{img1 align=left}Harley-Davidson’s cost cutting policy moves forward. After it discontinued the Buell product line and it is currently in the process of selling the MV Agusta arm, the American motorcycle manufacturer announced it will keep its motorcycle operations in York, Pennsylvania, but it plans to restructure those operations too.
The announcement followed a new seven-year labor agreement with company employees at York, represented by International Association of Machinists and Aerospace Workers (IAM) Local Lodge 175.
"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, in a release. "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," Wandell said.
The new York operation will be consolidated under one roof and focused on the core areas of motorcycle assembly, metal fabrication and paint. This move will generate a smaller workforce, with about 1,000 hourly employees compared to about 1,950 today. The operation will also employ about 150 salaried employees, compared to about 270 today.
According to the manufacturer, when fully operational in 2012, the restructuring is expected to generate about $100 million in annual operating savings compared to the current structure. The financial impact of the York restructuring reflects approximately $15 million in incentives that the Commonwealth of Pennsylvania has committed for capital improvements and training.
"I want to acknowledge and thank Pennsylvania Gov. Rendell and his team for their support of the changes we are embarking on at York. They have been terrific to work with throughout our decision-making process," Wandell concluded.
The announcement followed a new seven-year labor agreement with company employees at York, represented by International Association of Machinists and Aerospace Workers (IAM) Local Lodge 175.
"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, in a release. "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," Wandell said.
The new York operation will be consolidated under one roof and focused on the core areas of motorcycle assembly, metal fabrication and paint. This move will generate a smaller workforce, with about 1,000 hourly employees compared to about 1,950 today. The operation will also employ about 150 salaried employees, compared to about 270 today.
According to the manufacturer, when fully operational in 2012, the restructuring is expected to generate about $100 million in annual operating savings compared to the current structure. The financial impact of the York restructuring reflects approximately $15 million in incentives that the Commonwealth of Pennsylvania has committed for capital improvements and training.
"I want to acknowledge and thank Pennsylvania Gov. Rendell and his team for their support of the changes we are embarking on at York. They have been terrific to work with throughout our decision-making process," Wandell concluded.
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