MILWAUKEE — Harley-Davidson Inc. reported major losses in the second quarter, our news partner the Milwaukee Business Journal reported.
The Milwaukee-based company recorded a net loss of $92 million. The motorcycle manufacturer was forced to shut down production because of the coronavirus pandemic. That contributed to the nearly $100 million loss.
Motorcycle shipments and sales dropped considerably. Shipments at this time in 2019 were at 68,757 units, but this year they are just at 28,369. In terms of sales, 71,846 to 52,712.
Overall, revenue dropped 53 percent from $1.43 billion a year ago to $669.3 million.
In order to make the company more efficient as well as combat the negative effects of the coronavirus pandemic, Harley-Davidson will announce a five-year plan called the Hardwire to get the company back on track.
Part of the plan is to focus on key global markets and streamlining operations overall. That also means it will exit certain international markets that have not proven to be financially successful.
However, this plan also means about 700 people will be laid off. Salaries have been reduced and raises have also been postponed temporarily.
Overall, Harley believes the company could save around $250 million this year and more restructuring could save $100 million annually.
