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Another motorcycle manufacturer is thinking about relocating production overseas



SPIRIT LAKE, Iowa – A Minnesota-based company said Friday it was considering outsourcing production of some motorcycles due to European tariffs just days after Harley-Davidson announced a similar move

Polaris Industries acknowledged that the company could relocate production of its Indian motorcycles from northwest Iowa to Poland.

"Nothing is definite," said Polaris spokeswoman Jess Rogers. "We're going to look at a series of mitigation plans."

Harley-Davidson announced on Monday that the production of motorcycles sold in Europe is being transferred overseas by US factories for retaliation.

President Donald Trump had made use of the iconic American motorcycle manufacturer as an example of a US firm damaged by trade barriers in other countries before imposing high duties on European steel and aluminum. The European Union responded with measures involving approximately $ 3.25 billion ($ 2.79 billion) of American products, including American-made motorcycles.

Harley-Davidson said the new tariffs would bring in about US $ 2,200 per average US motorcycle US to the EU

Since the announced move, Harley-Davidson has endured harsh criticism from the president, who explains in a tweet has that any relocation of production by the company will be "the beginning of the end". He added, "The aura will be gone and they will be taxed like never before!"

This criticism is undoubtedly in the minds of Polaris executives, who are seeking ways to mitigate the effects of tariffs.

In the first quarter, Polaris released about $ 1

5 million in additional costs in April 2018. Rogers said the latest rates would increase costs and would not be appreciated that much.

"But we definitely see an increase in costs," she said.

Polaris employs around 650 people at its Spirit Lake plant.

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