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."

In what will play a major role in Wisconsin's economic recovery, more than 426,000 "middle-skill" job openings - those that require more than a high school diploma, but less than a four-year degree - are projected for the state by 2016, according to a new study released today by The Workforce Alliance (TWA) and the Skills2Compete-Wisconsin campaign.
However, to unleash the full economic benefits of the "Forgotten Middle-Skills Jobs," Wisconsin will need to continue to invest in proper training and education for its workforce, the report stated.
While the recession is stifling current employment growth, the report projects that middle-skill jobs (including new jobs and replacement) would account for 46 percent of all openings between 2006 and 2016.
The report notes that funds from federal economic recovery legislation, especially the American Recovery and Reinvestment Act (ARRA), are also expected to create more than 1 million new jobs across the country - especially in industries dominated by middle-skill occupations such as construction, manufacturing and transportation.
"This is really an important time for Wisconsin to invest in training," said Andrea Ray of TWA. "If Wisconsin seeks timely economic recovery and long-term prosperity, the state must ensure that its workforce has the necessary education and training to meet the labor demands of the future. The national recession provides a time frame for businesses and the state to be strategic, evaluate labor and skill needs, and train and prepare for the jobs that are expected to grow."
The report predicts shortages in manufacturing and health care will increase. The middle-skill jobs expected to grow by 2016 in Wisconsin include police and sheriff's patrol officers, carpenters and registered nurses.
Tim Sullivan, chief executive officer South Milwaukee-based Bucyrus International Inc. and chair of the Governor's Council on Workforce Investment, said the report highlights his ongoing priorities.
"We've experienced shortages in skilled workers for years. While the current recession limits our ability to grow, we know that when the economy bounces back we will need a strong, skilled workforce to sustain growth and keep our company moving forward," Sullivan said.
The analysis for the study was performed by TWA using data from the U.S. Department of Labor's Bureau of Labor Statistics, Current Population Survey, American Community Survey and state labor market data from the Wisconsin Department of Workforce Development.
"This is a federal call to action that speaks directly to Wisconsin's strengths. The President (Barack Obama) has called on all Americans to obtain some form of postsecondary education or job training and has backed that up with commitments to invest in technical colleges and other middle-skill training opportunities," said Sarah White of the Center on Wisconsin Strategy, a lead partner in the Skill2Compete-Wisconsin campaign.

The board of directors for Milwaukee Golf Charities Inc. voted Wednesday to dissolve the golf tournament.
The tournament, held at Brown Deer Park Golf Course, cannot continue because U.S. Bank decided earlier this year not to return as the tournament’s title sponsor and no other corporate sponsor stepped up to take its place, tournament director Dan Croak said.
Thus, the PGA's 42-year run in Milwaukee is over, at least for 2010.
"We have been working with the PGA Tour since February to try to find a replacement for U.S. Bank as a title sponsor," Croak said. "To date, those efforts have not been successful."
The tournament has struggled for years with low attendance, largely because it could not attract the top golfers on the PGA Tour. Another problem for the tournament in recent years is that it was scheduled by the PGA Tour for the same weekend as the British Open, one of the four major tournaments of men's professional golf.
Earlier this year, Wisconsin golfers Steve Stricker and Jerry Kelly said they were working on plans to save the tournament, with a new title sponsor, a new date and perhaps rotating to different Wisconsin golf courses. However, that effort has not succeeded.
The U.S. Bank Championship donated $520,000 to charity this year and has cleaned up all of its financial obligations, Croak said.

Milwaukee Common Council President Willie Hines Jr. announced the implementation of the YMCA Mentoring Recruitment Campaign called "Why Mentor," which includes a partnership between the YMCA of Metropolitan Milwaukee and the City of Milwaukee. Hines said mentoring can play a key role in transforming challenging communities, and he is urging professional business executives to volunteer to be mentors for youth in the city.
"I have seen the positive impact of mentoring personally in my own life, and I have seen it work in some of our most crime-infested neighborhoods," Hines said. "When a young man or woman lacks a positive role model - someone who has sincere interest and takes the time to listen - then negative influences can easily overpower those young people. But mentors are a powerful antidote to those destructive elements."
Hines said mentors share more than their experiences and personal stories. They also share life skills, interpersonal strategies and conflict resolution. They offer networking advice and expose young people to productive habits that can ensure successful careers, Hines said.
"In short, mentors can make a huge difference in an individual's life and throughout the City of Milwaukee," Hines said.
For more information on "Why Mentor" and the partnership between the YMCA and the City of Milwaukee, contact Marie Olmsted at mentoring@ymcamke.org or (414) 274-0828. More information is also available at www.ymcamke.org/mentoring.

The stock market struggled to maintain its high point for the year today.
The Dow teetered around the 10,000 mark. The BizTimes Stock Index climbed 3.27 points to close at 122.73 Wednesday, its 52-week high.
However, local stocks gave up their peaks this morning. The largest local decliners this morning were Joy Global Inc. (down 68 cents to $51.57), Badger Meter Inc. (down 65 cents to $38.96) and Kohl's Corp. (down 62 cents to $60.12). The largest local advancers this morning were Harley-Davidson Inc. (up 44 cents to $26.74) and Johnson Outdoors Inc. (up 7 cents to $9.12).
The stock market cooled off today after RealtyTrac reported that U.S. properties subject to foreclosure filings totaled nearly 938,000 in the third quarter, up 23 percent from the year-earlier quarter and up 5 percent from the second quarter.
The organization said 1 in every 136 U.S. housing units received a foreclosure filing during the quarter. That's the highest quarterly rate since the real-estate-consulting company began issuing its reports in the first quarter of 2005.

Mercury Marine demanded concessions from its union workers and received $53 million in incentives from state and local governments to remain in Fond du Lac - all while the company has not paid any state income taxes since 2000, according to a report by the Institute for Wisconsin’s Future. "The Mercury Marine/Brunswick Corporation melodrama in Fond du Lac had nothing to do with Wisconsin wage levels, business climate or tax policy," said Jack Norman, author of the report. It was just another example of corporate mismanagement causing implosions that leave citizens, workers, taxpayers and other business people to clean up the mess." Read more in BizTimes Milwaukee's daily roundup of headlines from newspapers across the state at www.biztimes.com/#news.

Southwest Airlines is capitalizing on the emergence of social media as a marketing strategy. Learn more about how companies can use social media in a webcast interview featured in this week's edition of the BizTimes Bubbler, which also features a profile of Jeffrey Koser, founder and chief executive officer of Selling to Zebras LLC.
 

Has Midwest Airlines been reduced to a "virtual" airline? One industry analyst thinks so. A company spokesman disagrees. Read more in today's Milwaukee Biz Blog by BizTimes managing editor Andrew Weiland.