Harley-Davidson’s top executive hit back at the “misinformation” over its plan to move some production overseas in a memo to employees just days after President Trump gloated about a possible boycott of the iconic motorcycle maker.
The Wisconsin-based hog-maker found itself the target of Trump’s ire after it announced in June that it would shift some operations abroad to avoid steep tariffs imposed by the European Union in a tit-for-tat retaliation with the president over his penalties on imported steel and aluminum.
“We unfortunately find ourselves in the center of a heated political conversation about fair trade,” chief executive officer Matt Levatich said in a memo sent to employees and dealers Tuesday that didn’t mention Trump by name.
“There continues to be misinformation circulated in conjunction with this issue, and I want to reiterate and share facts about Harley-Davidson that you can both be proud of and share with interested customers,” he said in the memo obtained by CNBC.
Harley-Davidson said it decided to make motorcycles sold in European markets in factories overseas, including in Thailand.
But Trump accused the company of using the tariffs as an excuse to send jobs abroad.
Levatich said bikes built overseas are not sold in the US — and he sees no reason to change that now.
Saying it’s the company’s “clear preference to manufacture in the United States,” he said the “only reason we have invested otherwise is so that our products have a fighting chance of being price competitive in markets that burden our products with high tariffs.”
Harley-Davidson has estimated the tariffs will cost them up to $100 million each year and increase the cost of each bike by around $2,000.
But Levatich said the company and Trump are working with the same aim in mind.
“Our goal is the same as the U.S. Administration: we want a level-playing field when it comes to trade, and we are working with government officials to find the best solution for our company and our brand,” Levatich said.
After meeting with “Bikers for Trump” at his golf resort in Bedminster, NJ, on Saturday, the president lashed out at Harley-Davidson on Sunday.
“Many @harleydavidson owners plan to boycott the company if manufacturing moves overseas. Great! Most other companies are coming in our direction, including Harley competitors. A really bad move! U.S. will soon have a level playing field, or better,” he wrote on his Twitter account.
