KANSAS CITY, Mo. _ Harley-Davidson Inc. announced early Tuesday that it will close its Kansas City motorcycle assembly plant by the summer of 2019.
The plant near Kansas City International Airport in Kansas City, North employs about 750 workers.
The announcement came as Harley-Davidson reported its fourth quarter and 2017 financial results. The motorcycle manufacturer said worldwide retail motorcycle sales were down 6.7 percent last year when compared to the previous year.
U.S. retail sales decreased 8.5 percent while international sales were down 3.9 percent.
The company said the closing of the Kansas City plant is an attempt to improve manufacturing operations and cost structure. The company will consolidate the Kansas City motorcycle assembly plant into its plant in York, Pa.
"The decision to consolidate our final assembly plants was made after very careful consideration of our manufacturing footprint and the appropriate capacity given the current business environment," said Matt Levatich, Harley-Davidson's president and chief executive officer, in a statement.
"Our Kansas City assembly operations will leave a legacy of safety, quality, collaboration and manufacturing leadership."
Harley-Davidson built the nearly 400,000-square-foot Kansas City plant in 1998, where it produced the Softail, Sportster and Street motorcycles.
In November, the company announced the plant was producing the company's newest motorcycles to hit the market _ its Sport Glide model.
At the time of the announcement, the company said the addition of the Sport Glide in Kansas City did not change employment, which was at 748.
In July, the company laid off 97 workers as the company pared nearly as many jobs at its Milwaukee plant.
Like most motorcycle manufactures, Harley-Davidson has been struggling with declining sales.
The company reported that in the fourth quarter its worldwide retail motorcycle sales declined 9.6 percent versus the same period the previous year.
The company's U.S. retail motorcycle sales were down 11.1 percent for the quarter.
The company expects to incur restructuring and other consolidation costs of $170 million to $200 million and capital investment of $75 million during the next two years.
The company expects ongoing annual cash savings of $65 million to $75 million after 2020.
