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Harley-Davidson announces cuts
BY DAN STRUMPF The Associated Press

    NEW YORK — Harley-Davidson Inc. said Friday that it will cut 1,100 jobs over two years, close some facilities and consolidate others as it grapples with a slowdown in motorcycle sales.
    The Milwaukee-based company also reported that its fourth-quarter profit fell nearly 60 percent and said that it is slashing motorcycle shipments in 2009 to cope with reduced demand.
    The iconic motorcycle maker said that it will consolidate two engine and transmission plants in Milwaukee into its facility in Menomonee Falls, Wis. It will shrink its paint and frame operations in its York, Pa., plant and close its distribution facility in Franklin, Wis., whose duties will be handled by a third party.
    Harley also is exiting its domestic transportation operation — its fleet of long-haul truckers who transport parts between manufacturing facilities — and outsourcing duties to a third party. The cuts make up slightly more than 10 percent of the company’s total work force.
    “Harley-Davidson is not immune to the current economic conditions,” said Jim Ziemer, the company’s outgoing chief executive, in a conference call. “We’re going to show great discipline in protecting the value of the brand.”
    The company said the cuts include 800 hourly production positions and 300 non-production, mostly salaried positions. It said 70 percent of the job cuts will occur this year and the rest in 2010.
    In an interview, Ziemer said about 650 of the cuts will be in Wisconsin, while more than 400 jobs will be lost at its facility in York, where its transportation operation is also based. About 85 cuts will be made at the company’s motorcycle plant in Kansas City, Mo., he said.
    “Right now, it’s more fear than anything else, and consumer confidence” is hurting demand, Ziemer said.
    The job cuts will result in onetime charges of $110 million to $140 million over 2009 and 2010, Harley said. Once they are finished, the cuts will save between $60 million and $70 million per year.
    Harley has been stung by.............http://www.dailygazette.net/De.....amp;EntityId=Ar00603