FRANKFORT, Ky. (AP) -- Gov. Steve Beshear has expressed doubt that Kentucky will land a Harley-Davidson manufacturing plant.

The governor released a statement Thursday saying the potential for pulling off a deal with the company is "significantly diminished."

The company has been looking at a site in Shelbyville for a motorcycle plant that employs 2,500 people.

The governor has put lawmakers on notice that he might call them into special session in December to consider an incentive package for the company, which also had been looking at keeping the current plant in York, Pa..

Beshear said Kentucky recruiters would continue to court the company until a final decision is made.

The company had also been considering sites near Kansas City, Mo., plant; in Shelbyville, Ind.; and in Murfreesboro, Tenn.

 

Is it just me or does it seem to be a huge waste of money and resources to close a plant they already have just so that they can build another one somewhere else.

 

From what I understand the York plant is outdated. It would cost more to bring it into the 21st century than it would to build an entirely new plant in a more favorable location.

 

Ah-ha. That makes sense.

 

That sounds about right. That York plant is pretty old.

 

There are other factors involved that aren't apparent to the average man on the street. For one, the plant property offers a large depreciation factor toward income taxes as well as remaining interest being paid on plant property loans. Incentives to build elsewhere offers more money savings that have obviously been balanced against remaining at and rebuilding the York plant. The route of closing down the York plant, or portions of it at a time would be an interuption to their operations that they just can't afford at this time. A lot of the chroming work that is done there feeds assembly lines in other plants. The York plant, being as old as it is, certainly may have potential OSHA violations just waiting to be discovered that management knows about, which would shut the plant down until repaired or improved. Green laws may be so overwhelming in York that the only way out is through buying a larger peice of land for the plant in order to bring the plant operation up to current standards requirements as well as provide future expansion for further environmental mandates. Some of the things to consider are: safe petroleum, battery, paint, tire and chemical storage, production waste management, scrap materiel holding area, safe shipping/receiving/freight handling areas, energy and exhaust management; then the safety features of the plant and control of the materiels for that. It all adds up to a clear picture for the decision makers.

 

ALSO labor rates differ in some areas of the country, Harley MAY try to hire NON Union folks if relocated to the south?

 

I'm guessing that probably has a good bit to do with it... Or maybe a different union that is willing to go cheaper?

 

Yeah, but some places throw in so many incentives. Tax breaks and all kind of funding.