Harley-Davidson Weighing Moving Production Plant

Stock quotes in this article: HOG  

Pennsylvania Sens. Arlen Specter and Bob Casey sent a letter on Tuesday to Harley Chief Executive Keith Wandell, saying the facility is important to the local economy and calling on the company to protect the factory's jobs.

"We strongly urge you to give serious consideration to any option that will protect the thousands of jobs at stake and preserve Harley-Davidson's presence in the region," they wrote.

The review of the facility is part of a broad cost-cutting plan that Harley, the top maker of heavyweight motorcycles, launched in January as it battles shrinking profits and a downturn in sales of its iconic bikes. The company has announced plant consolidations and is aiming to cut between 1,400 and 1,500 jobs over the next two years. Part of that plan is to cut between 525 and 575 hourly workers at York, some of which has already been implemented.

Last month, Harley reported a 37-percent decline in its profit for the first three months of the year. The company's sales have been falling recently as the downturn in consumer confidence and the tighter credit markets have made many consumers skittish about buying its high-end bikes.

The company has also seen a wave of turnover among its top leadership in recent months. On May 1, Wandell took over as CEO from Jim Ziemer, who ran Harley for four years. The company's chief financial officer, Tom Bergmann, stepped down at the same time. Harley also got a new interim head of Harley-Davidson Financial Services and a new senior director of financial reporting.

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