Thursday, February 01, 2018
TKC FACT CHECK: BLAME DECLINING MOTORCYCLE DEMAND NOT TAX BREAKS FOR KANSAS CITY HARLEY-DAVIDSON SHUT DOWN AND MOVE TO THAILAND!!!
Whilst politicos & pundits point fingers and cast aspersions . . . Special thanks to TKC blog readers who provide an important perspective on an increasingly unpopular pastime that precipitated the Kansas City Harley-Davidson plant shut down.
First and foremost, it's important to remember that the company received $20 million in Enterprise Zone tax credits from Missouri and actually millions more in local tax breaks.
Sadly, the jobs in return for this cash never quite lived up to expectations and now they're soon to be outsourced . . .
While local news offered presser coverage, our readers are digging a bit deeper . . .
The company is building a factory in Thailand that will assemble bikes using components shipped from the U.S. Union officials accused the company in September of trying to “systematically dismantle” its hourly workforce.
Sadly, even this cost cutting measure might not work given a simple fact: FEWER PEOPLE ARE RIDING MOTORCYCLES NOWADAYS.
Even worse, Harley is going to make electric bikes that will only serve to further erode their customer base who have a natural aversion to "green" tech.
And so . . . Once again we see politicos mistaken about financial decisions with taxpayer cash when the underlying biz simply won't support demand. Apply this same doomed eco-devo strategy to condos, lofts, museums, rail transit and party districts and we can begin to see a pattern. In the end, voters mistaking politics and hype for economic reality threatens to decimate local economies and ultimately leaves KC workers jobless without warning.
Check the links . . .
Market Watch: Harley-Davidson sales decline continues
STL: Greitens’ tax proposals to attract businesses didn’t sway Harley-Davidson
KMBC: Gail's Harley-Davidson dealership "shocked" by plant closing
Fox4: Harley-Davidson plant employees shocked, frustrated by news of upcoming closure and layoffs
The Street: Harley-Davidson CEO - In a Lot of Ways We Are a Stronger Company
You decide . . .