Harley Davidson is in the final stages of deciding whether to restructure the York, PA production facility for greater efficiency or move those operations to another location in the United States. The decision is now down to just two options, stay in York or move to Shelbyville, Kentucky. The company had previously announced 4 potential alternatives to York, but yesterday announced only Shelbyville remained on the list.
Company representatives met this week with Kentucky officials to further explore plans and options. At the same time, Harley-Davidson management said that a joint union-management task force has developed a plan to restructure the York operations that provides a “viable path to competitiveness,†pending the ratification of a new contract that aligns with restructured operations.
A decision is expected by the end of the year.
Link: Business Journal
Tin Man 2 says
Lets hope the guys at York can agree to work rule changes to become more competitive. Id much rather see HD use its cash on R&D then on a new facility. In the olden days companys avoided debt, now they seem all to willing to finance a new plant instead of putting money into product.
Nicolas says
Just like Boeing is announcing they will locate a new facility in SC and not Seattle, it looks like HD is using the “relocation” argument to pull out some advantageous deals from the union …
Mikey says
Hot Damn!!!
I can see a Thorobred Tourer coming soon…
They could tie so much local naming into this. They’re going to be right down the road from Four Roses to start.
Maybe we could rename it to the Kentucky Iron Horse Park….
John says
Agree with you TinMan,but curious where the other 3 places were.
Mikey says
Shelbyville, Ind., Murfreesboro, Tenn., and Shelbyville, Ky and Kansas City, MO.
those were listed as the options in the previous artcle here on Kneeslider.
JimmyJones says
Shelbyville is the rival town in “The Simpsons” I don’t know what to do with that information but it must be important
Paul says
HD Corporate Priorities:
1. Executive bonuses
2. Shareholder dividends
3. Brand identity
4. Creating new products with no new features
5. Selling as many t-shirts, doggie bowls, halter tops, boots, beanie helmets, and jackets as possible.
HD Corporate non-Priorities:
1. Their workers
2. Their customers
They will play the union off against the various governments until they get the best deal for their shareholders. Workers and consumers (and even the dealers), as always, will get screwed. Brand loyalty to this megacorporation is sadly misguided. At least Honda is devoted to producting small, high-efficiency engines that provide good value for money; Harley just wants to sell more accessories to more people for more money – they don’t really care how they do it.
Tin Man 2 says
Paul, Dont fall victom to the Myth of Honda superiority. A Harley Tour bike gets much better Mileage than a Gold Wing,at a Lower cost. A 883 Sportster is cost competative with any foreign bike in its class. The Imported bikes have gone up in weight and cost over the years, The HDs are the lightest and most effiecent of all the large cruisers on the market. Yes a company is in bussiness to make a profit (DUH) but HD is GROWING market share even in these slow economic times, not with T-shirts, but with reliable well built American Motorcycles.
Richard Gozinya says
I don’t think the York plant’s problems have anything to do with labor, but with it being an old, inefficient factory. So blaming labor for the problems at York is ridiculous. Of course they’re trying to work it to get the best deal they can, they’re businesspeople, and that’s what they do.
John says
Paul, stick to commenting on what you know best,whatever that is.
David/cigarrz says
John I think we can safely say its not business, democratic republics, economics, publicly OWNED corporations or almost free markets. Toyota invented modern lean manufacturing and set the worldwide standard for quality and efficiency most American business has spent the last two decades trying to catch up and implement the same or similar practices. Most American plants built in the last fifty years are not conducive to efficiency and either end up being gutted and starting over or replaced. Having been involved in a complete make over of two plants it is extremely hard to maintain production and rebuild to efficient lean manufacturing at the same time. Its often times easier and more cost efficient to build a new plant. My guess from reading the press release above it is the labor union choice to move into the 21st century and rebuild their plant to work efficiently and cost effectively or watch their jobs be relocated. In this day and age owners (shareholders) demand nothing less.
todd says
I find it awfully funny, this hatred towards businesses, the people who run them, and the people who believe (i.e. invest) in them . Especially since, if any of the haters were in the same situation, they’d (hopefully) do exactly the same things.
Who do you think these Harley shareholders are anyway? They are people that have bought a Harley, be it on paper, in the garage, or both. Shareholders are customers. Customers are any smart business’ number one priority. Customers (happy ones) buy stuff and that pays your bills. It pays your employees, who you rely on, to make the “stuff” you are trying to sell. If all goes according to plan and you make a profit, you give everyone a raise (or bonus or dividend) or invest in new capital equipment. You give the smarter people more money in hopes that they don’t run off to another company and make them successful. You give less to those who contribute less.
Making a big move like this is done to ensure that the above process can continue. No one likes a pay cut. This is not a charity.
-todd
Tin Man 2 says
Todd, You are correct as usaul. But (you knew this was coming) the short sightedness of many CEOs has contributed to the problems in the world today. The pressure Wall Street fund managers put on CFOs to deliver quick profits over long term growth has left most of our manufacturers at the mercy of the financial community, and thus very vulnerable. At some point it drains the companys future to supply short term profits to Wall Street Investers. A balance of profit and reinvestment needs to be maintained, Reinvestment can take the form of R&D, Infrastructure improvments and community involvement and stability.
taxman says
sorry to be blunt. but customers are not share holders. people that look at buying a Harley as an investment are not smart investors. it will never be worth the amount of money that has been put into it. if you want to invest in HD then buy stock not a bike.
i’m not ‘hatin’ i’m just voicing my opinion.
hoyt says
South Park was not one of their choices.
James says
well I for one hope that the york facility can stay… for the workers sake. otherwise HD better pull one heck of a rare rabbit out of there hat with the move, a very large gain in profit. i don’t think that with the recent going on’s with the big three auto makers; that investers will be pleased with any less
Kenji says
@ Tin Man 2 “..Paul, Dont fall victom to the Myth of Honda superiority…”
It’s not a myth. HD needs to get back to its roots, or it dies.
And that’s not more 3/4 ton FatBobs.
todd says
Sure, some customers are share holders. The people most likely to invest in Harley stock are people who may already be buying Harley products. I’d call that a customer. Buying a Harley motorcycle as an investment is indeed foolish unless you intend to hold onto an unused bike for 40 years.
Tin Man 2, such is the nature of selling a large portion of your business to the open market; you give up control of your company for the benefit of short-term gains or cash. This is the rule of The Game, and the way of the people. I go to work every day for the money, not to see the company succeed. I will ensure that the company succeeds so that I can collect my money. When I retire I will cash it all in and some young whipper-snapper will start the process all over again. Kingdoms will rise and kingdoms will fall and I will have food on my table.
There are many reasons for Honda’s success just as there are many (but different) reasons for Harley’s success. The biggest ticket Honda has to its name – that Harley is only beginning to tap into – is a strong foothold in Asian markets. Restructuring its business to become more competitive in these markets (as well as on the home turf) will perpetuate the process of getting paid.
-todd
John says
Thank you Todd,I am a HD owner and stock owner.Over the years it’s done very well for me,split 3 times to more that triple my investment, of course now it’s down but so is everyone.I’m not going to panic sell,not that type, I’ve always listened to my inner guy and he’s aiways been right.Kenji,guys like you just keep repeating myths and the misinformed go on to repeat them.Like I’ve reported before Harleys are the lightest of any other company’s cruizer type bikes,check it out if you don’t think so.
John Findlay says
It would come as no surprise if H.D. started getting all their parts made in China and shipped back to the U.S. for final assembly ! It works for other lifestlye brands like Rayband and Reebok ppffftt, I sure that would make the share holders happy !
Michael W LexPk MD says
Everyone is forgetting that Harley is moving from Pennsylvania to Kentucky. Both are still in the USA.
It is probably cheaper to live in Kentucky then in Pennsylvania, so labor cost will go down. I did not check, but I am pretty sure that POWER is cheaper too, so production cost goes down. Real estate taxes may be cheaper, so again production cot go down even more.
Good luck and ride safe (NO MATTER WHAT BRAND YOU CHOOSE TO RIDE)
steve evans says
The touring plant is so out of date I am surprised it lasted this long. Harley sales are
in the tank and the company will only bleed money for so long .Any state would want
the touring plant and all it brings . You can bet all the folks in Kentucky are doing every-
thing they can to make to the move happen .
PA officials and the union had better get off their ass and make a deal Harley can live with . Imagine York with the plant gone …think of the ripple effect . The future of this city
will be decided in the next 6 weeks . Pigs get fat , hogs get slaughtered.