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Jason Momoa (i.e. “Aquaman”) collaborates with Harley-Davidson

How often have we recently heard… “We continue to face challenges during these unprecedented times.” — Harley-Davidson CEO Jochen Zeitz opening statement during the July 28, 2020 financial call.

I’m not a grammar nerd, but “unprecedented times” is a tiresome word.  Stop saying it Mr. Zeitz – and it’s also inaccurate!

We are not in an “unprecedented” time.

This isn’t the 1930’s Great Depression, the worst economic downturn in the history of the industrialized world. There’s been no dot-com bubble (i.e. Internet bubble) that was caused by excessive speculation in Internet-related companies in the late 1990s. It’s not the real estate bubble of 2008 and the follow-on market crash, recession and unemployment that was linked to the “subprime mortgage crisis.” There is no automotive industry crisis of 2008–2010 where declining automobile sales and scarce availability of credit led to General Motors, Chrysler, and Ford facing insolvency without major government intervention. It’s not the 1918 flu pandemic, which killed 675,000 Americans and the worldwide death toll was estimated at 100 million. One pandemic death is too much, but the COVID-19 deaths are currently nowhere close to that, thankfully.

Q2 2020 HOG Earnings Report

So, stop using these new most-hated sayings: “unprecedented” times, it’s the “new normal” and “we are in this together” mantra.

And, who’s the “we” here? The point is “we” are not all on the same team in this pandemic. Everyone is dealing with it in their own way. The restaurant employee who’s been unemployed for months isn’t in this together with a Fortune 500 CEO.  The nurse on the front-line treating pandemic patients isn’t in this with the marketing manager who can work from home.

It’s not “unprecedented” for me to rant about something while being largely sequestered at home for nearly five months. But it is what it is, I guess.

Back to the Q2’20 financial call… and some key comments made during the call:

  • The Harley-Davidson culture has suffered. The company has seen five consecutive restructuring’s every year in order to basically chase the downward trend in sales.
  • The Rewire” strategic vision is now being replaced by “The Hardwire.” (more on this at the bottom of the post)
  • Extending the 2020 model year through fall (historically launch was late August) and now new bikes will arrive in dealer showrooms early 2021.
  • Used motorcycle pricing increased about 6% throughout Q2, certainly, higher than Harley has seen in any previous quarter.
  • Harley continues to see strong potential in Adventure Touring and will launch Pan America globally in 2021.
  • Harley has streamlined the structure, which now requires approx 700 fewer positions and approximately 500 employees laid off.
  • H-D is not willing to sacrifice the strength of their legacy in a quest for pure volume growth going forward.
  • Increased recognition on the role of digital technology as a critical priority in the future for Harley-Davidson.
  • H-D will focus on roughly 50 primary markets that generate the vast majority of their retail sales and shipments.
  • Surprise!  Planning to add a Sustainability Officer to the team who will further H-D commitment to the planet and to society.
  • New brand building approach and social media campaign directed by “Aquaman” i.e. Jason Momoa (video of Mr. Momoa touring H-D Museum)

Q2’20 Numbers:

  • Harley-Davidson posted a loss of $0.60 per share for Q2’20
  • Worldwide retail sales of new motorcycles were down 26.6% versus prior year and Q2 revenue of $865 million was down 47% year over year.
  • U.S. retail sales in Q2’20 were down 26.7% versus prior year.
  • EMEA declined 29.8%, Asia Pacific was down 10.2%, and Latin America saw declines in Mexico and Brazil and finished the quarter down 51%.
  • U.S. market share of new bike registrations was 38.5%, down 8.1 percentage points
  • Motorcycle mix shifted from touring to cruising versus Q2’19, which reduced average motorcycle revenue per bike.
  • Credit losses were down due to lower delinquencies and lower repossessions helped by H-D offering of payment extensions to certain customers.
  • While Q2 results were again terrible, Harley-Davidson was still able to sell over 31,000 motorcycles in the U.S. during a global health crisis that closed off its retail stores.

During the financial call, Mr. Zeitz announced Harley will have yet another roadmap to follow: “The Hardwire,” the motor company’s third visionary plan in two years.

You might recall “The More Roads to Harley-Davidson” plan unveiled in July 2018 which stated the development of 100 new models over 10 years, giving more attention to international markets than in the U.S. market, and putting a much greater focus on electric vehicles.

That plan was largely abandoned earlier this year when then CEO Matt Levatich abruptly left the company and was replaced by chairman Zeitz. The “More Roads” was replaced by the vague and loosely defined “The Rewire” plan, which incorporated some of Levatich’s plan, but would instead focus more on key markets and products to drive the bike maker’s profitability and growth potential.

Now we can look forward to a new 5-year strategic plan; “The Hardwire,” which will be grounded in enhancing the desirability of Harley’s brand and protecting the value (i.e., keep pricing elevated) of the iconic products.” The Hardwire roadmap is expected to take over in the fourth quarter and serve as the strategic plan for the company to follow through 2025.

Photos courtesy of Asphalt & Rubber and Harley-Davidson

All Rights Reserved (C) Northwest Harley Blog

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Remember that outsider who kept Harley-Davidson on the road?

Keith E. Wandell (retired H-D CEO) grabbed the handlebars at the company in the heart of the economic crisis in 2009. Harley lost $55 million that year, as buying a motorcycle stopped being an option for many consumers.

Wandell made some big statements. “Don’t let Harley-Davidson become General Motors!” Look in a mirror, he told staff – Harley was already so far down that same path [as GM] “it wasn’t even funny.”

Wandell took bold action and made quick decisions to focused the company on doing what many say it does best: Making big, powerful, premium-priced cruisers.

Keith Wandell

Keep in mind, this was when the great recession and credit crisis sent shockwaves through Harley-Davidson. In less than one year, bike shipments dropped about 25 percent.

Wendell cut the workforce – at least 2,700 hourly workers and 840 administrative employees. The economy was in the tank, the motor company had a big union labor force and old manufacturing processes.  People were just churning and everything was upside down at the company.

Imagine…

I’m not talking about celebrities’ filming themselves singing John Lennon’s ‘Imagine’, from their multi-acre estates and whining about their COVID-19 pandemic isolation.  Never has disproportionate privilege been so apparent and I for one am really fed up with their self-serving need to be in the public spotlight with style-over-substance videos.

But, I digress…

Mark-Hans Richer

It is equally important to recall Wandell’s right-hand “stunt man” — you may remember him as that over-the-top marketing genius who had women screaming, grown men crying and Oprah jumping up and down, chanting: “Everybody gets a car!

I’m talking about Mark-Hans Richer, who was Sr. VP, Chief Marketing Officer at Harley-Davidson, prior to his 2015 departure. Granted, Richer is currently employed at Fortune Brands, but with the mass exodus at Harley-Davidson and salary decreases across the executive staff it’s plausible to pull him back into the H-D team.

Richer, generated the most bankable kind of publicity: controversy.  He made the difference between a motorcycle brand being a rock star versus more employees working in the rental lot.

He’s the charismatic dude that dropped a Dyna Super Glide on Pope Francis at the Vatican.  Then turned around at a press briefing and said, I would be really upset if you felt our strategy was about “meeting the nicest people on a Harley” because I can tell you that ain’t the strategy.  Later he pontificated that a Harley costs less than “another tattoo, a parking ticket, a gas station burrito, and a lip ring” in an appeal to what makes millennials tick.  In 2002, he helped the company get named Company of the Year by Forbes magazine.

110th Anniversary Celebration

In a university commencement speech, he stated: “Everything I ever learned from business, I learned from Willie the Wildcat stuffed animal,” a business he started right out of college.  Richer secured the first major worldwide sports sponsorship for Harley-Davidson at UFC and was instrumental in X-Games marketing.

No, I don’t have a man crush.

Richer was a key contributor of the “Ride Home” anniversary events.  Do you remember when returning to the mecca of motorcycling in Milwaukee was truly an EVENT i.e. the 110th Anniversary festivities featured 60 bands, including Aerosmith, Kid Rock and ZZ Top.  Remember that 3 ½-hour set by Bruce Springsteen and E Street Band at the 105th Anniversary?   How about when Foo Fighters, Dave Grohl, committed a major sin on stage by cracking open a Coors in Miller Town?

100th Anniversary Celebration

There was the surprise headliner (Elton John) and outright disaster for the centennial anniversary. Musical highlights included Billy Idol, Kid Rock, Joan Jett, Poison, REO Speedwagon, the Doobie Brothers and Tim McGraw for the 100th anniversary so, people booing and walking out might have been overstated in the media.

Then came 2018 and time to celebrate 115 years of the open road.  Harley-Davidson CMO, Heather Malenshek tells the media the event is all about returning to its roots with a focus on the motorcycle, not the entertainment.  Huh?!  It was an unmitigated flop for entertainment.  She very quietly departs the company in October 2019.  Coincidence?

Indian is challenging Harley’s cash cow, the Road Glide.  BMW has market segment share in the ADV or “adventure motorcycle” sector and recently introduced the new R 18 touring, cruiser configuration to compete head-on with Harley-Davidson and Indian.  Rumors started circulating recently that Honda is introducing a new 1100 Rebel to compete directly with Harley-Davidson.

Pan American

Harley needs more than anything a fast start for a new model to become a breakout hit.  Is that the Pan American, ADV?

The ADV segment is crowded and entrenched with BMW, Honda, KTM, and newcomer Ducati, among others with decades, of dirt-tested refinement.  Harley doesn’t have the luxury of burning up stacks of cash on a another “vanity project.”

The Milwaukee motor company has a very narrow window to establish that hit. Gone are the days when a slow seller can be nurtured into a hit.  Here’s looking at you LiveWire and the “Field of Dreams” marketing of distressed or stigmatized merchandise!  I truly wonder if acting president and CEO Jochen Zeitz or Harley-Davidson management really understand why the LiveWire product is failing?

It’s logically time to recall Mr. Wandell and “CMO head-honcho,” Richer back from spending their days taking lunch at the Polo Lounge and crank up the H-D buzz machine.

What the media’s hourly drumbeat of “panic porn” on the COVID-19 trauma has shown us, cannot be unseen.  A motorcycle-less Los Angeles.  Coyotes wandering on the empty Golden Gate Bridge.  A quiet New York, where you can hear the birds chirp in the middle of Madison Avenue.

We’re in it. Stores are closed. Restaurants are empty. Streets and multi-lane freeways are barren.  Body bags in tractor trailers.  The Oregon beach is an eerie ghost town.  The economy has collapsed and a devastated 22+ million Americans have lost their jobs in four weeks.  It’s a dark feeling of rust, rot and ruin.

Illegitimi non carborundum.” The Latin phrase loosely translates to, “Don’t let the [COVID] bastard get you down.”

Motorcycle enthusiasts are the ones who understand why dogs stick their heads out the window.  In the famous words of a previous H-D CEO, Jeffrey Bleustein, “We (Harley) have to pretend ten fiery demons are chasing us at all times,” and “make the right bikes, at the right time, and get them to the right place!

Let’s all take a deep breath and get ready for a potential Harley-Davidson tsunami. What is about to be unleashed will be the greatest campaign ever created to get you to feel normal again.  Every brand will come to our rescue, dear consumer, to help take away that darkness and get life back to the way it was before the crisis.

The great American return to normal is coming and you won’t be able to ignore that deafening motorcycle exhaust noise.

Photos taken by author and courtesy of Harley-Davidson and Wikipedia.

All Rights Reserved (C) Northwest Harley Blog

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According to a SEC, Form 8K filing, Harley-Davidson (i.e. acting CEO Jochen Zeitz) promoted Lawrence G. Hund to chief commercial officer and will be responsible for the global sales function including the company’s motorcycle Parts and Accessories, General Merchandise and Harley-Davidson Museum businesses effective today.

Hund will be responsible for building and supporting growth strategies, cultivating opportunities in new and existing markets, and increasing demand for Harley-Davidson products globally.

Lawrence G. Hund

I previously blogged about Mr. Hund back in 2009 when H-D re-hired him HERE.  He returned to Harley-Davidson from Tygris Commercial Finance Group, Inc. where he worked only 8-months as its Chief Financial Officer (CFO).

Mr. Hund is 64, and has been the President and Chief Operating Officer of Harley-Davidson Financial Services (HDFS), a wholly-owned subsidiary of Harley-Davidson, Inc. since 2009.

Jonathan Root, 46, vice president of insurance at HDFS, will be promoted to senior vice president of HDFS and take over Hund’s previous role.

Photos courtesy of Harley-Davidson and SEC

All Rights Reserved (C) Northwest Harley Blog

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1970 Harley-Davidson XR-750

I’m talking about the Harley-Davidson XR-750, which last month marked the 50th Anniversary since it’s debut.

From 1953 to 1969,  Harley-Davidson manufactured the KR750, the backbone of American dirt track racing.

The motorcycle engine was an air cooled, side valve 4-stroke 45° V-twin (flathead), 45.125 cu in (739.47 cc) displacement built for racing.  Unique for Harley’s at that time, the KR model shifted on the right, like a British bike, which worked great for dirt track.  It wasn’t until 1975, when DOT specified that all motorcycles sold in the U.S. had to have a standardized, left-side gear shift.

Harley-Davidson Flat Track Racing

Prior to 1969, the American Motorcyclist Association (AMA) rules for the Grand National Championship were structured to favor “sidevalvers” (side-valve engines) rather than overhead-valve (OHV) engines.  The intent was to deliberately favor American made bikes such as those from Harley-Davidson with their side-valve engines, and disadvantage the competition which was mainly from British manufactures i.e., Triumph, BSA, and Norton. The AMA rules allowed side-valve engines of up to 750cc capacity but OHV engines were limited to 500cc. The 50% engine size advantage stacked the odd in the favor of the side-valve bikes.

As you might imagine, the British manufactures complained…about everything—the rules, the manufactures, the officials, the drivers, the races, and the racing itself.

Harley-Davidson XR-750

As a result, in 1969, in prep for the 1970 race season, the AMA approved that all professional Amateur & Expert dirt track and speedway engines could be 750cc, regardless of configuration or valve style. This rule change eliminated the 250cc penalty for OHV engines that had existed since 1933.  Many British manufacturers begin designing and developing OHV 750cc engines for competition. To be approved by the AMA (for Class C competition), a motorcycle must be a standard catalogued production model and at least 200 units of the same model with identical engines and transmissions and must be available for inspection and/or purchase within the United States.

XR-750 Engine – Ported and Polished Heads

Unhappy with the decision, but with a desire to continue the racing legacy, Harley-Davidson set out to create a new overhead-valve racing motorcycle.  The Milwaukee motor company leveraged their OHV V-twin racing engine based on the Sportster XLR.  However, it’s engine had a displacement of 900cc (55 cu. in.) and would need to have its capacity reduced to 750cc. Harley-Davidson engineers accomplished this by decreasing the engine’s stroke from 3.81″ to 2.983″ and increased the bore from 3.0″ to 3.2″ bringing the engine in just under the 750cc maximum.

The AMA approved the Harley-Davidson “XR”, a 750cc V-twin overhead valve engine, for Class C competition on Feburary 27, 1970. It had been tentatively approved in late-1969 as the “750 Sportster”, but the motor company lacked having 200 units available for inspection at the time. The motorcycle is dubbed the “iron XR“, or “Iron Head,” due to its steel cylinders and heads.

Even Knievel

For the 1972 race season, there were a number of changes.  A vote was taken on November 18, 1971, and the AMA Competition Congress voted to allow qualified women to compete in all forms of AMA Racing.

The Water-Cooling was approved, as long as it is an integral part of a production motorcycle.  Titanium frames were outlawed from all AMA competition. The AMA approved the Harley-Davidson XR-750, an updated version of the XR, for Class C competition on April 12, 1972. The updated engine used aluminum cylinders and heads to address the overheating issues that plagued the XR model. However, due to delays in getting all 200 units completed, it wasn’t approved in time for the Daytona 200, but debuts at the Colorado Springs national on April 30, 1972.

Speaking of aluminum heads, they were made, then shipped to Jerry Branch of Branch Flowmetrics in Long Beach, California to be ported and assembled. The new cylinder head design included larger valves. The cylinder heads were then shipped back to Harley-Davidson’s factory in Milwaukee for fitting to the new engines. This V-twin engine was not quite of the same dimensions as the Iron Head. The bore was increased to 3.1” and the stroke reduced to 3”. Carburetors were 36mm Mikuni, one for each cylinder. The exhaust systems were mounted high on the left side of the motorcycle well away from the carburetors.  Power was 82hp at 7,700rpm giving the bike a top speed of around 115mph.

Harley-Davidson Flat Track Racing Team

Branch wrote engineering books on his engine air flow work and eventually sold Branch Flowmetrics to Mikuni in the late 1990s.  Branch was the only independent company to ever supply Harley-Davidson ported and polished heads!

In 1972, Harley-Davidson was the first-ever “Grand National Manufacturer’s Championship“, which compiles the highest finish of each brand at every Grand National Championship event.  Between 1972 and 2008, the XR-750 won 28 of 37 AMA Grand National Championships. The XR-750 racked up more wins than any other motorcycle in AMA racing history and earned the description of being the “most successful race bike of all time.”  In addition, the XR-750 became a cultural icon with legendary stuntman Evel Knievel at the handlebars. Evel Knievel began jumping an XR-750 at the height of his career from 1970 to 1976.

Harley-Davidson created one of the greatest bikes in the history of American motorcycling.

For 2020, the Harley-Davidson Factory Flat Track team will use the updated Harley-Davidson® XG750R flat tracker, powered by the liquid-cooled, fuel-injected and race-tuned 750cc Harley-Davidson® Revolution X™ V-Twin designed for the Street 750 motorcycle.

Full details on the Flat Track team can be found HERE.  Flat Track racing news is HERE.

Photos courtesy of Harley-Davidson

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Highway 50, just outside of Great Basin National Park

You might not know, but there are 59 national parks and 4,092,729 miles of roads in the United States.

All the roads in Brazil, Germany, New Zealand, Canada, Japan, Mexico, Sweden, and France combined would not equal the length of America’s roadways.

Believe it or not, there was a time in our not-so-distant past when there were no paved roads bridging the gap between civilization and the North American wilderness.  The earliest Harley-Davidson motorcycles had the same suspensions as bicycles of the time: none at all. The roads were a hodgepodge of dirt, stone, and other materials. Bumps were everywhere!  Harley-Davidson’s weren’t necessarily the fastest bikes on the market, but they were built with reliability in mind and were among the first truly heavy duty motorcycles in the world that could be relied on for safe running over the atrocious roads of the day.

1913 Harley-Davidson Model 9-B Single — Valve Side

The transformational American road-trip essentially became touring wide-open spaces from the saddle of a motorcycle.

In last months posts, I touched on a collection of classic motorcycles in the northwest and provided tribute to an inspirational man (Bob) with a genuine love of wrenching motorcycles.  I also illuminated his first restoration in the collection — a 1937 Harley-Davidson Model U-Series Flathead.

In this post, I’m plunging head first into another motorcycle in the collection, a Harley-Davidson 1913 Model 9-B Single.  It was already Harley-Davidson’s 10th anniversary when this bike originally rolled onto the showroom floor. From their humble beginning and that first bike built in their 10′ x 15′ shed, they had overcome the competition to produce over 1,000 motorcycles in 1909 to almost 17,000 bikes in 1913.

1913 Harley-Davidson Model 9-B Single — Transmission Side

According to an advert for the 1913 Chicago Motorcycle Show, Harley-Davidson states (page 10) that they sold out their entire manufacturing output in 12.5 weeks!  Clearly, the Milwaukee motor company had grown past the “motorized bicycle for fishing trips” into planning  motorcycles for large volume production.

Postured affectionately in the corner of the vintage collection showroom, you’ll want to gaze at this motorcycle for hours, and each time notice something new. A small hand-turned screw on a throttle linkage, a one-off brass cam on the carburetor body, a perfectly machined castellated nut on the rear hub that firmly holds the pedal sprocket – a few indicators of its origins as a commercial motorcycle. All of these details amaze and remind me of just what this bike was built to do – both by its original designers and by its inherited restorer.

1913 Model 9-B Single — Valve Side Close-up

It was interesting to learn that Bob’s motorcycles were never chosen for specific “provenance” or heritage — the range of manufactures in the collection represent personal tastes as well as unique expressions — beauty, performance, functionality and style that resonated with him through the years.

This 1913 Model 9-B single originally sold for $250.00 at the factory in Milwaukee and it took Bob more than 15 years to fully restore.  It’s the oldest motorcycle in the collection, and was one of Bob’s top-three favorites, but not the rarest or most collectible in the world.

Restoring a Milwaukee icon is no easy task, but with Bob’s guiding hands this motorcycle showcases exceptional restoration craftsmanship, pristine attention to detail, and along with some unique history it might well mean that it is destined to be in a museum some day.

1913 Model 9-B Single — Transmission Side Close-up

The condition of this single-cylinder, four-cycle, air-cooled model is truly immaculate and a bill-board poster of simplicity.  It’s also the foundation of what generated the Milwaukee motor company mystique.  The motorcycle features a 35 cu in (565cc) motor with a nominal 5 HP, an overall weight of 235 pounds, a 2-gallon fuel tank, a 3.5 quart oil tank, and a Bosch magneto placed behind the motor to keep out road grit.

For the 1913 model year, the Harley single was updated with the mechanically operated inlet valve (replacing the ‘atmospheric’ type), which was developed first for the twin cylinder models, and at the same time boasted a balanced bottom-end, alloy piston and improved carburetor.  The stroke was increased to 4 inches as compared to 3.5 inches of the former model.  The wheel-base on the singles were 1 inch shorter than the twins.

1913 Harley-Davidson Model 9-B Single — Front Fort Close-up

Harley-Davidson also made a small change to the form of the clutch lever operating the “free wheel” in 1913.  On the flat belt models a guard was mounted.  These motorcycles were popularly known as the ‘5-35’ (5 horsepower, 35 ci displacement).  The 9-B single was available in belt and chain-driven versions while ease of use was considerably enhanced by the adoption of the rear hub clutch first seen on the twin cylinder.  As the twin’s popularity grew, the single declined, accounting for only 4% of sales in 1917 and production of the Harley-Davidson ‘5-35’ ceased in 1918.

The gray color paint on the restored motorcycle includes a bold striping scheme, which complements the original manufacturing process of taking great care during the enameling procedure with three hand rubbed coats of paint followed by a protective varnish.

1913 Harley-Davidson Model 9-B Single — Transmission Side

Manufacturing the Model 9-B single made up the majority of the company’s production in the early years.  By 1912, all Harley-Davidson’s had gained mechanical inlet valves and all-chain drive, but this restored model, included the belt option, which was offered for several years.  Both singles and V-twins had single-speed transmissions with a robust rear hub clutch operated by a tank-side lever, and their new mechanical inlet valve meant more power and higher revs were possible. The valve side has a pedal-and-chain drive. With the rear wheel raised up by the stand and with the clutch engaged, the pedals are used to crank the motor. The brake is engaged by a slight backward pressure on the pedals.

The rider sits on a leather brown saddle, mounted with a central, sprung pillar sliding with the frame’s vertical saddle tube, which was positively located by an articulated lever pivoting from the top frame, just ahead of the saddle nose.

1913 Harley-Davidson Model 9-B Single — Top Looking Down at Valve Side

Harley-Davidson called this the “Full-Floteing” seat—a riders comfort not-with-standing accurate spelling—as the system should be quite familiar to any Duo-Glide owner.  The oil tank hid with the tool box. While the engine’s drip oil feed was “automatic,” any hard riding owner could give a visible shot of fresh lubricant from a tank-top hand pump.

The 1913 motorcycle frame was reportedly stronger than the previous year models and provided better handling, while the new vertical fins atop the cylinder head allowed the engine to run cooler.

1913 Harley-Davidson Model 9-B Single — Transmission Side

As mentioned earlier, the Bosch magneto was placed behind the motor to prevent collection of road grim, and proved to be a reliable instrument, making the machine easy to start via its bicycle pedals on the stand or off the stand using the valve lifer to take off.  The motorcycle has 28 X 2.5 tires with an Eclipse Knockout front hub that allows the tire removal by taking only one nut off.  The brakes are “coaster type” on the rear wheel like today’s simple pedal bikes.

In the late summer of 1913,  a new board track was opened in Milwaukee, right in Harley’s back yard.  The company’s professional race abstinence came to an end as Harley-Davidson change its corporate mind and the Racing Department was formed, with William Ottaway as its first Assistant Engineer to racing engineer William S. Harley.

1913 Harley-Davidson Advert — Courtesy of Motorcycle Illustrated and Google Books

The Harley twins pulled ahead of Indians and would dominate motorcycle racing in 1914.  The Racing Department was referred to informally as the “Wrecking Crew.”  However, one of the racers acquired a pet piglet, which was quickly adopted as the team’s mascot, and helped popularize the nickname ‘the Harley Hogs’ due to the race team carrying the team’s mascot around on the motorcycle fuel tank during victory laps.

The 9-B single is truly a peppy machine and can be ridden all day long at 40-45 MPH, as proven in the Motorcycle Cannonball Endurance Run, where a 1914 single-cylinder Harley-Davidson won the 2018 event with a steady, thumping pace.

This 1913 Model 9-B was a frame-off full restoration which Bob completed in the 1980’s.  Parts were sourced as needed from various swap meets, nickel ads, flea markets, yard sales, and scanning newspapers to find an elusive part!  There was no Dubya, Dubya, Dubya (i.e. Internet) in those days.  Most of us will never know the feeling of satisfaction derived from unearthing the perfect part at a swap meet and haggling its price down to a bargain.

1913 Harley-Davidson Model 9-B Single — Transmission Side

During the course of multiple interviews, I ask if anyone knew why Bob was so fervent about recruiting parts from swap meets. It turns out that Bob and his wife loved to travel. And, in the course of seeing America from a motorcycle, he recruited ever more vintage enthusiasts to help him find and locate parts for motorcycles he had in the restoration queue.

Those early days began the tradition of keeping motorcycles running and riding as much as possible.  It was called “self-assemble.”  Buying a complete front end may wipe-out your budget, but if one guy has a set of tubes for $40, and you remember seeing a triple tree on that table over by the Port-A-Potty, and you manage to negotiate a wheel and axle for $35… well, you are most of the way to having a front end cheaper than buying a complete unit — if it existed!  The rides and swap meet experiences were some of the best and fun times for Bob and his wife.

This is one of the finest restorations of an early Harley-Davidson model anywhere!

Previous posts on this vintage collection:
Vintage Restorations Uncovered In The Northwest
A Northwest Collection Gem – The 1937 Flathead

Photos taken by author. The black & white Motorcycle Illustrated advert courtesy of Harley-Davidson and Google Books.

All Rights Reserved © Northwest Harley Blog

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Harley-Davidson’s Entrepreneur and New Mastermind

Jochen Zeitz — Harley-Davidson interim President and CEO

The ultimate maverick has been hired to preserve and renew the freedom to ride.

I’m talking about Jochen Zeitz — the entrepreneur and new mastermind in charge of Harley-Davidson until he is offered the position permanently or a recruitment committee finds a replacement CEO.

So, what do we know and who is this man?

Jochen Zeitz at Segera Retreat Lodge

As a slacker who would debate a good life is better than a good job, paint me truly inspired for that list of accomplishments!

Talk about an extreme producer with a missionary zeal!  And, I haven’t mentioned the best part… a profile of his “day job” achievements.

Mr. Zeitz represents qualities too good to be true and the idea of him shilling for some corporation to hawk motorcycles deflates the “HERO” excitement.  It’s clear, Mr. Zeitz won’t be satisfied until he has done everything to promote his vision of a new, better world.

LiveWire — Jochen Zeitz — Milwaukee, WI

With his multi-millions in fortune, Jochen Zeitz is likely the richest person in history to run Harley-Davidson as interim president and CEO.

So, again, who is the 57-year old sandy-haired, 6’1’’ athletic build of a man?

Mr. Zeitz was born in Mannheim, Germany, in 1963, to a gynecologist father and dentist mother.  He grew up in a time when the Green Party and the anti-nuclear movement were enjoying strong support in Germany.  Along with the time he spent at the family’s lodge in the Odenwald forest, the outdoor exposure planted seeds of interest in environmentalism.  He was educated at Karl-Friedrich Gymnasium, Mannheim, south-west Germany, and then international marketing and finance at the European Business School of Oestrich-Winkel near Wiesbaden.

Jochen Zeitz and wife Kate Garwood

Mr. Zeitz began his professional career with Colgate-Palmolive in Hamburg in 1986. He then moved to Herzogenaurach in the Franconian countryside to work for sporting goods manufacturer Puma (Bio) in 1988. From there, he rose rapidly though the ranks to become head of marketing in 1991 and vice president — international and head of the global marketing and sales department.  In 1993, at the age of 30, he became chairman of the board of Puma, making him the youngest CEO of German firms with commercially traded stock. He dramatically reduced staff numbers, took production to Asia, made English the corporate language, started sponsoring African football teams and was credited with turning around the near-bankrupt business into one of the world’s top three sports brands.

The Zeitz Museum of Contemporary Art Africa (Zeitz MOCAA) — Cape Town

In 2003, he insightfully signed 16-year-old future Olympic champion sprinter Usain Bolt to Puma.  In 2007, he was appointed to the Board of Harley-Davidson.

Puma was acquired by luxury goods conglomerate Kering in 2007, and a few years later Mr. Zeitz served as Kering’s Chief Sustainability Officer.  In 2011, he set up a sustainability committee for Harley-Davidson, which he also chaired.

Also in 2011, he wanted to step back and focus on his environmental work and resigned as CEO of Puma.  He became a director of parent company Kering and chairman of the group’s sustainability committee.  He co-founded ‘The B Team’ with Sir Richard Branson in 2013.  That same year he launched the Kenyan Segera Retreat with a focus on his foundation’s 4C philosophy for sustainable tourism.

In 2020, he was hungry for something much more and became Harley-Davidson’s interim president and CEO.

Jochen Zeitz — 1929 Gypsy Moth Airplane Photo credit: Eric M Rojas

On a personal level — he divorced his first wife Birgit Jöris in 2012 following an 18-year marriage.  He is currently married to LA-based producer Kate Garwood‚ 41‚ producer of the 2016 movie “Race”‚ about U.S. track star Jesse Owens.  They have two children; 4-year old Jesse born September 2017 and a three year old. He keeps homes in Switzerland, Santa Fe, Los Angeles, a 50,000-acre ranch in Kenya and has property in west London.

When researching material for this blog post, I was blown-away on the amount of information published about Mr. Zeitz.

In a 2013 interview with the International Bar Association, he stated no plans to marry again, although at the time he was in a long term relationship with Kate Garwood. He was adamant about no intention of having children. ‘No, definitely not,’ he stated emphatically. ‘Never say never, but it’s very unlikely. It’s not something that fits with my daily life and I’ve never believed that having children without a father around is a good idea. It’s not really something I would get excited about.’  Just a short four years later both occur.

Jochen Zeitz at Segera, his 50,000-acre ranch. Photo credit: David Crookes

In recent press interviews, he’s stated the joy of his decision to have children late in life, because now he can see them grow up versus having such a busy schedule in running a company and traveling for 10 months in a year.  An interesting side bar: Speculation swirled that Jesse, their first child, was named after the 1930s athlete and fueled by the fact that Jessie Owens was provided with shoes for the 1936 Olympics by the Dassler brothers‚ who went on to found Adidas and Puma. 

But, I’ve digressed and want to return to connecting the Harley-Davidson dots… Mr. Zeitz’s experience at Kering was a critical influence and the driving force behind Matt Levatich’s (the recently fired Harley-Davidson CEO) pivot to sustainability that led him to think much more about environmental profit and loss at Harley-Davidson.  Mr. Zeitz had devised an environmental profit-and-loss account method at Kering which, put a figure on what a company’s air pollution, land use, water use and carbon consumption cost the planet.

Jochen Zeitz’s Favorite Thing — A Scottish Bailey — Photo credit: Charlotte Haden

While Mr. Zeitz — wealthy, world-view philosophy, competitive, over-achiever and relatively young — has the luxury of carving out grandiose, acronym-fueled sustainable ‘visions’, that struggling businesses like Harley-Davidson, desperate to increase motorcycle sales, might find distracting or even an irritant.

We’ll have to read the biography when ex-CEO Levatich publishes the book, but as an outside observer, one distraction example is: it took eight years, millions of dollars and the work of over a thousand engineers to fully realize a product that few want — the Harley-Davidson LiveWire — the Milwaukee company’s first premium electric motorcycle to go on sale in September 2019.  As a long-serving Harley-Davidson board member, Mr. Zeitz convinced executive management to focus not just on the moral justification for electric engines, but on the needs of Harley-Davidson customers to have healthy natural landscapes in which to ride. The logic behind this claim, was that “what every rider loves about the ride – it’s the environment they’re riding in, isn’t it?”  Soon afterward, the marketing and brand alignment teams marched in unison to support sustainability as a major part of the brand.

Segera Retreat — Laikipia, Kenya

The result?  A new mission, twisting the brand’s historic celebration of freedom into a desire “to preserve and renew the freedom to ride” and TWELVE quarters of sales decline.  Along with a $2,152,500 million severance payment to Matt Levatich.

Mr. Zeitz believes and is on record, stating there is more to corporate life than the relentless pursuit of profit. Wait, what?!  Isn’t profit what got Matt Levatich fired?

I’ve watched “An Inconvenient Truth” and the sequel. The oceans are heating and the poles melting, but color me skeptical of environmental groups with sustainable-for profit-business interests.  We’re all too aware of what the world needs: another multi-millionaire telling others how to behave better once they have made their own fortune while flying private and choppering into a rich man’s playground.

Jochen Zeitz GQ Article — in German

The motor-head scholars, bankers, real estate agents, lawyers and fashion designers who gather not to drink cheap brew, but to sip $15 “born to be wild” martinis and straddle $40,000 motorcycles might pontificate on the value of sustainability, but I just don’t see grizzled leather-clad loyalists describing Harley-Davidson as the world’s most sustainable manufacture over a beer at the Sturgis rally.

But, sometimes there’s a man. I won’t say a hero – ’cause what’s a hero? – but sometimes there’s a man – and I’m talking about Jochen Zeitz here – sometimes there’s a man who, well, he’s the man for the time and place.

A man who will improve the brand that is unique, exciting and one that gives value to it’s riding customers.

But wait, there’s more… An incentive if he kicks a field goal… according to the company 8-K regulatory filing, the interim Harley-Davidson, CEO Jochen Zeitz, is eligible and will receive a $3 million bonus (in the form of restricted stock units (RSU’s)) that would vest one year after the grant date and become payable if his employment continues to the date of the installation of a new CEO.  That $3 million would come on top of the annual base salary of $2.5 million he is receiving now after taking over for Matt Levatich. I don’t think this will be too difficult since Mr. Zeitz has served on Harley-Davidson’s board since 2007.

UPDATED: April 17, 2020 — Due to the ongoing COVID-19 pandemic and sales impact, Harley-Davidson announced that its acting president and CEO Jochen Zeitz and the company’s board of directors would forgo any salary or cash compensations. As mentioned above, Zeitz currently has an annual base salary of $2.5 million.

Photos courtesy of Harley-Davidson, Jochen Zeitz, Twitter, Eric M Rojas, David Crookes, and Charlotte Haden

Information Source & References: IBA, Independent,Wired,Business Daily Africa, Milwaukee Business Journal, Adventure Rider, Infosys, Telegraph, Financial Times, Angama Blog

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1984 Honda Magna (VF700C or V42)

It’s a play on George Orwell’s dystopian 1949 novel 1984 — where the world in 1984 is under control of Big Brother and the Thought Police who enforced the rules against individuality and original thinking — essentially praising society’s achievement on the “Unification of Thoughts.

Taking a page from Apple’s Super Bowl ad, my “1984 wasn’t like 1984,” — thumbing my nose at the roots of America, I purchased a little slice of freedom and original thinking in the form of a Honda VF700C or V42 Magna.

That shiny jet black Honda Magna (V42) had a liquid-cooled, double-overhead cam 90° V4 engine (displacement is 699cc or 42.7 ci) with four valves per cylinder and a compression ratio of 10.5:1.  Honda claimed it’s output was 82 crankshaft HP at 9,500 RPM.  The motorcycle had a smooth shifting 6-speed transmission, a wet multi-plate clutch that was hydraulically activated and shaft final drive with helical gearing in the rear-drive unit.  The motorcycle featured twin horns, coil rear springs, hydraulic clutch, air preload front fork with anti-dive valving, and an engine temperature gauge.

1984 Honda Magna (VF700C)Specs

Braking was delivered via a hydraulic activated double twin-piston disc brakes up front and a traditional non-ABS mechanical internal expanding drum brake in the rear. Great for leaving skid marks, but not so much for stopping!

The instrumentation was housed in chrome and included an analog speedometer, tachometer and engine coolant temperature gauge, along with lights for oil pressure, neutral, turn signals, tail light burn-out and a light that illuminated “OD” which let the rider know the transmission was in 6th gear.

As I reminisce on riding the Magna, I recall it having good power and a broad torque band.  Given its light weight and low center of gravity, the motorcycle was easy to ride in the city or a twisty two-lane country road. The Magna’s features were truly pushing the state-of-the-art for a production cruiser in its day.

From a historical viewpoint, only a few years had past since Harley-Davidson executed the epic buy back from AMF.  Their sales hadn’t reached the levels they envisioned, in part, because the AMF era was famous for shoddy quality, bikes requiring a lot of maintenance and the Milwaukee motor company was getting knocked down publicly and in need of some sunshine.

The poor quality and hi-maintenance requirements on Harley motorcycles was a key factor in my decision to purchase Honda.  In fact, a member of our posse also purchased a Honda, a V65 Magna (VF1100C) the same year.  Man, those V65 Magna’s (1,098 cc) were fast.  It was Honda’s initial entry in the “1/4 mile wars” between all the Japan manufacturers during the ’80s.

As Harley skidded toward bankruptcy, you might recall they petitioned and lobbied the Reagan administration in 1982 to raise tariffs on Japanese manufacturers because of “Dumping.”

“Dumping” in this context refers to exporting a product at a lower price than is charged in the home market, or selling at a price that is lower than the cost to produce it.  In April 1983, President Reagan signed into law an act that imposed draconian import tariffs for a five-year period on Japanese motorcycles with a displacement of greater than 700 cc.  This would give the sole American motorcycle maker some breathing room from intense competition to retool, get its act together and turn profitable.

However, Honda quickly responded to the retaliatory import duties and retooled the engines (what had been the 750cc class, VF750C V45 Magna) to displace just under 700cc; making them immune to the financial impact of the tariff.  One of the bikes that debuted as a “tariff buster” in 1984 was the V42 Magna.  Ironically and in a show of engineering superiority, it had three additional horsepower compared to the 750cc!

Harley was eventually able to turn a corner and the motor company ultimately requested that the tariff protection end early — essentially stating, they were now strong enough to take on the best competition in the world!

While the act was supposed to last for five years, then CEO Vaughn Beals asked that it be lifted a year early in 1987.  The 5-year tariff officially expired in 1988. That same year the Honda Magna reverted back to its original size of 748 cc.

Photos courtesy of Honda and Harley-Davidson Museum.

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Let me start off by saying I like Indian motorcycles. I really do.  I’m digging the variety of styles and the attention to detail on each build.

But, my heart is with Harley…

In a previous post I discussed the Indian “Challenger Challenge,” a campaign that invites motorcyclists to test ride the Challenger and the Harley-Davidson Road Glide® Special back-to-back for a head-to-head comparison.

It’s brilliant.

It’s worth pausing for a moment to consider how this campaign would’ve worked out if Indian used any other motorcycle in their lineup vs. the Road Glide — one of Harley’s bagger cash cow.  It’s dangerous to make assertions about “might-have-beens,” or what analytic philosophers like to call “counterfactuals,” because no evidence can exist that fully demonstrates the falseness of such an assertion.

But, I’ve digressed.

A “bake-off” for the preeminent bagger, demonstrates a battle for supremacy in the public mind.  It’s also a battle for cultural supremacy, not a judgement about features, technical prowess or achievements.  It’s the subtlety of Indian craving the appeal of that, what makes a Harley, a Harley.  That ineffable something (that je ne sais quoi, if you need a phrase to go with your cappuccino).

So, in classic Harley fashion, and only 5-months in the role, Jon Bekefy (GM of Brand Marketing at Harley-Davidson) calls BS and snapped back at Indian.  Mr. Bekefy uploaded an agency polished Instagram post and in the process scorches Polaris. (Bekefy Twitter)

In other words, “Anything Polaris/Indian can do, Harley can do better.”  Clearly the General Manager of Brand Marketing at Harley-Davidson doesn’t want to get upstaged.

We all know that Harley-Davidson is not just a bike, it’s a choice.  An existential decision and the life that follows upon it.

Wait.  That statement may not be as defensible, since Harley is now promising to be another “transportation” manufacture delivering a Chinese 338cc bike where affordability remains paramount to the upscale EV future of two-wheel transportation and includes all bicycle types in between.

As Indian and Harley arm wrestle each other over boomer-centric models, it has a limited lifespan and is unlikely to generate a lot of new riders, but it’s pure theater and fun to watch!

Photo courtesy Instagram.

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Indian Challenger vs Harley-Davidson Road Glide

Earlier this week, Indian announced the “Challenger Challenge,” a campaign that invites motorcyclists to test ride the Challenger and the Harley-Davidson Road Glide® Special back-to-back for a head-to-head comparison.

It’s not the typical, behind-the-scenes advertising effort by Indian to sell a product in its own time and in its own way.  Instead, it’s a high-visibility campaign marked with in-your-face marketing which proclaims — the Challenger will absolutely “smoke the competition.”

That’s a blue-collar craftsmen and beer-bellied “motor-head” inflammatory call to battle!

Will Harley-Davidson laugh and say, ‘Good try, bad result‘ expecting it to reinvigorate the Road Glide sales or will the Milwaukee gurus sit up and make a hard-eyed comparison of the competition’s strengths?

I’ve posted previously that motorcycle growth rates domestically are decelerating.  Wall Street is worried that the motor company has tapped out demand for their line-up as sales cool.

Challenger Challenge Stats

My initial reaction of the Indian campaign was, it being reminiscent of the 1980’s when commercials were a sign of the times — desperate, struggling times that car manufactures hoped would turn prosperous.  You might remember, “If You Can Find a Better Car, Buy It” ad campaign?  The face behind that familiar slogan was Ronald DeLuca — the advertising whiz hired by Chrysler Corporation chairman Lee Iacocca to turn around Chrysler’s late-1970s death plunge in a recession-weary America.

Indian has the not-so-simple task of convincing Americans that the motorcycling passion isn’t an archaic lifestyle teetering on the edge of the toilet bowl.  Or if Millennials are truly killing motorcycles, then why not ride it out in style with a new Indian Challenger!

Carey Hart and Big B

The Challenger Challenge is set to launch at Daytona Bike Week on Friday, March 6th.  The product demo tour will visit Indian Motorcycle dealers around the country, as well as select motorcycle rallies and events, including Sturgis in August. In addition to the national tour, select Indian Motorcycle dealers will have a Road Glide on hand to ensure that any customer who visits their dealership can take the Challenger Challenge.

Of course there will be a full-court press with social hashtags and digital media including a video series where Carey Hart and Bryan “Big B” Mahoney, pit the new Indian Challenger against the Road Glide Special in a series of rubber burning tests that showcase power, torque, braking and handling.

We will know soon enough if the campaign is more about finding new customers who don’t necessarily want to own a motorcycle or boosting the Indian public image and extending the brand’s good name.

Photos courtesy of Indian Motorcycle.

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1922 Spare Parts Directory

Harley-Davidson has been preserving its parts history for over 116 years.

When the motor company incorporated in 1907, Arthur Davidson acted as secretary and general sales manager. He traveled the world recruiting new dealers and establishing the dealer network. He knew the importance of a strong dealer network, but also understood the importance of having skilled mechanics to take care of the customer and thus he also oversaw the development of the Service School.

Harley-Davidson first instituted teaching courses in 1917. Production in 1917 was devoted to the military and the motor company developed the Quartermasters School to teach military personnel how to fix their machines in the field. Recognizing the value of the classes, they continued the classes, which were referred to as the Harley-Davidson Service School. The Service School was a success and adjusted to needs of the company throughout years, even including managerial and sales classes.

1922 Exploded View of Parts

During WWII the focus again turned to military training. Harley-Davidson produced approximately 60,000 WLA models for the military and converted the Service School into the Quartermaster School to train military mechanics.  From 1941-1946, motorcycle models did not change and, due to the many shortages brought on by the war, even paint was hard to come by.

The name “Service School” lasted into the late 1990s when training efforts were consolidated into the Harley-Davidson University (HDU).

Photos taken by author of the nostalgic November 1, 1922 — Directory of Spare Parts

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