Union: Harley-Davidson will ship work to Thailand from closing U.S. plant

[workinclasszero]

Union: Harley-Davidson will ship work to Thailand from closing U.S. plant
Rick Barrett, Milwaukee Journal Sentinel Published 7:37 a.m. ET May 11, 2018

MILWAUKEE -- A labor union for Harley-Davidson believes the nation's best-known motorcycle maker is closing its factory in Kansas City in order to move some of the work to a new plant in Thailand.

Harley has said it will close the Kansas City factory despite pleas from some members of Congress to keep it open and retain about 800 jobs. Harley says it’s moving the Kansas City work to the company’s plant in York, Pa., creating about 400 additional jobs in York.

But in a meeting Wednesday with House Minority Leader Nancy Pelosi, D-Calif., members of the Association of Machinists and Aerospace Workers said at least some of the work was headed to Thailand.

“Part of my job is being moved to York, but the other part is going to Bangkok,” said Richard Pence, a machinist at the Kansas City plant.


https://www.usatoday.com/story/money/cars/2018/05/11/union-harley-davidson-ship-work-thailand-closing-u-s-plant/601033002/

[shenmue]

1. Pretty horrible

[TheBlackAdder]

30. I took a global economics course. Billionaires invest off-shore because US is seen on the decline.

New wealth is in Central Europe, the Pacific Rim, India and Africa.

As the middle class shrinks and most new US wealth goes to the top 10%, there is no further extractions here.

[leanforward]

2. Why?

Is there any other business/accounting sense to this closure/move?

Is it because there might be a tax/revenue rate increase to cover educational funding or something like medical care funding in the great state of Kansas/brownback?

[Blue_Tires]

20. 1. H-D has been hurting financially

2. Despite being a common-sense proposal employed by many other countries, there's no legislative punishment or disincentive for American corporations to do this...

3. For the millionth time since 2016, Trump played "God's Country" for the suckers and rubes they are...

[CentralMass]

3. Making Thailand great again.

[NightWatcher]

4. Be Best!!!

trump is active screwing his supporters and they still love him.

[Ferrets are Cool]

6. You stole my thunder.

[workinclasszero]

11. MTGA heh

Trump sends his thoughts and prayers H-D workers.

[Major Nikon]

12. ...

[Wellstone ruled]

5. Harley wants the China

market sales. Zero add on fees by making Bikes in Thailand and China has great Infrastructure in place.

Look at Harley's Clientele. Look at the Age Demographics. Look at their Product support. If they want to hang on,well, their USA market share and market is shrinking with every passing day.

Just a sign of our Nations changing times.

[quartz007]

7. May be Thailand is a good market for Harley's

and using Chinese tactics, Thailand wants motorcycles assembled in Thailand for sale there. It is cheaper to
assemble locally for local consumption than shipping
fully assembled Harley across 7000 miles. Parts are easier
and cheaper to ship. I was in Thailand on vacation 4 years
ago and saw tons of motor cycles.

[NightWatcher]

8. It couldn't be that it's cheaper labor there now could it?

[quartz007]

17. Toyota, Honda and other foreign manufacturers

have assembly plants in USA. That is not due to cheaper labor is it? Most likely, it is because it is more economical to assemble a complex product near the market rather than ship it thousands of miles.

[grantcart]

10. But very few HD I am sure they are mostly for export

[shadowmayor]

9. I know a lot of Harley riders

Bikers generally identify with the repukes. I've known a few "quiet" liberal bikers who don't get into the political stuff as it's a waste of time around their fellow riders. And most of these liberal riders read books - far more than the rugged individualists on the other side. Thing is, most of the bikers I know really don't vote much. But you can bet your next paycheck they were fully on board with the whole MAGA nonsense.

Now let's see if the dems know how to run with this one? It's right there on a silver platter folks. Big slow ball right down the middle - hope we take a swing at this one!

[workinclasszero]

13. "Bikers generally identify with the repukes."

That's been my observation as well.

I wonder how many of the workers in the Harley plant in KC voted for Hillary?

Or voted at all. The working class keeps falling for republican lies decade after decade.

I hope the lies of Trump will wise them up.

[grantcart]

14. What this article did not explain was why? Clue: They didn't move because of direct labor costs

They did it to avoid high import taxes in Thailand.

Those taxes would have been eliminated in the TPP.

These jobs are being moved so that HD can have better market penetration in Asia, something that the TPP would have provided.

Full explanation here:

https://www.democraticunderground.com/100210610664

[quartz007]

18. Same reason Toyota, Honda etc have plants here?

And you may be exactly correct about the import tax.

[pwb]

15. People in Southeast Asia won't ride a Harley .

They ride little Hondas and mopeds and buy gas a liter at a time. This is a profit move that will backfire on Harley. Harley's are annoying to most of us. The hand twisters mostly just like to make noise and burn gas. To the rest of the world Harley's are rediculous.

[CentralMass]

16. I agree. Seeing even a 300cc or 400cc bike is extremely rare. They ride very small bikes in Asia

[grantcart]

21. There is a market for Harleys

They have two dealerships

They have Harley clubs

http://www.hogthailand.org/

They aren't the people you normally see but people who like to take road trips, like my brother in law that takes his Harley to go for a week into Cambodia.


I would guess that 20% of this factory production will be for Thailand and the rest for export elsewhere in Asia, possibly also Australia and New Zealand who are members of TPP

[pwb]

22. Right? Have you seen the roads in southwest Asia ?

I have. Get off the main drag and its nothing but mud and deep holes. Especially during the monsoon season. No place for a big Harley . It's for profits and nothing more. The rest of the world isn't built on a petroleum economy like we are , they want to use as little gas as possible. In my opinion anyway. Too each his own.

[grantcart]

23. Lived there 20 years

As I said it isn't for commuting but for road trips. My brother in law is 69 years old and drove to Angkor War. It's not a big market.

The main market is for other TPP Countries Australia, New Zealand, Japan, Brunei, Malaysia, Singapore, i.e. countries that have significant disposable incomes that we want to do more trade with who ate in the TPP.

[quartz007]

28. Southwest Asia? Topic is SouthEAST Asia!

The best roads I saw anywhere are in Singapore, better than United States.

[oasis]

19. Trump overheard as he rode off in his WH limo,"So long suckers".

........................... 🏍🏍 🏍🏍🏍

[lpbk2713]

24. Trump --- "I'm screwing you all every day"

"But thanks for blaming it on the black guy."

[workinclasszero]

25. And Hillary's emails

[MyOwnPeace]

26. Trump is the rude guy...........

who farts in the elevator just before he exits.

He spews bullshit, makes asinine statements, makes impossible promises, and then goes off for a round of golf while the rest of us are stuck with whatever it is that he has done!

[mitch96]

27. How much you wanna bet...

The whole bike will be built overseas but not put together. They will do that in York and put a
"assembled in USA" sticker in it..
The main market for Harley is the dying off Boomer generation.. Harley can't sell this product to the Millennia's, gen X'ers etc


m

[Calista241]

29. Harley Davidson is under significant pressure. They have an aging customer base.

And so far, they have not been able to produce compelling motorcycles for younger riders.

[workinclasszero]

31. That is true

I wonder if H-D will be around in ten years?