Harley-Davidson says plans to cut about 200 jobs

[CHICAGO] Harley-Davidson Inc plans to cut about 200 positions as the company adjusts its production schedule due to a lower forecast for motorcycle shipments in 2016, a company spokeswoman said on Thursday.

In July, the manufacturer lowered its 2016 full-year shipment guidance to a range of 264,000 to 269,000 motorcycles. It had previously estimated it would ship 269,000 to 274,000 motorcycles.

Most of the job reductions are scheduled for the fourth quarter, said Bernadette Lauer, Harley-Davidson spokeswoman.

The Milwaukee, Wisconsin-based manufacturer's sales were down 3.4 per cent year-to-date as of June 30 as it faces intense pricing competition from competitors in a shrinking US motorcycle market.

Harley said of the 200 eliminated positions, about 115 are union jobs at its York Vehicle Operations plant in Pennsylvania, which assembles cruiser models, including the Touring, Softail and Trike.

Of 1,010 employees at the York plant, 829 are union employees.

Harley-Davidson's stock closed up 0.36 per cent at US$52.89.

REUTERS