It appears President Donald Trump is still angry that Harley Davidson will move some manufacturing overseas in response to increased costs in the U.S.:
Now that Harley-Davidson is moving part of its operation out of the U.S., my Administration is working with other Motor Cycle companies who want to move into the U.S. Harley customers are not happy with their move – sales are down 7% in 2017. The U.S. is where the Action is!
— Donald J. Trump (@realDonaldTrump) July 3, 2018
The problem is that Harley Davidson’s market share was down before Harley Davidson’s announcement, which is why they’re focusing on overseas growth:
The fact that US Harley sales were down, before the move, is the reason that they are trying to protect their Europe sales from the Trump tariffs/retaliation. https://t.co/O6SFE8rIHu
— Alan Rappeport (@arappeport) July 3, 2018
Harley-Davidson fiscal year ended December 2017……threat to leave US was made June 2018. How can you blame 7% fall in sales to customers being angry about a decision made six months after the sales were reported? https://t.co/zyhOUPHCAj
— Aimee Donnellan (@aimeedonnellan) July 3, 2018
There are also demographic changes happening in the U.S.:
US Harley sales have been declining because baby boomers are aging and millennials don't want motorcycles as much. But sure. https://t.co/unfbJWBN7c
— Emily Stewart (@EmilyStewartM) July 3, 2018
Polaris, another manufacturer of motorcycles, is also considering moving some manufacturing to Europe:
These tariffs…
Polaris mulls moving some Indian Motorcycle production from Spirit Lake to Europe https://t.co/fHlLQIGbPV
— J.D. Scholten (@JDScholten) June 29, 2018
The company announced that all U.S.-sold bikes will be manufactured in the U.S.:
Harley has said that they are manufacturing all U.S-sold bikes in the U.S. https://t.co/M1428tMcKo
— Jake Sherman (@JakeSherman) July 3, 2018
And we’ll see if the U.S. can attract any new manufacturers to the U.S. and how much that will cost in terms of tax incentives:
I mean, what steel/aluminum-consuming manufacturer who relies on growing global demand for its product *wouldn't* want to move here?!? https://t.co/3RY8IiAj1q
— Scott Lincicome (@scottlincicome) July 3, 2018
Editor’s note: We’ve corrected a typo in the headline.
***
Join the conversation as a VIP Member