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Harley-Davidson stock tanks amid plan to shut down plant. Thanks Trump! Add to SOTU Speech.
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This is one of the first real signs that the conomy is on a downturn, when big ticket luxury items tank.
Harley-Davidson stock tanks amid plan to shut down plant
The Milwaukee company reported a 7.9 percent drop to 241,498 motorcycle shipments in 2017 and expects the figure to continue dropping. It forecast 231,000 to 236,000 motorcycle shipments in 2018.
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Specifically, Harley-Davidson said it is consolidating the Kansas City assembly plant into its York, Pennsylvania facility. The move will result in 800 layoffs at the Kansas City facility, beginning midyear, and it will close by the third quarter of 2019.
The company said it will add up to 450 new positions at the York facility.
It expects to book restructuring and other costs of $170 million to $200 million and capital investment costs of about $75 million over two years. The move is expected to lead to ongoing annual savings of $65 million to $75 million after 2020.
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Specifically, Harley-Davidson said it is consolidating the Kansas City assembly plant into its York, Pennsylvania facility. The move will result in 800 layoffs at the Kansas City facility, beginning midyear, and it will close by the third quarter of 2019.
The company said it will add up to 450 new positions at the York facility.
It expects to book restructuring and other costs of $170 million to $200 million and capital investment costs of about $75 million over two years. The move is expected to lead to ongoing annual savings of $65 million to $75 million after 2020.
https://www.msn.com/en-us/money/companies/harley-davidson-stock-tanks-amid-plan-to-shut-down-plant/ar-BBItkqD?li=BBnb7Kz&ocid=mailsignout
Translated to English, they want to fire 800 senior workers, and replace them with "up to 450" lower-waged ones. Perhaps some of the workers will be allowed to relocate. However, if they were to suddenly lose their jobs at the new plant, after relocating, they'd be hosed. I've seen companies relocate as a way to cut labor costs, and those who did opt to follow were fired for some reason later on, after they've gone through the expense and disruption to move. Stuck in a new location, with a mortgage and no job.
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