Paradise Harley-Davidson 17-Year Anniversary

We all love our rides, but what about the dealers?

If you wander into the forums, they are full of comments ranging from the good, the bad and even the ugly.

Dealers stared into the teeth of COVID-19, mixed it up with the motor company’s revenue declines, layoffs, reduced bike inventory to bolster prices, which was followed by several dealers closing down including some Bar & Shield Circle of Achievement Award dealers, permanently.

We all know it’s been a tough 14-months and that includes every Harley-Davidson dealer along with their employees.

Adding to all of this, was corporate Harley-Davidson throwing out more strategy changes (“wired”) than I change my socks.  And when corporate management dictate the “We know what is best in/for your showroom” requirements — you know how it goes, all the risers need to be symmetrical, with the right merchandise on each one, perfectly priced, labeled, and “faced” toward the customer — the dealership owner has the choice to largely accept them or not.  If they don’t accept them, then the “widget guys” from Milwaukee can say … “No soup for you!”

That’s when those inspirational corporate quotes like: “You’re here by the grace of your lineage” start to sound like marketing for the early Pilgrims.

But, I’ve digressed.

Be it clothing, parts or motorcycles, Paradise Harley-Davidson, has continued to provide what customers want. From the owner to the staff folding t-shirts and everyone in-between, they are part of our Northwest motorcycle community and they interact with us on a daily basis, selling the experience of coming to the dealership as much as of riding itself.

17-Year Anniversary Celebration

You might not recall, but it was not long ago when Harley-Davidson management forced, via franchise contracts, that dealers significantly upgrade or move and open up large “mega stores” on an interstate exit.  The corporate ethos was larger is better and location, location, location!  This mandate alone had a lot to do with dealers selling or going under in the late 90’s and early 2000’s.

The Paradise dealership has its roots grounded in Beaverton, Oregon, a small 7,000-square-foot store.  The store was mandated by its franchise “relationship” with Harley-Davidson to upgrade, however, they were in a very tight geographic footprint on SW Farmington Road.  If you lived or traveled through the heart of Beaverton you know that it meant only one thing — relocating to a new store. The then current owner determined that a new store was way too much to take on and decided to sell the dealership.

Slo-mo ‘Glider’ Wheelie (Note: Hosted on my Google site)

At the time, Ed Wallace who previously was with PACCAR, where he was a General Manager in the Kenworth Truck division was now one of America’s most successful and decorated Harley-Davidson dealers.  Wallace purchased the Tacoma dealership (Destination Harley-Davidson) in partnership with son, Ed Jr., and daughter, Christy, in 1995.  The Tacoma facility went from 7,000 to 50,000 square feet and is located just off I-5. Then in 1997, he acquired the Harley outlet in Silverdale, Washington. Christy was the majority owner of the Silverdale store and planned every detail of the expansion. Going from a 3,000-square-foot converted gas station on Silverdale Way to the newly constructed 20,000-square-foot $3 million building.

Having success in developing the motorcycle business and constructing large, multi-million dollar facilities, Ed Sr., purchased the Beaverton Harley dealer in 1999, and moved it to a new 30,000-square-foot Tigard facility, which Ed Wallace, Jr. managed.  Ed Jr., married his sweetheart from the Tacoma area and after 3+ years of running the Tigard facility, wanted to return to Tacoma.  As I recall, Ed Sr., had fully retired from the business by then, and Ed Jr., put the Tigard dealership on the market when Mike Durbin stepped in and bought it in 2004.  The name was changed to Paradise Harley-Davidson and the rest as they say is history.

Bike wash and Durbin in the Dunk Tank

On a local level, I like supporting small(er) businesses, vs. the mega-destination dealers i.e. Timpanogos in Lindon, Utah, which is one of the largest dealerships in the U.S. at 58,000 square-feet.  In my opinion, Paradise H-D has a loyal following and always a great place to visit, as they have something going on all the time. I’ve enjoyed and been working with Mel in the parts department since the good ‘ol Beaverton days! The staff gets to know the people that bought from them and for service you are never just a number that they need to get through the system! Don’t get me wrong, I still swallow HARD at some of the service pricing, but my personal experiences are of good people, good service and being treated fairly.

This past weekend Paradise H-D celebrated their 17th Anniversary.  I stopped to partake along with a few hundred or more other enthusiasts. They put on a great social event with a beer garden, live music, dunk tank, bikini bike wash, games, door prizes and more for their clientele.  What I really like is that no one talks about what you do for a living. They talk about what and where you ride.

Congrats Paradise H-D on 17-years as a standout dealership!

Glider movie and Photos taken by the author except for logo photos courtesy of Paradise H-D.

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The Harley-Davidson “Green Value Proposition”

I’ve reached the stage of life where any compliment I get about appearance or physicality is accompanied by “for your age!”

After indulging in that “rant” about China and not posting for a few weeks some wonder if I caught the “COVID.”  No, but I’ve been waist deep in the fine art of Harley-Davidson apathy, trying to get back on track… So, let’s talk about exec salaries and how the year+ of the pandemic “rained money”… and not the eco-dollar benefits of any ‘Green’ initiative.

First, let’s establish a baseline. According to “Google”, the average Harley-Davidson salary ranges from approximately $25,000 per year for a Parts Specialist to $133,555 per year for General Manager. Average Harley-Davidson hourly pay ranges from approximately $9.08 per hour for Automotive Detailer to $39.94 per hour for Tool Maker.

Now let’s double-click on the 2020 Harley-Davidson top executives compensation:

Harley-Davidson’s current chairman, president and CEO Jochen Zeitz’s total compensation was $9.4 million in 2020 — Remember way back in April 2020 when Harley-Davidson said that its then acting president and CEO Jochen Zeitz and the company’s board of directors would forgo any salary or cash compensations? They pushed out a news release with the typical “aren’t we great” statements along with how the rest of Harley-Davidson’s executive leadership would take one for the team and also see a 30% reduction in salaries and most salaried employees in the U.S. would see a 10%-20% salary reduction.

So, “forgoing” a salary and/or cash compensation REALLY means collecting $9.4 million!

Where do I sign up?

But wait, there’s more… 2020 was the same year in which the motor company also paid over $4.1 million in severance to former president and CEO Matt Levatich, a serial overconfident exec who created unambiguously bad managerial optimism, which resulted in over 20-quarters of financial loss. In addition, two other executives departed with the same illness, let’s call it Managerial Optimism Flu (MOF).

Specifically, Matt Levatich received a lump-sum severance payment of $2.15 million in 2020, according to the company’s April 9 proxy statement. In 2020, the company also paid Levatich $343,572 in salary and stock awards valued at $5.45 million. Levatich also saw a $653,000 increase in the value of his pension and nonqualified deferred compensation earnings that brought his total compensation in 2020 to $8.7 million, according to the proxy statement.

Mr. Zeitz was named to the CEO position in May 2020. So, for his eight (8) months as chairman, president and CEO, his total compensation of nearly $9.4 million was more than the $7.6 million Levatich received in all of 2019, which was Levatich’s last full year in the job. Zeitz’s salary in 2020 was $1.68 million compared to Levatich’s $1.08 million in 2019. Zeitz also was paid a $1 million bonus, stock awards valued at $5 million, non-equity incentive payments of $1.5 million and other compensation of $206,233.

I’m surprised that line workers didn’t shout from the roof-top that they would “forgo” any salary too!

A couple of other former executives who received large severance payments of note were former CFO John Olin and former senior vice president and COO Michelle Kumbier. Olin left the company in July 2020. He was paid a lump sum of $1.34 million, according to the proxy statement. For six (6) months of filling that position, he also received $374,421 in salary and stock awards valued at $1.75 million in 2020. Michelle Kumbier received a lump sum of $660,000, according to the proxy statement. You might recall that this payment was previously publicly embargoed then it was disclosed; described as a “settlement” after she threatened litigation connected to ‘unspecified events’ related to her departure in April 2020. For the four (4) months in her position, Kumbier was paid $223,385 in salary in 2020 and stock awards valued at $1.58 million.

According to this report; CEO compensation surged 14% in 2019 (most current data) to $21.3 million.  They now earn approximately 320 times as much as a typical worker.

It’s been widely documented how exorbitant CEO pay is and how it’s a major contributor to rising inequality in the U.S.  The Harley-Davidson payouts might sound like a big cash layout, because — well, it is!

Wait. Mr. Zeitz grabbed the handlebar, replacing the “More Roads” strategy with a hard-nosed approach he called “Hardwire” and what if he turns around the company you ask?  Well, that is exactly what shareholders and the board expect…until or unless he doesn’t then it will be the next exec firing. And another multimillion-dollar severance package paid to the outgoing Harley-Davidson CEO.

There’s that apathy thing creeping back in again.  Big payouts.  It’s routine. It’s a pattern.

Full Disclosure: I don’t own $HOG shares. That said, I do watch the stock and the brand’s activities very closely, as it is of course a massive presence in the motorcycle industry, and as of late, has had its struggles.

Photo courtesy of Harley-Davidson

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Hells Canyon Motorcycle Rally – CANCELLED

Concerns over ongoing restrictions forced the cancellation of the Hells Canyon Motorcycle Rally planned for July 9-12th 2021.

Organizers came to the decision due to the State of Oregon’s restrictions, and having no line-of-sight to a method of safely hosting this event while still being in compliance with the state’s guidelines. “The show must go on” is in our DNA, we are now working through the ramifications of this unfortunate situation.

I’m of the viewpoint that organizers likely made the decision that hosting an event for a few thousand people with mandated indoor/outdoor occupancy limits and social distancing requirements was too risky due to enforcement and liability issues. Additionally, the pandemic’s adverse impact on manufacturers and industry vendors has led to significant supply delays and shortages, which adds even more risk for small businesses.

Maybe in 2022…

Images courtesy of Hells Canyon Motorcycle Rally.

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2020 Is In The Rearview Mirror

Reflection

This has been a year full of twists and turns.

Thank you for your ongoing support during this time.

As we watch 2020 fade and get ready to ring in 2021, please use your common sense and good judgment. Whether you’re riding a motorcycle, driving a motor vehicle or are a pedestrian, be careful and vigilant, especially this holiday weekend.

If you’re drinking, don’t drive. Simple as that!

Stay safe and Happy New Year!

Photo taken by author.

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The Harley-Davidson Winter Of Our Discontent

The COVID-19 Motorcycle Back Rider Barrier

Like most of us, I’m thoroughly sick and tired of the pandemic at this point!

The confusing and contradictory advice along with the arbitrary changes with mandates and shutdowns by government “experts” has created a lack of trust.  Are the decisions really based on evidence and rigorous analysis?

In a crisis like the pandemic, predictability and consistency in government policies are not only ideal, they’re a lifeline.

And, just as there was some semblance of normalcy returning in late August/September, after an impromptu ride to Glacier National Park and a few Starbucks coffee runs with the option of actually sitting INSIDE to enjoy a dark-roast brew…the long-predicted fall surge hits.

This time around it felt different.

Some people I know became sick, and as I write this post some are just now recovering from COVID, which is good news and very fortunate.

In the meantime, consideration of your feet is now a key requirement for Harley-Davidson. Especially for who’s in, who’s out, who’s promoted and who’s been hired at the motor company.

I’ll be the first to admit that I didn’t see this coming.

Harley-Davidson executives with footwear industry expertise — being the new turnaround vehicle of brand insight into what Harley’s customers truly need — and how to deliver it without previous motorcycle and/or riding experience.

So, what does Clarks, Croc’s and the world’s leading footwear manufacturer, Bata Group, have in common with Harley-Davidson motorcycles?

I’m referring to Serena Di Sarra, who recently joined Harley-Davidson as Director of Marketing, Asia Pacific and Latin America.  It’s likely coincident, surely not cronyism, that Harley-Davidson CEO Jochen Zeitz, who previously ran PUMA, a company that designs and manufactures athletic and casual footwear, awarded an executive marketing position to Di Sarra.

Given the various 2020 “x-Wire” strategic “walk-backs” at Harley-Davidson it leaves the impression that decision making is (has been?) wishy-washy. Similar to some of the arbitrary government pandemic mandates, constant changes to strategic directions at the motor-company could be symptomatic of a flaw in the process. Some of the walk-back examples are almost as pointless as the head-scratching motorcycle back rider “protective shield” — a motorcycle barrier adopted by the Philippine government that was mandated to fight off the spread of the pandemic.  Don’t get any ideas Gov. Kate Brown!

But, I’ve digressed

Once again I’m writing this post from a virtual lockdown situation, missing my family, friends, colleagues, and the events that didn’t or won’t happen this year.

We can all absorb the gut punch of a one-year interruption in our riding passion if it means coming out stronger on the other side — and I believe that will be the case. When riding events and rallies come back, they’ll return with an “unprecedented” sense of what had been lost and a greater appreciation of our riding relationships.

What gets a motorcyclist through a mask-wearing northwest pandemic winter?  Reading technical manuals, making a bucket ride list, repairing, upgrading and waxing your way out of discontent.

Photo courtesy of RAPPLER.com 

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Glacier National Park Redux

Montana Border on Highway 200

Last month I posted about plans to ride through Glacier National Park.

I started making plans a couple of months prior to the ride looking for the slowest, curving roads with mountains and throwback motel stopping points to minimize pandemic exposure.

The reopening of Montana’s tourism amenities and services started in early June, which meant they were open a couple months prior to our arrival, with the exception of the Blackfeet Indian Reservation which was closed “until further notice.”  Canada also blocked all non-essential travel into the country so any mini-tour loop into BC or Alberta was off limits this trip.

It turns out that 2020 was a record-breaking year for the fact that there were NO forest fires during the days we visited the park to disrupt the spectacular views. There has been a fire in Glacier National Park almost every year of its existence with the exception of 1964 as the only year with no fires on record. Fires are a naturally recurring part of the forest lifecycle, but seeing Glacier with pristine clear air was an exceptional gift this time.

We traveled northeast crabwise across Washington state and spent a night in Sandpoint, on the northern tip of Idaho. It’s located on the magnificent 43-mile-long Lake Pend Oreille, surrounded by the Selkirk and Cabinet mountains. The next morning we traveled east on Highway 200 alongside the lake, then alongside the Clark Fork River.  We made a breakfast stop at a terrific family owned bakery in Clark Fork, called The Pantry.

Once we crossed over into Montana, we took a short detour to the remote end of Sanders County and traveled over the new $13.5 millon Heron Bridge.  It replaced a 95-year-old, one-lane bridge connecting Montana Highway 200 to the community of Heron. The original bridge had the ribbon cut on Nov. 23, 1952, but was originally fabricated in California and was already 32 years old when first installed across the river.  It had been deemed insufficient for growing traffic across the Pend Oreille River near Metaline Falls, Washington when it was moved and re-constructed at Heron.

“Sun Road” Glacier NP

After the bridge tour we rode north on Highway 56, Bull Lake Road, which is about 36 miles long and dead ends at Highway 2 just west of Libby. The landscape in the area is very diverse from low elevation timber and lakes to the outstanding peaks in the Cabinet Mountains and Scotchman Peak area.  We rode along the Kootenay River on Highway 2 to Kalispell then north on Highway 93.  We overnighted in Whitefish, MT a gateway to Glacier and a nice resort town. With a mixed array of shops, coffee houses and restaurants it reminded me of Jackson, WY charm.  There are plenty of places to enjoy a Going-to-the-Sun IPA with a great view of the mountains.

Glacier National Park, MT

The Blackfeet Indian Reservation closure created an impediment to traveling the Going-to-the-Sun road through the park and then looping back on Highway 2.

The road/gate entrance to the park was closed at St Mary. An optional route from Glacier north across the Canadian border to visit the Waterton-Glacier International Peace Park was a barrier as well since the Canadian border was closed.

At any rate, we began at West Glacier for a slow out-and-back ride on the 50-mile-long road.  There were incredible views of glacial-carved valleys, jagged peaks and pristine wilderness. A benefit of the pandemic was those famous red busses which departed from Lake McDonald Lodge were shut down and not running on the roads this year.

The Going-to-the-Sun Road was the National Park Service’s first to cross the trans-continental divide. It’s a landscape impossible to adequately describe in words or capture in photos when riding into that ‘big sky’ that Montana is famous for.

The west tunnel–a 197-foot long tunnel features two arched openings that let you look out to Heaven’s Peak and the Upper McDonald Creek valley while behind the handlebars. The Alpine section–is a six percent climb between the Loop and 6,646-foot high Logan Pass. There’s a section of the road called The Weeping Wall. A waterfall cascades 100 feet down, over the rocks and onto part of the road and down the other side of a 4500 foot cliff drop-off.

The Posse

The views! The curves! It’s like a real life painting.

For all its scenic wonders, the “Sun Road” is not without a few negatives: overall, the roads were in good shape and well-maintained, but there were a couple of rehabilitation projects and construction delays can be a major buzz-kill with all the crowds. The speed limit is slow-to-stop with much of the ride quality depending on the crowds and RVs.

The end of our round trip ride took us back into touristy West Glacier, town. Afterward we headed back to a Whitefish pub (via a motel shuttle) to try out a flight of their whiskeys and celebrate the completion of a beautiful ride.

Glacier is a place to be savored and a place to come back to again and again. It was great to get a break from the relentless protest, COVID-19 media drum beat and to reconnect with the land by motorcycle.

Photos taken by the author. 

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