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WASHINGTON-President
Donald Trump
warned
Harley Davidson
Inc.
that moving production abroad would mark the "beginning of the end" of the iconic brand, a day after the automaker declared that it was planning to do more motorcycles overseas to avoid the tariffs of the European Union.
"A Harley-Davidson should never be built in another country, ever! Their employees and customers are already very angry at them," Trump wrote in a series of tweets on Tuesday morning. "If they move, look, this will be the beginning of the end – they surrendered, they resigned! The Aura will be gone and they will be taxed like never before!"
Harley said that making motorcycles overseas for sale in the EU would remove the tariffs imposed last week. "Harley-Davidson motorcycles sold in the United States will continue to be manufactured in the United States," said Harley's spokesman.
Michael Pflughoeft
said Tuesday.
Harley's shares were down about 0.7% in mid-day on Tuesday, after falling 6% on Monday.
The Milwaukee-based company is already assembling motorcycles in Brazil and India from parts made largely in the United States and plans to open a factory in Rayong, Thailand, later this year. International trade has become increasingly important for Harley as sales have fallen at home.
Harley plans to initially absorb about half of the EU's 31% tariff cost on its US-made motorcycles, and to shift production overseas during the course of the year. Next 18 months. EU tariffs were a response to the levies that the Trump administration imposed this spring on steel and aluminum on producers in Europe and elsewhere.
Mr Trump said that when he met Harley 's leaders at the White House early in his administration, he' rebuked them about the rates charged in other countries, such as' s. India, being too high.
He also suggested that the company was using EU tariffs as "an excuse" to move production overseas. "At the beginning of the year, Harley-Davidson said it would move much of its plant to Kansas City in Thailand – it was a long time before the announcement of rates."
Harley said his factory in Thailand will manufacture motorcycles for sale in Asia, and that the closure of the Kansas City factory is not related. But some union leaders said, like Mr Trump, that they believed that Harley was using trade disputes to justify his plans to transfer production abroad.
"He took the words out of my mouth," said
Joe Capra,
a representative of the district of the International Union of Machinists in Kansas City, where Harley plans to close a plant that will employ about 800 people by 2019. "Harley-Davidson plans to take jobs at the same time. foreigner for some time. "
In a joint congressional speech in February 2017, Trump called Harley "a great American company" and recounted a tour that executives had made in Washington earlier this month, during which they exposed five "made-in" motorcycles. in the USA". the lawn of the White House.
During this meeting, Mr. Trump said that he was asking leaders how the international sales of the company are doing. "They've said … that it's very hard to do business with other countries because they're charging our products at such a high rate," Trump said. . "They did not even ask for change, but I am."
Harley Chief Operating Officer
Michelle Kumbier
said in a recent interview that fares were an obstacle to his efforts to sell more motorbikes abroad. Harley wants to make half of its annual sales abroad in a decade, compared to about 40% currently.
"We believe in free and fair trade so that we are globally competitive," Ms. Kumbier said. "It would be great if there were no tariffs on either side.The products could just sink and compete on their own merit."
Some Harley dealers abroad have stated that doing Hogs outside of the United States would not hinder their appeal to runners.
"As long as they keep engineering and Americanism, I do not think it really matters," he said.
Don Rutherford,
General Manager of West Coast Harley-Davidson near Glasgow, Scotland.
Michael Bolton,
The United Steelworkers union director representing 1,100 Harley employees in Kansas City and two Wisconsin factories acknowledged that some Harley projects to increase production capacity abroad would help to bypass tariffs in India and the United States. Thailand.
But he warned Harley against taking the change too far.
"The company has built its reputation and image by making motorcycles here, and if the company wants to continue to sell itself as an iconic American brand both domestically and abroad, it must focus on US production, "said Mr. Bolton.
-Doug Cameron and John D. Stoll contributed to this article.
Write to Rebecca Ballhaus at [email protected]
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