Harley-Davidson building a factory in Thailand
The American icon is setting up shop to reflect its push into the rapidly expanding south-east Asian marketsHarley-Davidson is building a new manufacturing plant in Thailand, which the Milwaukee-based company says will improve its ability to service growing markets in Asia.
The facility in Thailand, which will be operational from late 2018, will be a ' complete knock down' affair like its existing plants in India and Brazil – in essence an assembly operation where Harley-Davidson will put together bikes with parts shipped from America or other key suppliers – including a wheel factory in Australia.
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The company's operations in America – five factories across Missouri, Wisconsin and Pennsylvania – will not be impacted, although a key steelwork union is lobbying hard to not see the Thai plant come to fruition. It's lambasted the decision as "a slap in the face to the U.S workers who built an American icon".
Harley-Davidson doesn't see it that way.
“Asia-Pacific is a growth market for Harley-Davidson because of its expanding economy, growing middle class, positive consumer spending trends and increasing market demand for larger motorcycle sales,” a Harley-Davidson spokesperson said.
Harley's decision presents a compelling economy case – more so as its domestic sales plateau. Not in Australia though, where Harley's sales are going gangbusters...
In Thailand, for example, there is a 60 per cent tariff on imported bike – a tax that will no longer apply to Harley-Davidsons assembled and delivered inside the country.
HARLEY-DAVIDSON IN BIKE SHOWROOM
Moreover, Thailand is part of the ASEAN (Association of South East Asian Nations) economic block, so Harley-Davidson will also get a huge break when exporting form Thailand to countries like Indonesia, Malaysia, Vietnam and Singapore.
What would Donald Trump think about all this…
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