Harley in trouble. Profit & sales down, Kansas plant to shut

American motorcycle maker Harley-Davidson announced their fourth-quarter profits recently. The profits fell 82% compared to the same period last year and the company also revealed that they would be closing their assembly plant in Kansas City in the state of Missouri.

Media reports have indicated that Harley-Davidson's worldwide motorcycle sales fell 6.7% in 2017 compared to 2016. Further, the motorcycle maker's US sales fell by 8.5% and the international sales were down by 3.9% as well. The company's sales figures have been consistently declining over the last 4 years, resulting in the announcement to close the Kansas City plant by the fall of 2019. The Kansas plant employs over 800 workers and it has been operational since 1997. Harley-Davidson President and CEO, Matt Levatich, revealed that the company would be shifting operations from its Kansas factory to their plant in York, Pennsylvania which will create about 400 jobs in York.

Harley Davidson also said that its net income fell 82% to $8.3 million in the fourth quarter of 2017, from $47.18 million in the same quarter a year earlier. The motorcycle maker has also been facing competition from other brands that have factories outside of USA. Combined with strong US dollar, and the low-cost manufacturing overseas, these companies have managed to price their products lower than Harley-Davidson.

Overall motorcycle sales in the US have declined by more than half over the last decade. The company's 10-year strategy includes training over 2 million new riders, growing its international business to 50% of sales and launching of 100 new "high impact" motorcycles in the market. The company also claims that its first electric motorcycle called Project Livewire would go on sale in the next 18 months.

Source - Journal Sentinel