Victory Buying out Harley?

[Pushrod]

There are rumors that Victory Motorcycles is Going to Buy Out Harley Davidson Motorcycles,
Any one else get a wind of this?

[codyshop]

Have not heard this one, but the financial papers are on fire today (August 4th) with stories of HD moving out of Milwaukee.  Ray

[PoorUB]

There are rumors that Victory Motorcycles is Going to Buy Out Harley Davidson Motorcycles,
Any one else get a wind of this?

I think Honda was first in line!

Really, I doubt it. Victory is a tiny company compared to HD. HD, even now when they have cut back production builds 200,000 bikes a year. I don't believe Victory has build 100,000 bike since the company started! Even with the backing of Polaris I doubt they could buy out HD

[Admiral Akbar]

I thought Victory was part of Polaris..

Max

[calgary56]

After 107 years in Milwaukee, Harley could leave

By DINESH RAMDE (AP) â€" August 4, 2010

MILWAUKEE â€" It's the roar that made Milwaukee famous â€" the distinctive throaty rumble of a Harley-Davidson motorcycle. But that much-loved racket could be rumbling away to another state if the company cannot bring down its labor costs.

Harley-Davidson warned employees in April that it will move its Wisconsin manufacturing operations elsewhere if it cannot cut millions of dollars at the factories that build the bikes known as "Milwaukee Iron."

Harley's corporate headquarters would remain here, but that's small consolation to a community that has already endured repeated blows to its civic identity.

"When you think of Milwaukee you think of beer, brats and Harley-Davidson," said Steve Daily, a researcher at the Milwaukee County Historical Society. "Right or wrong, that's what it is."

But that's been changing. For example, the corporate parent of beer giant Miller parent moved its U.S. headquarters to Chicago in 2008 after joining its domestic operations with Molson Coors Brewing Co. Then there was Schlitz, which billed itself as "the beer that made Milwaukee famous" until financial and labor problems forced it to sell out to a Detroit company in the 1980s.

That leaves Harley-Davidson Inc. as the city's lone signature brand. It's also a magnet for tourists, many of whom want to visit the factories where Harley engines are made.

"We get asked frequently where the plants are," said Paul Upchurch, the president of the VISIT Milwaukee tourism bureau. "A lot of people around the world associate Milwaukee with the home of Harley."

Harley chief executive Keith Wandell said the company will make its decision on whether to move in the next two months. Harley executives are already scouting out other states, though Wandell will not say which ones.

The company, he said, would also be open to incentives to keep the 1,630 manufacturing jobs in Wisconsin. But the idea that it could move production elsewhere stuns many Harley loyalists.

"You can't describe it. They've got so much history here. They've just become the blood of the community," said Tom Steepy, a lifelong rider and the director of the suburban Milwaukee chapter of the Harley Owners Group, or HOG. "If they moved their manufacturing, it would just create a void you can't fill."

Harley has been a local fixture for more than a century. It all started in 1903 when 23-year old William S. Harley and 22-year old Arthur Davidson began selling motorcycles built in a cramped wooden shed.

The company later built motorcycles for the U.S. military in both world wars, which helped introduce the bikes to a global audience that saw them as an American icon.

"They symbolize the classic American values of independence and hard work, freedom, all those values," said Kanti Prasad, a marketing professor at the University of Wisconsin-Milwaukee business school. "Harley-Davidson is a uniquely American phenomenon."

And a Milwaukee phenomenon. Prasad said when he travels to Europe, China or Japan most people respond blankly when he says he's from Milwaukee. Then he points out it's Harley's hometown and their faces light up with recognition.

As storied a company as Harley has been, it's weathered some rough spots, too, most notably in 1984, when a banker had the option of allowing the company to refinance a $90 million loan or forcing them to declare bankruptcy.

At the last minute, the banker allowed the company to refinance. According to the story, it's because he owned a Harley.

The famed motorcycles have also had a long history with Hollywood. They've appeared in films from "Easy Rider" to the more recent "Simpsons" movie. Elvis Presley rode one. And so did the Fonz in the very early episodes of "Happy Days" â€" the classic TV sitcom set in Milwaukee.

So if the Milwaukee-Harley marriage is so solid, how could the company even think of straying?

Company spokesman Bob Klein said Harley wants to remain faithful, but its production schedule needs to be more closely aligned with seasonal demand, a change that would require approval from labor unions.

Negotiations with the unions began in late July. The president of Harley's largest union did not return multiple messages seeking comment.

Prasad, the UW-Milwaukee professor, doesn't see Harley's threat to move simply as a negotiating tactic. A company with a 107-year history is more concerned with the next 100 years than with making idle threats to extract short-term advantages, he said.

Harley benefits the city's image and its bottom line. When the company turned 105 two years ago, some 100,000 fans from around the world joined the Milwaukee celebration.

But even if Harley's production goes elsewhere, there's still a tourist draw here â€" the popular Harley-Davidson Museum. Whether that's enough to help Milwaukee cling to the brand that keeps it on the map is another question.

Either way, the loss of Harley production would be another painful drop of water in the erosion of the city's proud working-class history, Milwaukee historian John Gurda said.

"It's important to have that identity. You need a certain level of civic self-confidence," Gurda said. "And Harley-Davidson, that's a brand that's been imprinted on America's imagination unlike any other Milwaukee-made product."

[calgary56]

Yes, Polaris Industries Inc. (PII) are the makers of Victory Motorcycles. Polaris Industries designs, manufactures, and distributes All Terrain Vehicles, snowmobiles, Ranger utility vehicles, and Victory motorcycles. Polaris also produces the "Pure Polaris" line of accessories and garments. Polaris is headquartered in Medina, MN. Polaris has a product development facility in Wyoming, MN and has manufacturing facilities in Roseau, MN, Osceola, WI, and Spirit Lake, IA. It has a parts distribution facility in Vermillion, SD.

[Admiral Akbar]

And I thought the Fonz always rode a Triumph..   Max

[Pushrod]

Fonzs   Knuckle head,  mainly rode trumphys Tho,,

I hope they dont move the Manufacturing plant off shore,  to be Made in china??




[attachment removed after 60 days by system]

[boooby1744]

How much will it cost to move that new museum complex?

[Princess Butt]

I've read they're leaving corporate HQ in Milwaukee, and looking for alternative production sites for manufacturing.

Polaris is a pretty substantial sized company, but I doubt they're buying HD. There's a rumor every so often of someone buying HD: Warren Buffett, AMF, AMC, GM, Honda, etc.....

Funny little thing about Henry Winkler, aka, "The Fonz": He was terrified of the Harley Knucklehead they had for him. he rode it only once or twice.

[Ridetard]

Fonzs   Knuckle head,  mainly rode trumphys Tho,,

I hope they dont move the Manufacturing plant off shore,  to be Made in china??

So far they only get parts from China...parts like crank shafts.

Hold on to your old hogs boys.

[Big Dan]

It was strongly rumored that Victory (Polaris) wanted to buy Buell, but the MoCo would have none of it and preferred to just kill Buell off.

As for them moving out of here... I dunno. They've threatened it many times, but the workers have always held strong. The last time they gave the York folks a beating, the Milwaukee folks said no. Called their bluff. Won. This time is different. This new CEO came from Johnson Controls and he's something. He's today's "perfect" CEO. Slash costs, screw everybody, even hurt the company long-term, but get dividends up in the here and now. He personally made $6.4M in his first 6 months, if I remember correctly. In times past, I would have said "no way they leave." With this guy, I just don't know. I think he might actually have the balls to try it.

[Jeffd]

I hear the rumor that Polaris was moving to Mexico so that would fit right in with this plan, buy harley and take them with them.

[pddredduece]

As large corporations go they blame Union labor costs for all problems, like GM did. I don't see any upper management taking pay cuts to help the mco.

[kik]

I still think it's just a tatic to get the city and state to give them incentives to stay. Say something likeyou won't have to pay taxes for the next 10 years or something. They'll work something out, IMO, I don't think HD would leave Wisconsin.

[HogMike]

It was strongly rumored that Victory (Polaris) wanted to buy Buell, but the MoCo would have none of it and preferred to just kill Buell off.

As for them moving out of here... I dunno. They've threatened it many times, but the workers have always held strong. The last time they gave the York folks a beating, the Milwaukee folks said no. Called their bluff. Won. This time is different. This new CEO came from Johnson Controls and he's something. He's today's "perfect" CEO. Slash costs, screw everybody, even hurt the company long-term, but get dividends up in the here and now. He personally made $6.4M in his first 6 months, if I remember correctly. In times past, I would have said "no way they leave." With this guy, I just don't know. I think he might actually have the balls to try it.

Depends what he (they) can get away with!
Nothing new in the corporate world.
Look at most of the CEO's and you will see the same thing. They were hired to make the company more $$$$ for the shareholders.
Don't believe it's not "all about the money", because that's what drives corporations!

[WML57]

Of course its about the money. I've said it before and I'll say it again: Nobody starts a business to employee people. A business is started to make money (profit).

[Dennis The Menace]

Rumours.  Like opinions.  Like as... well you know the saying.

Unless its fact, its BS.  Bottom line.  This smells like BS to me anyway.

menace

[hotroadking]

Normal stuff, times are good Unions hold companies hostage during contracts for more money, benefits and goodies.

Times are tough, Companies put the Union's feet to the fire to reduce costs, look the Union holds the majority of expenses for the company , the largest part of the work force and the place you have/need to cut if production needs reducing.  You could fire 50% of the executives/management at HD and it wouldn't make a dent compared to a 20% reduction in labor and assembly expenses

you live by the sword you die by the sword.

If you dont' think it can happen, check out Michigans automotive plants...

[Sc00ter]

Normal stuff, times are good Unions hold companies hostage during contracts for more money, benefits and goodies.

Times are tough, Companies put the Union's feet to the fire to reduce costs, look the Union holds the majority of expenses for the company , the largest part of the work force and the place you have/need to cut if production needs reducing.  You could fire 50% of the executives/management at HD and it wouldn't make a dent compared to a 20% reduction in labor and assembly expenses

you live by the sword you die by the sword.

If you dont' think it can happen, check out Michigans automotive plants...

The issue management has with unions is rarely strictly wages.  It's benefits (retirement and insurance leading the way) and work rules.  Non union shops typically make comparible wages, but have no retirement plans, much worse insurance coverage at higher cost to the employee and wide open work rules.  When layoffs occur, who goes is management's descretion rather than per a contract - and there are generally fewer employees for the same level of production due to open work rules.  The MOCO may try to gain wage reductions, but it's not the big prize they are after.  Overall cost of labor reductions and government incentives are their goal.

[chief-z]

its the same BS harley used on YORK,PA. last year till they got a 15 million "gift" from the state of PA. and consessions from the union. they have laid off over 600 in YORK but last sundays newspaper had a add from harley in the  WANT ADDS. wtf!!

[hotroadking]

One of the biggest reasons is the Unions refusal to change working hours to fit production needs (seasonal changes)  I can see where HD would want to move production into a schedule where it fits its capital influx and consumer demand, nothing stupid or overbearing about that.

A good Union would see that it's a good fit, provides the jobs, reduces the company expenses and improves corporate goals of profitability as well as the goal of continuing operations.

It's in both parties best interest to do this.

Union fights this and poof HD moves, and they can in today's market...

[SHEEPDAWG]

  You could fire 50% of the executives/management at HD and it wouldn't make a dent compared to a 20% reduction in labor

Not sure I'm buying that..Unions were the best things to happen to this country. If it werent for unions you all'd be makin 2$ an hour right now..There's good and bad with unions, same as anything. But theres usually a few factors involved with union bashing..Jealousy, lack of knowlege, or spite...if people think every union is a bunch of people laying around on their asses lookn for 100$ an hour withno work involved..youre dead wrong...

Every company in the world would love to lower production costs..but it come down to this..How much profit is enough profit..?..and how many lives is the company willing to affect for that profit..In Short , Its all about American greed That I'm INTENSELY ASHAMED OF!*

[brokenwing]

What sheepdawg said

[Big Dan]

Agreed. Sadly, in this day and age, there are some that would say Ebenezer Scrooge was doing the right things, Bob Cratchett was a lazy bum, and the Ghosts of Christmas Past, Present and Future were a buncha commie socialist liberals.