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Posts Tagged ‘Down Sized’

COVID-19 Cancels Business

Recall back on March 19, 2020,  Harley-Davidson announced the closure of most U.S. production until March 29th.

The facilities that temporarily ceased production were York Vehicle Operations in Pennsylvania, as well as two Wisconsin operations, including the powertrain operation.  The majority of its global production employees continue to be on temporary layoff.

Today, Harley-Davidson announced additional actions it is taking in response to impacts of COVID-19 on its business:

• Significantly reducing all non-essential spending
• Temporarily reducing salaries
– CEO and the Board of Directors will forgo salary/cash compensation
– 30 percent reduction for executive leadership
– 10 to 20 percent reduction for most other salaried employees in the U.S.
– No merit increases for 2020
• Implementing a hiring freeze

The press release stated that medical benefits remain intact for all global employees.  Outside of the U.S., the motor company will take similar actions as based on regulations governing each of its operating locations. Salary reductions will be reassessed at the end of the second quarter as the company continues to closely monitor business conditions.

Not included in this announcement was information related to dealerships.  To my knowledge few if any have suspended operations.  The mandates and closures of nonessential businesses, left the question of whether dealerships, sales rooms, or repair shops should be included as the various city, county and state rules have been ambiguous.

More background reading at:

H-D Executive Mass Exodus
H-D MIA with Coronavirus Response Ads
H-D Entrepreneur and New Mastermind

Photo courtesy of Instagram

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“…They may be disappointed now, but someday they will be able to look back and see what great things were accomplished this season.”

This quote from Harley-Davidson Racing Manager Anne Paluso who this past November was commending the racing team after Eddie Krawiec rode a Harley-Davidson V-Rod to win his fifth NHRA Pro Stock Motorcycle event at the Automobile Club of Southern California NHRA Finals at Auto Club Raceway.

Anne Paluso was laid off Monday.  Harsh!  Ms. Paluso had been involved with H-D’s racing activities for the last 10 years and had been with the company for more than 16 years.  I’ve written about other budgetary racing changes HERE.

Harley-Davidson spokesman Paul James was quoted Monday afternoon to say, “I can confirm her position was eliminated today due to budgetary reasons and that she has left the company,”  and went on to say “Racing teams will continue to report to [Vice President of Core Customer Marketing] Bill Davidson. Our plan is to go racing in 2010 in dirt and drag racing, but final plans have not yet been set.”

At this accelerated budgetary reduction pace it’s unclear if H-D can continue to be an influential motorcycle in the professional sport.

Photo courtesy of H-D.

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