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Harley-Davidson and Porsche Set Up Joint Venture

18 June 1997

Harley-Davidson and Porsche Set Up Joint Venture

    MILWAUKEE, June 18 -- Harley-Davidson Motor Company
of Milwaukee, Wis. and Dr. Ing. h.c.F. Porsche AG of Stuttgart,
Germany have formed a joint venture to source and assemble powertrain
components for use in potential new motorcycle products.
    For the world's largest manufacturer of sports cars and the premier
motorcycle manufacturer, this joint undertaking represents the continuation of
a relationship that extends back to the 1970s.
    The joint venture plans to operate out of one of Harley-Davidson's U.S.
manufacturing facilities.  Total investment by each party over the life of the
joint venture is forecast to be less than $10 million.  The joint venture is
scheduled to end approximately five years after the start of production, with
the first production of the potential new products being years in the future.
    Harley-Davidson Motor Company President and COO Jeff Bleustein said,
"While we are excited to be working with Porsche on this new venture, it is
important to keep it in perspective.  Harley-Davidson will invest less than
$10 million in the venture over several years, but will invest approximately
$200 million in capital expenditures in 1997 alone."
    "Porsche's considerable skills in engine emission compliance make them a
great partner for Harley-Davidson," Bleustein added.
    In its most recent complete fiscal year (1996), the Harley-Davidson Motor
Company sold 118,771 motorcycles and achieved net sales of $1,531 billion.
The profit for the year after tax was $166 million.
    Harley-Davidson Motor Company, the only major American-based motorcycle
manufacturer, produces heavyweight motorcycles and a complete line of
motorcycle parts and accessories.

SOURCE  Harley-Davidson, Inc.