Harley-Davidson cuts production

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Harley-Davidson is to close plants and cut 1,100 jobs after reporting worse-than-expected results.

Three month net income came in at $77.8m (£57.1m), which was down 58% from the same quarter of 2007.

Harley plans to cut production by up to 13% in 2009 from already reduced 2008 levels. The job cuts represent about 12% of its total workforce.

It also reported losses at its in-house financing unit due to bad debts and continuing credit market problems.

Sales of Harley-Davidson motorcycles fell 13.1% in the quarter, led by a 19.6% fall in sales in the US, which is its most important market.

There was a 28% fall in sales in Latin America.

The company is to combine its two engine and transmission plants, consolidate its paint frame operations into a single plant and close its parts and accessories distribution centre.

In future, the company said it planned to use other companies to distribute parts and accessories.