HOT TOPICS: Opposition Grows as Harley Plant in Thailand Takes Shape
Is the first non-U.S. Harley plant a smart investment or just a money-saving move?
The headlines are guaranteed to grab attention and incite anger. After all, Harley-Davidson is as American as apple pie and holiday cookouts. But as the newest non-U.S. Harley plant takes shape in Thailand, can we simply assume that the pillar of American manufacturing is simply looking to do what everyone else is doing? Is this really a ploy to shed American jobs in favor of low wage overseas labor?
If you read this piece by The New York Times, you’d certainly think so. And United Steelworkers (USW) International, which represents members of Harley’s Wisconsin and Missouri plants, blasted the move in a recent press release.
“Harley-Davidson has been the crown jewel of American manufacturing,” USW President Leo W. Gerard said in the release. “It’s an iconic brand that represents true American spirit. Management’s decision to offshore production is a slap in the face to the American worker and to hundreds of thousands of Harley riders across the country. This decision puts in jeopardy one of the few remaining genuine U.S. brands.”
But Harley-Davidson, which already operates plants in India, Brazil, and Australia, denies that the move will impact American jobs. They say the motorcycles built at the new Harley plant in Thailand will be sold only in Asia, not in the U.S. And though they’ve drawn criticism for not building the bikes here and exporting them, many countries abroad carry incredibly high tariffs on imported goods. Today in Thailand, a 60% tariff on imported motorcycles makes buying a Harley an incredibly expensive proposition.
‘Offshore production is a slap in the face to the American worker and to Harley riders. This decision puts in jeopardy one of the few remaining genuine U.S. brands.’
The new plant would also give Harley a big break on tariffs to surrounding Asian countries and cut shipping times to China, a fast growing market. And with sluggish sales in the U.S., Harley hopes to build on the growing demand for its products in Asia to compensate.
So what do you, fellow Harley riders, think of the latest foreign plant? Is it just another ploy to cut costs at the expensive of American manufacturing jobs? Or is it a smart, innocent business move intended to make Harley a true global brand?
