Harley-Davidson strikes deal to build smaller bike in China
- Harley-Davidson to partner with Qianjiang Motorcycle in producing motorcycle with engine displacement of 338 cubic centimetres, for initial release in China
- Partnership will focus on more affordable motorcycles than the Harley’s trademark ‘big hogs’
Harley-Davidson will partner with China’s Qianjiang Motorcycle Co to build a new smaller motorcycle than its trademark “big hogs”, making good on promises to move more production outside the United States that have angered President Donald Trump.
Trump last year threatened to impose higher taxes on Harley after it made plans to move production for European customers overseas, part of a longer-term strategy for dealing with lower sales in the US and higher costs because of trade tariffs.
The partnership Harley outlined on Wednesday is aimed both at taking a bigger chunk of China’s huge bike and moped market, while also fitting in with a plan to cut costs and source half of all sales outside the US by 2027.
The new bike would have an engine displacement of 338 cubic centimetres, one of the smallest in the company’s 116-year old history, and would be sold in China from the end of 2020.
Harley’s existing range of motorcycles are generally far larger and come with high price tags and engine capacities of more than 601 cubic centimetres.
That has made the company a niche seller in Asia’s big markets, where lightweight bikes and scooters dominate, and left it struggling to win over consumers globally to replace a traditional US customer base which is ageing.
