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Harley-Davidson to Remain in York

Thursday, December 3, 2009
Harley-Davidson will remain in York. The Motor Company announced today that it will keep its motorcycle operations in York, Pa., and move forward with plans to restructure the plant. The York plant has a long and storied past and is a vital part of the community’s identity, an identity which they will still be able to claim after today’s announcement.

Harley-Davidsons York Plant
The Bar & Shield will continue to grace the York skyline.
The confirmation comes on the heels of yesterday’s approval of a new contract by York County Harley-Davidson union workers that would cut the current workforce in half but keep the company in Springettsbury Township. The proposal was endorsed by 89% of voters and served as an impetus for Harley’s decision to remain in York as a vote by H-D’s Board of Directors was not expected until Dec. 10.

“A restructured York operation will enable the plant to be competitive and sustainable for the future, and the new labor agreement is critical to making that happen,” said Keith Wandell, President and Chief Executive Officer of Harley-Davidson, Inc. “On behalf of the Company, I want to thank the employees at York for their vote to make the changes necessary to create a more flexible and efficient operation, and we look forward to moving ahead together to achieve that goal.”

Restructuring of the plant means consolidating operations under one roof and focusing on the core areas of motorcycle assembly, fabrication and paint. Whether it will continue to produce Harley’s Touring and Softail models was not announced. The facility is projected to be fully operational under the new plan by 2012 with restructuring costs estimated at $200 million. H-D expects to make additional capital expenditures during that time of around $90 million. On the flipside, the restructuring is expected to produce approximately $100 million in annual operating savings in comparison to the current structure. Harley-Davidson further commented on the financial implications of the agreement, stating:

“On a combined basis, the Company expects previously announced restructuring activities, together with the additional restructuring of the York operations approved today, to result in one-time charges of $415 million to $445 million into
The Vaughn L. Beals Tour Center at the H-D York plant.
The Vaughn L. Beals Tour Center is a popular attraction to the streams of tourists that visit the York plant.
2012, and to produce annual ongoing savings of $240 million to $260 million upon completion of all announced company-wide restructuring activities. In 2010 on a combined basis, Harley-Davidson expects to incur restructuring charges of $175 million to $195 million and related savings of approximately $135 million to $155 million.”
 
The decision ends months of speculation as to what the fortunes of the storied York plant would be. Opened in 1973, the York plant is a popular tourist attraction, with daily tours and motorcycle displays at the Vaughn L. Beals Tour Center. It’s also hard to quantify the financial impact losing 3,000 jobs would have on a community whose population was listed at 41,000 in the 2000 census.

Harley-Davidson considered moving the plant to Shelbyville, Kentucky, as both Kentucky and Pennsylvania began offering financial incentives in their attempts to sway H-D’s decision. Harley CEO acknowledged the efforts of both state’s governors in today’s announcement.
Harley-Davidson Dealer Locator

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Comments
FLHTCUI 07 then 08 -union schmunion  December 7, 2009 02:29 AM
Better they didn't move to china with the politicians and the T bills. There is alot of blue collar rank and file supporting HD sales. I am one. I try to buy US products when possible. This arguement was made back in the 80s recession when I bought a superglide for 5000.00(non union job). Times have changed but the argument remains the same when people are down and out. I should have bought 5k in HD stock back then instead. But then the speculators would have took my profits anyway(see first comment). Harley could have done one thing, drop that willy G ego trip called the V-rod and develope the buell sport line ...but NOOOO! lets park the dog and walk the leash. Union workers get scammed like everyone else through legacy rip offs and insurance cuts. Just rememeber anyone can read this text(see first statement).
Tim B -I'm Happy and Sad  December 5, 2009 10:01 AM
Harley was just looking for handouts from the state with the threat to move the factory south. They got what they wanted. Harley worked the system like a smart little kid can work their parents.

I hope most of the people that lose their jobs at the Harley factory are blue collar Union members and not the white collar workers. The Union sucks and they are hurting this country so bad. Look at what they helped do to Detroit and the auto industry. I'm glad to see greedy, overpaid Union members losing their jobs. I'm glad the plant is staying in my home state, though.
Woodman -I agree with the fish.  December 4, 2009 07:02 AM
I would ask GB 3 questions.

Are you laughing at folks losing thier jobs?
What bike do you ride?
What product do you make so well your sales are increasing right now?

HD controls 28% of the TOTAL USA sales and %50 of the cruiser market.

It is easy to try to knock the leader of the mountain, (see Tiger Woods). All companys have issues, Toyota is recalling 5,000,000 cars right now! I once dissasembled untouched, low mileage Yamaha carbs to rejet and they were missing parts from the factory!

Ride the bike you love, and can afford. If you do not like dressing in black leather and riding slow than dress in bright leathers and ride fast. Lets all just get throught this together.

Ride safe.
sidthafish -Use your brain  December 4, 2009 05:24 AM
Try to get over your blind hatred for Harley and look at the facts. Every company is doing poorly right now and having to "cut the fat" to stay healthy. Harley still holds over 25% of the US market share followed closely by Honda. Hell, Honda is shutting down its US manufacturers to remain competitive. Harley is in no danger of going out of business. No one wants to spend money because no one is making money.

You're "make a better product" argument has absolutely no value to it.
GB -bwahhhaaa  December 3, 2009 08:21 PM
make a better product and you'll stay in business. maybe Obama will give them some of our tax money to save them