Harley-Davidson Possibly Leaving Milwaukee

[AlabamaNomadRider]

From the Associated Press. It's the roar that Milwaukee famous-the distinctive throaty rumble of a Harley-Davidson motorcycle. But that much loved racket could be rumbling away to another state if the company cannot bring down its labor costs.

Harley-Davidson warned employees in April that it will move its Wisconsin manufacturing operations elsewhere if it cannot cut millions of dollars at the factories that build the bikes known as "Milwaukee Iron."

Harley's corporate headquarters would remain here, but that's small sonsolation to a community that has already endured repeated blows to its civic identity.

Harley chief executive Keith Wandell said the company will make its decision on whether to move in the next two months. Harley executives are already scouting out other states, though Wandell will not say which ones.

The company, he said, would also be open to incentives to keep the 1,630 manufacturing jobs in Wisconsisn.


May go the way of Schiltz, The Beer That Made Milwaukee Famous and Miller Brewing Company.

[glwilson]

Count on it happening...

Milwaukee doesn't have any money to entice HD to stay. (if they did, they wouldn't have let the major brewerys leave town)

HD, in part, is appealing to Washington to see if "they" will provide Milwaukee some "stimulus" money that would entice them to stay. (HD's previous request for stimulus money was turned-down by D.C.)

Fact is... Milwaukee isn't an area that is important to the Democratic party enough to send money -- thus the prediction... HD will close all manufacturering plants in Wisconsin within a month or two.

The news says 1,600+ jobs.... when it is closer to 1,500.

Just my one-cent opinion Gene... ;)

[AlabamaNomadRider]

Yes I see it pretty much the same way. It will probably find its way to the south. Lower wages and probably huge incentives.

After my military retirement I worked for Siemens in Fort Payne, AL. This was the power generation unit which was previously Westinghouse which was out of Pittsburg, PA. The union wages were killing them in Pittsburg and they relocated to Fort Payne to get away from the union and high wages. They had gone too far and were about to go bankrupt and Siemens bought them out.

A lot of companies move south to get away from all the high wages. I worked for Wagner Brake and Lighting in Boaz, AL and we were told a story any time union talk came up. They would tell us that they at one time had a plant in Mississippi but they voted to go union.

I look for HD to maybe end up in Tennessee but that is just a thougt of mine.

[ridemslow]

Well the could go to Mexico, like Government Motors...er, GM and Chrysler.. Not to mention many of the Sporting goods manufacturers.

[Stump]

Well if they go south of the boarder than i just wonder if they will still say that harley is american made or if thay will drop that saying ? After AMF, harley has as many over seas parts on them as my bike does .

[Loafer]

If they go to Mexico, they could say "Made in the America's" ?

[voyager]

Sure, just like the corporate level to blame their problems on their labour costs. The reason labour is easy to pick on is because it's the largest group and blaming labour plays well to the public and the right wing media. Notice there was no mention of board of directors salaries or bonus structures. HD is in my Union and if it wasn't for the Machinists Union and the co-operative restructuring program, HD would have been in the tank a decade ago. Harley Davidson, Beach Craft, GE are examples of American companies moving from the north to take advantage of cheaper ( non unionized ) labour in the south. Unfortunately, you never see the price of the product drop when it hits the consumer. With Harley, if you removed all non american made parts you wouldn't be able to push it around the corner so it's far from the heydays of being an American Icon. Why not try lowering the price at the door so they can move more of their product? Harley's are 25% more expensive than most other brands. Getting back to the labour issue, notice that there is no mention of wages and benefits in any of the articles about this threatened move. As well, no mention of comparative wages for surrounding industry. Again, it's rarely a labour problem , it just makes better press to blame the worker rather than the boss.

[ndbigfish]

Hard to sell a recreational vehicle with a price tag larger than that of an automobile.

Looked at a Ultra Classic late last year and the tag price was more than the combined value of the (3) vehicles that my family drives daily.

Additionally I have noticed that people are often drawn to their product, but that they do not remain enthusiasts very long.

[wiz]

If Harley ever wants my business, it will take a lot more than the "cachet" of the H-D brand, they will need to build a bike I like at a price that isn't horrible. Ford competes well with Japanese car makers - but Harley doesn't have a long term view for their future.

[tombstone]

I'm hoping they come to Utah. We have a city here that would be perfect for HD.

Can you just imagine? Bluebell Iron! Has a nice ring don't you think?

"Join the lifestyle, get your own Bluebell Iron today!"

[wiz]

Harley did the same thing when the contracts came up in York, PA. They floated the "leaving the state" story to force union concessions and cut half of the manufacturing jobs with the union's blessing. The exploration of Kentucky as an H-D site to replace York was a red herring. The root of the problem isn't the union - it is the plummetting sales H-D is experiencing. If you do not make products that people want - then people buy somebody else's product and you lose market share. Ask GM and Chysler about that - except let's not bail out H-D again.

[poppy]

Labor costs are always easier to hit at the lower level. There are tens of thousands of people who would be willing to work at a lower wage than the current workforce. Plenty of states will gladly offer incentives to lure a large manufacturer to their areas. The union should look long and hard at their labor structure or they may find themselves "$h1t out of luck".

The top brass probably will not give up their perks and bonuses either and they should also look at their market share, price, etc.....I also believe HD will not go under, as there are plenty of investors willing to snatch up struggling companies if given the chance.

[skiman]

Don't be so sure investors still have years left to finish grabbing real estate at rock bottom prices which is way less risky then a motorcycle company.

[wheelie]

I was a member of a union at nearly every job have ever had. Wally-World and my current job being the exceptions. I was raised union by two strong union member parents and still think a union can be a great thing if the company lets everyone know that their product / service is union made by proud union members.
My last union job was at a Trailmobile Trailer factory which was union nearly it's entire lifespan. We had good and bad times but always bounced back. That is until the company was acquired by a non-American based family / company. After the 9-11 attack the trucking industry which is mostly owned by "good old boys" were not buying trailers from "some fur-a-ner". Within a few months we were all out of a job and still today some locals blame it on the union.

[flightdoc]

I think HD will always be around. HD lovers don't care much about the technology or union issues etc.....they purchase the lifestyle/image of a HD. I have some HD store manager friends and they always will tell you that HD bikes aren't the best, fastest, more technologically advanced machines....they sell the lifestyle...that's what people want. In general bikers are buying an image/lifestyle. HD riders have their own images they love.
I would think that if the union makes some changes AND the management too then maybe they could work it out. I think it could hurt Harley, in the short term, to move the manufacturing location but they will always bounce back.

vin