Harley to build in India

Discussion in 'Wall St. News' started by EMRGLOBAL, Nov 8, 2010.

  1. The iconic American motorcycle brand, Harley-Davidson, has announced plans to build an assembly plant in India.Harley-Davidson, the iconic American motorcycle brand with a cult-like following, has announced it has chosen to build its second assembly plant ever outside the United States in India.

    There is still more to come as the Progressives in the WhiteHouse and Congress shore up to battle the new House and State Govs as well as all Capitalist.

    Time bomb is ticking.....the American People are gona wake up even more once they understand that OBAMA and his Ass clowns (The DEMS) are hell bent to turn this country into a WEALFARE STATE. Even with the First shot fired with a "pen" stroke at the Election Box.

    Harely knows this first shot will only push the DEMS to destroy capitalism faster. Harley is getting smart.

    DEMS and the Political Body do not believe the American People have the BALLS to rise up. Harley is testing its exit...
  2. Is the factory to supply domestic (US) markets or export?
  3. Can't blame them... Its a huge market for HD to sell into plus they reduce their costs and expenses by a factor of 10.

    Suzuki, Royal Enfield and others are already established brands there.

    Take a look at some of the prices converted to dollars from Suzuki India's website.


    New Low End models (Slingshot, GS150) are $1000 - $2000.

    Their upscale models Hyabusa, Intruder, GSX etc. are commanding $25K - $30K.

    Compared to the US right now there is significantly more disposable income in India's Middle and Upper Classes.
  4. clacy


    I guess there just aren't enough people here in the US that want to pay $30k for a motorcycle.:confused:
  5. HD will be building a facility in a "Free Trade" Zone and gains significant advantages over Wisconsin.

    The developers building the zones will get a 10-year tax holiday on their profits. Tenants will enjoy tax-free profits for the first five years; in the subsequent 10 years, as much as half of their net export earnings will qualify for exemption.

    That, however, isn't the main draw of these enclaves. What makes them attractive, especially to manufacturers, is that the Indian government has given states the flexibility to keep these "foreign" territories out of the purview of draconian labor laws.

    In the model law for special zones that the Indian government is asking all states to adopt, it is explicitly proposed that Chapter V-B of India's Industrial Disputes Act of 1947 won't apply.

    Chapter V-B requires that companies that employ more than 100 workers obtain government approval before firing workers or closing down. Since this permission is seldom forthcoming, employers are reluctant to hire workers they won't be able to fire if there's a sudden slump in demand for their products.

    Being freed from the clutches of Chapter V-B is a major concession, which the federal government has tried - and failed, because of political opposition - to allow in the domestic-tariff area for the past five years.

    Additionally, state governments can outlaw strikes and legislate that the Contract Labor Act of 1970, which prohibits companies from farming out "perennial" activities to temporary workers, won't apply in the zones. In the domestic-tariff area, this has been a crippling requirement.

    What would you do if you were HD?

    Open a plant in India and operate tax free for at least 5 years, Have cheap labor and suspension of labor laws... Access to the Asian market.

    Can any state in the US compete?
    You know once this plant is operational Milwaukee becomes a museum.