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.