Feeds:
Posts
Comments

Posts Tagged ‘Kansas City plant’

It could be the title of Harley-Davidson CEO, Matt Levatich’s memoir on his failed 2017 year while in charge of the Motor Company.

I happen to be riding with the HOG Lewis and Clark Expedition last week when Harley-Davidson announced their disappointing Q2’17 financial results and late to weigh in:

* Harley-Davidson net income dropped 7.7%. Sales in the U.S. were down 9.3% and 6.7% worldwide.

* Harley-Davidson now expects to ship 241,000 to 246,000 motorcycles to dealers worldwide in 2017, which is down approximately 6% to 8% from 2016.

* Harley-Davidson expects to ship 39,000 to 44,000 motorcycles in Q3’17, which is down approximately 10% to 20% from 2016.

* Approx 180 U.S. based manufacturing jobs will be cut in Menomonee Falls and Kansas City.  This in addition to the 118 workers who were axed back in April this year at the York plant as some positions were being shifted to Kansas City.

For those keeping track, this is a continuation of a three-year slide by the motor company.  However, during the call Mr. Levatich described what can only be called an “alternative reality” in hopes (I assume?) to reassure the financial markets and stated “we are going to build bikers first, add 2 million new Harley-Davidson riders and launch 100 brand new models during the next 10 years while growing the international business by 50%.

Huh?

I’m being a bit snarky here, but his statement appears either woefully naïve to the point of negligence or a continuance of marketing spin.  Proclaiming an unprecedented future result of this magnitude smells like stunningly wishful thinking at best or at worst plain lying.  For reasons I can’t explain, why would Mr. Levatich climb up on a high-wire without a net given such an overly-optimistic prediction?  Even with nearly 8-million Americans that are “sleeping license holders,” — those who have motorcycle riding credentials, but don’t own a bike — it doesn’t pencil and seems unobtainable.

I don’t know if the boardroom folks in Milwaukee read the NW Harley Blog on a regular basis and/or  hang on its every word.  But, we know the motor company has been continuously producing motorcycles for more than a century,  yet seemingly everyone on the internet with a keyboard thinks they can do it better.

And it’s a well-established fact that internet bloggers and commenters are geniuses. They definitely know how to run a business better than a company that has been constantly producing motorcycles through two world wars, the Great Depression, and roughly 20 U.S. recessions.

Sure the motor company needs our help and I’ve got some feedback and plenty of comments.  But, until the motor company calls me asking for it, I’ll look for Mr. Levatich’s memoir, which will certainly be “a deeply intimate account and a cautionary tale on the world’s most iconic motorcycle brand.

Slightly modified book cover courtesy of Simon & Schuster.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

Way back in 2009 I posted a blog about H-D’s restructuring and management looking at moving from the York, Penn. plant due to inefficiencies, cost structure and a major problem with absenteeism.

At the time H-D was looking at four other possible sites including moving operations to the Kansas City facility.  I even wrote a tongue-n-cheek letter to CEO, Keith Wandell stating Oregon was open for business if they wanted to consider the west coast for relocation.  Concessions were made to keep the plant in York, changes in work culture and a new attendance policy were negotiated as part of a multi-year restructuring deal and the York plant continues on.

Then earlier this year I posted about H-D management giving it’s Milwaukee workers an ultimatum… approve a new labor agreement or risk losing/moving jobs out of Milwaukee (PTO and Tomahawk) to the Kansas City plant or to another state.  Ratification of a new labor agreement occurred on September 14, 2010 which meant fewer employees and a whole host of other changes to generate about $50M in annual operating savings.

And speaking of Kansas City, Harley-Davidson management has told its KC plant employees this week that they must accept wage and other concessions or the plant could be closed or move.  The company stated the plant would be merged with one in York, Penn.  The company said: “that recent internal studies show significant cost, efficiency and production flexibility gaps in the Kansas City operations,” which must be addressed.

Talk about déjà vu… all over again!

Is it about the “Art of Negotiation” or is management truly committed to closing the Kansas City plant?  Probably a little of both, as we’ve seen in the past the recession favors management and puts more pressure on workers to agree to the demands.  In fact, in each of the previous cases the company has obtained nearly all the concessions ask.

Adding to the KC efficiency insult was the company statement of how it would make a final decision in Q1, 2011.  Gives the workers something to think about over the holidays.  Just stay classy H-D!

Photo courtesy of web.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

%d bloggers like this: