As expected, Harley-Davidson is backtracking after President Donald Trump slammed the iconic brand on Twitter recently for shifting some of its U.S. operations overseas.
A company spokesperson told The Wall Street Journal on Wednesday that Harley-Davidson will continue to manufacture motorcycles in the U.S. and will only sell U.S.-made motorcycles in America, where the business sells a large portion of its bikes.
Although its facilities in Brazil, India, and Thailand will boost output to avoid retaliatory tariffs emanating from the European Union, Harley-Davidson reassured Americans that it is “committed” to making products within the borders of the U.S.
It is estimated that the levies will increase costs by as much as $100 million.
The slight change in rhetoric was predictable, considering that many Harley-Davidson users and workers are supporters of President Trump and are unlikely pleased that jobs will be moved outside of the U.S.
From WSJ:
Harley executives have struggled with balancing their strategy for finding growth abroad with the “meaning and the strength of the brand and the emotional connection with its customers,” this person said.
Harley was determined not to shift any American jobs offshore for the new plant in Thailand, and not to import any foreign-made motorcycles from there into the U.S., this person said.
Harley had faced a similar dilemma in deciding to build plants in India and Brazil, according to a former Harley executive. As a result, the plant in Brazil was designed to mostly assemble bikes from U.S. made components, the executive said, thereby supporting jobs at Harley plants in the U.S.
“Every motorcycle they sold over there was made with parts that came from the states,” this former executive said.
The company is stuck in between a rock and a hard place. If it exits the U.S., then it could face stiff taxes, according to Trump. But if it stays in the U.S., then it will cost more to operate.
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