In order to stay afloat amid a shortage of motorcycle sales across the country, the officials at Harley Davidson, Inc. were forced to make a difficult decision this week. In an effort to reverse a four-year sales slide, the largest maker of heavyweight motorcycles in the world will move ahead with a plan to consolidate manufacturing operations, including the closure of its Kansas City, Missouri plant.
Despite members of the Association of Machinists and Aerospace Workers meeting with House Minority Leader Nancy Pelosi earlier this week to discuss the earnings drop that came in part because of a charge associated with President Trump’s tax cut and a $29.4 million charge for a voluntary product recall, the Kansas City plant will close. While some of this plant’s 800 employees may have the opportunity to find work among the 400 jobs that will be merged into its York, Pennsylvania plant, others will be left looking for appropriate employment.
“The decision to consolidate our final assembly plants was made after very careful consideration of our manufacturing footprint and the appropriate capacity given the current business environment,” said Harley Davidson President and CEO Matt Levatich. “Our Kansas City assembly operations will leave a legacy of safety, quality, collaboration and manufacturing leadership.”
Harley also expects restructuring and other consolidation costs of $170 million to $200 million, including the possibility of outsourcing to Thailand, over the next two years. Stay tuned to RacingJunk.com as we continue to follow this breaking news story as it unfolds.