Porsche, Harley-Davidson agree on joint motor-assembly venture
STUTTGART, Germany (AP) _ Germany’s Porsche AG and the Harley-Davidson Motor Co. agreed Wednesday on a $20 million joint venture to assemble motors for new Harley-Davidson motorcycles.
The motors will be built at one of Harley-Davidson’s U.S. plants for a new model that will hit the road in a few years, Porsche said in a statement. Each company will put up about $10 million.
The two companies, each with their own legendary reputation, have worked together since the 1970s.
Porsche said the new joint venture is another step in its long-term strategy to generate growth not only through new models, such as the successful Boxster roadster, but also through joint ventures.
Harley-Davidson Motor Co., based in Milwaukee, had earned $166 million on sales of $1.531 billion last year when it sold 118,771 motorcycles.
Porsche sold 19,262 sports cars in the fiscal year ended July 31, 1996, and earned $28.3 million on sales of $1.6 billion.