Official. Harley-Davidson Keeping Powertrain And Manufacturing Operations In Wisconsin.

Harley-Davidson just posted on its media website that because the new labor agreements were ratified yesterday by its union members, and as promised at negotiation time, the Powertrain operations and the Tomahawk manufacturing will remain in Wisconsin.

The official press release states  that 1- Combined full-time, hourly workforce size in Milwaukee and Tomahawk locations will be reduced by approximately 325. 2- Approximately $85 million additional restructuring charges expected (of which 65% or $55 million will be cash charges) through 2012. 3- Approximately $50 million in annual savings expected beginning in 2013. 4- No additional capital expenditures required.” Year-to-date, Harley-Davidson stock (HOG) is up 8.41%.

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12 Responses to “Official. Harley-Davidson Keeping Powertrain And Manufacturing Operations In Wisconsin.”


  1. 1 fuji Sep 14th, 2010 at 4:32 pm

    A blue collar toy all for the white collar joy. We need your support. HD

  2. 2 Bill Sep 14th, 2010 at 5:24 pm

    Why don’t they ever cut executive bonuses first? Companies pay millons of dollars to CEO’s that are losing the company money, and then lay off the employees that are making the company money.

  3. 3 just my opinion Sep 14th, 2010 at 5:33 pm

    I think HD let the union workers off easy. They could have easily replaced all of them at half or little more than half of what they are currently paying. In good times it may be hard to find workers but these are not good times, remember 12% of all people are unemployed and would have gladly taken those jobs for far less than the current employee’s are recieving. HD actually did these workers a huge favor by letting them keep their jobs. And no doubt that HD is happy with this deal also because they don’t have to re-train anyone. But make no mistake HD could have retrained the whole lot and still not missed a beat. In fact if the deal had gone the other way and HD did have to hire all new help it may have helped the sales catch up to the product sitting on showroom floors. Either way HD would win and the unions knew it. That is why the union leaders advised the workers to take this cut in pay, things could have been a lot worse for the workers. All in all the workers got a good deal and no doubt these saving will help HD.

  4. 4 fuji Sep 15th, 2010 at 7:06 am

    The other side

    I don’t believe that the company wanted to have the contract agreement any other way.

    To remove all remaining production from Wisconsin would have a huge impact on HD character and image, thus possibly having an impact on their future which they can’t afford in this country.

    Going to the museum and in your mind saying, over there is the headquarters, here is the museum and some were out there they used to build Harley Davidson’s all that is left are cows and cheese.

  5. 5 morriscustom Sep 15th, 2010 at 7:16 am

    I agree with Bill 100%

  6. 6 Kyle Sep 15th, 2010 at 7:26 am

    Speaking of CEO pay, no judgement here, just curious

    We know what Keith Wandell earns in salary, bonus and perks, it’s all over the internet.

    We know what the workers earned in the past and will earn going forward.

    But I was curious to know what the union leader’s salaries and benefits are for representation. Like Mike Masik for the local representing these particular workers.

    Again, no judgement, but I’d just like to see the whole picture in this scenario. Does anyone know?

  7. 7 Brett Sep 15th, 2010 at 5:06 pm

    Yes, the new American way…make you company top heavy & then pass the buck on every thing down until it can’t go to anyone lower, then when there are problems start by getting rid of those at the bottom rung 1st.

    Pass the buck on everything, well except the actual bucks. Harley is no different then every other corporation in this country & this is why we are in the shape we are now.

    We used to be a nation of builders & innovators, now we are a nation of suits & yes men.

  8. 8 Jeff Nicklus Sep 16th, 2010 at 8:35 am

    Sorry Guys ….. JMO hit the nail on the head with his comment.

    Over & Out,

    Jeff

  9. 9 grayhawk Sep 16th, 2010 at 2:29 pm

    Kyle

    For sure they do not live in single wide trailers, if you go to a major union website they list most all ceo salaries for the majors some may say for agenda purposes some think their supporting the common man, but they have conveniently left out their own executive listings, see example link below, wonder why that is?

    If you go to watch dog sights they have noted multiplers and formulars based on studies over the years just like a, ” for profit”, business and publically traded ones and one might surmise basis is on the size of the union, whether its a local president, national and/or international and the number of dues paying workerbees x %’s, etc..

    The viewpoint that most unions may be operating under a non-profit status may mean you can not find out easily nor is it readily posted without going thru pay services that track for a fee.

    Bottom line they are at the top of the union food chain and the higher up, the larger the union, the more they receive no different than others, just not seemingly being raked across the coals like others. Some justified some not just ones agenda, who’s foot the shoe is on and who’s waiving the flags and shouting and shining the light for different reasons and objectives.

    Noting each; + link on the following link lists all the different companies and their respective CEO compensation within that group when clicked on:

    http://www.aflcio.org/corporatewatch/paywatch/ceou/industry.cfm

    Other:

    http://www.unionfacts.com/unions/unionProfile.cfm?id=106

    Wonder if this will happen or are they exempt like Fannie Mae and Freddie Mac from:

    http://www.washingtontimes.com/weblogs/back-story/2009/jun/11/business-groups-dare-obama-to-limit-pay-for-unions/

  10. 10 J Sep 16th, 2010 at 4:22 pm

    LOL- so….. Harley and Wandell are going to take an $85M restructuring charge and somehow produce $50M of immediate annual revenue, with no additional outlay???

    So many punchlines to this fantasy, here are a few-

    1) The answer is…… “What is Wandell’s Golden Parachute?”

    2) Way to sandbag, Keith- cause you wouldn’t have wanted to create this wealth before now, right?

    3) Wow- did someone phone Warren Buffet and tell him he’s getting his loan back early?

    4) Darn those pesky investment bankers- sold Harley that bag of Jack-In-The-Beanstalk seeds again….

    Truly sad that the Board of Directors buys into this garbage- kudos to Keith, tho, for realizing that he can sell snow to eskimos…….

  1. 1 Tweets that mention Official. Harley-Davidson Keeping Powertrain And Manufacturing Operations In Wisconsin. at Cyril Huze Blog – Custom Motorcycle News -- Topsy.com Pingback on Sep 15th, 2010 at 12:40 pm
  2. 2 Wisconsin State Gives Harley-Davidson Millions In Tax Credits at Cyril Huze Blog – Custom Motorcycle News Pingback on Sep 19th, 2010 at 8:49 am
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