Harley-Davidson to shift some bike production outside US

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Harley-Davidson to shift some bike production outside US

Muzza Wa
6 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
6 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.

paulybronco
6 years ago

Usual Journalistic inaccurate babble. HD was once sourcing mag wheels from Adelaide but that contract is winding down in 2019.
https://www.afr.com/business/manufacturing/harleydavidson-to-shut-adelaide-wheel-rim-plant-20180131-h0r35f

friday
6 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
6 years ago

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

paulybronco
6 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
6 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
6 years ago

from nine .com

Ratbob
6 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
6 years ago

Quoting paulybronco on 25 Jun 2018 09:31 PM
Usual Journalistic inaccurate babble. HD was once sourcing mag wheels from Adelaide but that contract is winding down in 2019.
https://www.afr.com/business/manufacturing/harleydavidson-to-shut-adelaide-wheel-rim-plant-20180131-h0r35f

Well seems as though the Premier is going in to bat for this plant to keep jobs and manufacturing in the state.......stay tuned for the fine print

paulybronco
6 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
6 years ago

paulybronco
6 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.