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HD closes KC manufacturing plant


richieb

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With 2017 sales down nearly 7% Harley Davidson closes its manufacturing in KC near MCI airport leaving 800 people unemployed. In a surprising turn workers arriving for the 6 am shift found the plant locked tight. (As reported by local news) Granted the plant produced the lowest margin and slowest selling models like Sportster, Softail and V-Rod but certainly points to the bubble bursting on HD. Sounds like they will add around 450 to the main facility in York, Pa. Stay classy HD ---

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10 minutes ago, Ceptorman said:

They spent 30 million last year in recalls, and they're opening another foreign plant. They are planning on introducing new models, trying to attract younger buyers.

They did gross close to 1 billion last year though.

 

Gross means little if profits were down 21% and Q1 shipments will be well off norms. Cept you know as well as anyone the HD craze and crowd that buys them are all aging quickly. Check the prices on the big touring rigs lately - $$$$. And the bikes they are hoping to attract the younger crowd? Have you seen those abominations? And I'm not sure the younger crowd is as enamored with the lifestyle as were the middle agers. Check the Craigslist bike ads? More HD than you can shake a stick at, by the hundreds.  I made a few bucks on HD stock but have not regretted dumping it a while back. The outlaw lifestyle may have well run its course. 

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28 minutes ago, Ceptorman said:

They spent 30 million last year in recalls, and they're opening another foreign plant.

Wow that's a lot of recalls.  Something wasn't designed right or had poor quality control.

 

I'm surprised to find out they are opening a foreign plant.  There is nothing more American than HD.

 

The last time I remember they put foreign junk into the bikes was when AMF bought them back in the 70's and nearly bankrupted the company.

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2 hours ago, wvu80 said:

Wow that's a lot of recalls.  Something wasn't designed right or had poor quality control.

 

I'm surprised to find out they are opening a foreign plant.  There is nothing more American than HD.

 

The last time I remember they put foreign junk into the bikes was when AMF bought them back in the 70's and nearly bankrupted the company.

 

I read once in a bike magazine article that the Ohio built Honda Goldwing had more domestic (US) content than the HD Ultra's. ?

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Being an old Goldwing Rider this is not good news.

The population is aging and guys like me are not buying

the classic bikes anymore so the motorcycle industry is

in big trouble. For Harley this means redesigning many bikes

that guys like me would have been interested in but younger

riders do not find them as slick as we do.

I always liked the luxury of a full dresser and it had a great

WAF since she was my passenger.

Young people don't want the big bikes. They want crotch rockets.

That's why they have so many accidents. Too dumb to ride.

The times are a changing.

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40 minutes ago, rebuy said:

Being an old Goldwing Rider this is not good news.

The population is aging and guys like me are not buying

the classic bikes anymore so the motorcycle industry is

in big trouble. For Harley this means redesigning many bikes

that guys like me would have been interested in but younger

riders do not find them as slick as we do.

I always liked the luxury of a full dresser and it had a great

WAF since she was my passenger.

Young people don't want the big bikes. They want crotch rockets.

That's why they have so many accidents. Too dumb to ride.

The times are a changing.

they already tried that once....

 

Buell.......

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6 hours ago, richieb said:

With 2017 sales down nearly 7% Harley Davidson closes its manufacturing in KC near MCI airport leaving 800 people unemployed. In a surprising turn workers arriving for the 6 am shift found the plant locked tight. (As reported by local news) Granted the plant produced the lowest margin and slowest selling models like Sportster, Softail and V-Rod but certainly points to the bubble bursting on HD. Sounds like they will add around 450 to the main facility in York, Pa. Stay classy HD ---

This article says the layoffs start later this year.....https://www.msn.com/en-us/money/companies/harley-davidson-stock-tanks-amid-plan-to-shut-down-plant/ar-BBItkqD?li=BBnb7Kz

 

I think it was just a matter of time. They have a plant in India, now building one in Thailand. They probably need to downsize, especially management to stay alive. The old days of a company being fat with profits and multi-levels of management are over. Nowadays you have to be efficient to stay alive. I would say the word efficient, and Harley Davidson don't go well together :D

 

The new bikers want adventure style bikes, not 1000 lb luxury riders.

 

I do feel bad for the 800 workers that are losing their jobs. There is a Honda manufacturing plant an hour from me that has been hiring people for over a year, they can't get them working fast enough.

 

I had an encounter with a HD rider a few years ago at a gas station. I was riding a foreign bike loaded with technology, a Honda VFR Interceptor (hence my screen name)

An HD guy made a remark "hey punk, buy an American bike, help our economy" I mentioned to him about going home, pulling his air cleaner cover off and seeing where his carb came from? Or his forks, or the ECU.....they're all made in a foreign land.

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5 hours ago, dirtmudd said:

they already tried that once....

 

Buell.......

I have ridden a Buell once, and liked it. It freed the hooligan side of me. 

I raced against a few of them on the track....that's not an accurate statement. There were a few trying to race them when I used to race. :D

 

 

I really do hate that there people losing their jobs. 

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2 hours ago, Woofers and Tweeters said:

I have ridden a Buell once, and liked it. It freed the hooligan side of me. 

I raced against a few of them on the track....that's not an accurate statement. There were a few trying to race them when I used to race. :D

 

 

I really do hate that there people losing their jobs. 

my friend had the s1....

it was a fun bike to ride..

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1 minute ago, CECAA850 said:

There wouldn't have been a HD around in 83 if AMF hadn't bailed them out in 69.

 

My buddy up the street stores them in his living room then goes to Florida but when he comes back never

takes them out.

JJK

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Just now, JJkizak said:

 

My buddy up the street stores them in his living room then goes to Florida but when he comes back never

takes them out.

JJK

I rebuilt one of my bikes in the kitchen of a rent house once.  I didn't have a kitchen table and it seemed like the logical place at the time.

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1 minute ago, CECAA850 said:

I rebuilt one of my bikes in the kitchen of a rent house once.  I didn't have a kitchen table and it seemed like the logical place at the time.

 

I forgot to mention that one of the bikes was a $32,000.00 Indian.

JJK

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The market for H-Ds, as well as classic cars (60s GTOs, 442s, 57 Chevys, 60s Corvettes, etc.) is drying up as the baby boomer population ages.  If you own these you might consider selling before the bubble bursts.

 

Harley finds itself in a situation similar to Klipsch.  As the market demographics contract, new sales are competing with used product.

 

It's coincidental that an article just appeared in one of the Detroit papers regarding the success of the local Ducati dealership.  The suburban Detroit store sells more Ducatis than any other USA dealership.  Apparently, the demand exceeds the supply on a certain $80,000.00 model.  The buyers of Ducatis are not the buyers of H-Ds, whether new or used.

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56 minutes ago, TasDom said:

My brother just toured that Kansas plant in October before seeing the Steelers game.

22549493_1847113985316907_62498554884811

 

I toured the plant right after it opened in '98 the height of HD frenzy. State of the art at the time. It will be interesting to see what happens with the plant itself. Obviously designed for MC manufacturing it would take bunches of $$$ to re-purpose it. It wasn't but a few years ago that TWA airlines had a giant overhaul facility not far from the HD plant. When they went under American used the space for many years then too left. At one time that facility employed over 5000. 

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