More layoffs at HD
Ultimate HDF Member
Joined: Feb 2008
Posts: 7,217
Likes: 3
From: Southern Ohio
Money is tight, sales are down...not just H-D but everywhere...if the MoCo or any other business survives times like these, the only answer is to cut production...a couple of years ago when things were booming, H-D shipped somewhere around 450,000 bikes...this next year that number is expected to be a little less than 250,000...those #'s are approximations that I've read, so don't hammer me with exact figures ...
Bottom line is, how can you survive if you don't cut production to meet the lowered demand? You can't keep employing the same number of people, building the same number of bikes, knowing you can't sell them...that's financial suicide...
I sincerely hope the employees who are let go land on their feet somehow...but it makes no sense to go down a dead end road with blinders on, let your business fold, and put everyone out of work...these things are cyclical, and busts always follow booms...I don't know how people keep forgetting that and then starting up with "the sky is falling"...again...
Bottom line is, how can you survive if you don't cut production to meet the lowered demand? You can't keep employing the same number of people, building the same number of bikes, knowing you can't sell them...that's financial suicide...
I sincerely hope the employees who are let go land on their feet somehow...but it makes no sense to go down a dead end road with blinders on, let your business fold, and put everyone out of work...these things are cyclical, and busts always follow booms...I don't know how people keep forgetting that and then starting up with "the sky is falling"...again...
Last edited by *NIGHT TRAIN*; Sep 21, 2009 at 03:46 PM.
Tourer
Joined: Aug 2008
Posts: 455
Likes: 2
I have several thousand shares of HOG in my retirement IRA so I am happy to see the company take measures to increase it's value. I have bought it as high as $72 and as low as $14 to dollar-cost-average the devaluation last year. I'm sorry that people are losing their jobs but motorcycles, especially expensive ones, are luxury items that lose sales as other people lose their jobs. Just like the housing market, Harley built way too many bikes and financed people that had no business getting credit. I blame the poor business management over the union, but now is not the best time for the union to be flexing it's muscles. They will likely lose the York plant to a southern state with no unions. I feel for the workers, but at the same time I work hard and want what is best for my retirement account, and that's bigger profits and lower operating costs for the MoCo.
Road Captain
Joined: Oct 2007
Posts: 516
Likes: 0
From: Ontario, Canada home of the TAX YOU TO DEATH LIBERALS
If you lived and worked in York you would almost have to weigh the idea of a move south if the plant goes there. Sad for the families that get hammered in this deal............................
Road Master
Joined: Nov 2006
Posts: 1,227
Likes: 3
From: Central Illinois
The York facility is done. I wouldn't blame it all on antiqued as they just dumped millions into the place in the last 10 years. I am sure the strike hurt the relationship. HD has narrowed it down to Muphesburo,Tn, Shelby County,Indiana and Kentucky. The Indiana sight is looking the best right now. Also look for more planned pant shut down's in Aug-Dec at all facilities.
Road Master
Joined: Nov 2006
Posts: 1,227
Likes: 3
From: Central Illinois
Stock price has to do with the future. As this whole mess gets straighten out production and people go back to work. You are investing in the future not present results.
Look at Deere, Cat, USS.
The onlyh BS is it was not Harley management that lost these guys there jobs, it is the some rich bastard in Wall Street that is getting his bonus. How quickly people forget.
Look at Deere, Cat, USS.
The onlyh BS is it was not Harley management that lost these guys there jobs, it is the some rich bastard in Wall Street that is getting his bonus. How quickly people forget.
Cat has layed off and dismissed thousand here in Illinois. The last quote is not really true. Being inside I know of lot's of management in Mil that have been released with no layoof or chance at returning. The news reports of layoff's in local area and management is usally forced resignation's to pad their portfolio's. News doesn't always report resignations vs. major forced layoff's. We have lost alot of Quality engineer's in the last 8 month's. Guy's that rode and understood the buisness, not Wall Streeter's. Example Steve Phillip's. Not everyone knows him, but any inside HD'er know's how he will be missed. Bad times, new CEO, not sugar coated, but it is what it is. No bail out's for recreational vehicle.
Road Master
Joined: Jan 2007
Posts: 971
Likes: 2
From: Mid USA
Cutting the number of employees in order to survive a downturn in business is a common strategy. However, it is also used to drive the stock prices higher and allow those with stock options to negotiate those options and still rake in a nice profit when company performance is in a downturn. I hate to see the people lose their jobs; perhaps they will be offered some type of separation package that will help them until they can find new employment.
Last edited by Arcane; Sep 21, 2009 at 06:53 PM.
Road Captain
Joined: May 2008
Posts: 568
Likes: 2
From: Republic of Texas
I was at the local HD store yesterday. I asked the owner when he was going to be getting some more Sportsters in because he only had two on the floor. He said that he and the rest of the dealers won't see anymore Sportsters until after the beginning of the new year. The plant shut down has really had a profound effect. Amazing times.
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Road Master
Joined: Nov 2006
Posts: 902
Likes: 0
From: pennsylvania
It's all BS... greed prevails..... you take the moco to the south, just what improvement do you expect....didn't help Mack truck.....the moco won't pay the wages in the south to support a family like they did in Pa. it all boils down to GREED on the part of the stock holders and management.
Tourer
Joined: May 2009
Posts: 395
Likes: 1
From: Georgia
Amazingly the stock is doing very well for a company seeing continuing drops in demand and laying off folks. I'm up over 75% on HOG since I bought at $13 a few months ago.
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Additional Layoffs At Harley Davidson
Monday, September 21, 2009
Steve Fermier and York Daily Record
More than seventy workers at the Harley Davidson motorcycle assembly plant in York County have recieved their termination notices. That's as the company is inspecting sites in other states including Tennessee, Kentucky, and Indiana.
The Pennsylvania Department of Labor reported the pink slips are effective on September 28, according to the York Daily Record.
If the company closes the sprawling complex in Springettsbury Township, it would mean the end for about 2,000 jobs. The company said in January it would cut 1,100 overall jobs throughout the company to get its costs and production in line with demand.
Harley Davidson has seen sales decline by about 12 percent worldwide as a result of the recession.
A short-term production shut down is scheduled to start at the end of this month.
----
Additional Layoffs At Harley Davidson
Monday, September 21, 2009
Steve Fermier and York Daily Record
More than seventy workers at the Harley Davidson motorcycle assembly plant in York County have recieved their termination notices. That's as the company is inspecting sites in other states including Tennessee, Kentucky, and Indiana.
The Pennsylvania Department of Labor reported the pink slips are effective on September 28, according to the York Daily Record.
If the company closes the sprawling complex in Springettsbury Township, it would mean the end for about 2,000 jobs. The company said in January it would cut 1,100 overall jobs throughout the company to get its costs and production in line with demand.
Harley Davidson has seen sales decline by about 12 percent worldwide as a result of the recession.
A short-term production shut down is scheduled to start at the end of this month.