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NEW YORK — Harley-Davidson Inc. is considering closing its main motorcycle assembly facility in Pennsylvania and moving production elsewhere as it aims to lower costs and cope with a sales downturn, a company spokesman said Wednesday.
Spokesman Bob Klein said the Milwaukee-based company is exploring ways to reduce costs at its York location. That could include a move, though he declined to say where. The York facility employs about 2,400 workers and consists of two motorcycle factories that assemble its Touring and Softail motorcycles.
Klein said the York facility is not competitive as it stands.
"It relates to excess capacity, it relates to competitive and cost pressures both in the current economy and longer term," Klein said. "So what we've told employees is that we are going to be doing a major evaluation of the York operations."
He said the company is working with its union, the Association of Machinists and Aerospace Workers, as it conducts a review on the facility. He declined to say what other locations might be under consideration for a move.
Pennsylvania Sens. Arlen Specter and Bob Casey sent a letter on Tuesday to Harley Chief Executive Keith Wandell, saying the facility is important to the local economy and calling on the company to protect the factory's jobs.
"We strongly urge you to give serious consideration to any option that will protect the thousands of jobs at stake and preserve Harley-Davidson's presence in the region," they wrote.
The review of the facility is part of a broad cost-cutting plan that Harley, the top maker of heavyweight motorcycles, launched in January as it battles shrinking profits and a downturn in sales of its iconic bikes. The company has announced plant consolidations and is aiming to cut between 1,400 and 1,500 jobs over the next two years. Part of that plan is to cut between 525 and 575 hourly workers at York, some of which has already been implemented.
Last month, Harley reported a 37-percent decline in its profit for the first three months of the year. The company's sales have been falling recently as the downturn in consumer confidence and the tighter credit markets have made many consumers skittish about buying its high-end bikes.
The company has also seen a wave of turnover among its top leadership in recent months. On May 1, Wandell took over as CEO from Jim Ziemer, who ran Harley for four years. The company's chief financial officer, Tom Bergmann, stepped down at the same time. Harley also got a new interim head of Harley-Davidson Financial Services and a new senior director of financial reporting.
Shares of Harley fell $1.27, or 6.9 percent, to $17.33 in afternoon trading Wednesday. The stock has traded between $7.99 and $48.05 in the past 52 weeks.
