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Author Topic: Harley-Davidson may leave Wis. if costs don't fall  (Read 15468 times)

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serghaven

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Harley-Davidson may leave Wis. if costs don't fall
« on: April 30, 2010, 01:12:04 PM »




MILWAUKEE - Motorcycle maker Harley-Davidson Inc. warned its employees Thursday it could move its Wisconsin manufacturing operations to another U.S. state if it can't cut millions of dollars in costs.

A recent analysis found a number of significant "cost gaps" that must be filled for the company to remain competitive, Harley spokesman Bob Klein said. The largest gaps involved labor costs and scheduling flexibility, Klein said.

"We'll be talking with the unions about how to close those competitive gaps," he said.

One of Harley's largest unions, the Local 2-209 chapter of the United Steelworkers International Union, did not immediately return messages seeking comment.

The Wisconsin plants at risk include its powertrain operations in Milwaukee. Those operations, with about 1,320 employees, are already being consolidated, and company officials have said the move would result in an unspecified number of job cuts.

The other Wisconsin plant, in Tomahawk, makes components including motorcycle windshields. It has about 375 workers, Klein said.

Even while holding discussions with union leaders, the company plans to look at sites in other states, Klein said. He declined to say which states, or how many sites, were under consideration.

The announcement was first reported by the Milwaukee Journal Sentinel.

Milwaukee Mayor Tom Barrett pledged in a statement to do everything he could "to ensure Harley-Davidson remains a proud Wisconsin company for generations to come."

The Milwaukee-based company has been struggling with sluggish sales, particularly of its high-end bikes. It reported last week that its first-quarter profit plunged 72 percent from the same period last year, while revenue dropped 19 percent. Retail sales of its heavyweight motorcycles fell more than 18 percent worldwide, the company said, with sales in the U.S. falling by nearly a quarter.

In December, Harley and its union agreed to a seven-year contract at its main motorcycle assembly plant in York, Pa. Under that contract, Harley would shut down one of two factories there and lay off nearly half the unionized work force of about 1,950 employees.

Harley-Davidson has many factors working against it in the U.S., including an aging customer base and growing competition from rivals. The company has long said it is focusing more attention and investment in markets overseas, where it has more room for growth.

Harley shares rose 83 cents, or 2.4 percent, to close at $35 on Thursday. Shares have traded in a 52-week range of $14.99 to $36.13.

___

By DINESH RAMDE , Associated Press

Last update: April 29, 2010 - 4:22 PM
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JCZ

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #1 on: April 30, 2010, 02:06:20 PM »

Well we know they will not be moving to Calif.

Although Nevada could be a possability........low labor costs, low econmic costs and no state income tax.
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #2 on: April 30, 2010, 03:24:50 PM »

Don't know if they'd do it, but they have a favorable union contract in place in York, pleanty of space with the consolodation and no shipping costs for softails and touring models if they buil the engines there.  They could also handle the Tomahawk plastics.  K.C. has plenty of space to add a big twin/sportster powertrain line.  I would not be surprised to see something happen as there's been comments for years on them shipping the engines and plastics all over the country.

Ride Safe,
JC
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walleye

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #3 on: April 30, 2010, 05:07:43 PM »

I think its just more scare tactics to lower the workers wages without cutting management wages.
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Gettinold

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #4 on: April 30, 2010, 06:01:02 PM »

OK, all CVO Harley members do your part and run right out and buy another CVO. Dood its been awhile for you, and you too Spyder, I see you hiding in the back there. If it's a 2008 or older, its time.  :D 
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #5 on: April 30, 2010, 06:16:43 PM »

OK, all CVO Harley members do your part and run right out and buy another CVO. Dood its been awhile for you, and you too Spyder, I see you hiding in the back there. If it's a 2008 or older, its time.  :D 
Not!!!!! I didn't get a stimulus check I work for a living. :oops: :huepfenlol2: :huepfenlol2:

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Gettinold

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #6 on: April 30, 2010, 06:19:49 PM »

Not!!!!! I didn't get a stimulus check I work for a living. :oops: :huepfenlol2: :huepfenlol2:

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Fired00d
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Stimulus this...... Get off that long term nursing policy and get living.  :huepfenlol2:
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #7 on: April 30, 2010, 06:20:40 PM »

Stimulus this...... Get off that long term nursing policy and get living.  :huepfenlol2:
:ROFLOL:  :2vrolijk_21:

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Gettinold

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #8 on: April 30, 2010, 06:23:32 PM »

:ROFLOL:  :2vrolijk_21:

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Chip said he wants to buy your SEEG, he dont want mine. 
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #9 on: April 30, 2010, 06:24:46 PM »

Chip said he wants to buy your SEEG, he dont want mine. 
He's old enough for his wants not to hurt him. :D :D

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Gettinold

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #10 on: April 30, 2010, 06:26:59 PM »

Aint that the truth.  ;D
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #11 on: April 30, 2010, 07:49:48 PM »

Don't know if they'd do it, but they have a favorable union contract in place in York, plenty of space with the consolidation and no shipping costs for softails and touring models if they built the engines there.  They could also handle the Tomahawk plastics.  K.C. has plenty of space to add a big twin/sportster powertrain line.  I would not be surprised to see something happen as there's been comments for years on them shipping the engines and plastics all over the country.

Ride Safe,
JC

But Wisconsin has the museum....they definitely have the museum!  Who needs manufacturing jobs when you have the museum!   ::)
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #12 on: April 30, 2010, 08:09:14 PM »

OK, all CVO Harley members do your part and run right out and buy another CVO. Dood its been awhile for you, and you too Spyder, I see you hiding in the back there. If it's a 2008 or older, its time.  :D 

Well, if that's what it will take for them to survive, I suggest they may as well fold up the tent right now.  I may be getting old, but I'm not dumb and I'm not senile (yet).  They'll see another pile of cash from me when and if they decide to build a top quality product at a reasonable price, and then treat me like a highly valued person instead of something to be scraped off their boots.  Since I no longer believe in miracles or fairy tales, please excuse me if I don't hold my breath waiting for current management to do the right thing.


Jerry
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #13 on: April 30, 2010, 08:30:44 PM »

I'm proud to say I'm doing my part to keep MOCO afloat!  New SEUC in Dec and haven't stopped spending yet...now I'm working to keep the component facilities open with my accessory purchases...

But, I have to agree:  MOCO isn't very good at showing it's appreciation to their loyal customers.  My experience with dealers in my area hasn't been much better than it would have been if I'd have rolled in their store on a metric bike...once you roll out on your new scooter, you're on your own unless they can find a way to charge you when you come back in.
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #14 on: April 30, 2010, 10:50:12 PM »

Wonder what the stock price would be if there was a 50% salary cut at the top going down to a 10% salary cut for the line workers?  Would the price of the CVO go down?  Sorry, I was dreaming......
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