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Reversing a decision that was criticized by a labor union and by some customers, Harley-Davidson will once again assemble motorcycles destined to be sold in North America in its U.S. factories, not abroad, the company announced today.
Nearly two years ago, Harley-Davidson broke with tradition — and, according to one of its unions, broke a commitment — and shifted production of its North America-bound Revolution Max models (Pan America, Sportster S, and Nightster) to its manufacturing facility in Thailand. Prior to that move, while Harley-Davidson had long built motorcycles at factories in other countries, all motorcycles destined to be sold in the United States had been assembled in the United States. As part of the company's new "Back to the Bricks" strategic plan under new CEO Artie Starrs, that shift has been reversed.
"This move returns machining, powertrain assembly, painting, and final vehicle assembly work to our facilities in Pennsylvania and Wisconsin, supporting dozens of additional American manufacturing and union jobs," the company said in a statement.
The change affects motorcycles that will be sold in North America. The company will still produce bikes in Thailand for Europe and other foreign markets.
When Revolution production was shifted to Thailand two years ago, the company said it was a temporary move, but many, including the International Association of Machinists and Aerospace Workers (IAM), the union representing many Harley-Davidson employees, were skeptical that it would return to the states. The union said that move broke a commitment made by the company, when it shut down its Kansas City factory in 2019, that motorcycles built for the U.S. market would be assembled in U.S. facilities.
The change comes at a time when not only is Harley-Davidson under new leadership and executing a new strategic plan, but also when its only major U.S. competitor, Indian, is under new ownership and leadership. After Polaris Industries closed on the sale of Indian earlier this year, Indian announced its own plan for the future, which leans heavily on the fact that its motorcycles are built in Iowa. More recently, Indian took a jab at Harley-Davidson in social media posts, pointing out that Harley-Davidson had moved some production to Thailand.
The statement from Harley-Davidson, however, said the decision was "months in the making," perhaps to head off speculation that it was responding to Indian's criticism.
"The Trump Administration's changes to U.S. trade policy, combined with shifts in the global trade environment, have created new opportunities for companies to invest in domestic manufacturing. For Harley-Davidson under our new CEO Artie Starrs, this means we are able to lean even further into our American manufacturing footprint and build more motorcycles here at home. This decision, which has been months in the making, reflects our commitment to strengthening Harley-Davidson's manufacturing base for the long term."
