YORK COUNTY, Pa.– In it’s fourth quarter earnings report, Harley-Davidson announced that it is commencing a multi-year manufacturing optimization initiative by consolidating its motorcycle assembly plant in Kansas City, Mo. into its plant in York.
The move is expected to increase approximately 450 full-time, casual, and contractor positions at the York facility.
The company expects that the restructuring and other consolidation costs to be $170 to $200 million, capital investment of approximately $75 million over the next two years, and expects annual cash savings of $65 to $75 million after 2020.
“The decision to consolidate our final assembly plants was made after very careful consideration of our manufacturing footprint and the appropriate capacity given the current business environment. Our Kansas City assembly operations will leave a legacy of safety, quality, collaboration and manufacturing leadership,” stated Matt Levatich, president and chief executive officer, Harley-Davidson, Inc.
According to the release, Harley-Davidson worldwide retail motorcycle sales declined 9.6 percent versus the prior year. Harley-Davidson U.S. retail motorcycle sales were down 11.1 percent and the overall industry was down 6.5 percent compared to the year-ago quarter.
Harley-Davidson Spokesperson , Bernadette Lauer, said, “We are launching a significant, multi-year manufacturing optimization initiative that is anchored in the consolidation of our Kansas City, Mo. final assembly operations into our York, Pa. final assembly plant. This decision was made after very careful consideration of our manufacturing footprint and the appropriate capacity given the current business environment. We are constantly evaluating capacity and our current U.S. capacity exceeds U.S. demand.”
“We anticipate an increase of approximately 450 full-time, casual and contractor positions will be added at our York facility, which will be expanded to support additional production. Specific details on expansion are still being developed. The KC plant will close in approx. July 2019,” Lauer said.