American classic, with foreign parts
Harley-Davidson not unlike many U.S. manufacturers
From the saddle of a Harley-Davidson motorcycle, you not only get a view of the open road but a glimpse into a manufacturing world, where parts of the U.S.-made bikes could be from Asia, Europe or South America.
Harley, the world’s largest manufacturer of heavyweight motorcycles, doesn’t disclose where most of the parts are sourced, but industry sources say the company gets them from the U.S., Japan, Italy, Mexico, China, Australia and other countries.
For years, Harley has used Show-abrand suspension components from Japan. Brake and clutch parts have come from Italy, wheels from Australia and electronics from across Asia.
Increasingly, this is the world of manufacturing for everything from airplanes to home appliances. Global companies seek the best deals they can find on parts shipped to their factories; in some cases, it can be a way to sidestep import tariffs that add to their costs.
“Sourcing decisions are based on quality, component availability, supplier reliability and cost,” Harley said in a statement to the Milwaukee Journal Sentinel.
The company assembles most of its bike lineup in Kansas City, Missouri, and York, Pennsylvania. Its V-Twin engines are made in Milwaukee, and there’s a small factory in Tomahawk, Wisconsin, that makes fiberglass and plastic components for some of its most expensive touring bikes.
Harley is moving the production of motorcycles destined for Europe to its international factories. The company is opening a plant in Thailand this year
and has assembly plants in India and Brazil. Monday’s announcement by Harley was in response to the European Union slapping a 31 percent tariff on motorcycles made in the U.S.
Last week, the EU began rolling out tariffs on American imports including Harleys, bourbon, peanut butter and orange juice. The tariffs on $3.4 billion worth of U.S. products are retaliation for duties President Donald Trump has imposed on European steel and aluminum.
Harley’s move triggered a slew of angry tweets from Trump, who scolded the company, revered by many for its heritage, for shifting production overseas.
Industry sources say the percentage of foreign-based parts on a Harley varies by bike model and year, but the company, like most manufacturers, shops globally for the best deals.
Motorcycle makers squeeze nickels and dimes, per part, to save dollars on the finished bike, said Robert Pandya, a veteran of the industry who has worked for Polaris Industries, the maker of Indian Motorcycles.
Most consumers care more about value and price than where something comes from, according to Pandya.
But having an all-American Harley matters to some riders, such as Monte Whiteaker, who heads up the Oconomo- woc, Wisconsin-based Rock River chapter of the Harley Owners Group. He has owned Harley-Davidsons for 18 years.
Whiteaker says it’s important to him that the bikes are made in America. “I want a quality bike, but I would also like to see all of the components made in the U.S.,” he said. He believes many Harley riders feel the same way.
It’s not uncommon for American-brand cars and trucks to contain parts from around the world or to be manufactured in other places altogether.
In fact, not a single 2018 model-year vehicle sold in the U.S. gets 100 percent of its parts from the U.S. or Canada, according to the National Highway Traffic Safety Administration.
Over the last several decades, the auto industry has gone global, typically locating suppliers near where vehicles are made to minimize costs.
“The reality is there’s so many parts from all over the world that make up a vehicle,” said Jeff Schuster, an LMC Automotive analyst who tracks vehicle manufacturing.
Sometimes foreign automakers manufacture vehicles with more Americanmade components than domestic automakers. For example, Japanese automaker Honda occupied four of the top 10 slots on Cars.com’s 2018 list of the top 10 most made-in-America vehicles. That index is based in part on “which cars are manufactured in America, have the most American parts and support the most American factory jobs,” Cars.com said.
Only Tesla makes all of its vehicles here, and that will change when the company opens a plant in China. Dozens of vehicles get no parts at all from the U.S., which means they are entirely imported.
Some motorcyclists complain about Harley using foreign-sourced parts, yet the first thing they do after buying a bike is adorn it with accessories made in China, said John Miller, a Milwaukee-area Harley rider who owns a motorcycle windshield company.
“There’s a lot of stuff on bikes that’s foreign-based,” Miller said.
Some bikers might not like the foreign parts, but they understand the predicament Harley is in trying to keep its costs down, said Tony Sanfelipo, a Harley rider from Milwaukee.
“I think the bigger problem for Harley is attracting a younger audience in America,” he said.
Loren Wahl, treasurer of the Wisconsin Dual Sport Riders club, owns foreign-built off-road motorcycles and has little allegiance to the country that built them.
“Am I as a motorcycle owner emotionally concerned about the origin, or source of parts or point of assembly? The answer is no,” he said. “I am concerned about function and cost and reliability, in that order.”