Harley Davidson Moving Assembly Plant?? Fact or Fiction???

[Wingate]

Some good friends of ours are big Harley riders and were over at the house this weekend. . Both of them were really upset about the news they had heard that Harley was moving an assembly plant to India???? Is there any truth to this???

This would definitely cheapen the Harley name, I hope this isn't another case of cheap labor going overseas!!

 

[HBarlow]

I read an article about this issue about two months ago. What I remember is that Harley management (remember, Harley is an employee owned company) had told the union either they voted to accept wage and benefit concessions or management would move production elsewhere. Management was saying they could not survive paying what the union had demanded.

I was thinking that the union agreed to the concessions to keep the plant open in Milwaukee. But I didn't pay a lot of attention to the issue, I ride a Honda ST-1300.

 

[Wingate]

ITs really sad that India was even a consideration. .

 

[HBarlow]

I don't remember anything about India being mentioned in the article I read. What I remember is that HD was threatening to move, but not to a specified location.

 

[Bill Stockard]

ITs really sad that India was even a consideration. .

Maybe they are doing like CAT, build a plant in India for the southeast Asian market. A plant in China for the Chinese market?



Bill

 

[HBarlow]

Maybe they are doing like CAT, build a plant in India for the southeast Asian market. A plant in China for the Chinese market?

Bill

That's a good thought that didn't occur to me when I read wingate's original post.

India and China are both very fast growing economies with their population coming out of extreme poverty for the first time in their histories. Both countries are demanding and buying motorized transportation. There may very well be a market for Harley-Davidson's products in each country. I remember reading about lots of wealthy Japanese buying Harleys a few years ago.

 

[DMather]

It's a good news - bad news story.

The India plant is being built to circumvent the 110% import tariffs of complete bikes. The plant will assemble USA supplied Complete KnockDown (CKD) kits at an import tariff of only 60%.

HD started selling 12 models in July of this year in what is the 2nd largest motorcycle market in the world. The plant is 70,000 sq ft, is scheduled to be in operation by Mid 2011 and will produce around 200 bikes, currently on sportsters, in it's first year.

The Milwaukee and Tomahawk Wisconsin plants were threatened to be moved to another state if union employees did not take a concession laden contract. Both unions approved the contracts by 55% in Milwaukee and 73% in Tomahawk. Last year the York PA plant had a similar contract approved.

 

[Wingate]

Maybe they are doing like CAT, build a plant in India for the southeast Asian market. A plant in China for the Chinese market?



Bill

Yep, Cat did that years ago... To me, thats more of an expansion than a move. I would think it would be difficult to ship D11's in pieces overseas on a regular basis. . Gas Compression is becoming a HUGE part of Cats business overseas... Cat recently bought the MAK engine company for the express idea of mainline compression. .

Anyway, after reading the past post, apparently my friends were being typical Harley drama queens. . (hahaha... ) Seems another union is trying to kill another American company. .

Speaking of Cat, ya know thy closed down a couple of union engine assembly plants and moved one to Seguin Texas (no unions!!)



I want a dang motorcycle so bad... . would LOVE to have a Victory... . Although, another friend of mine has an absolutely drop dead gorgeous Screamin' Eagle... But that would make me one of those Harley drama queens!!. . hahahahaa

Go Michael Vic!!

 

[Jeff Knight]

I work at the York PA plant. Harley is not employee owned. DMather is correct on what is happening in India. Harley has been doing the same thing in Brazil for a number of years. We are also outsourcing alot of the work here at York. Kansas City is being threatened now to a new contract or move there work to York. Not a great place to work that it once was... Jeff

 

[Bill Stockard]

Yep, Cat did that years ago... To me, thats more of an expansion than a move. I would think it would be difficult to ship D11's in pieces overseas on a regular basis. . Gas Compression is becoming a HUGE part of Cats business overseas... Cat recently bought the MAK engine company for the express idea of mainline compression. .

Anyway, after reading the past post, apparently my friends were being typical Harley drama queens. . (hahaha... ) Seems another union is trying to kill another American company. .

Speaking of Cat, ya know thy closed down a couple of union engine assembly plants and moved one to Seguin Texas (no unions!!)

Yep, I'm aware or the Seguin plant move and the expansion into the Asian markets. I'm a CAT investor/shareholder. I bought CAT shares when the market was down a couple of years ago. Well run company, excellent expansion plans for the future, pay good dividends, and I have benefited from a nice up tick in the per share price. Thanks to your hard work as employees of CAT dealers, CAT employees and management, it's one of the best investments I've made in years.



Bill

 

[Wingate]

So that means I'm officially on your christmas list??

 

[Wingate]

It's a good news - bad news story.



The India plant is being built to circumvent the 110% import tariffs of complete bikes. The plant will assemble USA supplied Complete KnockDown (CKD) kits at an import tariff of only 60%.



HD started selling 12 models in July of this year in what is the 2nd largest motorcycle market in the world. The plant is 70,000 sq ft, is scheduled to be in operation by Mid 2011 and will produce around 200 bikes, currently on sportsters, in it's first year.



The Milwaukee and Tomahawk Wisconsin plants were threatened to be moved to another state if union employees did not take a concession laden contract. Both unions approved the contracts by 55% in Milwaukee and 73% in Tomahawk. Last year the York PA plant had a similar contract approved.

While I'm not a Harley rider, to me, Harley Davidson is synonomus with America. Harley Davidson commercials TRADE on the idea that they are America!. It just seems that they would build American bikes for Americans, and if somebody in India has the $$$ for one, they can buy it from Harley here in America and have it shipped??. .

Guess i'm just living in a small world.

 

[Bill Stockard]

While I'm not a Harley rider, to me, Harley Davidson is synonomus with America. Harley Davidson commercials TRADE on the idea that they are America!. It just seems that they would build American bikes for Americans, and if somebody in India has the $$$ for one, they can buy it from Harley here in America and have it shipped??. .

Guess i'm just living in a small world.

With a 110% import tariff, very few buyers in India could afford to own a HD being forced to pay nearly double compared to the their competitors who are assembling bikes in India with only a 60% tariff or bikes made in India (probably reverse engineered HDs) by Indian manufacturers with no tariff.



CAT is just as American as HD and they taking advantage of the opportunity to sell their products in one of the biggest markets in the world.



Bill

 

[Bill Stockard]

So that means I'm officially on your christmas list??

I'm just a small investor... the dididends help pay a portion of our annual county and school taxes.



Bill