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Somewhere on CA. Highway 139

Somewhere between Bieber and Sheepshead on CA. Highway 139, you’ll find yourself in the middle of nowhere.

Add to that being kissed with semi-warm September sunshine and you’d be in a place that many of us on motorcycles call happiness.

Sure we could set the cruise control on Interstate 5, but the fun ride to Reno, Nevada for the fall Street Vibrations Rally is coincidently also the shortest route leaving Portland to Eugene (Hwy 58) to Klamath Falls then on OR39 which becomes CA139 through much of the Modoc National Forest and Tule Lake to US 395 into Reno.

Interestingly, OR39 runs through the mixed-up little town of Hatfield.  The California map says it’s in California and the Oregon map says it straddles the state line, which at least in practice, it does.  The actual location of the state line is a bit confused, because Hatfield is an unincorporated community in both Siskiyou County, California, and Klamath County, Oregon.  At any rate, the junction of Oregon Route 39, California State Route 161, and California State Route 139; all three routes terminate at a four-way junction in the community.

If you live in the Northwest you know that the Oregon summer ends and autumn starts for many motorcycle enthusiasts by making the pilgrimage to the 25th annual Street Vibrations Rally.  It’s often the last nice weather ride of the season.  Nothing replaces wind in the face on the Harley-Davidson, a playlist with heavy bass, and a distant horizon when needing a little adventure.  Some may argue that the make and model of the motorcycle doesn’t matter, that the joy comes solely from the open road—frankly, they’re right.

Street Vibrations officially closed on Sunday.  Over five thousand people were expected to attend the multi-day event and from my vantage the number of riders in town for the celebration exceeded that estimate.  There were over 250 vendors with motorcycle gear, food stalls and six stages of great live music!  Most notable was Heartless—a tribute to Ann and Nancy Wilson of Heart and they delivered the sound and spirit of the sisters classic rock-n-roll songs.   Video snippet below:

 

On Friday we rumbled along the 26-mile route from Reno to Virginia City—called Geiger Grade Road—with thousands of other riders who cruised into the historic mining town.  The route offers several curves along a cliff side and views of rolling hills with sagebrush to the pine tree-covered mountains.  It’s a thrilling experience, but the road routinely catches riders off guard and can become an accident quickly.

We soaked up the 81°F day and continued riding the loop to Carson City Harley-Davidson for more motorcycle accessories, themed art, crafts, apparel, music and ended the day back through the Carson (“wind tunnel”) Valley.  Mainstream meteorology suggests that “windy” conditions are anything sustained above 15 miles per hour, but we joked later that our helmets began inflicting what felt like a wind concussion on that segment of the ride.

I-5 Return Route With Cold, Rain and Wind

Speaking of navigating hazards… they are part of everyday life for motorcycle riders—we’re experienced riders, and typically get the local weather forecast before riding. If extreme temperatures are predicted, we might consider a different route and/or a different departure day if it’s practical. It was clear from Friday’s weather reports we’d be riding through less-than-ideal conditions—read MUCH COLDER and wet.  What?  Rain at Street Vibrations!  We enjoyed the 80°F temperatures  Wednesday through Friday, but now fast-moving storm along with a freeze watch was in effect with heavy rain expected Saturday mid-morning and all day Sunday.  In addition, the Oregon passes would receive snow down to 3500 feet and we had at least two major mountain passes to traverse above that altitude.

Postponing our departure wasn’t an option so, we opted to end the festivities early and leave on Saturday and avoid the worst of the early winter storm.

Estimating wind chill is a complex calculation involving ambient temperature and wind speed.  It goes something like:

Temperature’s Influence = ( ( Predicted High Temperature – ( Temperature Base = Your Minimum Acceptable Temperature – ( Predicted High Temperature – Your Minimum Acceptable Temperature ) ) ) / ( Your Ideal Temperature – Temperature Base ) ) * 100 then factor in Wind’s Influence = ( ( Low, High and Gust Wind Speeds Averaged – Your Minimum Threshold For What’s “Windy” ) / ( Your Minimum For What’s “Hazardous” – Your Minimum For What’s “Windy” ) ) * 100 and finally there’s Precipitation Influence, Minimum Visibility and the wildcard algorithm of Road Conditions.  When in doubt always multiple by 100!

If you tracked all that, then you’ve likely developed a customizable motorcycle weather application for the iPhone and already talking a “deal” with the motor company.  I’m not a mathematics wiz, but I know for a fact that warm and comfortable riders have more fun!  Thirty minutes outside of Reno did not fail to disappoint—bringing heavy black clouds, cold torrential rain, hail showers along with snow on the higher elevations of the Plumas Mountain Range.

Riding in the rain doesn’t make me unique—it’s one of the things you do on the road.  Motorcyclist spend the money on riding gear with features or materials to keep warm(ER) and dry.  But, very cold temperatures and the first major rain of the year in Nevada means the oil rises to the top of the highway in a soapy like mess and combined together makes a person go from “Get your motor running” to “Sux2BU” pretty quick.

No one thought we were “cupcakes” just because we didn’t want to ride in the cold/rain/snow.  Fortunately Harley’s heated gear has gotten far more user-friendly over the last ten years and we pressed through the worst of the weather for 560 miles and now have another story to tell.

Arrest Stats for 2019 Street Vibrations.

Photos take by author.

All Rights Reserved (C) Northwest Harley Blog

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Customize It And Stand Out

According to Reuters, Harley-Davidson Inc. has laid off 40 employees in Milwaukee at their general merchandise division.

It’s not a large number of employees, but most unfortunate if your career “rug” was just pulled out from underneath you as someone impacted by this reorganization.

Important to note is that Harley-Davidson’s second quarter earnings report, released July 23, 2019 reported general merchandise sales of $64.6 million, a 5.8% decline from 2018. The company saw a 4.2% decline in the first half of 2019 from 2018 in general merchandise.  It’s also no secret that Harley-Davidson continues to see a decline in motorcycles sales in the U.S. and abroad as it works to adapt to changing clientele.

In the Reuters report the motor company stated the general merchandise division re-org was to manage it’s business with “focus and discipline.”  That statement reads like a quote from the Six Disciplines playbook.  Was the division previously an over-committed reactionary one with no focus and discipline?  That euphemistic “focus and discipline” term seems to be more about flattering management because at the end of the day it’s a “reduction in force,” which is an old school straightforward term.

SAVE, SAVE, SAVE

And speaking of general merchandise — have you noticed the significant up-tick of emails from Harley-Davidson corporate or your local dealer?  I follow Harley-Davidson on multiple channels to stay current on their events and product announcements and always get a number of emails, but I’ve seen a dramatic drum-beat increase over the last couple of months.

It’s starting to have a feel of desperation to survive and meet sales quotas.  Here are a couple recent examples:

Motorclothes, Last Chance to Save Up to 50%…
Harley-Davidson VISA…Reap The Rewards…
End of Summer Sale…
Customize It and Stand Out…
Finance Interest Rate Specials…
Schedule a test ride today…
The 2020 Models are here…
Ride into Fall sale…
Performance Workshop this weekend…

Why is email solicitation so popular?  Because it’s a free alternative to tele-marketing and direct-mail campaigns.  The cost of sending an email is minimal compared to the cost of printing and mailing paper and the email “opportunity” goes directly to your inbox for review.

I predict we’ll see more and more sales email as the motor company works even harder to capture and retain our interest.

Photos courtesy of Harley-Davidson email blasts

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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

All Rights Reserved (C) Northwest Harley Blog

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Multiple Years of Hells Canyon Rally T-shirts

Multiple Years of Hells Canyon Rally T-shirts

A motorcycle t-shirt addiction!

If you are reading this post based on the title then you know I’ve completed the first step, acceptance!

It started out as a day of cleaning the closet and the dresser.  The t-shirts were categorized by:
  • Stack #1 — The newest Harley t-shirts (location based) that I frequently wear during the week
  • Stack #2 — T-shirts with some wear from various HOG events and motorcycle rallies
  • Stack #3 — T-shirts that have significant wear that I save up and pack for those long trips and then I’ll throw them out as I travel to lighten the load
  • Stack #4 — Long sleeve t-shirts only
  • Stack #5 — In the garage for oil clean up.  Typically they were gifted Sons of Anarchy (SOA) tee’s!
Various H.O.G. Rally T-shirts

Various H.O.G. Rally T-shirts

I’m no longer in denial, and have finally accepted that I have a propensity to purchase too many motorcycle t-shirts.  I’ve got several shelves and drawers in a dresser dedicated to everything from tank tops to long sleeve t-shirts.  I’m definitely flirting with excessive and now realize after my day of cleaning that I should just say no!  I could hit the road and wear each shirt and never do laundry for well over a month.

Do you have this problem?

I have t-shirts from so many H-D dealers around the world, then add in those from the various pubs, band/concerts, place-name t-shirts, and an original Big Lewbowski t-shirt that I can’t bring myself to ditch “The Dude.”

I can promise you that nearly any time I go somewhere on the motorcycle, I’m buying a t-shirt there. Why? Because it’s what I like to wear.  But, it also starts out as some regret because when I’m at a motorcycle event and I see a t-shirt that is out of the ordinary I’ll think about purchasing it.  It’s unique.  It’s a color of black that I don’t own!  The graphic design is interesting.  The compulsion is to buy the t-shirt, hope for a good fit after being washed and then add the particular t-shirt to my ever growing collection.

You just don’t understand the extra ordinary strength it takes for me to not buy a t-shirt these days.  In many instances t-shirts have been the only documentation of my rides, a recap of the journey or a memory on one of those bucket list highways.

You may think that it gets better with time, and that as I get older I wouldn’t feel the compulsion to have so many H-D t-shirts, but I am here to tell you that in fact it does not.

I’ve decided I have give up fighting it, and will now spend more time parting with the worn t-shirts by dropping them off at Goodwill or using some for doing a wax and shine on the bike.   Hopefully I’m making a fellow t-shirt “addict” a happier person.

Photos taken by author.

All Rights Reserved (C) Northwest Harley Blog

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Screen Shot 2015-07-22 at 1.44.35 PMI’ll get right to the point.  Motorcycle sales down.  Revenues down.  Earnings down. Currency issues.  Tough competition.

The company’s Q2 earnings were hard to sugar coat for Matt Levatich, President and CEO.  But he sure tried.

“Our actions during the quarter have had a positive impact. We are encouraged by the momentum at retail as the quarter progressed, both in the U.S. and internationally.”  “We are confident in the strength of our business and the strategies we have in place to maintain our industry leadership and grow our business over the long term,” said Levatich. “Our singular focus on the customer through unrivaled products, unique experiences and our expanding dealer network is the bedrock we are building on to continue to grow our reach and impact with customers across the globe.”

Dealers worldwide sold 88,931 new motorcycles in Q2 2015 compared to 90,218 motorcycles in the year-ago quarter. In the U.S., dealers sold 57,790 new motorcycles in the quarter compared to sales of 58,225 motorcycles in the year-ago period.  In international markets, dealers sold 31,141 new motorcycles during the quarter compared to 31,993 motorcycles in the year-ago period, with sales up 16.6 percent in the Asia Pacific region and down 8.9 percent in the EMEA region, 2.6 percent in the Latin America region and 9.9 percent in Canada.

Second-quarter revenue from motorcycles decreased 11.6 percent to $1.31 billion compared to revenue of $1.48 billion in the year-ago period. Following the company’s decision in April to lower motorcycle shipments, the motor company shipped 85,172 motorcycles to dealers and distributors worldwide during the quarter compared to shipments of 92,217 motorcycles in the year-ago period.

Revenue from motorcycle parts and accessories was $256.8 million during the quarter, down 5.4 percent, and revenue from general merchandise, which includes MotorClothes apparel and accessories, was $77.5 million, up 1.5 percent compared to the year-ago period.

As the new CEO, this is Mr. Levatich’s first solo “ride” on an earnings report after Keith Wandell retired.   You have to give the company cred for its integrity of not over producing its motorcycles, but employees and shareholders can’t be happy with these sales.

Full disclosure:  I have no positions in HOG stocks and no plans to initiate any position within the next 72 hours.  I wrote this article from publically accessible information and expresses my own opinion.  I am not receiving compensation for it and have no business relationship with the company.  I currently own a Harley-Davidson Road Glide.

Photo courtesy of H-D.

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DRONE-GUYKnown as “remotely piloted aircraft” or “RPAs” in military parlance, drones may well have a coming out party at this years 75th Sturgis rally.

Ellsworth Air Force Base is located approximately 10 miles northeast of Rapid City, South Dakota and about 30 miles from Sturgis. The 432nd Attack Squadron has 195 personnel dedicated to piloting drones to conduct surveillance.  It’s primarily focused on flying in foreign countries, but there are many different drones in the Air Force’s inventory and the question about use as a law enforcement tool during the Sturgis motorcycle rally was recently floated.

Drone_cover_imageI’m talking about something less threatening than the MQ-9 Reaper in the Sturgis sky, but something that will include live-feed video cameras, heat sensors and radar.

Advocates claim they can be used to quickly respond and solve medical problems, help untangle vandalism incidents, protect the hundreds of thousands of dollars of cash that transact each night with vendors, catch illegal behavior, and provide documentation for law enforcement.

Is 2015 the year of aerial drone surveillance during the Sturgis Rally?

20130515_drone2_33Well consider the fact that Arial land survey by drone is already in process in South Dakota.  The South Dakota School of Mines & Technology is training students to use drones for rescue and hostage situations and South Dakota currently has no Unmanned Aircraft Systems (UAS) Legislation preventing the skies from being used for drone flight.

And then if you look just across the state border to North Dakota, a family was arrested with the assistance of a Predator drone.  Rodney Brossart was sentenced to three years in prison, of which all but six months was suspended, for a June 2011 incident in which police attempted to arrest him over his failure to return three cows from a neighboring farm that had strayed on to his property.  Mr. Brossart’s sons were located by a border-surveillance Predator borrowed from Customs and Border Patrol (CBP), which enabled local police to safely apprehend them, according to local newspapers or as reported by the LA Times.

Still skeptical?  Here are some additional drone facts:

  • Between 2005 and 2012, the amount in contracts the federal government awarded for drones: at least $12 billion.
  • Number of companies that are now in the drone business: more than 1,000.
  • Number of private-sector and government requests to fly drones that the Federal Aviation Administration (FAA) has approved since 2007: 1,428.
  • Number of police departments that have asked the FAA for permits to fly drones: 12.
  • Number of commercial drones that the FAA predicts will be flying in domestic airspace by 2017: 10,000.
  • Price of a drone-proof hoodie being sold by the British company Stealth Wear, which also offers drone-proof scarves and burqas: $481

The question of whether aerial surveillance requires a warrant is ambiguous, with some court rulings ­including a 1986 Supreme Court decision ­allowing warrantless surveillance, while other rulings have found it to be unconstitutional.

Unmanned-aircraft-Coming-to-a-sky-near-youThere was a time when aerial surveillance was so expensive that privacy was a minor issue. But now drones are relatively cheap and can be equipped with sophisticated sensors, so they can vacuum up large amounts of camera imagery and other data, in the same way that advances in computers and communications enable the NSA to collect huge amounts of data from telephones and the Internet.

Law enforcement will clearly advocate that drones support most all of the “unobjectionable” police raids.  However, how long will it be before networks of linked drones and computers “gain the ability to automatically track multiple motorcycles and bodies as they move around a city,” much as the cell phone network hands calls from one tower to the next. The authorities would then combine drone video and cell phone tracking to build up databases of people’s routine comings and goings—databases they can then mine for suspicious behavior.

drones-shropshire-gettyv2And here I thought states using federal highway safety grants to fund discriminatory Motorcycle-only checkpoints was government over reach.

Most people who ride and stay in Sturgis know they are being financially exploited and that today’s “hard-core” Sturgis rider is grayer, and is much better behaved.  None of this is new.  What is new, is the potential use of drone surveillance which is teetering on a privacy razor’s edge.

Note: Oregon’s HB 2710 defines a drone as an unmanned flying machine, not including model aircraft. The law allows a law enforcement agency to operate a drone if it has a warrant and for enumerated exceptions including for training purposes. It also requires that a drone operated by a public body be registered with the Oregon Department of Aviation (DOA), which shall keep a registry of drones operated by public bodies. The law grants the DOA rulemaking authority to implement these provisions. It also creates new crimes and civil penalties for mounting weapons on drones and interfering with or gaining unauthorized access to public drones. Under certain conditions a landowner can bring an action against someone flying a drone lower than 400 feet over their property.  In addition, Oregon was chosen as one of six UAS test sites by the FAA.   More UAS information HERE.

Photos courtesy of internet.

All Rights Reserved © Northwest Harley Blog

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Easy Rider Poster at Sunset Gower Studio

Easy Rider Poster at Sunset Gower Studio

Last spring I happen to be in Hollywood on a work gig and got a Sunset Gower Studio tour.  Sunset Gower has been part of the Hollywood film history since there was a Hollywood.

While wandering through the writers’ suites and the studio lot I walked down this hallway and came across an Easy Rider poster.  The Sunset Gower sound stages were used for the movie.

No one could have predicted that Dennis Hopper and Peter Fonda’s small budget film, fueled by motorcycles and amazing music would redefine pop culture.

In fact, it’s impossible to even think about this film without the opening riff of Steppenwolf’s “Born to Be Wild” echoing in your head.  In the movie industry, it’s rare that a film and its soundtrack break through to the masses.  Easy Rider was an incredible success commercially and culturally (it inspired an entire genre and a hundred knockoffs), and the impact of the soundtrack was revolutionary.

“The idea was to have the music which accompanies the cross-country cycling scenes reflect current times,” Peter Fonda told Rolling Stone in 1969. By compiling prerecorded tracks and music specifically created for the film to make a “musical commentary” and companion to the movie.

IMG_2785Additionally, the Easy Rider soundtrack laid the groundwork for Michelangelo Antonioni’s Pink Floyd-led Zabriske Point the following year and nearly every classic film soundtrack of the next four decades, from Singles to Forrest Gump to Drive.

The soundtrack paints a picture of the counterculture on the brink of the Seventies.   Steppenwolf’s get-on-your-bike-and-ride anthem along with the bluesy dealer epic “The Pusher,” and the classic cuts from the Jimi Hendrix Experience, the Holy Modal Rounders and the Byrds (whose Roger McGuinn also scored the film) makes an epic film.

As the story goes, Bob Dylan was recruited by Peter Fonda to pen the film’s theme “Ballad of Easy Rider,” (soundtrack) and after jotting out a few lines, told the actor to give the lyrics to McGuinn to flesh out.

Photos taken by author and courtesy of Sunset Gower Studio and Silver Screen Collection/Hulton Archive.

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