The company finds itself caught in the middle of dueling trade policies, facing tariffs that are materially driving costs up both domestically, in the brand’s heartland, and in the EU, where it has significant growth opportunities.
From a purely operational standpoint, the decision to move production of EU-bound products to the EU makes sense. Despite the backlash in the U.S., the reality is that only a small minority of the company’s total manufacturing is done abroad (currently and in the foreseeable future).
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Americans looking to join the Harley-Davidson community, and those already invested in the brand looking to continue their relationship, are overwhelmingly likely to purchase a motorcycle manufactured right here, in the U.S.A.
The challenge Harley-Davidson faces is reconciling operational reality with consumer perception and experience, and its brand voice and presence are critical assets here.
The brand needs to be out ahead, leading and owning the narrative, and unapologetically assuring Americans of the company’s commitment to consumers. This will help to reinforce its American legacy and strengthen the visibility of the American values the company was built on.
American consumers seeking the Harley-Davidson experience need to be reminded that the products they are buying are still built in the U.S.A by a deeply American company. Europeans seeking the same will need to be assured that Harley-Davidson’s uncompromising approach is upheld with motorcycles made in the EU.
To accomplish this, the company will need to be bullish with its brand and business story, ensuring it is addressing consumers directly with a strong statement, transparently detailing why its strategists have made the decisions they’ve made and why consumers will benefit as a result.
After all, addressing these concerns head-on is the quintessential American way. With this strategy, even the recent calls for boycott by President Trump can be leveraged as part of the company’s brand narrative, reinvigorating the company’s anti-establishment nature that has been such a powerful attraction for generations of riders and motivating new generations without alienating the core of Harley-Davidson’s base.
Ultimately, the company isn’t just selling motorcycles. The Harley-Davidson experience is one of freedom and independence: timeless values backed by an iconic American brand. The strength of that brand and the enduring relevance of those values will be key to ensuring these short-term challenges are commensurately short-lived. Although these values manifest differently across generations, current events may serve as a way to rejuvenate Harley-Davidson’s dedicated consumer base and inspire loyalty in a new generation of motorcycle enthusiasts. Consumers just need to hear it from Harley-Davidson directly.