Corporate tax cuts announced on January 1 are said to benefit the company financially. Workers are disappointed at the stance taken by the company when the job cuts were announced late in January.
The sales of Harley’s motorcycles have come down drastically, as people have switched over and with a change in tastes and preferences. With the factory capacity witnessing a huge surplus, the decision has been taken by the management.
The profits of Harley-Davidson has fallen and sales of the motorcycles are going down too, feel the management as on April 24.
President Trump had announced a tariff on imported steel, but the decision to shut down the Wisconsin plant was made a year back. This tariff has no bearing on the closure of the company.
However, on May 11, Harley-Davidson has announced work to be started in Thailand. Employees feel that the jobs are being sent overseas resulting in the plant closure in Kansas.
As the Thai tariffs are 60% of the United States, the operational costs will go down, feels spokeswoman of Harley, Katie Whitmore.
There are plants of Harley-Davidson operating n Brazil and India, where the entire motorcycle is assembled straight from kits.
An increase in dividend and a stock buyback of 15 million shares has also been announced on February 5. However, the company says that this buyback has nothing to do with the tax cuts.
The buyback of shares will improve the company’s share prices that would please the shareholders and investors.
The working environment in the company was very pleasant, feel employees who have been with the company for many years and face the sudden emptiness with the announcement of the closure of the plant. They expect a change of mind from the management, to keep the plant going.