INTERNATIONAL - Harley-Davidson Inc will partner with China’s Qianjiang Motorcycle Co to produce a new smaller model bike, making good on promises to build more motorcycles outside the United States that have angered President Donald Trump.
The company said the new bike would have an engine displacement of 338 cubic centimeters, by far the smallest-powered engine Harley has ever made and would be sold in China starting at the end of 2020.
President Trump last year threatened Harley with higher taxes in response to its plans to move production for European customers overseas, part of the company’s strategy for dealing with falling sales in its home market and increased costs due to higher trade tariffs.
Most Harley motorcycles sold in the US are far larger, with engine capacities of more than 601 cubic centimeters.
The new model will initially be sold in China, one of the world’s largest motorcycle markets, before it is introduced to other Asian markets.