| Author | Message | ||
     Doerman |
Once the post office opens today, I will mail this letter: Dear Mr. Wandell, You are a veteran in corporate governance with vast experience and success in running Johnson Controls. There is no doubt about the competence and leadership you bring to Harley Davidson. In your eagerness to put HD Inc. on a path of sustainable growth, you may have overlooked a few critical aspects of what makes up the motor company. Harley Davidson rose to success based on brilliant moves in the nineties when it embraced “sub cultural consumerism”. The company created a subculture around the brand and grew based on creating a “family of riders” who attracted more riders into the mystique of the brand. Brilliant marketing. The problem is; a subculture is only a true subculture for so long. The other problem is, the subculture ties the company to the created subculture and prevents the company from evolving. In the most recent analyst call, you referred to “getting back to the core” of the company. Now you have tied the company to status quo. Might work well for the short run, but it raises questions regarding enjoying sustained future growth. You had a division, Buell Motor Company that was a fledgling in a new sub cultural direction and appealed to the youth market. Your recent decision to kill the division may look reasonable when looking at it with a short horizon. In the long run you have killed off Harley Davidson’s innovation division and an important entry point to the youth market. It is done and cannot be undone. What you can do is to ensure the continued evolution of Buell products by actively shopping the critical dormant assets associated with Buell Motor Company and allow the company to be resurrected through Investment Banker capital or by somebody in the transportation industry. I am sure you know that the Buell Motor Company was a model in modern manufacturing with its brilliant use the supplier channel. There is no question about the incredible innovations that have emerged from Buell over the years. So it is for these reasons I appeal to you facilitate a sale or transfer of critical assets to a corporation that is interested in continuing the beacon of light in American manufacturing and innovation, called Buell Motor Company. Thank you for your consideration, Asbjorn Melo San Dimas, CA | ||
| Chadhargis |
This is the type stuff we need to be doing. Speak business speak to business people. All the talk of "American" this and that means nothing. It's all about the money to these guys. I may also write a letter along these same lines. | ||
| Bob_thompson |
A really great letter Asbjorn and I agree with all points completely. Send it. But............I have been wondering about one very important point. I am sure there IS a NEW subculture evolving surrounding sport bikes and I for one have always had that very feeling back to when I first tried to make one from a Sportster back in the 70's. However, I'll bet HDI has already seen that starting to gain momentum but they also know that a Buell owner will buy a nice XB or 1125 for maybe $12000 and get a Buell "T" shirt whereas a bagger buyer, (some weekend poser, older with more disposable income), will drop $25000 and get another $2000 worth of leather, boots and bandannas and that is continuing at a constant pace as those people continue to evolve in their male menopause years. Sad. But for HD its a bottom line accountants decision. For HDI it just make sense to, at least for the NEAR future to continue on their present path. Sad but I believe their thinking is wrong, as you do, but it is THEIR mentally. I do not think they care at all about another sub culture evolving. Bob | ||
| Doerman |
Thanks Chad and Bob for your comments. I also submitted the letter to Milwaukee Journal Sentinel and asked them to consider publishing it in their Opinion column. I will also contact Wall Street Journal and ask them to do the same. It is clear that HD is not doing anything more with Buell so the purpose of the letter is to encourage Mr. Wandell to transfer the critical assets to a recipient willing to take it further. I hope it has some effect! (Message edited by doerman on October 17, 2009) | ||
| Los5445 |
I think it is also worth mentioning that Buell was in a unique position as the only American company that has an entry into the growing Adventure/Dual Sport market. BMW has at my count 6 different motorcycles for this market, KTM 2, Suzuki 2, Kawasaki 1, everybody else 0. In this niche market there is also a growing female portion that is now largely unserved except for one offering by BMW. It is also safe to say that nothing from Harley's traditional line will even remotely serve these markets. In a down economy having the price points HD has will spell further decline for them. | ||
| Los5445 |
BTW, I think your open letter could contain signatures from Buell owners and dealers. | ||
| Bob_thompson |
I hope so too. Thanks much Asbjorn. I can see it now: Roger Penske buys those assets, MV's, starts a new production with Erik and MV's number one man, and opens up a network of Buell/MV Agusta shops all over the world and succeeds as HDI slowly sinks into oblivion. Great! | ||
| Court |
Asbjorn: Well done. You are on the right track. Court | ||
| Eryngium |
I envision a world where Harley reorganizes and survives and continues to produce quality American motorcycles. I don't want to see Harley wither and die. They've got employees, too, and I don't wish failure on them. They're a piece of America. But I believe they're relying too heavily on riding their logo and an image can only carry you so far. But I want to see Buell flourish, too. I don't see them as competitors, so why would one have to fail for the other to survive? I think all riders should be a family, no matter where their bikes are built. | ||
| Eulysses |
I think Eric pegged the two issues in a Milwaukee newspaper article before the race win(it was noted he did not renew his employment contract with HD back then). Those two issues were that HD did not let him build a racer until too late...and that the dealer network was all wrong for marketing Buell. I think Harley should have sent Buells out the door to independent dealers to capture more sport bike market. They would have had a lot more Buell sales IMHO. Just a bad business model. After taking tax losses I believe the Buell asset will arise from the ashes next year. | ||
| Brumbear |
Bob T good point but there are not that many older folks with disposable income anymore. The majority were people taking home eq's and buying a crap load of stuff and when the bottom fell out and it did the Well is dry so to speak. Many of those boomers and 50 somethings are now faced with nothing for retirment except selling their homes (if possible) to get out of debt The next gen. mine the 40 somethings well there are a few H-D guys that may have money to burn but I honestly think they are shopping price right now. I know 2 guys 40-45 just bought H-D's Sportsters cause they did not have the coin and they are cheaper now than ever. In 2 weeks they will be bored of sportsters and then what? Que in the monty python halleluja Japan or Europe no more ULY to catch the eye of the 40 somethings. The 30 somethings well Japan is all there is and Europe | ||
| Rainman |
We have three regular MCs working in our town ... not 1%ers, but serious live to ride types who are on the street, in the clubhouse and living The Lifestyle. They ride sportbikes, jap/italian/buell. It's about riding hard and fast and living the same way. Harley's attitudes are alive, but the choice in bikes is changing. They may need Buell, yet. | ||
| Lori_b |
*In the long run you have killed off Harley Davidson’s innovation division and an important entry point to the youth market.* How very true. Let's just shoot ourselves in the foot and stumble through the trees cause we sure can't see through the forest! Besides, They're just jealous cause we were (always will be) leaner, meaner & more inventive! JMHO | ||
| Vtwinbuell |
Asbjorn, That is a great letter and I hope it gets far enough to make a difference. Lori, I wish you and all of your co-workers well. I love my bike and all the innovation that has gone into it. | ||
| Conchop |
superior engineering being choked by corporate geeks. chinese trinkets, garments, and boots sold at American made prices layoffs corporate speak = bullshit HD came out of certain death and beat the odds. Clever people built it. Times were hard at that time too. They pulled it off. They created an icon and a true American success story. And now they do this! HOW UN- AMERICAN! They lost their balls. LOSERS! | ||
| Captainkirk |
Terrific letter, Asbjorn! The only problem is, will Mr. Wandell read it? And, if he does, would it make a difference? Sadly, IMHO, no. My dealings with the Corporate Machine in the past have shown me that once execs have made a decision, they would rather go down with the ship than reverse course, lose face or ever admit they've made a wrong decision. And, perhaps there is that nagging fear that every Buell sold is one less V-Rod or Sportster sold (not comprehending that it would be a Ducati or some other sportbike)The id and ego of some MoCo employees is staggering to me. They do not nor cannot comprehend what we feel when we crank it on or lay it over in a twisty. Different strokes for different folks, I guess.... | ||
| Bombardier |
Doerman, Okay my friend, how much and where do I send the cheque? We, and I mean Buell owners here, should get a Co-operative, Company whatever and buy the bloody thing! We have a vested interest and a wealth of knowledge about our potential product and we are the market and can influence the new purchasers. I am sure, despite the current financial situation, we can swing the deal. HD obviously do not want it. Well? | ||
| Doerman |
My next move has been to contact some of the stock analysts to make them aware. This is a letter I sent to Mr Hardiman who works for FTN Equities and covers HOG. I picked him, because he is also covering Polaris. Mr. Hardiman, I write to you because you follow HOG and participated in the latest analyst conference call on October 15th. My “cause” here is that I believe HOG has left marketable assets on the table after the Buell Motorcycle Company shutdown. Read more about my position in my letter to Mr. Wandell (pasted below). What Buell has is a tremendous product and a great just in time supplier system, but no distribution channel. Polaris has a great distribution channel, but not a product in the segment Buell offers. These synergies are striking. I believe the critical assets held by HOG could do very well in Polaris’ hands. Since you also cover Polaris, are you in a position to broker a marriage? Thanks for listening. Asbjorn Melo Captainkirk: I don't know if Keith Wandell will read it. I sent it snailmail, because it then gets somewhere inside the corporate HQ. Somebody will read it. I am also hoping MJS will publish it as a "letter to the editor". This is more about an awareness campaign and much less about "sticking it to the man". Bombardier: There needs to be an Investment Banker involved in order to do the transaction. Grass roots will only work if an investment banker is driving it. Besides, we need Mr. Wandell to be willing to part with the critical assets first. Lori_B: You made a mistake when you said: They're just jealous cause we were (always will be) leaner, meaner & more inventive! JMHO ...and calling that an opinion. That is not an opinion. That is a fact! It is a fact you should be proud of and not humble about! Thank you for your contribution to the team that builds the best motorcycle in the market today. | ||
| Court |
>>>There needs to be an Investment Banker involved in order to do the transaction. That is correct. Two had contacted me before the sun set on Thursday. I also want to back up that what Lori_B said is an absolute fact. There was a great deal of personality and personal vendetta in this move. It's the reason that HD has sought to destroy marketable assets. The letters to the analysts have a reasonable chance of prompting action. I also think we should contact board members and make them aware (they know so darn little about the motorcycle industry) that HD is knowingly squandering an opportunity. | ||
| Joshinga |
For what its worth I am a HD/Buell tech factory trained and all. And also A HUGE supported of Erik and the elves and I would jump at the chance to work for Buell as a stand alone company. | ||
| Skifastbadly |
Hey Asbjorn, Good to see you're still raising rabble... CR | ||
| Strato9r |
Nailed it, Asbjorn. | ||
| Roysbuell |
I need an address so I can send a letter also. | ||
| Indy_bueller |
Hey guys. I just want to remind you all that if you are going to write a letter to HD about this, please be considerate when you do so. It would be best not to mention any names of anyone you may know at HD or Buell. We don't want to cause any friends grief by saying something that we might regret later. I'm not speaking about any particular circumstances, it just occurred to me that saying the wrong thing right now could hurt people that we care about. Please be thoughtful and mindful of what you are doing. | ||
| Indy_bueller |
In fact, just don't mention any names of anyone you know that works for Harley or Buell. Just don't do it. Say what you feel you have to say without using names of people you care about. It's better that way. | ||
| Doerman |
I agree with Indy. We are outsiders and do not know the inside politics. Well meant approaches can hurt w/o us knowing it. Also, I am from now on less public with what I do since cornering people by putting them in the limelight can work against the desired outcome. I started the letter to Wandell to get awareness going. My letters to the board members needs to be private communication. I'm sure we can break Buell Motor Company out of jail!  Cheers, Asbjorn | ||
| Court |
>>>>Well meant approaches can hurt w/o us knowing it. >>>>I'm sure we can break Buell Motor Company out of jail! Both accurate. It won't happen on the internet. | ||
| Hughlysses |
Asbjorn- Please let us know if your letter gets published in the Milwaukee paper. It will be very interesting to see what kind of responses it gets. | ||
| Court |
Milwaukee Journal | ||
| Hughlysses |
 That's awesome! |
