Japan's antitrust watchdog is set to fine the domestic unit of motorcycle company Harley-Davidson Inc. around 200 million yen ($1.4 million) for imposing excessive sales quotas on dealers in violation of the antimonopoly law, sources close to the matter have said.
The Japan Fair Trade Commission will also issue a cease and desist order to Harley-Davidson Japan KK, based in Tokyo, over pressuring dealers by implying their exclusive sales contracts might not be renewed if they failed to meet the quotas, leading some to buy unsold motorcycles themselves.
According to Kyodo News, the commission has already notified Harley-Davidson Japan of the proposed disciplinary measures and will make a final decision after considering the firm's response, according to sources.
Harley-Davidson Japan is alleged to have unilaterally imposed sales quotas on dozens of dealers from as late as January 2023.
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The firm has no directly managed stores, and only businesses that have concluded exclusive sales contracts are authorized to sell Harley-Davidson-branded motorcycles.
The excessive quotas were discontinued following an investigation by the watchdog.
In a similar case in 2019, the Japan unit of Germany's BMW AG was found to have imposed excessive sales quotas on dealers, forcing them to purchase unsold vehicles themselves to meet targets.