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YORK, Pa. -- Harley-Davidson said it may have to shut down or scale back its York County assembly plant.
The news spread at employee meetings that started with Monday's third shift.
An employee works on a Harley-Davidson softtail at the York facility.
Company officials said they outlined what they are calling a three-part strategy to improve efficiency at the York County plant.
Harley-Davidson is the third largest employer in York County. About 2,500 workers are employed at the plant.
Last month, the motorcycle maker announced a 37 percent drop in sales.
"As it stands York is not competitive long term ... due to cost pressures," company representative Bob Klein said.
In addition, "major changes will be needed," he said.
The changes include a major evaluation of the York operations facility as an assembly plant, he said.
Company officials will meet with the machinist union to come up with options that could keep a restructured and scaled back facility in York.
But the evaluation of the assembly plant also means they are "going to look at exploring other possible locations within the U.S.," Klein said
Harley has already announced more job cuts for later this year at the York County plant, but has not said how many.
Those cuts would be on top of the 340 jobs already eliminated since the beginning of the year.