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Author Topic: Harley-Davidson may leave Wis. if costs don't fall  (Read 14675 times)

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2smoke

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #135 on: December 09, 2010, 01:31:31 PM »

The biggest savings would be realized if they dumped Keith Wandell.  Everybody always wants to take it out of the workers.  The same workers have been there through the good times and bad. They are the constant.  Just because some overpaid golfer that NEVER rode a motorcycle before in his life walks in and Fs the place up don't blamre the workers.  Those same workers have built me some really quality bikes.  Wandell never made S#@!
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harley56

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #136 on: December 11, 2010, 07:19:36 PM »

The biggest savings would be realized if they dumped Keith Wandell.  Everybody always wants to take it out of the workers.  The same workers have been there through the good times and bad. They are the constant.  Just because some overpaid golfer that NEVER rode a motorcycle before in his life walks in and Fs the place up don't blamre the workers.  Those same workers have built me some really quality bikes.  Wandell never made S#@!

WOW!  Most, no, make that all of the dealers I talk to say he's one of the best things that has ever happened to Harley-Davidson.  These are dealers that have always been extremely tough on Harley Management and not afraid to express their opinions.  He's no nonsense, direct and holds everybody, and I mean everybody accountable.  He kept hearing from employees that we do it this way because that's how we have always done it.  That doesn't fly these days.  "Wandell never made S#@!"  He made them a whole bunch better than the prior leadership.  Sounds like you, or your friends have been directly affected by the declining demand. Those layoffs and buildings emptying in Wisconsin are not a result of Wandell.  It's the result of a shrinking pool of buyers and the need to adjust accordingly.
In Northern California we've had many dealerships close their doors.  Two, three years ago they could have sold their business for big $$$, now, if possible they just close it and retire if their situation allows.  Others are going bankrupt.  Not a one of them is blaming Wandell and his golf game.  I'm pretty sure Wandell didn't single handidly stop the people out here from buying Harleys.  
« Last Edit: December 14, 2010, 01:00:00 PM by harley56 »
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #137 on: December 13, 2010, 11:24:45 AM »

HD has similar problems to other financial lending institutions over the past 3 years or so - a ton of outstanding loans that may or more likely may not "perform".  Then along comes Uncle Piggybanks & they get a $2.3 billion bailout from the US Treasury, and Buffet loans them $1 billion emergency operating capital (not Jimmy B., Warren). So.....a total of $3.3 BILLION needed to stay afloat.....obviously the MoCo was on the brink of bankruptcy or dangerously close to it.  

As to why HD money was loaned for HD bike purchases that cannot be repayed - or repayed on time one would suppose a casual read of the current Dec. 2010 unemployment stats (9.8% 'reported' but really closer to 18-19% total if you utilize real numbers instead of the ones we see in the media that are made up by people who are paid to make up numbers) it should suffice as an explanation for some.  For others its easier to blame a bogeyman or inject politics or just point a finger at whoever & claim "They done it!"  It is the economy we live in that has caused this & the HD dealers closing due to lack of sales should be more proof.  Most all bike brands are not doing well - Honda closed their US plant & now makes US bikes in Japan, for instance.

As to HD leaving WI - doubt they ever move Corp. away but looking around the US for better manufacturing opportunities indicates HD's concern & responsibility to the folks that own the MoCo - the shareholders.
« Last Edit: December 13, 2010, 11:27:01 AM by iski »
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tazmun

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #138 on: December 13, 2010, 01:38:26 PM »

Harley56, you are correct. Like it or not, he will take the company into
the 21 century. He has listened to the dealer's, bikers, and employees.
I for one, can't wait to see new products, that are DEPENDABLE, not
just "PRETTY"!
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #139 on: December 20, 2010, 01:56:32 PM »

Althought Wandell may be doing the right thing as far as structuring the company for long term survival, he appears to me to be only doing part of the job.  Fixing the operations is great, if said operations are building something that people want to buy and has a long term future.  I still do not see much in the way of inovation or modernization in the fleet.  I see them cutting the closest thing to a sport bike they had with the Buell line.  Old bike buyers usually come from young bike buyers.  And if the youngins are laughing, well then I wonder if they'll make the switch to HD.  I already know a ton of guys who are getting off the crotch rockets and on to cruisers.  Like the Boulevard or Star...

Maybe if Harley was a better price or the best technology or killer quality it would make some of them look this way, but they're already in love with their name brand so why whould they switch to bike that's for the most part 20+ years old tech wise and more expensive to boot.

I hope that it's a case of needing to fix one and now we'll fix the other.... But I'm not holding my breath.

Ride Safe,
JC
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #140 on: December 20, 2010, 02:35:45 PM »


I've always gotten a real charge out of listening to the "new" top management folks (and in 35 years in the auto industry I got to hear from a lot of "new" management folks) tell those of us in the trenches that we just have to do more with less and everything will be all right.  Funny thing was that all that BS was only spewed when the customer service and quality and design sucked enough to cause a severe loss of sales.  Doing "more with less" in the trenches didn't fix the underlying problems, but it helped improve the bottom line long enough to improve the financial well being of the top management folks before they moved on.  Decades of that sort of keen management is what led the domestic industry to the brink, and it appears to be the same sort of BS management being practiced at the MoCo these days. 

All the cheapening, union busting, Chinese part sourcing, and other genius tactics won't fix the lack of quality products that people both want and can afford to buy.  At best it's like hunkering down in a foxhole waiting for the reinforcements to show up, and ignoring the fact that you forgot to hire any reinforcements.

It's all about product, quality, and customer service.  Selling lifestyle got them where they were, but while that was effective with the boomer generation it probably isn't going to cut much ice with the younger folks. 


Jerry
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #141 on: December 20, 2010, 05:18:56 PM »

Hey Jerry........... :2vrolijk_21:

  jim  :coolblue:
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tazmun

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #142 on: December 20, 2010, 09:45:23 PM »

True Jerry, BUT what do you continually read here?
People can't WAIT to get there hands on a new CVO.
IF they wouldn't buy them, maybe the MoCo would get a
clearer picture!
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J-Carr

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #143 on: December 21, 2010, 01:30:51 PM »

They're not buying them.  Look at the sales numbers.

Their choice of fixing it so far as been to reduce costs, primarily at the blue colar workforce level.  I think that's smart.  I think it would be even smarter to reduce costs at the white colar work force level.  I think it would be flipping brilliant to make a bike that interested people again.  The unions are bad.  Sorry, but it's true.  The management is bad.  Has been for years.  The quality and design is bad.  Didn't start that way but since the last major improvement was in the mid 80's, the world has passed them by. You can't fix the company by fixing just one or two of these issues.  All three have to be fixed.  A reasonably sized and paid blue colar work force managed by a small nimble white colar executive team whose salary is based on performance not "scale", building some inovative and quality products that interest a broad base of the buying public.

Oh yeah... Santa's coming soon too.

Ride Safe,
JC
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #144 on: December 21, 2010, 04:00:57 PM »

Right now, another big issue for Harley is the market is saturated, and the economy is not so good.  Even those still working are spending less on luxuries because of the fear things may get worse.  Raises for most are non existent.  Lots of very new used bikes on the market because people lost jobs.  Many of people feared they would get a tax increase this year.  Banks are also tighter on loans right now.  They are still easy to get if you have a 700 plus credit score, however those with 500 score who could easily get a loan two years ago, do not qualify now. 

I do agree that the White collar work force needs to be trimmed and made leaner, with bonus based on performance.  Blue collar work force also needs to be trimmed and the union needs to look at allowing people to do more than just their exact job description.  Example when I worked in a non union plant, when nothing electrical was broke I helped the mechanics.  We also cleaned our own work areas and took out our trash.  The need to put a much higher emphasis on Quality also.
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tazmun

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #145 on: December 21, 2010, 04:30:48 PM »

Right now, another big issue for Harley is the market is saturated, and the economy is not so good.  Even those still working are spending less on luxuries because of the fear things may get worse.  Raises for most are non existent.  Lots of very new used bikes on the market because people lost jobs.  Many of people feared they would get a tax increase this year.  Banks are also tighter on loans right now.  They are still easy to get if you have a 700 plus credit score, however those with 500 score who could easily get a loan two years ago, do not qualify now. 

I do agree that the White collar work force needs to be trimmed and made leaner, with bonus based on performance.  Blue collar work force also needs to be trimmed and the union needs to look at allowing people to do more than just their exact job description.  Example when I worked in a non union plant, when nothing electrical was broke I helped the mechanics.  We also cleaned our own work areas and took out our trash.  The need to put a much higher emphasis on Quality also.
Just so you know, they did trim a heck of a lot of WC workers. They even trimmed them in the R/D center, so what does that tell you?
I know this, because I know a lot that worked there!
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iski

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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #146 on: December 21, 2010, 04:53:27 PM »

In the 1990's when HD was kicking butt & taking names (on a multi-month waiting list to buy bikes), they were riding the wave of a healthy economy combined with an AGING population that was growing (baby boomers) with disposable income.  So they made a LOT of bikes & a LOT of money.  They continued this into the present century, and then the economy got slower, money dried up as jobs dried up, and HD sales are a reflection of that. 

If the economy roars again (not likely with the bozo debt crew running the fed store these days) then HD sales would be better than they are now.  As it stands, other than maintain their infrastructure as best they can & pay down/write down their own internal problems, it is not very likely that HD will sell big numbers again anytime soon. 

The last few years - ABS, new frame, new suspension, new engines, new transmission, throttle by wire, etc. have seen a lot of changes from a company that is known to be slow to change.  Expect to see more changes to the product line.  I know a number of folks who bought bikes just to get ABS.  For me, it was a no brainer.
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #147 on: December 22, 2010, 06:10:48 AM »

In the 1990's when HD was kicking butt & taking names (on a multi-month waiting list to buy bikes), they were riding the wave of a healthy economy combined with an AGING population that was growing (baby boomers) with disposable income.  So they made a LOT of bikes & a LOT of money.  They continued this into the present century, and then the economy got slower, money dried up as jobs dried up, and HD sales are a reflection of that. 

If the economy roars again (not likely with the bozo debt crew running the fed store these days) then HD sales would be better than they are now.  As it stands, other than maintain their infrastructure as best they can & pay down/write down their own internal problems, it is not very likely that HD will sell big numbers again anytime soon. 

The last few years - ABS, new frame, new suspension, new engines, new transmission, throttle by wire, etc. have seen a lot of changes from a company that is known to be slow to change.  Expect to see more changes to the product line.  I know a number of folks who bought bikes just to get ABS.  For me, it was a no brainer.


Had to spew at this line...very eloquently put...
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #148 on: December 22, 2010, 06:56:57 AM »

Wandell is in charge just since May 2009. Introducing a new product in automotive industry takes minimum twice the time.

He has changed a lot in so short a time and nearly 100% of the people working with H-D over here really believe in him. Just for example a regular sales rep in Germany today knows Wandell personally - and I remember European P.O.T. in 2004: Bleustein was present in Malaga for one day but preferred to have the discussions video presented instead of interacting personally  :nervous:

It will take at least another 2 or 3 years to tell if Wandell is the remedy for H-D, but as of now it looks very promising to me  ;)
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Re: Harley-Davidson may leave Wis. if costs don't fall
« Reply #149 on: December 22, 2010, 12:06:19 PM »

Just so you know, they did trim a heck of a lot of WC workers. They even trimmed them in the R/D center, so what does that tell you?
I know this, because I know a lot that worked there!

Tells me they have only mad one tiny step in what I feel they need to do.
Notice, I did say trim the white collar before I even brought up the blue collar.
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