The announcement follows Harley-Davidson’s decision of keeping their motorcycle operations in York, Pennsylvania, but moving on with the cost cutting measures, which first began with discontinuing the Buell product line and the selling of MV Agusta, in order to be able to switch focus on their own brand.
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.
The manufacturer recently named a new general manager for the York plant, who will oversee the aforementioned cost cutting measures and vehicle operations. Ed Magee will succeed Fred Gates, current Vice President and General Manager, who will retire in 2010, starting December 16, 2009.
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