Maybe Indian Too

June 29, 2018

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Maybe Indian Too

Now Polaris Industries is threatening to move production of the motorcycles it intends to sell in Europe from Spirit Lake, Iowa to an existing Polaris assembly in Opole, Poland. The 345,000 square foot Polish plant now builds off road vehicles.

Polaris also has plants in Roseau, Minnesota; Osceola, Wisconsin; Huntsville, Alabama and Monterrey, Mexico.

On Monday, Harley-Davidson announced it was transferring the manufacture of motorcycles it intended to sell in Europe to overseas plants. The jobs could go to Haley assembly plants in Brazil, India and Thailand. The American jobs are a casualty of a trade war President Trump started with the European Union. Trump has characterized trade wars as “easy to win.”

Trade War

The President raised import taxes on steel and aluminum from Europe. Europe, in return raised import taxes on bourbon, Levis, peanut butter, cranberries and motorcycles with engine displacements larger than 500cc.

In a statement, Harley estimated the new European tariffs would add “$2,200 per average motorcycle exported from the U.S. to the EU.” Harley estimated “the incremental cost for the remainder of 2018 to be approximately $30 to $45 million. On a full-year basis, the company estimates the aggregate annual impact due to the EU tariffs to be approximately $90 to $100 million.”

Polaris builds snowmobiles and off road vehicles as well as Indians. Indian’s sales continue to grow. Harley’s sales continue to decline. It is possible that Indian might expand overseas without cutting American jobs. Harley reacted to the new tariffs immediately. Indian did not.

Indian spokeswoman Jess Rogers told the Des Moines Register last week, before Harley made its announcement, that the European tariffs will cost Polaris an extra $15 million for the rest of 2018. But she also told the Iowa newspaper, “Specific to Spirit Lake, we are committed to our production facility…. We do not anticipate an immediate impact to our Spirit Lake facility.”

Well Maybe

But Rogers sang a slightly different song to Britt Johnsen of the Minneapolis/St. Paul Business Journal three days ago, the day after Harley said it was moving jobs overseas. She sent the business weekly a statement that is more ambiguous than the one she gave the Register.

“Polaris has been supportive of the Administration’s pro-growth agenda, such as tax and regulatory reform that promote a robust economy and global competitiveness for all US manufacturers,” she began. “However, the escalating trade war has the potential to erase the benefits Polaris received and the recent EU retaliatory tariffs have required us to expend time, energy and resources to evaluate mitigation plans, including the possibility of moving production of the Indian motorcycles that are destined for Europe from Iowa to our facility in Poland.”

“The growing impact of this trade war is increasing the costs for our vehicles. We continue to examine various options for managing these cost increases from both the tariffs and the domestic materials pricing.”

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27 Responses to “Maybe Indian Too”

  1. The Kraut Says:

    ….’bout 40 years ago, I was told that H-O-N-D-A stood for
    “Hop On Nothing Dumb Ass”

    Respect to those who warrant respect

    The Kraut

  2. Mark Says:

    @ Rebel
    Remember the t-shirts, “Honda, Suzuki, Yamaha brought to you by the same people that brought you Pearl Harbor”? The jokes about Jap bikes were many and enjoyable. Back then it was a mistake to pull up next to an HD at a light but could be somewhat entertaining at times, depending. Any more I don’t see that many Jap bikes but for sport bikes, they do their thing I do mine and it’s all good. Thanks for the memories.

  3. Rebel Says:

    Dear TX_Biker,

    “I’d rather see my brother dead than on a Jap bike.” Probably nobody even thinks that anymore. That war was too long ago.

    Rebel

  4. Base Says:

    People have underestimated the American people before. And they are doing it now with smug self entitled smirks on their faces. Hoping the 30 some odd years of propaganda shoved at us from every direction will subdue us. They have learned nothing in the last couple of years,Arrogance will not allow them to understand.

    American resourcefulness, innovation & tenacity will prevail.

    Trump, love him, hate him. The last election has motivated many from all sides and we are witnessing a civil war in America. If your serious about what is wrong and right about this country, every American should be. The pissing and moaning and objective observing needs to stop all Americans need to get involved.

    Be resourceful, get behind something that carries your values. Be innovated if you can not find what you need, make it or find someone to make it for you. And be tenacious, you get high sided, rub some dirt on it and get back on.

    Stay frosty out there.

  5. TX_Biker Says:

    Much ado about nothing. Harley and Polaris will do what they need to do to compete in today’s market. Job loss in one area of the industry will be made up by gains in another for example; Honda Motor Company, Toyota Motor Corporation,Nissan Motor Company, Fuji Heavy Industries, Volkswagen Group, Hyundai Motor Company, Kia Motors, BMW Group, Daimler AG, Volvo Cars and even Mercedes Benz all have manufacturing facilities in the USA and employ US workers.

  6. BigV Says:

    George Soros hurt my family twice. He and the corporate raiders used Tenneco as a stalking horse to rape and pillage the agricultural manufacturing. Goodbye IHC Memphis, goodbye IHC Light Line, goodbye Doncaster. Hello raping the shit out of David Brown.

    After successfully raiding those my daddy would go to work for another company with Milwaukee/Chiraq roots, one that made two brands of Outboards and owned several boat builders. Soros saw how much money a Swedish concern paid for their V8 stern drives, and the company had a unique fuel injection system in development. He raped the shit out of that company and fired everybody 22/12/2000. Had a pension ? Sorry, no you didn’t. George raided it. Vacation built up you were owed for ? Sorry, George raided it. Worked summers in the machine shop to earn a scholarship to put you through college ? Fuck you too, George raided it.

    What Icahn played at, Soros perfected. Duberstein, Kingsley, Soros- I hope you fucks burn in hell. My daddy worked like a fucking field hand slave for your lackeys, he made shit happen for those share cropper plants you asshats setup down south to rape and pillage the living shit out, all because of the fact Southerners didn’t have the goddamn good sense to unionize because the Pinkertons gunthugs kiled so many of our kin folks in WV, AL, TN, GA, NC and VA.

    You know what tariffs do ? Keep carpetbaggers out and jobs home.

    You know what a well run union does ? Keep management from fucking you in the ass.

    My daddy hasn’t been really happy since 22/12/2000. And I celebrate Yule because that sure took a shit on Christmas.

  7. Mr Nobody Says:

    Thanks Seig for the “wolfstreet” link. I read it and think it lays out the truth of the issues at hand.

    @ David, the wealthy do not want Socialism or Communism (though Communism has proven to be a a failure while Socialism has had success in many countries). Both would cut into their greed. The wealthy would be okay with Capitalism and Fascism as either allows for the existence of a wealthy elite.

    And the USA is no longer a representative democracy. It ceased being that in 1976 with the Buckley v Valeo Supreme Court decision that contended giving money to political parties was free speech and could not be infringed. At that point American democracy was dead and replaced with plutocracy. The ability to vote can be powerful, but not nearly as powerful as the ability to bribe. And this decision legalized bribery and called it “campaign contributions.

    Since then virtually none of the after-inflation economic gains have been shared by Americans who are not high earners. And opinions of voters have had zero effect on policy. By contrast, opinions of donors have a very high correlation.

  8. Filburt Says:

    Nazi George Soros.

  9. david Says:

    The state operated media(read:propaganda) uses the term trade war to distract from the real war. The war is the rich ruling elite, who hide behind and use business monopolies and government by any NAME as long as it is Totalitarian in nature, against everyone and anyone else.

    They, the often nameless and faceless wealthy and therefore powerful overlords who don’t give a flying fuck whether the state is democratic, socialist, communist or fascist, as long as they get and remain in POWER,will fuck anyone and everyone they can.

    The business bastards have been internationally operative for centuries, have no national affiliation, and possess enough stock shares of the many U.S. business corporations, including H-D and Polaris, they have almost everyone by the balls.

    Never, ever, cared about whether workers manufacturing their products lived or died, whether countries they fuck with exist or not, or anything BUT, their sick pathological selves.

  10. oldskewl Says:

    I don’t care if every automaker or motorcycle mfg goes belly up. They closed American mfg plants to get away from paying American workers fair wages, union wages.
    I’m my opinion, they get what they deserve.

    These tariffs are long overdue, yes they hurt now but we can’t sustain a $22T debt, something had to be done. Lawmakers decided long ago that Social Security was welfare so when they talk about cutting funding to programs, SS is always on top of the list, never welfare or food stamps.

    Go look at a new 2018 GMC diesel truck, the sticker shock will likely throw you into cardiac arrest. Imagine paying $80k for a truck and having a built by a bunch of $3.00 an hour Mexicans.
    The 3500 Cummings Ram Trucks are built in the USA and go for about $5k less. Seems to me it’s all smoke and mirrors.

  11. Snow Says:

    The CEOs of corporations only care about their bottom line so here’s the deal assholes. Your going to pay the import tariffs so your ploy is going to backfire on yall.
    Go suck an exhaust pipe bitches.

  12. Outlaw Rob Says:

    Iron order civil case update?!?!?! Lmao

  13. Sieg Says:

    notthe99, don’t believe all the bullshit bout “bikers” all living like druglords on their meth and guns money…most of us actually have to work for a living.

    FTF/FTP
    TOSIAR

  14. Rebel Says:

    Dear Not the 99,

    Don’t read what you don’t want to read, Jessica.

    Rebel

  15. Not the 99 Says:

    Hey Don.
    I thought this was a biker blog?

  16. Mikonos Says:

    I run a medical imaging company Spot Imaging. Growing strongly and all local made in Sterling Heights Michigan. Setting up India buainess, was goung to be a sales JV with product from US. Now 30% retaliatory tariff. We will do a “manufacturing” hub in India but sub assy from US. Strengthens our US biz and hiring here. It sucks but other option is dont go to India. We are small and simply cant lose money to go in a new market. Not greed. Corps buy products on bid. Cant compete otherwise. BUT, there is flip side. Import duries will create jobs in US too. Steel for example. So need to look at big pic. Open to all opinions good and bad.

  17. Penguin Says:

    Both mocos are losing the Murkinmarket

    I know personally two fellas who want new scooters… They’re buying S&S motors, aftermarket or handmade frames, etc, and so forth… 100% Murkin built…these fellas are Murkinz…

    No Indians, no Harleys…

    Asiatic bikes for Asiatics?

    And Murkin bikes for Murkinz

    This is not particularly logical, but it is the way people are.

    Me too. Now where can a fella find a foundry to cast a set of flathead 80 uppers machined to fit an evo sporty lower end?

    Right. Mexico…Korea…even Germany…

    Bummer.

  18. Bone Head Says:

    Indian’s new bikes, Harley’s new bikes…who cares?
    I do not want to see an American out of work, but these corporate geniuses and political parties will work towards that end for their own gain. Fuck ’em in the neck.

  19. Not the 99 Says:

    By Felecia!

  20. Filburt Says:

    @Sieg
    100%
    Damn good link.

  21. Freeman Says:

    Just one thing you forgot Don, Canada,Australia,and yes Europe, the whole world has taken measures in repraisal to the us sanctions on import/export, used to think a change in politics might be a good thing (still do) but trump turns out to be a mascot, a fucking cheerleader, some of you know where I stand, fucking far from the left and even further from antifa, but that dick head keeps burning bridges, on bridges there will be traffic, atleast your not stuck home…

  22. Filburt Says:

    Who cares…Indians just to damn ugly.

  23. Johnny Rotten Says:

    Fuck em
    let em all go…
    then maybe we can get back to grass roots industry
    yeah, it may sting…
    but just like any punch..
    it fades

    Johnny

  24. Paladin Says:

    Bottom line? Jack up the price to cover the tariff. People want what they want. If they want it bad enough, and the quality is there (sorry Harley), they’ll pay the money. Today; industry is run by corporate pussies. No one’s in it for the long haul anymore.

    By the time these companies get up and running in the EU, Europe will be completely over run by Muslims, who’d rather ride a goat than ride anything else.

    Paladin

  25. Gordo Says:

    Major US corporations have been outsourcing for some time ie offshoring

    Harley Davidson and/or Victory would be doing what other manufacturers already do

    Harley Davidson has decreasing sales in the USA but increasing sales in Canada and Europe

    All about marketing and money

  26. freebird Says:

    We do not anticipate an immediate impact to our Spirit Lake facility

    Yea but I made that statement 3 days ago…… shit changed

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