Why Is Harley-Davidson Moving Some Of Its Motorcycle Production Lines To Thailand?

Harley-Davidson was born in the Davidson family basement in 1903 and still maintains its headquarters in that same spot on Juneau Avenue in Milwaukee. Harley's best bikes over its long history have run the gamut from flat-track dirt devils to chrome-laden pavement cruisers. The brand is popular with actors and musicians, and several of its models have been featured in movies and on television. 

Harley has always touted its identity as an American company, although it has embraced opportunities to expand its sales and manufacturing to other parts of the world in recent years. Harley-Davidson motorcycles are built using parts made in Mexico and across Europe, Asia, and South America, although every bike sold in the United States is assembled in Wisconsin or Pennsylvania.

At least, that was the case until very recently. Last month, Harley-Davidson announced that it would move production of some U.S.-market 2025 Pan America, Sportster S, and Nightster models to Thailand. Per ABC12 News in Flint, Michigan, the company said that the move was temporary. A Harley dealer in Vermont said the company would be investing $9 million in its York, Pennsylvania facility, specified that popular models like the Softail and Grand American touring series would still be made at that plant, and noted that Harley rival Indian Motorcycle has manufacturing facilities in Mexico and Asia.

For obvious reasons, the union that represents the workers who make Harley-Davidson's bikes was not pleased with the company's announcement. Brian Bryant, president of the International Association of Machinists and Aerospace Workers, cited a pledge made by Harley's management five years ago that production of U.S.-market bikes would not be shipped overseas. 

"Harley-Davidson has backtracked on that promise," he said in a statement. "This decision undermines the hard work and dedication of IAM members in York, Pa., and Menomonee Falls, Wis., who have been the backbone of Harley-Davidson's success."

Bryant is hardly the only union leader concerned about Harley's plans. United Steelworkers Local 2-209 President Andrew Worby told the Flint TV station that many of his members were loyal to the brand as customers, but that could be threatened by the move overseas. "A lot of the union workers, or salaried workers, we ride too," he said. "We didn't feel it was very positive at all." 

Harley-Davidson's latest move followed a 2018 decision to shift some production to Europe to avoid new tariffs on bikes intended for that market. The tariffs were part of a back-and-forth between European Union leaders and then-President Donald Trump, who kicked off the battle by instituting new levies on foreign aluminum and steel. The EU responded with tariffs on orange juice, bourbon, playing cards, and Harley-Davidson motorcycles. Harley-Davidson told The New York Times that import duties on its bikes had jumped from 6% to 31%, or an average of more than $2,000 per motorcycle.

In early 2017, Trump had welcomed Harley-Davidson executives to the White House, thanking the company "for building things in America" and calling the brand "a true American icon." After it announced it would move some production to Europe, he called the tariffs an "excuse" and added: "Surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag."