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Harley-Davidson updates shipment guidance due to strike

Following six nonproduction days related to a strike at its largest assembly plant, Harley-Davidson, Inc.’s motorcycle shipments for the first quarter of the year will not meet previously established guidance, the company said in a press release on Feb. 8.

First-quarter 2007 shipments of Harley-Davidson motorcycles had been expected to be between 82,000 and 84,000 units. At this time, the company is not providing motorcycle shipment guidance for the first quarter, nor will it predict whether the strike will have an effect on full-year financial guidance.

Approximately 2,800 unionized employees who are members of the International Association of Machinists and Aerospace Workers Local 175 are currently on strike at the company’s York, Pa.-facility.

The company has reduced production of engines and transmissions at its facility in Menomonee Falls, Wis. and injection-molded and other components in Tomahawk, Wis., as a result of the strike. Layoffs could begin as soon as next week for some employees. Initial layoffs will be voluntary; involuntary layoffs will be implemented as necessary.

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