harley davidson motorcycles

Harley-Davidson Plans to Move Production to Thailand: True or Not?

Harley-Davidson-Plans-to-Move-Production-to-Thailand-True-or-Not-

It is unfortunate to see the most beloved American motorcycle brand getting much hate. There are various reasons why it is happening. Those who have started hating Harley-Davidson are different from those who have always hated this brand for being unable to afford it.


There are a lot of controversies and things currently going on that have made many people hate Harley-Davidson. People have the right to share their opinions and express their feelings towards a particular thing or event.


However, whatever is happening, it is not good for Harley-Davidson. The company’s sales are continuously declining in each quarter. The H-D LiveWire is not doing good business. Besides rising inflation in the country, the prices of Harley motorcycles are also going upward.


The purchasing power is going down. Harley-Davidson motorcycles are becoming expensive and out of reach for many people. In such a situation, if people only get bad news and learn about controversies, it will become challenging for Harley-Davidson to regain the lost reputation and momentum.


Continue reading this article to learn why Harley-Davidson is getting a lot of hate from people who were once fans of this American brand.

1. Harley-Davidson Is Moving Production to Thailand

Harley-Davidson Is Moving Production to Thailand

It may be sad and unfortunate, but the news is true. Harley-Davidson is moving the production to its Thailand facility.


As per Harley-Davidson, it is a temporary move. The movement of the production unit to the Thailand facility is not permanent.

1.1 H-D Models That Will Be Produced in Thailand

H-D Models That Will Be Produced in Thailand
Photo Credit: Harley-Davidson

According to the company, the Harley-Davidson motorcycles produced in Thailand are based on the Revolution Max powertrain.


The H-D models that will be made in Thailand include:


The 2025 year models of these H-D bikes will be made in Thailand.


These models are not considered the core models in the Harley lineup. The main H-D motorcycles will still be produced in Milwaukee, Wisconsin, USA.


Harley-Davidson, in its official statement, says:

“As part of our overall manufacturing optimization strategy, Harley-Davidson is to temporarily transition the production of its non-core Revolution Max powertrain equipped models (Pan America, Sportster S, Nightster) to its existing manufacturing facility in Thailand for model-year 2025.”

Harley-Davidson

2. Possible Reasons Behind Harley Moving the Production to Thailand

Possible Reasons Behind Harley Moving the Production to Thailand

2.1 It Is a Cost-Saving Strategy By Harley-Davidson

One major reason behind this move is most probably the cost-saving initiatives by Harley-Davidson. The production and labor costs in Thailand are lower than in America.


The manufacturing cost in Thailand is also much lower than in America. The company can save a lot of its money and resources. Producing certain Harley motorcycles in Thailand and then sending them back to America for sale is still a viable option.


Harley-Davidson will also make it easier to access most Asian motorcycle markets by moving its production to Thailand. Asian motorcycle markets are huge as they mostly rely on motorcycles for transport.

2.2 Thai Tax and Tariff Are Low

Considering the current financial losses when the company cannot keep sales high, it may be smart. Thailand is usually considered a tax haven for many industries, particularly motorcycling. The tax policies in Thailand incentivize motorcycle manufacturers to produce their bikes at a much lower cost.


It is not only Harley-Davidson; almost every major motorcycle manufacturer has production plants in Thailand. These include:

  • Kawasaki

  • Honda

  • Suzuki

  • BMW

  • Triumph


According to statistics, Thailand has almost 12 motorcycle production facilities currently working in the country. These plants manufacture approximately more than 2 million motorcycles each year.

3. Harley-Davidson’s Announcement Has Created an Outrage in the Motorcycling Community

3.1 The H-D Community Feels Deceived

The response was outrageous after Harley-Davidson announced that it would move the production facility to Thailand. The H-D motorcycling community, owners, and fans feel deceived by this decision.


As per the announcement, the production of certain Harley-Davidson models is not only moving to Thailand. The company will sell Thailand-made H-D motorcycles in America.


Harley-Davidson previously promised that it would never sell Americans Thailand-made motorcycles. The company will continue to produce motorcycles for Americans in the U.S. This is why people feel deceived.

3.2 The Workforce Unions Is Angry with Harley-Davidson

The workforce unions currently working in the Wisconsin and Pennsylvanian H-D facilities in the U.S. are very angry. The company previously vowed that it would never move the production to Thailand.

3.3 The US-Based Harley-Davidson Workforce Will Lose Their Jobs

It is evident that workers working for Harley-Davidson in the US facilities will lose their jobs. This is among the most severe consequences of moving the production unit to Thailand.


The outburst of Harley-Davidson fans and the motorcycling community can cause several issues for the company. Sales can go further down.

3.4 What the International Association of Machinists and Aerospace Workers (IAM) Has to Say

What the International Association of Machinists and Aerospace Workers (IAM) Has to Say
Photo Credit: IAMAW

According to IAM, it is evident that Harley-Davidson is backstepping from its promise. It will be catastrophic for the labor working currently working in the US facilities.


Brian Bryant, the president of IAM, recently gave his statement on the ongoing issue:

“Harley-Davidson has backtracked on that promise, planning to manufacture these bikes abroad and send them to the U.S. for American consumers. Harley-Davidson’s recent announcement to ship our work and jobs to Thailand is a kick in the teeth to American workers and a betrayal of the company’s legacy as an American icon.”

Brian Bryant (President of IAM)

4. Harley-Davidson’s Response to Unemployment Issue

Harley-Davidson has straight-forwardly denied all of the allegations. The company said that moving the production facility to Thailand will not cause any issues for the existing workforce in the US.


However, Harley-Davidson officials confirmed moving the production facility to Thailand. However, the company said nobody would lose their job at the US manufacturing facilities.

“This does not have an impact on employment at U.S. facilities.”

Harley-Davidson

It may be a tactic used by the company to settle the outrage and keep things under control.


According to the official reports by the company, Harley-Davidson is building a Department of Energy. The company has allocated a grant of $89 million for this project.


This development and growth project also includes a grant of $9 million to be spent on improving Harley US manufacturing facilities. The aim is to strengthen the capabilities of these facilities to manufacture its major products.

5. What Happened in 2019 According to IAM

IAM pointed out at the event in 2019 when Harley-Davidson opened its Thailand facility, claiming that it would only be used to manufacture and sell H-D motorcycles in Asian markets.


However, nearly 600 employees at the American H-D facilities lost their jobs as a result.


IAM also added in its statement:

“In 2019, nearly 600 IAM members at Harley-Davidson and Syncreon in Kansas City lost their jobs when the company shuttered its facility, claiming that its Thailand plant would only serve the Asian and European markets.”

IAM

6. The Clash Between Harley-Davidson and Donal Trump

The Clash Between Harley-Davidson and Donal Trump
Photo Credit: Bloomberg

The clash started in 2018 when Donald J. Trump, in his presidency, imposed a tariff on steel and aluminum imported from Europe. As a result of this increased tax, the European Union replied to this situation by increasing the 31% tariff on motorcycles manufactured by the US.


Consequently, the situation became very tense. To respond to these challenges, Harley-Davidson decided to open a production facility in Thailand in 2018.


As per Donald Trump, it was Harley-Davidson's tactic to move its production facility abroad. The company only used the tariff issue to move its facility to Thailand.


Since then, the challenges have increased for Harley-Davidson. It is failing to create a balance between its production costs and sales. Many Harley-Davidson fans and owners claimed to boycott the brand if it moved its production facility to Thailand.


Trump called Harley-Davidson's poor management strategies and low sales the cause of the issue.

7. IAM Plans to Stop Harley-Davidson from Moving Production to Thailand

Bryant, the president of IAM, is adamant that IAM will do whatever it takes to stop Harley-Davidson from moving the production facility to Thailand. He says:

“When Americans think of motorcycles, they think of Harley-Davidson—a brand that has long symbolized the spirit and strength of our country. To now see this self-proclaimed American icon ship our jobs to Asia is a disgrace. 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.”

Brian Bryant (President of IAM)

Bryant added:

“The IAM will employ every resource at our disposal to fight this outrageous move. Harley-Davidson needs to return to the drawing board and develop a solution that keeps the production of the Sport Series and Pan America bikes where they belong—in the United States."

Brian Bryant (President of IAM)

8. Conclusion

It is too early to say what the consequences of moving to the H-D production facility in Thailand will be. Looks like the company has decided to manufacture certain Harley models powered by the Revolution Max engine.


According to Harley-Davidson, it is only temporarily moving the production of certain models to Thailand. Only the 2025 year H-D models will be built at the Thailand facility.


The huge financial grants to improve Harley's US production facility have made many people believe in Harley. Also, the claim that no one will lose their job makes many people trust their National American motorcycle brand.


However, there is doubt, fear, and anger among all Harley-Davidson fans, owners, and workers. Considering how the motorcycle market works, shifting production facilities to Thailand may be permanent or cause many people to lose their jobs at the US facilities.


We will have to wait and see how Harley-Davidson handles this situation and convince IAM and its workforce to trust the company.

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