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Secondly why are their costs so high?



I think they're saying it's the labor costs that are so high. All those guys are union, making a good wage, plus health insurance and a nice pension. HD I'm sure has to pick up the tab for that stuff. Not saying there's anything wrong with it, just that it's a big expense that cuts into their bottom line. Other companies can build a factory in say Thailand for instance, and have their product built cheaper, with no labor unions, absurd health insurance costs, pensions, etc. Therefore they can sell their product cheaper. Harley has an image to uphold, can you imagine the backlash if the great american motorcycle company started building their bikes in India or somewhere? The same has happened/is happening to a lot of companies in the U.S. particularly in the manufacturing industry. Try going to Target or Walmart or home depot, or (insert big box store here) and try to buy something that isn't "made in China". Most U.S. companies simply can't compete with third world labor costs, union or not. Sad really.



http://thekneeslider.com/archives/2010/07/23/harley-davidson-considering-assembly-plant-in-india/