Harley-Davidson cuts 1,100 jobs, cuts production by 10-13%
Harley-Davidson will cut 1,100 jobs in 2009 and 2010, of which 70% should intervene this year, announced today the manufacturer by publishing its results which show a net profit of 654 million dollars down 30%…
Despite a net profit of $ 654.7 million (down 30% from 2007), Harley-Davidson has just announced the loss of 1,100 jobs in the next two years (out of a total of about 9 500 people!), 70% of which should be carried out by 2009 … Explanation: "we need to make adjustments corresponding to the current decline in our production and we are determined to do so, in order to be more competitive in the long term", said Managing Director James Ziemer (read).
"We have a strong market thanks to a unique and powerful brand, but we are certainly not immune to the current economic environment", he continued.
Harley estimates these downsizing will cost her between $ 110 million and $ 140 million in total, but then they are expected to generate annual savings of $ 60 million to $ 70 million..
The restructurings announced include the closure of an engine plant and a transmission plant, both in the Milwaukee (Wisconsin) area. The paint shops will also be restructured and some 800 job cuts will affect production, while the others concern administrative services.
"We cautiously reduced our production levels in 2008 to help our dealers to sell off their inventory and we intend to maintain the same discipline in 2009", added Ziemer: Harley now plans to reduce the number of motorcycles delivered this year by 10 to 13% compared to 2008. Last year, its production had already fallen by 8% to reach 303,000 units..
In the fourth quarter, Harley-Davidson revenue fell 7% to $ 1.3 billion, with net income down nearly 60% to $ 77.8 million. For the year as a whole, sales fell 2% to $ 5.6 billion, for a net profit of $ 654.7 million (down 30%)…
LE JOURNAL MOTO DU NET (with AFP)
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