International Dealer News IDN 141 February/March 2018 | Page 16

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Harley to close two factories;
-11.1 percent in Q4 U.S. sales
Harley-Davidson’s response to its
hugely disappointing 2017 4Q and full
year results is to constrain future
manufacturing capacity by closing two
factories for a total net job loss of
around 500 jobs in what it describes
as “Manufacturing Optimization” and
point to “progress in building riders”
and expanded product development
through increased investment in
electric motorcycle technology.
The company’s worldwide retail
motorcycle sales were down -6.7
percent in 2017 compared to 2016,
with domestic U.S. retail sales down -
8.5 percent while international retail
sales fared better at down -3.9
percent.
Closure of the Kansas City final
assembly plant is expected to cost
some 800 direct jobs in that area, with
some 400 new hires slated for York,
PA, where all final assembly
operations will be consolidated. The
other facility to close is Harley’s New
Cast Alloy wheel factory at Adelaide in
southern Australia at a cost of a further
100 direct jobs.
“Our actions to address the current
environment through disciplined
supply and cost management position
us well as we drive to achieve our long-
term objectives to build the next
generation of Harley-Davidson riders
globally,” said Matt Levatich,
president and chief executive officer,
Harley-Davidson, Inc.
“We finished 2017 with over 32,000
more Harley-Davidson riders in the
U.S. than one year ago, and we
delivered another year of strong cash
generation and cash returns to our
shareholders.”
Harley reiterated its focus on training
“the next generation of Harley-
Davidson riders globally”, and
confirmed that it had opened 57 new
international dealer points in 2017.
Harley-Davidson President and CEO
Matt Levatich: “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”
Harley (and Indian Motorcycle for that
matter) are on record as expecting 50
percent of sales to be outside of the
domestic U.S. market within ten years.
Harley has also announced that it is
step up its research in to EV technology
and plans to have its first E-bike model
on sale within 18 months.
CEO Matt Levatich said that “the EV
motorcycle market is in its infancy
today, but we believe premium Harley-
Davidson electric motorcycles will help
drive excitement and participation in
the sport globally. As we expand our
EV capabilities and commitment, we
get even more excited about the role
electric motorcycles will play in
growing our business.”
Following the release of its 4Q and FY
2017 fiscals, Polaris CEO Scott Wine
responded to suggestions that Polaris
Gilles renews Movistar Yamaha MotoGP sponsorship
Yamaha Motor Racing Srl has
announced that Gilles Tooling
has extended their official
sponsorship agreement with the
Movistar Yamaha MotoGP Team
by a further three years,
through to 2020. This year, their
logo will be featured on
Valentino Rossi and Maverick
Viñales’s YZR-M1, positioned on
the rear fender.
The partnership between
Yamaha’s Factory Racing and
Gilles began in 2015, with “both
companies listing reliability and
efficiency as core values”.
Announcing the deal Yamaha
said: “Gilles’ strive for
perfection comes from its
founder Gerhard Gilles, who is a
former motorcycle racer. His
vision of combining passion for
the sport with technical
knowledge is what drives the
company. With 17 years of
experience in creating
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INTERNATIONAL DEALER NEWS
innovative and high-quality
accessories for road
motorcycles, Gilles Tooling is a
big name in various road racing
paddocks. Working with the
Movistar Yamaha MotoGP Team
in the MotoGP class, as well as
other Yamaha road racing teams
in other championships, helps
them extend their knowledge,
which is essential for further
development”.
Lin Jarvis, Managing Director of
Yamaha Motor Racing said:
“Gilles Tooling’s roots are in
racing and they are specialised
in developing and selling high
performanc e components for
sports motorcycles. Gilles
Tooling works very closely with
Yamaha Motor Europe and we
have built a strong partnership
in MotoGP since 2015. We are
therefore very pleased to have
them as our Official Sponsor for
three further years, and we will
continue exploring new
possibilities together to keep
developing the strong
partnership between our two
companies.”
www.gillestooling.com