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Harley-Davidson plans to lay off 200 workers Gary Harber, York (Pa.) Daily Record
Published 8:38 p.m. ET Aug. 31, 2016
SPRINGETTSBURY TOWNSHIP, Pa. — About 200 Harley-Davidson workers are expected to be laid off (http://on-ydr.co/2ceWyQG) this fall after sluggish spring sales of touring motorcycles and cruisers, the company announced Wednesday. When Harley-Davidson (HOG (/money/lookup/stocks/HOG/)) announced second-quarter earnings July 28, it said it expects to ship about 5,000 fewer motorcycles to dealers around the world this year than previously anticipated, about 2% of total volume. The company trimmed its forecast to 264,000 to 269,000 motorcycles (Photo: Paul Kuehnel, York (Pa.) Daily Record)
shipped in 2016, down from 269,000 to 274,000. "To that end, we are adjusting our production plan to align with 2016 guidance and we are making the
necessary changes to right-size the company," spokeswoman Bernadette Lauer said in email. The Milwaukee-based motorcycle manufacturer cut about 250 salaried positions in the fourth quarter of last year after disappointing sales and earnings. 'Harley and the Davidsons' races back in history
(https://www.usatoday.com/story/life/tv/2016/08/31/harley-davidsonsdiscovery/89578732/) On Wednesday, Harley-Davidson's stock was down 5 cents, less than 0.1%, closing at $52.70 a share on a volume of almost 1.4 million shares. At the end of July, it already had announced a 6.4% decrease in profits in the second quarter of its fiscal year, $280.4 million for the three months ending June 30. The company's U.S. motorcycle sales were down 5.2% compared with the year-ago quarter, and the overall heavyweight motorcycle industry was down 8.6% for the same period. Harley and other makers of cruiser and touring motorcycles have seen their U.S. sales fall as the economy has faltered in some states, such as Texas, where oil and gas production is down. Brian Zarilla, president of International Association of Machinists and Aerospace Workers Local 175 here, was told that 117 positions in his union in the suburban York, Pa., plant will be laid off beginning Oct. 10. The reductions are expected to be completed by the end of November at the plant that makes Touring, Trike, Softail and limited-edition custom models — what Harley says is 60% of its motorcycles. Harley-Davidson pays $15M to settle EPA's emissions claims
(https://www.usatoday.com/story/money/cars/2016/08/18/harley-davidson-epaemissions-settlement-defeat-devices/88944648/) Harley has accounted for roughly half of all new heavyweight motorcycles sold in the United States. The company is still the sales leader in that category but has lost some market share to competitors, including Japanese and European motorcycle manufacturers and Indian Motorcycle Co., based in Medina, Minn.
Harley had about 2,000 hourly workers in Springettsbury Township as late as 2009. Now, about 950 members of Local 175 work there, Zarilla said. The exact number of people who will be laid off isn't known at this point because some of the reductions will come from not filling vacant positions, Lauer said. Harley-Davidson motorcycles probed for brake failures
(https://www.usatoday.com/story/money/cars/2016/07/08/harley-davidsonmotorcycles-probed-brake-failures/86877034/) Harley has offered the plant's Tier 1 production employees — those hired before Feb. 2, 2010 — a $15,000 buyout if they agree to leave the company, Zarilla said. That could further reduce the number of people who would be laid off. Lauer would not comment on the buyout offer. Zarilla said he doesn't expect more than 10 employees to accept the buyout. Eligible workers have until Sept. 16 to decide. Harley-Davidson rumbles outside U.S. for sales growth
(https://www.usatoday.com/story/money/cars/2016/05/30/harley-davidson-rumblesoutside-us-sales-growth/85151410/) A handful of layoffs will occur at Harley's engine plant in Menomonee Falls, Wis., where the company employs about 1,000 people, and the windshield and plastic-parts plant in Tomahawk, Wis., is expected to see about 35 layoffs. The layoffs will affect both regular full-time workers and a classification called casual workers, those who fill in for people on vacation or as otherwise needed. The casual workers are heavily used, Zarilla said. They work regularly and have worked for Harley-Davidson for years, he said. The York-area plant has been open since 1973. Contributing: Rick Barrett, Milwaukee Journal Sentinel (/story/money/business/2016/08/31/harley-plans-lay-off-200-employees/89650232/). Follow Gary Haber on Twitter: @GaryMHaber (https://twitter.com/GaryMHaber) Read or Share this story: http://usat.ly/2bS11VD