Posted on 08/04/2010 9:11:36 AM PDT by Bad~Rodeo
It's been quite a ride for Harley-Davidson (HOG). The iconic motorcycle company has been cranking out bikes since 1903, and it's one of only two major motorcycle manufacturers to have survived the Great Depression. The first Harley rolled off the line just one year after the first telegraph cable was laid across the Pacific Ocean, and nowadays you can log on to Harley's website to customize your "Hog" or find a dealer on your smart phone.
But now there's a rough road ahead for the company. The plant that cranks out Harley's choppers in Milwaukee may finally be at its breaking point after more than a century, with labor costs threatening to shutter the facility and end 107 years of tradition.
According to reports, Harley-Davidson warned employees in April that it would move its Wisconsin manufacturing operations if it could not cut millions of dollars from its production costs. That would mean the bikes known as "Milwaukee Iron" may have to get another nickname very soon.
Harley's CEO told The Associated Press the company will reach a decision on relocation within a month or two. Harley execs aren't necessarily going to leave the United States and are reportedly scouting out American locales outside of Wisconsin. There's also
(Excerpt) Read more at articles.moneycentral.msn.com ...
Iowa has “Right to Work,” but it hasn’t helped.
Agree if HOG should move anywhere, it should be to a right-to-work state. I’m not a Harley owner but I predict if they do move to Mexico, it will be the beginning of the end of the company.
HOG is earning 10%+ op profit already. Labor costs are above-the-line, which enables them to earn a 30% gross margin with union labor today. The shareholders need to think long and hard about a management team that puts this kind of very acceptable return and one of the worlds greatest brands at risk just to chisel a few points off labor cost while killing thousands of US jobs.
When a state digresses to “failed state” status, do we (should we) take that star off the flag and make it a territory?
Plow it under and send in the Feds, like a bank take over?
Can the citizens of a territory still vote in a federal election?
Move ‘em to South Carolina. Great business climate, and they’d love it down there—no helmet laws.
}:-)4
Offer them a good deal in AZ. They can use them to chase illegals.
Move to Oklahoma, just like Boeing’s California plant, a very business friendly state.
Taking no more calls, we have a winner!!!!!
I believe he is talking about a particular Harley-Davidson factory which assembles customized bikes, in contrast to other factories which produce regular Harleys. He just doesn’t know how to say that.
Absolutely it would spell Doom. I'm old enough to remember when japanese parts started showing up on Harley's. Talk about an uproar.
It will be interesting to see all the tax incentives offered to Harley by cities for their consideration
By all means move it to Texas. We could always use 2,650 new jobs. Let us have the production and you keep the bad weather up north.
Better yet, move the whole operation, we don’t have a state income tax.
—
from> http://thekneeslider.com/archives/2009/05/13/harley-davidson-considering-moving-york-factory/
Harley Davidson Considering Moving York Factory
by Paul Crowe - “The Kneeslider” on 5/13/2009
Harley Davidson considers York moveHarley Davidson is considering moving its operations in York, PA. The number of employee hours it takes to manufacture a Softail or touring bike, the models produced in York, is too high and, according to the company, the process must be restructured.
Closing the York facility is one of the options the company is currently considering in a study to be completed this year. There was no word on where the facility would be moved if it were closed. About 2,650 people are employed at two York plants
Depending on when you bought it, you may or may not like it.
Currently at $27.61, HOG stock has bounced back from its low of $8.33 in early 2009, but it's still way down from its high of $73.23 in late 2006.
That's good news as long as it isn't another V-Twin. America needs to build a sport bike that can compete with the Japanese. The MotoCzysz looks like the best option.
I’m not from South Dakota, but I hear they like business over there. Low taxes, and all that.
Not the electric bike, the in-line four.
Probably was a Victory Motorcycle.
Owned by Polaris
Very true. There's a demographic element too.
As the baby-boomer pig works its way through the python, that segment of the population which can be described as "well-to-do middle-aged posers" is getting smaller and smaller.
and Sturgis, L~
I vote Houston, tx.
We’ll have high school marching bands, fireworks, cheerleaders, a picnic, a charity auction.....
and maybe a 21,000 gun salute!
With their test staff in Talladega, I would hope Alabama is high on the list of states to which this great company could relocate.
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