Cost Savings: One potential benefit of relocating production could be cost savings. Moving production to a location with lower labor and operational costs may allow Harley Davidson to reduce expenses and improve profitability. This can be particularly relevant if the company can maintain or enhance the quality and reputation of their motorcycles while lowering production costs.
Market Access: Shifting production to certain regions can provide easier access to emerging markets. By manufacturing motorcycles closer to these markets, Harley Davidson may be able to reduce transportation costs, respond more quickly to customer demand, and potentially gain a competitive advantage.
International Presence: Expanding production facilities beyond the United States can also help Harley Davidson establish a stronger international presence. Localized manufacturing can facilitate market penetration, strengthen relationships with regional dealerships, and improve customer service and support in different parts of the world.
Trade and Economic Considerations: Global trade dynamics and policies can influence business decisions. Factors such as tariffs, trade agreements, and currency fluctuations may impact a company's manufacturing strategy. Relocating production to mitigate potential risks or take advantage of favorable trade conditions could be a consideration for Harley Davidson.
There may be potential drawbacks or challenges associated with relocating production, such as supply chain disruptions, regulatory issues, cultural differences, and possible impacts on the company's brand perception.
Ultimately, the success of Harley Davidson's decision to move production will depend on various factors, including effective execution, market conditions, customer response, and the ability to maintain quality and brand value.