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Posts Tagged ‘Yucca’

Arial View of H-D Arizona Proving Grounds (Yucca)

The motor company delivers on its promise.

Not a new innovative motorcycle model, but to consolidate testing operations into one single location in Arizona – called the Arizona Proving Ground (AZPG).

Reports out of Kingman, AZ indicate that a local contractor (T.R. Orr, Inc.), received two building permits from the county Development Services Department, one for commercial renovation at the proving grounds and another for the construction of a brand new industrial plant.

You may recall that H-D moved into the Chrysler Proving Grounds at Yucca less than a year ago after it was booted from the General Motors proving grounds in Mesa, which had been closed and sold off the previous year.  The motorcycle company is shuttering testing operations in Talladega, Ala., as well as Naples, Fla., as they are in the process of moving those operations to AZPG through 2011.  I’ve previously reported as far back as 2008 on H-D plans of AZPG HERE and HERE.

According to H-D spokeswoman Pat Sweeney, the changes being made to the existing facilities and the new industrial plant will not only provide H-D the space and equipment it needs to make the most use of the proving grounds it will also – and are you ready for the “E” word – improve its efficiency.  Details on the cost of the new industrial plant or the need for any new employees from the local workforce were – incomplete – as Ms. Sweeney cited an obvious benefit to the community just because we’re consolidating there, but “we’re just still not really sure at his point in time” when referring to hiring plans.  I anticipate they offered folks in the shuttered operations an opportunity to move to AZ and are waiting on the final acceptance ratio before opening job req’s.

And speaking of jobs… the nearby and sprawling Arizona State Prison, Cerbat Facility (20 buildings on 45 acres) was a 2,000-bed minimum custody facility that just completed a major renovation and expansion into 3,400 beds.  I see an inmate labor force expansion in the near future and it couldn’t come at a better time according to local reports.

Photo courtesy of Chrysler

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Talladega“Shake ‘n Bake”…  as the Harley-Davidson financial wizards turn off the Speedway lights and come on cost savings ideas like a spider monkey. 

I blogged in October 2008 that H-D reached an agreement with Chrysler to use part of the Arizona Proving Grounds facility. The facility is located about 25 miles south of Kingman, AZ on the old Yucca Army Airfield.

Given the dismal Q3’09 financial results and closure of Buell, they have now decided to further reduce operational expenses by closing the test facility in Talladega, Alabama, eliminating about 100 jobs. The testing facility was opened in January 1981 and had performed several kinds of vehicle tests including high-speed performance tests on Talladega SuperSpeedway.

The companies operational plans had previously committed to cease testing in Mesa, AZ (the GM Proving Grounds) by July 2009 because the testing ground had been sold for a variety of planned developments.  Consolidating test operations from Talladega; and Naples FL., to the Arizona Proving Grounds in Yucca, AZ., is new information.

Clearly the company is aggressively cutting costs where it can and must be necessary to align cost with the new economic reality of reduced sales. I’m truly starting to wonder if H-D has lost its way and offer up the movie opening title card as a reminder to H-D management: “America is all about speed. Hot, nasty, bad-ass speed. – Eleanor Roosevelt, 1936.”

Photo courtesy of Sony Pictures.

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