A plant in the Kansas City, USA and another in Adelaide, Australia is reported to stop operations by early 2019 resulting in loss of numerous jobs.
One of the world’s most iconic and oldest motorcycle brand Harley-Davidson is experiencing deteriorating sales across the globe forcing it to make a major overhaul in its production facilities. As per the reports obtained by reliable media firms, the Harley-Davidson production facility in Kansas City in the US will shut down by early 2019 and around 800 jobs will see a termination.
The dwindling sales of the Harley-Davidson motorcycles and falling number of shipments is known to be the main reason behind this decision. The American bikemaker shipped 2,41,000 motorcycles in 2017 which was less from the companies expected figure of 2,46,000 units. This year, the number is expected to fall down further. It has been reckoned that the number of units to be shipped this year will be between 2,31,000 to 2,36,000 units. Harley-Davidsons fourth-quarter sales of the current fiscal year have seen a downfall of 9.6 percent.
The substitute for the closing Kansas plant will be a new plant to be set up in York, Penn. Not all but some part of the production will be shifted to this new plant. Moreover, the leisure bikemakers plan also consist of closing down another plant in Adelaide in Australia but a new one is planned to be commenced in Thailand. All the overhaul will attract a huge amount of investment which has been estimated from $170 million to $200 million but the resultant savings in production cost later will be around $65 million to $75 million annually.
These extreme changes in the production will bring along a major alteration in the workforce as well. Many officials working towards the quality production of Harley-Davidson motorcycles will have to look for another job, unfortunately. The shutting down of Kansas plant alone will see job cuts of around 800 employees but it will also result in 450 new jobs in York where the new plant will be built. All this seems to be going in the opposite direction of US president Donald Trump’s last year’s statement which read that the Harley-Davidson is a great example of a company creating US jobs and it is a model of American manufacturing.
Just recently, Harley-Davidson introduced a whole new lineup of Softail Dyna and Touring models along with the inception of all-new Milwaukee-eight engines in two different configurations. From more potent powerplants to intensely stylish and modern design, the American brand has evolved the bikes to their core. However, all of that doesn’t look to yield the expected growth in the sales so soon.