The International Association of Machinists and Aerospace Workers (IAM) continues exerting pressure on Harley-Davidson Inc. (NYSE: HOG) in an effort to try and save the Kansas City Assembly Plant, but the company remains firm in its plans to shut it down.
The latest effort is a direct appeal from IAM asking President Donald Trump to intervene. IAM President Robert Martinez Jr. sent a letter to the White House on behalf of IAM's more than 600,000 members, asking Trump for his assistance in saving about 800 jobs in Kansas City.
"For decades, hard-working Machinists Union members have devoted their lives to making high-quality, American-made products for Harley," Martinez wrote in the March 7 letter, which the union released Friday. "Their skill and dedication to excellence have helped make Harley the successful, trusted brand that it is today. Indeed, IAM members at Harley-Davidson have made it an American icon. It is a disgrace that Harley-Davidson is not showing these workers the same loyalty they have shown (the company) over the years."

Martinez said it was even more galling that Milwaukee-based motorcycle manufacturer is closing American plants while it builds a new production plant in Thailand, supporting jobs there and also at plants in Brazil and India.

"We are asking Harley-Davidson to reconsider its decision to close its facility in Kansas City," Martinez wrote. "America's working men and women deserve better than being thrown out on the street. Our nation deserves better."

In an emailed statement from Harley, the company said the decision to consolidate the Kansas City operations into their York plant was based on the company's need to address excess capacity in the U.S.

"While we value the opinions of our unions and elected officials, unfortunately there is nothing that could have been done to address the pressure of excess capacity we have in the U.S. market," Harley said in the statement. "We remain grateful to our dedicated and committed Harley-Davidson's Kansas City employees who have worked hard to deliver exceptional, high-quality products to our customers."

Harley said the overseas plants were a separate issue to the overcapacity in the United States. Harley is trying to sell more motorcycles overseas, and it's more economical to build the motorcycles in or near those target countries, to avoid shipping costs and tariffs.

"Part of our long-term strategy is to grow our international business to 50 percent of our annual volume by 2027," Harley wrote. "The Thailand facility will allow us to be competitive and provide riders greater access to our brand and our products in an expanding global marketplace."

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