Last Tuesday Harley-Davidson held an analyst meeting in Milwaukee to update investors on the first 18 months of its three-to-five year restructuring plan. Harley-Davidson stated that restructuring plans are firmly in place and that the company is on its way to saving money, being quicker to market with new products and expanding abroad. Management confirmed that the company’s turnaround plan calls for achieving $300 million in cost savings by 2013 and driving efficiencies at production plants and in the way products are brought to market. Harley plans to continue expanding internationally and to add between 100 and 150 new dealers through 2014 in more than 30 countries.
Harley-Davidson is ready to have a different strategy from one country to the other, to ship complete bikes abroad or to send kits only to be assembled locally. In the US Harley-Davidson intends to shorten the time it takes to bring a new model to market from 5 to 3 years. A new program let dealers order custom bikes directly to the factory, lowering costs for the customer and increasing dealer profitability.
Plans to restructure to save money by being more efficient didn’t stop after the plants reorganization in Wisconsin. On Wednesday, Harley-Davidson officials informed Kansas City employees that recent internal studies have shown “significant cost, efficiency and production flexibility gaps” in local operations. Employees were told that if ways can’t be found to address the gaps, the company will consolidate the Kansas City operations into the vehicle final assembly operations at its York, Pa., facility. A big warning before Harley takes a decision during the 1st quarter of 2011. Harley-Davidson.
Did you know? By 1920, Harley-Davidson was the largest motorcycle manufacturer in the world. New Harley-Davidson® motorcycles could be purchased from over 2,000 dealers in 67 countries worldwide