Harley-Davidson is not leaving the USA entirely, but it is shifting some motorcycle production to Thailand to avoid European Union tariffs. The company is also increasing production capacity for its core models (Touring, Softail, and Trike) within the US, in response to dealer demands.
This strategic shift aims to optimise production and address supply chain challenges. While some production is moving overseas, Harley-Davidson is not abandoning its US roots, and the company continues to manufacture a significant portion of its motorcycles in the US.
Here’s a more detailed explanation:
- Tariffs and Production Shift:In 2018, the EU imposed retaliatory tariffs on US goods, including motorcycles, in response to US tariffs on steel and aluminum. Harley-Davidson, facing increased costs due to these tariffs, announced it would shift some production for European markets to a new facility in Thailand.
- Optimizing Production:The move to Thailand is not solely about avoiding tariffs. Harley-Davidson has stated it also allows the company to increase production capacity for its core models (Touring, Softail, and Trike) in the US.
- Continued US Manufacturing:Harley-Davidson still manufactures a large portion of its motorcycles in the US, primarily for the US market. The company has facilities in York, Pennsylvania, and Menomonee Falls, Wisconsin, among other locations.
- Not a Complete Exit:Harley-Davidson is not leaving the USA. The company maintains its headquarters in the US and continues to produce motorcycles domestically. The shift to Thailand is a strategic move to address specific market needs and trade dynamics.
