In 2006, Harley Davidson opened its first dealership in China.  Many of us found ourselves hopeful... It would be nice to start shipping a few things to THEM for a change... (Head to your local WalMart and just try finding something made in the USA these days.)

Well, as mentioned on the Cyril Huze blog, Harley is having some difficulties in the Far East.  It seems the Chinese government cares more about their people’s jobs than our politicians do about ours - “American motorcycles face various restrictions, including prohibitive taxes. Harley-Davidson sales in China are virtually non-existent. At prices of up to 90 percent more than in the United States due to Chinese customs duties and other taxes...”

What does this mean, aside from the obvious issues of China not playing fair, etc.?

It means that Harley will be forced to start building bikes IN China, if they want to sell anything there.  Now, let’s take that one more step...  Once Harley Davidson starts building bikes in China at half, or less, of the cost of what it takes to build them here...  Then what?   Keep all the cheap bikes over there, while they’re losing tons of money in the US market?

Say buh-bye to every US plant...  They’ll follow Detroit’s lead.  Remember all the jobs that the auto makers sent to Mexico a few years back?  Well, while the Mexican plants have been expanding, GM & Ford have been laying off tens of thousands of American workers, and shutting down dozens of plants.

Is it really only a matter of time before Harley is forced to do the same thing?