own names or the names of staff members to meet the targets. They were forced to sell such motorcycles to customers at a lower price than for new vehicles as the bikes had already been registered after the initial purchase.
The stores are believed to have felt pressured to comply with Harley-Davidson Japan's demands to continue dealings with it.
The antimonopoly law prohibits companies in a superior bargaining position from using it to unfairly disadvantage their business partners.
According to the Japan Automobile Importers Association, Harley-Davidson was the most common brand of newly registered imported small motorcycles in Japan in fiscal 2024, with a 30.6% market share. It topped the list in fiscal 2023 as well.
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