Harley and Buell look to lay-offs and motorcycle production in cost-cutting moves

Additional steps in Harley-Davidson's cost-cutting measures surfaced this week with lay-offs and ceasing motorcycle production at its subsidiary Buell.

The famous motorcycle manufacturer has looked to lay-offs, limiting production, consolidation and even possible plant relocations to counter the troubled economy which has severely impacted sales.

The latest lay-offs first surfaced after Harley-Davidson filed a notice with the Wisconsin Department of Workforce Development. The company later confirmed that another round of layoffs will take place on Sept. 25 at its Capitol Drive factory and product development center in Wauwatosa and its Franklin distribution center.

In a more drastic move, Buell Motorcycle Company, a a subsidiary of Milwaukee-based Harley-Davidson Inc. will shut down its East Troy plant during November and December, resulting in the temporary layoff of 50 employees.

Buell, will pay eight days of holiday pay for the remainder of 2009 and will continue medical benefits during the shutdown with the last day of production expected to be Oct. 30. Workers are expected to return to their jobs on Jan. 4, 2010.

“It’s really related to the effects of the economy. That’s where we are,” said Pat Sweeney, spokesperson for the company told news sources.

It has been a rough ride in 2009 for Buell Motorcycles. In May, officials decided to not consolidate five leased facilities in East Troy into one facility that would have been built at the village's industrial park. The plan was to reduce costs and improve efficiency in the long run.

Harley-Davidson spokesperson Rebecca Bortner said company officials chose to not consolidate to avoid short-term expenses.

 
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