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Harley-Davidson and Union to Meet

        Company Plans for Scaled-Back Production at Wisconsin Plants

    YORK, Pa., Feb. 5 /PRNewswire-FirstCall/ -- Harley-Davidson Motor
Company today reported that company and union representatives will meet
February 6 with a federal mediator. Union employees at the Company's final
assembly facilities in York, represented by International Association of
Machinists (IAM) Local Lodge 175, went on strike February 2.
    In other developments, Harley-Davidson reported that as a result of the
strike in Pennsylvania, it expects to reduce production of engines and
transmissions (powertrains) at the Company's facility in Menomonee Falls,
Wis. The Company also expects to reduce production of injection-molded
components at its facilities in Tomahawk, Wis.
    The Company anticipates that reduced powertrain production could result
in temporary layoffs for up to 500 of its approximately 1,500 production
and distribution employees in southeast Wisconsin. Reduced components
production in Tomahawk could result in temporary layoffs for up to 240 of
the approximately 360 production employees who work there.
    Layoffs at the Menomonee Falls and Tomahawk facilities could start as
early as the week of February 12 for some employees. The Company has sought
voluntary layoffs and will implement additional non-voluntary layoffs as
needed.
    The Company is disappointed by the decision of its union employees in
York to strike and regrets the temporary impact the strike may have on some
of its Wisconsin employees and its extensive supplier network.
    Harley-Davidson's facility in Menomonee Falls produces "Big Twin"
powertrains -- the largest of the Company's engines and transmissions --
used in motorcycles assembled in York and Kansas City. The Company's
facilities in Tomahawk produce windshields, fairings, saddlebags, Tour Paks
and other components used on motorcycles assembled in York and Kansas City.
Motorcycle sidecars are also produced in Tomahawk.
    During the strike, the Wisconsin facilities will stop building
powertrains and injection-molded components for shipment to the assembly
plant in York. The Company's powertrain plant in Wauwatosa, Wis., is not
expecting reduced production at this time.
    Harley-Davidson Motor Company (NYSE: HOG), the only major U.S.-based
motorcycle manufacturer, produces heavyweight motorcycles and a complete
line of motorcycle parts, accessories and general merchandise. For more
information, visit Harley-Davidson's web site at
http://www.harley-davidson.com .


SOURCE Harley-Davidson Motor Company




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Related links:
  • http://www.harley-davidson.com
    CONTACT:
    Bob Klein, Harley-Davidson Motor Company,
    +1-414-343-4433