Harley-Davidson to shift some bike production outside US

  • Muzza Wa
    Muzza Wa
    5 years ago
    Just got this off of the news Wire!

    HD has an assembly plant in Australia?? really! Where?


    Harley-Davidson to shift some bike production outside US
    Harley-Davidson plans to shift some motorcycle production away from the US to avoid the "substantial" burden of European Union tariffs.
    Last week the EU introduced retaliatory tariffs on US goods, including bourbon, orange juice and motorcycles.
    Wisconsin-based Harley-Davidson has assembly plants in Australia, Brazil, India and Thailand.
    The company said it would raise investment in its international plants, but did not say which ones.
    "To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for EU destinations from the US to its international facilities to avoid the tariff burden," the company said in an official filing to the US market regulator.
    Harley-Davidson said it expected the ramp-up in production to take nine to 18 months.
    The firm's decision is one of the most visible consequences of the trade disputes triggered by US President Donald Trump's decision to levy tariffs on steel and aluminium.
    The tariffs, which Mr Trump says were necessary to maintain national security, have drawn retaliation from the EU, Canada, Mexico, India and others, while driving up metals costs for manufacturers in the US.
    'Only sustainable option'
    Harley-Davidson, which has been focused on expanding its overseas sales, said it remained committed to US manufacturing.
    The firm sold nearly 40,000 motorcycles in Europe last year.
    It said the tariffs made shifting production "the only sustainable option to make its motorcycles accessible to customers in the EU and maintain a viable business in Europe".
    The company said the tariffs would add on average $2,200 (£1,660) to each bike exported to the EU from the US, as the import tax increases from 6% to 31%.
    Harley said it planned to absorb those costs, which is expected to add $30m to $45m to its expenses this year.
    Passing the costs onto customers "would have an immediate and lasting detrimental impact to its business in the region", the firm argued.
    The majority of Harley's motorcycles are currently built in the US, where the firm employed about 2,100 people at manufacturing facilities.
    However, the firm had already announced plans to close a facility in Kansas City, Missouri, a decision workers said was due to the opening of a new facility in Thailand.
    The company denied those claims, arguing the move was about boosting overseas sales.
    Raising employment in manufacturing is a goal for Mr Trump. He has also threatened tariffs on foreign cars and auto parts, arguing that firms should make such products in the US.
  • Geoff3DMN
    Geoff3DMN
    5 years ago
    Harley make wheels in Australia (or at least that’s all they used to make).
    It doesn’t make sense they’d makes bikes here, the shipping would be too expensive, my guess is Brazil.
  • friday
    friday
    5 years ago
    thats the factory where the cops want to dig up the back yard for those missing kids in the 70s

    when ya look at ford and holden they didnt even consider black factories that are unmanned they just closed shop

    its all share holders wanting a return on the dollar , they rule the world
  • Muzza Wa
    Muzza Wa
    5 years ago
    Maybe HD will change their mind and actually increase their manufacturing presence here because of the tariffs? Just a thought.
  • paulybronco
    paulybronco
    5 years ago
    Quoting Muzza Wa on 26 Jun 2018 03:40 AM

    Maybe HD will change their mind and actually increase their manufacturing presence here because of the tariffs? Just a thought.

    If they can pay someone $10 per hour or us $50 per hour and they are committed to cost cutting we aint going to get a sniff of that opportunity
  • paulybronco
    paulybronco
    5 years ago
    Quoting friday on 25 Jun 2018 10:24 PM

    thats the factory where the cops want to dig up the back yard for those missing kids in the 70s

    when ya look at ford and holden they didnt even consider black factories that are unmanned they just closed shop

    its all share holders wanting a return on the dollar , they rule the world

    Its the way of the world now days
  • Soapbox2627
    Soapbox2627
    5 years ago
    from nine .com
  • Ratbob
    Ratbob
    5 years ago
    Quoting friday on 25 Jun 2018 10:24 PM

    thats the factory where the cops want to dig up the back yard for those missing kids in the 70s

    when ya look at ford and holden they didnt even consider black factories that are unmanned they just closed shop

    its all share holders wanting a return on the dollar , they rule the world

    Yeah, bloody shareholders.
    Er, hang on, 
    No shareholders, no company.
    No company, no jobs.
    No jobs, no Harleys.

    Harley and others will never build in Aus, our 30% tax rate alone keeps em away. 

  • paulybronco
    paulybronco
    5 years ago
    Did not realise they own the plant, see some banter about the SA government paying the rent on behalf of the struggling Harley Factory
  • Jayman6
    Jayman6
    5 years ago


  • paulybronco
    paulybronco
    5 years ago
    I did not buy my HD because it was made in USA and quiet frankly don't care where its made, hopefully if its made in a cheaper manufacturing country the factory in USA  spend some R&D money fixing some of the flaws in their motors.
  • MitchFXDF
    MitchFXDF
    5 years ago


  • paulybronco
    paulybronco
    5 years ago
    Have to agree Mitch
  • steelo
    steelo
    5 years ago
    Imagine the local lads on their new product


  • paulybronco
    paulybronco
    5 years ago
    Ha Ha