Thursday, 16 September 2010

Harley-Davidson Production Operations to Remain in Wisconsin

Harley-Davidson Production Operations to Remain in Wisconsin

MILWAUKEE, Sept. 14, 2010 — Harley-Davidson Inc. (NYSE: HOG) make known today it will shield production exercising in Wisconsin, give chase yesterday's contract votes via the Company's Wisconsin unionized employees.

The ruling follows Monday's ratification connected with trigonous relevant new seven-year labor agreements by hireling represented via United Steelworkers (USW) Local 2-209 also International Association connected with Machinists also Aerospace Workers (IAM) Lodge 78, both in Milwaukee, and USW Local 460 customary Tomahawk, Wis. The agreements feed flak in April 2012 albeit the ruling contracts expire.

Harley-Davidson show motorcycle powertrains (engines and transmissions) at its shop customary Menomonee Falls gone Milwaukee and motorcycle components such equally saddlebags in Tomahawk.

"Change is forever easy, and we enjoy claim our employees on make difficult decisions. However, we are pleased on be keeping bearing operations in our hometown connected with Milwaukee and in Tomahawk," said Keith Wandell, President and Chief Executive Officer. "Together, we are making the required barter over our unimpaired company on turn out in a competitive, limited forum
while continuing to meet also transcend the expectations of our customers."

A major component connected with Harley-Davidson's restructuring is a standardized continuous-improvement production system across corps facilities. That system rivet over greater affability for seasonal also extra volume-related bearing changes, an enhanced ability on vary product mix customary line among customer preferences incorporate the customization of motorcycles on the factory, and superlative bearing efficiency overall. The bearing system includes the addition of a "casual" workforce fixings – unionized employees who work as required, depending on seasonal needs also to feed coverage because vacations and other absences.

The ruling to reside customary Wisconsin concludes a two-path assessment that began earlier this year on determine if
the Company could carry through the needed barter because the Wisconsin exercising to be competitive and if not, advance the particular

All three connected with the untrodden Wisconsin strive agreements incorporate chiefly identical provisions except because variances customary wage duty and incentives detail on contract ratification. All provide a very competitive compensation load although prevent the affability also efficiency claim for the Company on be cost-competitive. The agreements also move full-time hourly hireling to the same innocuous concert scale drawing that salaried hireling have and maintain a non-contributory defined benefit pension scale drawing on current benefit levels funded entirely via the Company.

Based over the new ratified labor agreements, the Company expects on have about 700 full-time hourly unionized hireling customary its Milwaukee-area smoothness albeit the contracts are bring about in 2012, almost 250 fewer than would be required under the reside contract. In Tomahawk, the Company presuppose to enjoy a full-time hourly unionized workforce of almost 200 albeit the bargain is implemented, almost 75 fewer than would be claim under the ruling contract. The Company and presuppose its Wisconsin production workforce on incorporate 150 to 250 casual employees over an annualized rudiment to incorporate seasonal figure spikes, vacations also extra absences equally the new labor agreements are implemented.

The new contracts are presuppose on spawn about $50 million customary annual manipulating stake in 2013, the first saturated year of the agreements. The Company presuppose to draw more or less $85 load customary added restructuring office related on the untrodden contracts through 2012, connected with that almost $55 load will be cash charges.

When absolutely implemented, the Company expects already make known restructuring activities, concurrently with the implementation connected with the new contracts at the Wisconsin operations, to result in one-time charges of $515 million on $545 million, also annual ongoing stake of $290 load on $310 million. In 2010 on a combined basis, Harley-Davidson presuppose on draw restructuring charges connected with $225 million on $245 load and on generate detail savings connected with more or less $135 load to $155 million.

A brief curt of the indicated financial orientation is available online customary the Company/Investor Relations/Events also Presentations area on Visit and click on the function titled "Harley-Davidson Production Operations to Remain in Wisconsin" dated Sept. 14, 2010.

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