Harley-Davidson, the iconic motorcycle brand hailed by U.S. President Donald Trump for keeping jobs in America, is building a plant in Thailand, the company confirmed yesterday, as it seeks new buyers in Asia and lower tariffs. The factory, only the third Harley has built outside the United States, highlights the irresistible draw of overseas plants for U.S. manufacturers, particularly as the Trump administration castigates regional free-trade agreements.
"We are expanding our presence in the Asia-Pacific market by building an assembly facility in the Rayong Province in Thailand," Harley-Davidson spokeswoman Katie Whitmore told reporters.
She declined to say how much the plant was worth but said it would be up and running in "late 2018."
The move comes after American bike brands were dealt a blow by Trump's decision to pull out of the 12-country Trans Pacific Partnership (TPP) trade deal, which would have abolished tariffs on their products across 40 percent of the world's economy. Trump argued TPP would hurt American industries and lead to job losses. During his election campaign he frequently held up Wisconsin-based Harley as an example of an American manufacturer that kept jobs and production inside U.S. borders and was harmed by such free-trade agreements.
But even Harley has found it hard to resist the lure of overseas assembly lines, both to be geographically closer to emerging markets and circumvent high tariffs that favor local competitors. It already has assembly plants in Brazil and India that put together bike kits made from parts from its U.S. factories. The Thai plant will do the same.
