Subscribe for 33¢ / day

MINNEAPOLIS (AP) — President Donald Trump asserts that Harley-Davidson is using retaliatory tariffs by the European Union as an "excuse" to move some of its production overseas. Trump argues that Harley was already pursuing plans to shift some operations abroad before it announced this week that it would make motorcycles for the EU market outside the U.S.

On Tuesday, the president tweeted incorrectly that Harley was shifting its operations in Missouri to Thailand. Still, Harley has said previously that a long-term goal is to expand its international business and that it faces excess capacity in the U.S., where sales of the iconic American brand have declined as its core market has aged.

Milwaukee-based Harley said Monday that EU tariffs on its American-made motorcycles jumped between 6 percent and 31 percent as a result of the escalating trade war, adding about $2,200 in cost to the average Harley sold in the EU. The company said it would absorb those costs instead of raising prices.

A look at how Trump's tweets on Harley compare with the facts:

TRUMP: "Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced & unfair trade is, but we will fix it....."

THE FACTS: Harley said no such thing. The company said in January that it would close its motorcycle plant in Kansas City, Missouri, in a cost-cutting move. It said it would shift those operations to its plant in York, Pennsylvania. The company also said it would close a wheel plant in Adelaide, Australia. Harley said it expected to eliminate 800 jobs in Kansas City, plus 90 in Australia, while adding 450 jobs in York by mid-2019. The company did not say it was moving any Kansas City operations to Thailand

In May 2017, the company did announce plans to build a plant in Thailand to make motorcycles for Asian markets. But that was months before it announced the closure of the Kansas City plant. Harley officials denied when they announced the Kansas City closure that it was because of the plant in Thailand, though union officials have made that allegation. The company has more recently cited Trump's decision to pull the U.S. out of the Trans-Pacific Partnership for building the Thai plant, which is expected to open later this year.

Harley's announcement Monday did not say where it will build the motorcycles that it will sell in European Union countries. Michael Pflughoeft, a spokesman, said in an email to The Associated Press only that it would be at the company's "existing international facilities." The company said it would provide more details during its next quarterly earnings announcement July 24.

The company already operates assembly plants in Manaus, Brazil, and Bawal, India, to make motorcycles for those local markets, where tariffs on imported bikes are steep. The India plant also makes certain models for other markets outside North America. Those plants receive many of their parts from Harley's plants in the U.S., primarily from Wisconsin.

Worldwide sales of new Harleys in the first quarter of this year were down 7.2 percent compared with the first quarter of 2017. And they fell 12 percent in the U.S. compared with a rise of 0.2 percent in international markets. Sales were up strongly in Europe and Latin America. The company sold nearly 40,000 new motorcycles in Europe last year and says its revenue from EU countries is second only to the U.S.

While Harley says it has a goal of creating 2 million new riders in the U.S. by 2027, it's also banking on boosting its international business to 50 percent of its annual sales volume, compared with 39 percent last year.

TRUMP: "....When I had Harley-Davidson officials over to the White House, I chided them about tariffs in other countries, like India, being too high. Companies are now coming back to America. Harley must know that they won't be able to sell back into U.S. without paying a big tax!"

THE FACTS: Pflughoeft said Harleys sold in the U.S. will continue to be made in the U.S.

————

Find AP Fact Checks at http://apne.ws/2kbx8bd

———

Follow @APFactCheck on Twitter: https://twitter.com/APFactCheck

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

0
2
0
0
2

(13) comments

johnnybragatti

Aside from my quality built Triumph Bonneville,
I could care less, do U???

new2Lax

All you need to do is read snopes. The decision to move was actually discussed in 2015 because of lagging sales and the decision to move was made in January prior to the stelel and aluminum tariff. The Hillary blame game does not work here because it is so easy to see what is happening with Harley Davidson.

lutefisk

granddad...nope
.asia ..and for export! thusly ..the unions anger. they were at the table when the rider demographic shift was spiking.,kc plant was doomed.
Thailand facility was NOT exclusively for asia

Grand Dad's Bluff

Where is Paul Ryan, Johnson, and Walker in defending HD against this autocrat? The smell of fear is in the air.

Grand Dad's Bluff

Asian plant was to make bikes for Asia. With the new Trump tariff, the new plan is to move production for Europe market from US to Asia. If HD does not do this then they will be out of business. Europe accounts for 40% of sales and most of their growth. Trump is not a Republican or a conservative, his company killing tariffs do not add up to a policy. Trump and his supporters know not what they do.

Megajman

HD expects to have their plant in Thailand running later this year according to a CNN article I read earlier this don't happen in just a few months so this was planned well in advance of their announcement.

Redwall

"AP factcheck" is the most farcical confluence of words one can think of.

The AP has earned its trash reputation.

Cassandra2

Redwall, like Chippy, refuses to acknowledge facts and reality. No surprise.

TeapartiesR4L'ilGirls

Of course you would not believe so, Buggs. Who would expect a conspiracy theorist like you would believe normal people who tell you your toilet is is full of solid waste rhyming with it after you use it? Quit stating the obvious to anyone who knows about you.

Grand Dad's Bluff

Trump makes enemies of HD and turns MAGA’s against one of the greatest companies in America. This is crazy!

Buggs Raplin

I wouldn't trust the AP to fact check my toilet.

Cassandra2

Denying facts is a daily ritual for Chippy.

lutefisk

read between the lines.. the Thailand plant was sure to take from kc plant. this move was in the makings long before the tariffs.. the union knew this. Harley execs didn't see this coming.

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.

Thanks for reading. Subscribe or log in to continue.