What am I bid for Milwaukee iron?
Harley-Davidson and Milwaukee go together like Volvo and Sweden, but that may no longer be the case.
While Volvo is now firmly owned by the Chinese and Harley is firmly planted in India, considering manufacturing bikes there for sale in that market, the Big American Motorcycle Kahuna is looking at moving its HQ.
There's been talk before, of course, as new head Harley dude Keith Wandell warned labor unions some time ago that he'd look at Kentucky for a new production plant, if the union did give in to the company's demands.
The talk is out again, this time in an Associated Press story out of Milwaukee. The story says a decision should be made in two months.
A great story in BizTimes, a Milwaukee business journal, explained it well. If you're a Harley fan, read it. According to writer Eric Decker, Harley profits dropped more than 18 percent in the first three months of this year compared to last year and annual sales were down more than 20 percent.
It lost more than $55 million last year.
At least one community bandied about as the new H-D facility has been Shelbyville, Ky.
Wandell, who was the former CEO of Johnson Controls and never rode a motorcycle until he took over Harley's handlebars, has been ruthlessly reengineering the company. He pulled Buell's plug. He laid off workers and trimmed the York, Pa. production plant. It's likely he's not bluffing about moving the plant and getting rid of labor union contracts.
He's following in the footsteps of General Motors, which has killed off Oldsmobile, Pontiac, Saturn, Hummer and sold off Saab. Ford has sold off Volvo and is shutting down Mercury. The bottom line is that, for Harley, it's all about the bottom line.
The company has put some new models for 2011 that include a even lower lowered Sportster and some big-money big rigs. No major announcements and nothing groundbreaking, but few companies are breaking ground in the current worldwide motorcycle recession.
Those new models created since 2008 have helped Harley appeal to younger riders, according BizTimes.
The Dark Custom bikes, including a Springer Softtail and several Sportsters, have sold well, according to company officials.
Harley officials proudly announced in the story that the Dark Customs attracted customers without the company having to resort to building sport bikes or scooters.
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