Home Business and Economics This Week in Business: Harley-Davidson, VW, and More

This Week in Business: Harley-Davidson, VW, and More

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Harley-Davidson $1.6Bn Investment Raises Concerns

Harley-Davidson announced plans to invest as much as $1.6 billion over the next four years. This comes as an attempt to turn around its business, raising concerns about its earnings and sending its shares lower. The company said its capital spending would range between $200 million and $250 million a year through 2022.

Recently, Harley-Davidson has had issues keeping a market due to aging baby boomers and failed attempts to gain a new market. In order to meet the new plans, the company said it would cut costs and reallocate resources. They also expect new investments to generate nearly $1Bn in revenue.

Volkswagen CEO Charged With Market Manipulation

Volkswagen chief executive Herbert Diess, chairman Hans Dieter Pötsch, and ex-boss Martin Winterkorn have all been charged with market manipulation. The three did not warm investors early enough about the financial fallout from a diesel emissions scandal. In addition, they admitted to using illegal software to cheat the emissions.

“The company has meticulously investigated this matter with the help of internal and external legal experts for almost four years. The result is clear: the allegations are groundless,” the German company said in a statement. Lawyers for the executives claim that their clients are innocent.

German Prosecutors Fine Daimler $1Bn

German prosecutors ordered Daimler to pay a fine of nearly $1Bn. They also claimed that they broke diesel emissions regulations. However, Daimler said they would not appeal the charge, positive that their earnings wouldn’t change drastically. “It is in the company’s best interest to end the administrative offense proceeding in a timely and comprehensive manner and thereby conclude this matter,” Daimler said, confirming it would not appeal.

Adam Neumann Quits WeWorks

WeWork’s Adam Neumann agreed to step down as CEO, saying it’s in the “best interests” of the company. This decision is effective immediately. However, he will remain with the company as non-executive chairman. “While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive,” Neumann said in a statement.

Uber Receives Two Month London License

Uber received only a two-month London operating license on Tuesday. They had tried and failed to secure a maximum five-year term in a battle with the regulator which has previously stripped the app of its right to take rides. Back in 2017, Transport for London didn’t renew Uber’s license due to failings found in its approach to reporting serious criminal offenses and driver background checks.

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