Another motorcycle manufacturer plans to move production abroad



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A Minnesota-based company said Friday it was considering moving production of some motorcycles out of the country because of European tariffs, a few days after Harley-Davidson announced a similar move

A Door Polaris Industries has acknowledged that the company could move some of its production of Indian motorcycles from northwestern Iowa to Poland.

"Nothing is final," said Polaris spokesperson Jess Rogers. "We are looking at a series of mitigation plans."

Harley-Davidson announced Monday that it was transferring the production of motorcycles sold in Europe from US factories to facilities abroad because of retaliatory tariffs.

President Donald Trump had used the iconic American motorcycle maker as an example of American business aggrieved by trade barriers in other countries before imposing high tariffs on European steel and aluminum. The European Union has responded with measures that have reached about 3.25 billion dollars (2.79 billion euros) of products manufactured in the United States, including on motorcycles manufactured in the United States .

Harley-Davidson added that these new rates would add about $ 2,200. Since his move announced, Harley-Davidson has endured harsh criticism from the president, who said in a tweet that any change in the company's production "will be the beginning of the end". He added, "Aura will be gone and they will be taxed like never before!"

This criticism is undoubtedly in the minds of Polaris' s leaders as they look for ways to mitigate the effects of tariffs.

The first-quarter earnings released in April, Polaris projected additional costs in the range of $ 15 million in 2018. Rogers said the latest rates would further increase costs, decreasing to estimate how much.

"But we are certainly seeing an increase in costs," she says.

Polaris employs about 650 people at its plant in Iowa, at Spirit Lake.

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