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Old McKenzie Pass Highway (OR 242)

The Old McKenzie Pass Highway (OR 242) will officially open to all traffic on Monday, June 19, 2017.

The narrow, twisting roadway and high elevation (5,325 feet) make the highway too difficult to maintain and keep clear during the winter months.

Many of us look forward to the annual opening and to traverse lava fields, snowcapped peaks and cruise along rushing rivers which highlight this scenic highway to central Oregon’s Cascade Mountain passes.

Heading east-bound, OR 242 travels through Lane, Linn, and Deschutes counties, beginning at the junction with OR 126 near McKenzie Bridge and ending at the junction with US Highway 20 and OR 126 at the City of Sisters.  From Sisters, Oregon heading west, the route travels past hay meadows and ascends 2,000 feet through ponderosa pine forests.  The road follows an old wagon route, emerging from the forest at Windy Point and provides a dramatic view of Mt. Washington and a 2,000-year-old lava flow.  The 25 mile, 4,000 foot descent snakes down switchbacks to the dense Cascadian forests and ends near the McKenzie River.

Few realize that the McKenzie Pass is also known as the Craig’s McKenzie Salt Springs/Deschutes Wagon Road.

The backstory — in 1862, John Craig was was one of 50 men hired by Captain Felix Scott to build a trail from Eugene over the Cascades. By then the rush of westward-bound Oregon Trail pioneers had slowed, but the discovery of gold in Eastern Oregon prompted a flood of people heading eastward. Scott’s plan was to sell Willamette cattle to the hungry miners east of the Cascades.

As Scott’s road-building crew neared the lowest route across the mountains they encountered miles of snow and jagged lava fields at McKenzie Pass. Craig favored chipping out a road through the lava fields, but Scott decided to skirt the lava fields in favor of a notch at Scott’s Pass on the shoulder of North Sister that was 1000 foot higher, steeper and crossed more snow. Scott’s route was later abandoned and is known today as the Scott Trail in the Three Sisters Wilderness.

After working for Scott, Craig spent the next 15 years working for himself while championing his vision of a lower crossing through McKenzie Pass. In 1871 he formed the McKenzie, Salt Springs and Deschutes Wagon Road Company and began to build his toll road. He cut trees, chipped and chiseled a roadbed out of the jagged lava fields just north of North Sister to form a McKenzie Pass crossing lower than what was available at the time.  By the Fall of 1872 his road open and began collecting tolls of $2 for a wagon, $1 for a horseback rider, 10¢ for cattle and 5¢ for sheep. After its completion he won a federal contract to deliver mail from the Willamette Valley to Camp Polk in Central Oregon over the road. In summer, the mail was carried on horseback. In winter it was carried on John Craig’s back. To accommodate the mail carrier, a small cabin was built about half way across, in which he could spend the night.

For many years John Craig carried mail from the Willamette Valley to Eastern Oregon, by horseback in the summer and on his own back in the winter.  After attempting to ski Christmas mail over McKenzie Pass in the winter of 1877, he was found frozen beside his mail pouch in his shack atop McKenzie Pass.  Mystery still shrouds the details of his death.

The U.S. Forest Service decided in 1920 to make the highway a tourist-friendly route over the mountains, so engineers took care to align it for sightseeing, with spectacular views of volcanic peaks, including the Three Sisters, Three Fingered Jack, Mount Washington, Broken Top and even the more distant Mount Jefferson to the north.  The road became a seasonal scenic highway in 1962 with the completion of the Clear Lake-Belknap Springs section of OR 126.

The highway is a local favorite and should be on everyone’s Oregon highway bucket list.

References:

The John Craig Story
McKenzie Pass
John Craig – A Pioneer Mail Carrier, by Ruth E. Richardson – 1963

OR 242 map/photo courtesy of Google.

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Recently it was reported that the typical CEO at the biggest U.S. companies received an 8.5 percent raise last year, taking in $11.5 million in salary, stock and other compensation, according to a study by executive data firm Equilar for the Associated Press.

Over the last 5-years, median CEO pay has jumped by 19.6 percent not accounting for inflation.  That’s nearly double the 10.9 percent rise in the typical weekly paycheck for full-time employment across the country.

It could be, but this isn’t a rant about the typical line worker vs. CEO wage-gap.

If we’re being intellectually honest, CEOs today are required to master a broader range of skills than in the past, when top executives might have climbed the ranks with just one discipline. Companies are bigger, more global and increasingly complicated, and there’s accelerating competition in countries such as China, India and Brazil. Executives must also adapt to quicker technological change, including shifts brought on by autonomous driving, electric vehicles and the widening use of mobile devices.  And then there is the Board, and the increasing requirement that CEOs push their stock price ever higher to collect their maximum possible payout.

So, who are those CEOs at Harley-Davidson, that made Harley-Davidson?  Below is a historical snapshot of the motor company leadership:

Matthew S. Levatich

Matthew S. Levatich — is the current Harley-Davidson President/CEO which he assumed in 2015.  Mr. Levatich was named COO during CEO Keith Wandell’s tenure.

Mr. Levatich, joined Harley-Davidson in 1994. Prior to becoming COO in May 2009, he held wide-ranging roles in the U.S. and Europe. Those roles included Vice President and General Manager of Harley-Davidson’s Parts and Accessories business, Vice President of Materials Management, and President and Managing Director of the Company’s former MV Agusta business. In addition to an undergraduate degree in mechanical engineering from Rensselaer Polytechnic Institute, Levatich holds a graduate degree in engineering management and an MBA from Northwestern University. He has served on the board of directors of Emerson, a St. Louis-based global manufacturing and technology company, since 2012.

Mr. Levatich is known as an avid rider and an engineer, that demonstrates a clear vision for the company and talks constantly about focus and alignment and helping the organization remain clear on what it is they’re here to do.  No longer is the motor company the “voice of the executive” rather it’s the “voice of the customer.

Interestingly, Harley-Davidson has evolved from platform teams. Dyna platform, Softail platform, which was largely modeled like the automotive industry. Each platform team was competing for the next big capital investment so they could say now it’s Dyna’s turn to have a major refresh. Or now it’s Softail’s turn. Or now it’s Touring’s turn.  And that doesn’t exist anymore.

In an interview with Cycle World Mr. Levatich stated: “We’re not really in the business of manufacturing motorcycles. We’re in the business of building customers.”  

Keith Wandell

Keith Wandell —  hired from Johnson Controls to serve as Harley-Davidson President/CEO in 2009 — retired May 1, 2015 — only 6-years later.

Credited for leading Harley-Davidson back to profitability by cutting jobs and making its production more efficient he transformed manufacturing through a restructuring plan that generated more than $300 million in annual savings.

Mr. Wandell cut millions of dollars in costs and eliminated several thousand jobs in the manufacturing plants. He brought a sense of urgency to the company, saying he did not want it to be like General Motors and the auto industry that had fallen into deep trouble.

Under his leadership, Harley made significant gains in reaching new customers through growth in international markets and sales to “outreach” segments in the U.S., including young adults, women, African-Americans and Hispanics.  Mr. Wandell also was credited with stoking excitement for a planned electric bike, called Project LiveWire.

Mr. Wandell has been the Non-Executive Chairman of Dana Incorporated since October 27, 2016 and served as its Interim Chairman from September 9, 2016 to October 27, 2016.

James Ziemer

James Ziemer — served as President/CEO from 2005-2009.  Retired in 2009.  Mr. Ziemer is a native Milwaukeean who grew up in the neighborhood next to Harley-Davidson’s original Milwaukee factory location on the city’s west side.

He started with the motor company in 1969 as a freight elevator operator while attending the University of Wisconsin-Milwaukee. He worked at Harley-Davidson for 40 years.  Upon earning his undergraduate degree in accounting at UWM, he joined the accounting department where he spent the majority of his career. He was named the Company’s Chief Financial Officer in 1990. In 2005, he was named President and Chief Executive Officer of Harley-Davidson.  When he retired, employees presented Mr. Ziemer with the original wood doors from the freight elevator he operated when he first was hired at Harley-Davidson.

As a sidebar, also in 2009, eleven years after being bought by Harley-Davidson, Erik Buell leaves the company to establish Erik Buell Racing.

Jeffrey L. Bleustein

Jeffrey L. Bleustein — retired as Chairman of the Board of Harley-Davidson in April 2009.  He was Chairman from December 1998 to April 25, 2009.  Previously, he served as CEO from June 1997 to April 2005.

He served at Brunswick Corp in many capacities and was President of Trihawk, Inc., a subsidiary of Harley-Davidson, 1984 to 1985. Remember Trihawks?

Mr. Bleustein was a technology consultant with American Machine and Foundry Co. (AMF).  In 1969, AMF merged with Harley-Davidson and in 1975, AMF assigned him to help reorganize Harley-Davidson engineering operations.  Led by AMA Hall of Famer Vaughn Beals Jr., and 11 other Harley-Davidson executives (including Willie G. Davidson), Bleustein helped execute an $81.5 million leveraged buyout of the company from AMF on June 16, 1981.

To commemorate the buy-back, approximately two dozen company officers, along with their wives and select motorcycle press, made a cross-country motorcycle trek from the production facilities in York, PA to Harley-Davidson’s main offices on Juneau Avenue in Milwaukee. This 900-mile independence journey was also a ride to support the Muscular Dystrophy Association, now the official charity of Harley Owners Group (HOG). The ride followed a host of ceremonies at York which included the signing of documents that marked the ownership change, and pulling the first “new Harley-Davidson” motorcycle off the assembly line. This 4-day celebration began a new chapter in the company’s “new” future.

Mr. Bleustein was responsible for notable engineering innovations which included the rubber engine mounts, redesign of the V-Twin and introduction of the Kevlar drive belts.

During Mr. Bleustein’s tenure (circa: 1998), Harley-Davidson bought Buell Motorcycle Company and named founder Eric Buell Chairman of Buell Operations. The first Buell’s hit showrooms in late 1999.

Rich Teerlink

Rich Teerlink  — served as Chairman and CEO until 1999 at Harley-Davidson until he retired.  Mr. Teerlink joined Harley-Davidson in August 1981 as CFO where he enjoyed great success over his 18-year career.  He started with the company just two months after the group of 13 Harley-Davidson managers had bought the company from its then parent company, American Machine and Foundry Co. (AMF), in a leveraged buyout.

Mr. Teerlink’s greatest accomplishment was establishing the Harley Owners Group (HOG) in 1983.  Mr. Teerlink joined the Vertex Board in 2002, and while serving on the Vertex Board, he also served on the Boards of Johnson Controls, Snap-on Tools and Quad Graphics.

Mr. Teerlink is also a notable author of More Than a Motorcycle, The Leadership Journey at Harley Davidson book.  Mr. Teerlink retired from the Vertex Board of Directors, effective February 4, 2015.

Mr. Teerlink was inducted to the AMA Motorcycle Museum Hall of Fame in 2015.  Mr. Teerlink was awarded an Honorary Degree, Doctor of Laws from Marquette University on May 22, 2005.

Vaughn L. Beals Jr.

Vaughn L. Beals Jr. — served as CEO of Harley-Davidson from 1981-1989 and as Chairman from 1981-1996.

In June 1981, it was a challenging time as American Machine and Foundry Co. (AMF) wanted to cut and run, but no one wanted to buy a company with a limited line of high-priced, obsolete products and a reputation for unreliability.  Vaughn Beals Jr., and 13-other** Harley-Davidson executives (including Willie G. Davidson), led an $81.5 million leveraged buyout of the company from American Machine and Foundry Co. (AMF).

Mr. Beals previously served as a research engineer for North American Aviation and Cummins Engine Company where he negotiated the purchase of logging equipment manufacturer Formac International as he was a minority owner and CEO.  This proved to be valuable during the AMF Harley-Davidson buyout.  He was named Harley-Davidson CEO after the buy-out option.

In 1982, the motor company won an anti-dumping judgment from the International Trade Commission (ITC). This led then-U.S. President Ronald Reagan to impose additional tariffs on imported heavyweight Japanese models, as allowed by the ITC.  The additional tariffs–45 percent on top of an existing 4.4 percent measure–were meant to decrease gradually over five years, until April 1988.

In June 1986, Harley-Davidson went public with a stock offering to raise capital to help pay off the buy-out option.  This was very successful increasing share price from $11 to $24.  Harley-Davidson  used some of the stock sale revenues to buy Holiday Rambler, a U.S. maker of recreational vehicles, for $150 million.  The Holiday Rambler sale pushed Harley-Davidson into the Fortune 500 category for the first time at number 398.  In March 1987 the company asked the ITC to remove the tariffs imposed on Japanese motorcycle imports a year earlier than scheduled.

Willie G. Davidson, V.P. Styling (Left); Vaughn Beals Jr., CEO and Charles Thompson, President (Right)

Mr. Beals was inducted to the AMA Motorcycle Museum Hall of Fame in 2008.

Charles Thompson — served as President and CEO of the restructured Harley-Davidson after American Machine and Foundry Co. (AMF) buy-out option.

Mr. Thompson was a long-time Harley-Davidson employee, well-liked throughout the motorcycle industry and served as president and CEO of the restructured company until his health failed in 1982.

William Herbert “Bill” Davidson — was president of Harley-Davidson Motorcycles from 1942 to 1971.  He was the son of William A. Davidson who quit his regular paying job with the Milwaukee Road railroad in 1903 to get into the business of making motorcycles.

William Herbert “Bill” Davidson

Bill Davidson, started working on the Harley-Davidson shop floor of the family business in 1928 after attending the University of Wisconsin.  He won the AMA National Enduro Championship in 1930 and when he wasn’t winning motorcycle races, Bill worked his way up through the company, becoming a foreman, manager of many departments, and finally president of Harley-Davidson in 1942.

In 1963, Bill brought in his son William Godfrey Davidson (Willie G.) on to head up the styling department of the company. Willie G. would end up creating some of the company’s more popular designs, including the legendary Low Rider and the Super Glide which was inspired by the ideas of bike customizers.

In 1965 Harley-Davidson went public as the two families decided to give up control and put the company’s shares on the market.

In 1969, Harley-Davidson was bought by American Machine and Foundry Co. (AMF), a leisure equipment manufacturer.  The arrangement proved, at least initially, to be a good one for Harley-Davidson, for it was in the mid-1960s that the company experienced its first real competition after Indian went out of business. The financial resources and stability that AMF was able to provide helped the company battle Japanese motorcycle manufacturers, who had begun exporting their vehicles around the world, placing themselves in direct competition with Harley-Davidson.

Bill stayed on as president under the control of AMF reporting to it’s then current chairman and CEO Rodney C. Gott (Mr. Gott served as AMF president, starting in 1962, and chairman and chief executive, from 1968. He retired in 1978).  Mr. Gott was a Harley-Davidson rider and big motorcycle fan.  As a sidebar: In World War II, Mr. Gott was a decorated veteran who served in Gen. George S. Patton’s Third Army and on the staff of Gen. Lesley James McNair, chief of ground forces, and was also commander of the 79th Infantry Division Artillery.

In 1971, Bill Davidson was made Harley-Davidson chairman, but reported that he had little power while under AMF’s control.  It was noted that he was chairman of the Harley-Davidson board that never met.  Conflicts with AMF’s strategy and chaotic market conditions led to Bill Davidson’s resignation in 1973.

It was a period of high CEO turnover at Harley-Davidson.  During this time, AMF named John O’Brian and then Gus Davis as president, marking the first time someone other than a Davidson would sit in the company presidents chair.  Other Harley and Davidson family members continued on at the company under AMF’s ownership.  Bill Davidson’s son John was vice president of Sales, and then moved up to become president after Gus Davis.  William J. Harley was engineering vice president until his death in 1971.  His brother John Harley remained at the company until his death in 1976 as the last Harley at Harley-Davidson.

In 1975, AMF put Vaughn Beals Jr. at the head of Harley-Davidson, and Jeff Bleustein was named chief engineer. Bleustein was charged with making manufacturing improvements, which had  become increasingly necessary as production grew and quality declined.  A limited line of high-priced products and a reputation for unreliable motorcycles marked this timeframe in history.  AMF began to lose interest in keeping the struggling motorcycle business afloat.

Rodney C. Gott (Left) and John Davidson, President Harley-Davidson

In a bit of irony, (circa: 09/1977), the motor company unveiled a motorcycle museum in York, PA., that was named after AMF’s CEO — Rodney C. Gott Motorcycle Museum.  A video HERE.

In June 1981, to save the company, and to effect a turnaround, thirteen Harley-Davidson executives, led by Vaughn Beals Jr., put together a plan for a leveraged management buyout. With the financial support of Citicorp, the management team succeeded in taking control of Harley-Davidson from AMF on June 16, 1981, at a cost of $81.5 million.

The role of the new officers after the company buy-out option included: Charles Thompson, president and chief operating officer; Jack Hamilton, Chris Sartalis, Jim Paterson, Kurt Woerpel, Peter Profumo, Jeffrey Bleustein, Thomas Gelb, William Davidson, and Tim Hoelter, all vice presidents. The president of the various divisions were: John Davidson, golf; David Caruso, parts and accessories; Ralph Swenson, York; and David Lickerman, Harley-Davidson International.

Even though he was no longer actively involved with the company, Bill Davidson lived to see the renewal and success that Harley-Davidson enjoyed starting in the late-1980s.

Bill Davidson died in 1993.  He was inducted into the AMA Motorcycle Museum Hall of Fame in 1999.

Walter Davidson — was president from 1907 to 1942.  Bill Harley was chief engineer and treasurer. Author Davidson is secretary and general sales manager and William A. Davidson is the works manager.

In 1936, six sons of the founders are working at Harley-Davidson.  Walter Davidson’s sons Gordon and Walter C.; and William Davidson’s sons, William Herbert “Bill” and Allan; and Bill Harley’s sons, William J. and John.

In 1942 from his death bed,  Walter Davidson named his nephew William Herbert “Bill” Davidson as president and his own eldest son Gordon, as vice president of manufacturing.

Historical Principal H-D Subsidiaries: Holiday Rambler Corporation; Utilmaster Corporation; B&B Molders; Creative Dimensions; Nappanee Wood Products.

Article References:

Vaughn Beals Jr. – Wikipedia
Growing Up Harley-Davidson – Jean Davidson
Harvard Business Review – Harley Leadership U-Turn
Jeffrey Bleustein – Wikipedia
The Morning Call – Harley Is A Classic Turnaround Story
Rodney C. Gott Obituary
Gus Davis Obituary
Cycle World Magazine – Interview with CEO, Matthew S. Levatich
Cycle World Magazine – Rodney C. Gott Motorcycle Museum
Chicago Tribune – The Real Harley-Davidson Story
James Ziemer – Northwest Harley Blog
People – Buy Back Article
Rick Barrett – Journal Sentinel

Harley-Davidson (Buyout) Management Team

**The Harley-Davidson managers post buy-out option: left to right standing: John Hamilton, Dr. Jeffrey Bleustein, Kurt Woerpel, Chstopher Sartalis, and William G. Davidson.  Left to right, seated: James Peterson, Timothy Hoelter, David Lickerman, Peter Profumo, David Caruso, Ralph Swenson, Charles Thompson, and Vaughn Beals Jr.

 

Photos courtesy of Harley-Davidson

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Have you ever thought about what a member of the military eats when deployed?

Those splashy marketing videos never seem to show it and we’re left to wonder what’s in those MRE’s.

When we commemorate the men and women who have died while in military service we tend to talk about “the troops” in an abstract form these days.  Bumper stickers remind us to “support the troops,” which is the functional equivalent of a bumper-sticker request to “imagine world peace.”

The nightly news, when they depart from the daily Trump “Groundhog Day” spotlight, will sometimes feature “In Remembrance” lists of “The Fallen,” which quickly scroll across our screens—distancing ourselves from them—their complexity, their individuality, their family, their humanity, before the next re-run of Seinfeld begins.

Memorial Day involves parades and a variety of solemn services, but most often, it involves barbecues.  Which for many allows us to be ignorant of what “the troops” service entails in the first place.  It’s not, of course, that “the troops” don’t deserve our admiration; it’s that they deserve much more than one day or weak displays of convenient gratitude on a bumper sticker or the empty logic of “support our troops” in a Twitter tweet.

The National Moment of Remembrance Act, encourages all-Americans to pause at 3 p.m. local time on Memorial Day for a moment of silence to remember and honor those who died in service to our nation.

So on Monday, May 29th, please take a moment to reflect and ask what it’s like, what it’s really like, to be a soldier.  And honor those who died in service to our nation.

The Oregon Department of Veterans’ Affairs has posted a list of Memorial Day events across the state on its website.

Photos taken by author’s father in Vietnam.

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Many automotive motorists simply are not taking their driving task seriously.

Distractions are everywhere and some seem to think cruising down a public road is a passive activity rather, it’s a complex task that involves concentration and more than just knowing how to use the accelerator, brakes, and steering.

Few automotive motorists will land on this blog post, but if they do here are some key messages for drivers:

  • Look For Motorcyclists — Use your eyes and mirrors to see what’s around, and check the blind spots when you’re changing lanes or turning at intersections. Look, and look again.
  • Focus on Driving — Don’t Text, hang up the phone, put down the eye lash liner brush, stop adjusting the sound system, ignore the navigation system, settle the passengers, and DRIVE.
  • Use Your Turn Signals — Signal your intentions for everyone’s safety.
  • Give Motorcycles Some Room — Don’t tailgate or pass too closely.
  • Take Your Time — Nothing is as important as the safety of your loved ones, yourself, and the others with whom you share the road.

Key messages for motorcycle enthusiasts?  Responsible riding habits are paramount and always worthy of special attention.

2017 Proclamation

May is Motorcycle Awareness Month and it’s time to remind everyone about driver safety.  Please keep your mind on the road!

NOTE:  As of the blog posting time stamp there’s been NO proclamation from Oregon’s 38th  Governor or the Governor’s Advisory Committee on Motorcycle Safety on the May 2017 Motorcycle Awareness Month.  Of course members are supportive of everyone being a responsible rider with efforts centered on training to improve rider skills and communicating the dangers of motorcycling, but a statement for this year has yet to be released.

UPDATED: May 4, 2017 — CORRECTION: Governor Brown did sign a 2017 proclamation in late April about May being Motorcycle Awareness Month.  See HERE.

Photo courtesy of Motorcycle Rider News.

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Harley-Davidson Two-Cycle Engine

When you think about Harley-Davidson motorcycles, it’s most often about the V-Twin engines, the retro-styling and the inescapable sound.

Many forget that the motor company manufactured a lightweight two-stroke engine and runabout motorcycle for 15-years.

In 1947 as a 1948 model, if you purchased an entry level runabout motorcycle it came with a two-stroke 125 cc single piston motor.  There were two motorcycles engines built — the Model 125 or S-125 (eventually called the ST-125).  The Model 165 or ST-165 replaced the ST-125 in 1953 when the engine size was increased to 165 cc. The ST models were the motor companies idea of how America motorcycle riding should be accomplished after WWII.

The Hummer

So how did Harley-Davidson develop or get the 2-stroke design?

The name “DKW” comes from a two-stroke engine built in 1919 by the Danish engineer Jørgen Skafte Rasmussen, in Saxony, Germany. It was a small engine, which Rasmussen called Das Kliene Wunder (the little marvel) that gave DWK its start in the motorcycle industry.

As WWII drew to a close in 1945, DKW’s factories had either been damaged or occupied by the Red Army. The Soviets took DKW plans, tools, and personnel back to Moscow where copies of the 125 were soon produced. The Soviet version of the 125 was first released in 1946 as the Moskva M1A and later as the K-125.

AMF Merger – 1969

As part of Germany’s war reparations, Harley-Davidson acquired the rights to the German DKW three-speed, two-stroke 125 cc Single.  Harley product shipments began in 1948 and thousands were manufactured in various incarnation until production ceased in 1966.

An updated model called the Hummer was added to Harley’s lineup in 1955, and subsequently all Harley single-cylinder two-strokes built between 1948 and 1966 incorrectly have come to be known as Hummers. The Hummer was named after Dean Hummer, a Harley-Davidson dealer in Omaha, Nebraska who led national Harley two-stroke sales.  The Hummer was very basic — it had magneto ignition and was sold without battery, electric horn, turn signals, or a brake light.

The Topper Scooter

In 1960, Harley-Davidson consolidated the Model 165 and Hummer lines into the Super-10, introduced the Topper scooter, and bought fifty percent of Aermacchi’s motorcycle division. Importation of Aermacchi’s 250 cc horizontal single began in 1961. The motorcycle had Harley-Davidson badges and was marketed as the Harley-Davidson Sprint. The engine of the Sprint was increased to 350 cc in 1969 and would remain that size until 1974, when the four-stroke Sprint was discontinued.

In 1962, Harley-Davidson built the Ranger, an off-road motorcycle without lights, made only for a year.  It had an extra-low final-drive ratio of 7.0:1 (12-tooth countershaft gear and 84-tooth rear sprocket) had neither a lighting system or front fender. Speculation was this motorcycle was built to consume the motor company supply of 165 cc engines, which would not be needed for any other models.

Aermacchi-built Harley-Davidson — The  Sprint

After the Pacer and Scat models were discontinued at the end of 1965, the Bobcat became the last of Harley-Davidson’s American-made two-stroke motorcycles. The Bobcat was the last of the 125-based Harley’s and manufactured only in the 1966 model year.  It was also the only 125-based Harley with a standard dual seat.

In 1969, American Machine and Foundry (AMF) bought Harley-Davidson, streamlined production, and slashed the workforce. The tactic resulted in a labor strike and lower-quality bikes.  Sales and quality declined, and the company nearly went bankrupt.

Harley-Davidson replaced their American-made lightweight two-stroke motorcycles with the Aermacchi-built two-stroke powered M-65, M-65S, and Rapido. The M-65 had a semi-step-through frame and tank. The M-65S was a M-65 with a larger tank that eliminated the step-through feature. The Rapido was a larger bike with a 125 cc engine. The Aermacchi-built Harley-Davidsons became entirely two-stroke powered when the 250 cc two-stroke SS-250 replaced the four-stroke 350 cc Sprint in 1974.

Harley-Davidson purchased full control of Aermacchi’s motorcycle production in 1974 and continued making two-stroke motorcycles there until 1978, when they sold the facility to Cagiva and ending it’s run of two-stroke engines.

Photos courtesy of and taken at Harley-Davidson Museum

For additional Harley-Davidson V-Twin Engine History see this page.

Sources:
Craig Hammitt LinkedIN Article
Wikipedia
Cycle World Article (1993) Article

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Harley-Davidson CEO Meets POTUS

Earlier this year, the President met with Harley-Davidson exec’s and put a spotlight on the company in his address to Congress, yet there was no “Trump Bump” as the motor company reported earnings which included sharp declines in revenue and profit for the first quarter of the year.

Some of the key Q1’17 stats:
— $186.4 million in net income, or $1.05 per share, for the period ended March 26, down more than 25% from $250.5 million, or $1.36 a share, in the same period a year ago.
— Revenue was $1.5 billion, down from $1.75 billion in the first quarter of 2016.
— Motorcycle sales in the U.S. were down 5.7% in the quarter compared with a year ago and International sales fell 1.8%
— Reported motorcycle shipments fell 14.7% to 70,831 in Q1
— Market share in the 601cc-plus segment was up to 51.3%.  Execs stated that the Victory liquidation helped market share.

Nothing screams Americana more than deep vehicle discounts and Harley-Davidson jumped head first into that pool by offering its dealers financial incentives to clear out the leftover 2016 motorcycles.  And in an unusual move the company has purposely constrained the supply of its 2017 hottest-selling new models, including bikes with the new Milwaukee Eight engine, leaving some customers waiting to conquer the open road.  All of this is happening with only 4-months until the 2018 model-year launch.

If you listened to the earnings call this week there was a lot of “feel good” expressions from management about the way the company is performing yet, there are tepid sales, a downbeat outlook, and consumer confidence numbers that don’t reflect spending behavior.  Clearly households worldwide are slow to embrace new motorcycles as a way to enjoy life.

According to Harley-Davidson this is the 9th year in a row (based on IHS Market New Registrations) for motorcycles with 601+cc where they were the number one seller of new on-road motorcycles in the U.S. on both their “outreach” and “core” customers.  “Outreach” is defined as four segments — young adults ages 18-34, women, African Americans and Hispanics.  “Core” is defined as Caucasian men aged 35-plus.

Harley-Davidson reported that more people than ever before are discovering motorcycles and claimed that they are dominating the motorcycle market as well as being recognized as the leader in addressing key demographics — women, younger riders, African Americans and Hispanics, however, the patterns of growth remain elusive.

So whats going on?

Let’s drill down:
— Press and media continue to push negative motorcycle narratives (motorcycle crashes, distracted driving, club violence (last years Waco example) etc.).
— Increased pricing on new motorcycles have pushed out the average length of ownership.  For example new autos reached 6.5 years in Q1 2015.
— In the northwest along with parts of California the wet weather has limited the number of days to ride in 2017.
— Increasing Insurance rates  — on auto, home and health care biting into the discretionary funding of a motorcycle hobby.
— Income growth has declined.
— Interest rates have increased (in past years people pulled $$ from their house to buy a “toy” and now there is no where else to pull $$).
— Fewer “Outreach” customers (aged 18-34) own vehicles or don’t drive as much, they UBER.
— Apathy of the motorcycle hobby/life style as a form of entertainment

All or some elements of this could be weighing down new motorcycle purchases.  But I’m an optimist, and Harley-Davidson has a 10-year strategy to train 2 million new U.S. riders, grow international business to 50% of sales (currently about 32%) and launch 100 new “high-impact” motorcycles.

As it turns out and according to this report, about 22% of all new motorcycle purchases come from first-time buyers. This figure has remained relatively stable since 2001.  It’s very likely some of those 2M new riders will buy a new “high-impact” Harley.

Photos courtesy of CNBC and Harley-Davidson

Full Disclosure:  I don’t currently hold or intend to hold any $HOG shares.

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This is interesting timing because April is Alcohol Responsibility Month and the partnership announcement stated nothing about responsible drinking and riding!

Sailor Jerry Spiced Rum

The multi-year marketing partnership was announced this month and the two companies will honor the father of American old school tattooing, Norman “Sailor Jerry” Collins and unveil a series of twenty-two customized Harley-Davidson motorcycles designed by high profile artists and visionaries from around the U.S.

If you are unfamiliar with Norman “Sailor Jerry” Collins story, after serving in the U.S. Navy during WWII, he dedicated his life honing the art of tattooing out of his shop on Hotel Street in Honolulu. His shop became the must-stop destination for sailors on their shore-leave.

In the 50’s and 60’s, Americans getting tattoos included the most aggressive elements of counterculture.  And it was a time of another level of commitment to inscribe your body with an image that permanently stated your beliefs, affiliation or anti-establishment attitude.  In the 70’s and early 80’s, getting aggressively tattooed and pierced became a mark of punk culture’s disdain for conformity and social mobility.  Today the range of things that people express with tattoos continues to widen.

Oregon Has 2nd Highest Alcohol-Impaired Driving Fatalities From 2014-2015

But, I’m intrigued about this motorcycle and spiced rum marketing partnership which has some historical IRONY.  First, as previously mentioned the two companies chose April to kick-off the marketing partnership which  officially celebrates Alcohol Responsibility Month.  On the surface, that seems a bit tone deaf considering the increasing number of automobile and motorcycle accidents/deaths related to impaired driving.  In addition, is the fact that Norman “Sailor Jerry” Collins was out riding his Harley-Davidson in 1973 when he had the heart attack that took his life (after collapsing in a cold sweat, he got back on his bike and rode home).  So, when Scott Beck, Harley-Davidson director of marketing stated: “We are struck by the natural ties Sailor Jerry has to the motorcycle culture” it raises some awkwardness in my view and wonder how the two companies ever got mixed up in all this in the first place.

But I’ll stop reflecting and focus on the announcement.

According to the Milwaukee Biz Times — the two companies said the partnership would “come to life in bars, restaurants, Harley-Davidson dealerships and joint celebrations around the country” and consumers should expect a number of shared events leading up to Harley’s 115th anniversary in 2018.  “Sailor Jerry Spiced Rum and Harley-Davidson are all about freedom of expression and customization, whether that is expressed by a Norman Collins tattoo or a bike,” said Scott Beck, Harley-Davidson director of marketing.

The first event will be the unveiling of 22 customized motorcycles at the Harley-Davidson Museum on May 2. Harley’s Forty-Eight, Iron 833 and Roadster models were used for the project.

The artists will incorporate the flash art style of “Sailor Jerry” into their motorcycle design.  And members of the Harley-Davison styling team will also work on the motorcycles to inspire their designs.  The custom motorcycles will be on display at events at liquor retailers, Sailor Jerry’s Fleet Week New York celebrations, the Harley-Davidson Museum and more. The motorcycles will also be available to win in a sweepstakes that starts May 15.

Clearly the reckless spirit of motorcycle riding and alcohol don’t mix.  However, the collaboration with Harley-Davidson and Sailor Jerry Spiced Rum does have a natural feel about it and I’ll be curious to see some of the artwork and craftsmanship that comes from the partnership.

Photos courtesy of Sailor Jerry Spiced Rum and Responsibility Org.

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