Harley-Davidson cuts jobs to deal with the slowing US economy

18 Apr 2008

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Harley-Davidson Company, the maker of iconic Harley-Davidson motorbikes, has been forced to reduce production and cut jobs as raw materials and crude oil prices are soaring in the wake of the slowing economy in the US.

Harley is preparing to cut around 730 jobs, both on the shop floor and in support functions. It will also shut some of its plants on a temporary basis to reflect the slower rate of production.

Harley Davidson The bike maker's profit fell by 2.5 per cent as it sold 14 per cent fewer bikes in the US in the first three months of the year than in the same period in 2007.

Net profit for the period ended March 30 stood at $187.6 million compared with $192.3 million for the same period the year before. Revenue increased 11 per cent to $1.31 billion.

Going by this year's sales performance, Harley will sell 27,000 fewer bikes than last year as the company sees no change in the tough market scenario.

However, the company was optimistic" about its long-term prospects because of its strong brand identity.

Although Harley's sales in the US during the last quarter had been below-par, the iconic bike-maker said it had in fact outperformed the market as a whole.

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