Harley-Davidson announcing job cuts after sales continue to drop

WPR staff

Milwaukee-based Harley-Davidson Inc. is telling workers at some of its United States plants that layoffs are on the way.

The company will be shipping fewer motorcycles to dealers after a second-quarter earnings report Tuesday morning that showed U.S. sales were down 9 percent, compared to a year ago, according to the company. Harley also reported a nearly $100 million drop in revenue from motorcycles and related products.

On a conference call with Wall Street analysts, Harley-Davidson's CEO Matt Levatich told analysts on a conference call that cutting back on shipments also means reducing production.

"This action will require an hourly workforce reduction at some of our U.S. manufacturing plants. We'll be sharing details with employees beginning (Tuesday). But suffice it to say, no one wants to have to take these steps," Levatich said. 

Some workers may not learn their status until Wednesday, he said. The company has not announced the total number of layoffs. But  union officials told the Milwaukee Journal Sentinel  that Harley is eliminating 180 production jobs at its U.S. plants, with the biggest impact happening at the Menomonee Falls and Kansas City plants. Temporary furloughs are expected in the fall.

The company recalled 57,000 motorcycles in June, and its shares have dipped by 11 percent since the start of the year.

Speaking to reporters in Green Bay on Tuesday, Gov. Scott Walker said the state can't "control market forces." 

He said the state will work with the company to expand sales to the extent that it can. "In the future, we're going to continue to try to open up more export markets to sell their products," Walker said.

Walker also took the opportunity to tout the state’s job climate and an unemployment rate hovering around 3 percent. "Our challenge right now is about filling jobs unlike six or seven years ago when it was about creating jobs."

In an official statement Tuesday morning, the company addressed plans to reduce the number of motorcycles it intends to produce and ship. 

"This supports the company's commitment to manage supply in-line with demand and is the result of continued U.S. industry declines," the statement reads. "We believe we have the right strategies in place to attract new riders and continue igniting the passion of our current customers, and we will continue to manage our business with focus and discipline as we invest in growing the next generation of Harley-Davidson riders globally."

As WPR  reported in April , Harley-Davidson listed a long-term growth strategy on its corporate website. It included a goal of creating 2 million new riders in the U.S. by 2027, expanding its international business and growing its business with minimal environmental impact.

Editor's Note: This story was last updated at 1:08 p.m. Tuesday, July 18, 2017. This story will be updated as WPR learns more. Chuck Quirmbach and Patty Murray contributed reporting to this story. 

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