Harley-Davidson Inc. today announced a "go-forward" business strategy, which includes discontinuation of production of its Buell line of motorcycles, resulting in 180 jobs being eliminated in East Troy.

To view an emotional farewell video from founder Erik Buell, click here.

Milwaukee-based Harley said the decision will result in a reduction over time of about 80 hourly production positions and about 100 salaried positions at Buell. Employment will end for a majority of Buell employees on Dec. 18.

The Buell line of racing motorcycles provided a lower-cost entry point for a younger generation of motorcycle enthusiasts. Harley acquired complete control of the company from Erik Buell in 2003.

Remaining inventories of Buell motorcycles, accessories and apparel, while they last, will continue to be sold through authorized dealerships. Warranty coverage will continue as normal for Buell motorcycles, and the company will provide replacement parts and service through dealerships.

Harley-Davidson expects to incur approximately $125 million in one-time costs related to the discontinuation of the Buell product line.

Harley also announced it will divest its MV Agusta unit as part of its corporate survival strategy. Harley will immediately begin efforts to sell MV Agusta unit business, which is based in Varese, Italy.

Worldwide retail sales of new Harley-Davidson motorcycles declined 21.3 percent in the third quarter compared with last year's third quarter. An 84.1-percent decline in net income and an 84.5-percent decline in diluted earnings per share from the year-ago quarter reflected lower motorcycle shipments and the effects of the economy on retail and wholesale loan performance at Harley-Davidson Financial Services.

Harley said its "go-forward" strategy is intended to drive growth through a single-minded focus of efforts and resources on the unique strengths of the Harley-Davidson brand, and to enhance productivity and profitability through continuous improvement.

"As our announcement regarding Buell and MV Agusta indicates, we are moving with the speed and decisiveness required to bring our business strategy to life," said Keith Wandell, chief executive officer of Harley. "The fact is we must focus both our effort and our investment on the Harley-Davidson brand, as we believe this provides an optimal path to sustained, meaningful, long-term growth. We are refocusing our business with the expectation that we can provide growth that is both profitable and sustainable over the long term. We believe we can create a bright long-term future for our stakeholders through a single-minded focus on the Harley-Davidson brand."

Meanwhile, in a conference call with analysts today, Wandell said Harley has begun talks with leaders of the employee union at its plant in York County, Pa. "Our hope and desire is that we will be able to stay in York ... but we can only stay there if in fact we have a plant and a factory that is sustainable for the long term for this business," Wandell said, according to a report by the Central Penn Business Journal. "Under no other conditions."