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Author Topic: Harley Announces Kansas City Plant Closing  (Read 6869 times)

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iski

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JCZ

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Re: Harley Announces Kansas City Plant Closing
« Reply #1 on: January 30, 2018, 08:45:32 AM »

Just saw that on a Fox network news. The down hill slide.
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2smoke

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Re: Harley Announces Kansas City Plant Closing
« Reply #2 on: January 30, 2018, 10:25:38 AM »

The Keith Wandell Legacy (curse) lives on...   :-X
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iski

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Re: Harley Announces Kansas City Plant Closing
« Reply #3 on: January 30, 2018, 11:26:12 AM »

This is how I see it.  Big cruiser MC market is shrinking.  Fewer bikes purchased each year.  Lots of reasons for that, what is important here is: do not foresee a reversal of that downward trend.  Not sure where the "bottom" is for sales numbers.  HD has extra capacity and/or inefficiencies in maintaining 2 assembly plants.  Consolidating those operations into one plant increases cost ($200 million)  in the short term and requires $150 million capital investment over the next 2 years at York. After 2020 they project they will save $75 million a year by doing so.  ROI after 2020 is about 5 years, if projections are accurate.  Reasonable expenditure.  Sadly, KC employees (800)  will lose their jobs for the most part.  York will hire 450 more.  Net decrease of 350 employees. 

HD must cut costs to survive in a shrinking sales market. If they fail to do so, they will bleed red ink until they go bankrupt.  Production capacity is determined by overall sales - the numbers must not be there to support both KC & York.  Perspective from an old guy who used to mange distribution centers & shipping:  Shipping costs usually average better from a central US location - KC, Memphis, etc.  Freight cost must not have been enough to move the assembly to KC when combined with the capital expenditure required to move the York operation there. 

I have worked in a "declining" industry.  Each year, when overall sales are flat or decreased some cost must be eliminated.  The companies that fail to do so eventually are bought out or cease to exist usually.  The best scenario is for sales to increase and companies expand as a result.  HD enjoyed that scenario for years, but as most companies who have been in business for many years have done they have survived sales decreases in the past. 

I would rather see HD survive as a company than watch it spiral out of existence like so many others have.  Others have opinions that differ from mine as to HD's survival tactics & the good & bad of these tactics.  Sure I would prefer to see HD selling more, building more plants, and lowering the costs of the bikes they sell  :).   Not happening. 
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tazmun

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Re: Harley Announces Kansas City Plant Closing
« Reply #4 on: January 30, 2018, 12:16:56 PM »

Pretty soon, they may move the engine plant? I personally think, everything should have stayed in Milwaukee!
I  also wonder what Kansas City gave HD, and if they got back their investment?
A real sad day for the employees there!

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muddypaws

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Re: Harley Announces Kansas City Plant Closing
« Reply #5 on: January 30, 2018, 12:24:23 PM »

They keep thinking if you build junk they will keep coming....
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Re: Harley Announces Kansas City Plant Closing
« Reply #6 on: January 30, 2018, 01:19:05 PM »

I bought 10 H-Ds over a period of about 20 years. Felt obligated, spouse worked there and got the employee discount. Now she's retired. Bought 2 new bikes in the past 15 months. Neither is an H-D. Maybe the Harley mystique has just plain worn off.
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Heatwave

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Re: Harley Announces Kansas City Plant Closing
« Reply #7 on: January 30, 2018, 01:31:35 PM »

Sad to read how tough the 4th qtr sales were for HD. So bad the stock is down almost 9% today. They have just announced HD is closing their Manufacturing plant in Kansas City. 800 jobs lost and all the work transferred to York, Pa. Not sure what the impact will be on CVO manufacturing.

https://www.usatoday.com/story/money/cars/2018/01/30/harley-davidson-kansas-city-plant-motorcycle-sales-fall/1078008001/
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dghboy

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Re: Harley Announces Kansas City Plant Closing
« Reply #8 on: January 30, 2018, 01:33:58 PM »

Harley customers, we are a dying breed. Plus the cost of buying and maintaining a Harley are as much or more than most cars.



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CVODON

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Re: Harley Announces Kansas City Plant Closing
« Reply #9 on: January 30, 2018, 01:57:07 PM »

So sad for the employee's, those are good, decent paying, hard to find jobs. Best Wishes guys & girls in the future.
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Ironhorse

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Re: Harley Announces Kansas City Plant Closing
« Reply #10 on: January 30, 2018, 02:09:53 PM »

If they added $200 to every bike, and $12.00 to every shirt they could make it up,.....LOL!!!
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Heatwave

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Re: Harley Announces Kansas City Plant Closing
« Reply #11 on: January 30, 2018, 02:19:40 PM »

Units shipped in the 4th qtr were up but total for 2016 vs 2017 units were down significantly.

https://www.aimag.com/harley-sales-down-shipments-reduced-as-fourth-quarter-full-year-2017-results-released/
« Last Edit: January 30, 2018, 06:30:16 PM by Heatwave »
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skorch

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Re: Harley Announces Kansas City Plant Closing
« Reply #12 on: January 30, 2018, 02:35:29 PM »

Sad to read how tough the 4th qtr sales were for HD. So bad the stock is down almost 9% today. They have just announced HD is closing their Manufacturing plant in Kansas City. 800 jobs lost and all the work transferred to York, Pa. Not sure what the impact will be on CVO manufacturing.

https://www.usatoday.com/story/money/cars/2018/01/30/harley-davidson-kansas-city-plant-motorcycle-sales-fall/1078008001/

They also need to address the dealer network price gouging,at least here in NC.
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J.D.

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Re: Harley Announces Kansas City Plant Closing
« Reply #13 on: January 30, 2018, 02:45:15 PM »

HD's problems are being compounded by their chronic quality/reliability issues, IMHO.
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skippy

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Re: Harley Announces Kansas City Plant Closing
« Reply #14 on: January 30, 2018, 03:45:03 PM »

May be a wake up call for the dealers. Also I think the 2018 softail are full of cheap components take a close look at them you'll see what I mean
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