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Wednesday, September 1, 2010

Imagining Milwaukee without Harley-Davidson

OFF THE WIRE
http://www.rep-am.com/articles/lifestyle/travel/503832.txt Imagining Milwaukee without Harley-Davidson

BY BUD WILKINSON | REPUBLICAN-AMERICAN Milwaukee without a Harley-Davidson plant for tourists to visit on their motorcycles would be like Boston without Fenway Park, San Francisco minus the Golden Gate Bridge or even Naugatuck without the Peter Paul candy factory. OK, bad example with Peter Paul — or maybe not.

When I was youngster, my parents bought me one share of Peter Paul stock to teach me about saving and investing. When the company announced a two-for-one stock split, I was thrilled. Even more enjoyable was an annual gift box assortment of Peter Paul confections that the company sent stockholders. I even once toured the factory with my parents, who were impressed by the efficiency and the cleanliness of the operation.

Although I grew up more than 20 miles up the Naugatuck River from Peter Paul, and had no connection to the company aside from my growing stock portfolio and a love of its candy bars, I had an emotional investment in the company and always felt pride in the folks at Peter Paul. When the factory closed, so did my loyalty to Mounds and Almond Joys. Sorry, Hershey.

Because of this, I can't help wonder what the reaction of Harley owners will be if The Motor Company suddenly stops producing bikes in Milwaukee, the city where the iconic brand began in a 10-by-15-foot wooden shed in 1903? Harley seems serious about abandoning Wisconsin, except for keeping corporate headquarters and its museum in Milwaukee.

Employees got the word back in April that a move would occur if millions of dollars of savings can't be found. No doubt the threat is a negotiating tactic as the company seeks labor concessions to lower costs, but it's also a statement of the economic reality. The economy stinks and Harley's customer base is aging. Big bucks can be saved by moving elsewhere. Other places, notably Florida and Nevada, are openly courting Harley.

The crucial question is how will Harley owners and potential Harley buyers react if true "Milwaukee Iron" no longer exists? For most Harley owners, there is but one make of motorcycle. If there were a Mount Rushmore-type monument for motorcycles, Harley owners would expect it to display a bar and shield logo and nothing else.

Decades of operation and endless marketing have created brand loyalty beyond belief or reason. What will be the impact to Harley's image, reputation and bottom line if it abandons Milwaukee after 107 years?

"I think they're going to take a big hit. Public relations-wise, if they move out of Milwaukee, they're going to take a big hit," predicted Keith Bruno, who owns The Shop in Winsted. The Shop specializes in repairing Harleys. Bruno has been a Harley rider for 42 years and owned a Harley dealership in New York from 1973-77. His grandfather became a Harley dealer in 1911.

Lee Farley, general manager of Doc's Motorcycle Superstore in Waterbury, which also services and restores Harleys, was of two minds regarding Harley. "It's synonymous with Milwaukee. That might be a big issue," he said. "In reality, most of the bikes are built in York (Pennsylvania)." Moving the Harley factory elsewhere "might make the bikes a little cheaper. In the long run, public opinion might hurt a little bit," said Farley.

Besides York, Harley also has a plant in Kansas City. Moving manufacturing out of Milwaukee to another city or state won't alter one fact. "It is still 'the' American motorcycle," said Farley. "Better than being bought out by AMF again or something of that nature — an out of the country conglomerate."

Back in early August, Harley said a decision would be made regarding a move within two months and one month has nearly passed. Negotiations between Harleys and the unions began in late July, according to The Associated Press.

RIDE-CT's take is that if the company ultimately spits on its heritage, and says to heck with tradition and Milwaukee, which is Harley's strongest selling point, some Harley owners will spit back.

Bud Wilkinson may be reached by email at budw@ride-ct.com. He also writes a complementary motorcycle blog at budwilkinson. wordpress.com.