Makers of the legendary Harley-Davidson motorcycles, a fixture in the U.S. for over 100 years, will soon move its manufacturing operations to India. The company has announced that it can no longer sustain the high labor and overhead costs of building the bikes in United States. According to Harley spokesman Bob Klein, a number of “significant cost gaps” must be filled for the company to remain competitive. The company also plans to build smaller bikes.

The move would shutter the Harley plants in Wisconsin, Missouri and Pennsylvania, eliminating some 3,700 high-paying unionized jobs. Meanwhile, the company is nearing completion of its new, 230,000 square foot manufacturing and parts distribution center in Gurgaon, near Delhi. The new facility is expected to open later this summer, and become fully operational by the first quarter of 2011. Hiring managers in Gurgaon were flooded with job applications from Indians eager to snag the coveted $3.11 an hour assembly jobs.

“I am impressed with the aggressive work ethic of our Indian associates,” said Klein at a press conference in Milwaukee. “We have a long tradition of American pride, and we expect to continue our vision with Indian pride! They love our bikes over there! I just wish we could name some of our bikes “Indian,” but I think that name’s already taken. Damn.”

Harley management envisions reaching lower-priced markets and hopes to begin selling cut-price models within two years. Plans are also in the works for a line of Moto-Cross and enduro bikes…even mopeds. Harley-Davidson hopes to cut the prices of its premium touring and Sportster bikes in half, while boosting profits.

“People simply can’t afford our bikes anymore,” added Klein. “Thirty grand for a motorcycle? That’s just retarded!”

Harley-Davidson has offered relocation packages to some of its U.S. employees, with over 100 expected to make the move to India.