Harley-Davidson will keep its motorcycle operations in York, Penn., and intends to restructure those operations, according to a company press release.
The announcement follows the ratification of a new seven-year labor agreement by company employees at York.
“A restructured York operation will enable the plant to be competitive and sustainable for the future, and the new labor agreement is critical to making that happen,” Keith Wandell, president and CEO of Harley-Davidson, said in the release. “On behalf of the company, I want to thank the employees at York for their vote to make the changes necessary to create a more flexible and efficient operation, and we look forward to moving ahead together to achieve that goal.”
The York operation will be consolidated under one roof and focused on the core areas of motorcycle assembly, metal fabrication and paint.
The operation will have a smaller, more flexible workforce, corresponding to the scale and scope of the operations, with about 1,000 hourly employees compared to about 1,950 today.
When fully operational in 2012, the restructuring is expected to generate about $100 million in annual operating savings compared to the current structure.