Indian Motorcycles to make motorcycles again? Eyes Manatee

Tuesday, 03 January 2006

Indian Motorcycles to make motorcycles again? Eyes Manatee By TILDE HERRERA - Herald Staff Writer - bradenton.com MANATEE - David Hansen will never forget the summer of 1967. He had just graduated from high school and soon, from a pile of parts in his parent's garage, sprang an Indian Chief motorcycle he built by hand. "I started riding Indians instead of Harleys because it was different," said Hansen, who owns The Shop - a motorcycle service and repair business - in Ventura, Calif. "Sometimes when you're a kid, you don't know why it's special. You just know it feels good." Hansen's reverence for Indian motorcycles hasn't waned in nearly 40 years. The new owner of this beloved American icon - Stellican Ltd. - is banking on the passion and nostalgia the brand evokes in people like Hansen to help revive the 104-year-old company. Stellican Ltd. is a British private equity firm that purchased Chris-Craft Industries in Manatee County in 2001 and turned it into a profitable venture. Managing Director Stephen Julius hopes to apply lessons the company has learned from resurrecting other notable, yet troubled, companies in recreating the Indian brand. Manatee County is one of several manufacturing sites being considered to introduce the 2007 Indian Chief model. Indian motorcycles will rise again, said David Wright, a Stellican partner and president of Indian Motorcycles. "There's no reason we can't do it," he said. "We have the capital. We're relatively young and prepared to make this our life's work." Indian Motorcycles roared to life in 1901 and shared dominance with Harley Davidson through World War II, furnishing bikes to the war effort as well as police departments. In 1953, production stopped and attempts to revive the brand failed. In 1967, a New Zealander set a speed record on the Indian Motorcycle he spent much of his life perfecting. The movie, "The World's Fastest Indian," stars Sir Anthony Hopkins. It will hit U.S. theaters in February. An investors' group brought Indian back from the ashes in 1999 but put the company on the auction block last year. Stellican came calling as it did when it rescued Chris-Craft from the dumps in 2001. Within nine months, the Manatee County boatyard was back in action. It now releases new models several times a year and has grown by 35 percent annually. While there are brand recognition parallels between Chris-Craft and Indian, rehabilitating Indian Motorcycle company may be trickier. Chris-Craft's operations were consolidated near the Manatee County line while Indian's last home was in Gilroy, Calif., along with much of its domestic supply network. Although Gilroy is still being considered as a manufacturing site for Indian, Stellican is also looking at several other sites mostly in the southeastern states. Out-of-state economic development councils are aggressively courting Indian with attractive incentive packages, Wright said. Manatee County would be ideal because many of Stellican's officers live in the area and its proximity to Chris-Craft. But the county's lack of affordable housing and work force availability are troubling issues, Wright said. The tight skilled-labor pool forces Chris-Craft, for instance, to outsource employees from out of the area, Wright said. A final decision is expected in early 2006. Wright said the plant could employ up to 500 workers by 2011 and produce between 5,000 and 10,000 motorcycles annually, a fraction of the 300,000-plus motorcycles Harley Davidson builds each year. "There's no reason why Indian can't do 10 percent of what Harley Davidson does," Wright said. "It's not a given, but in 10 to 20 years, it's in the realm of possibility. People are looking for an alternative." Once production gets under way, watch out for apparel, video games, collectibles and even a restaurant concept touting the brand, Wright said. Harley Davidson, after all, generated more than $1 billion in genuine parts, accessories and general merchandise in 2004, according to its annual report. "The Chief embodies the Indian DNA," Wright said. "It's what Indian stands for from a design perspective . . . We want to strike a balance, backward-looking and not a literal interpretation. It's a nod to the past and a nod to the future." While nostalgic designs may attract an older demographic, Wright said, more progressive models will be introduced to target younger consumers. Donald J. Brown, a motorcycle analyst from Irvine, Calif., said that's a smart move. "They would have to appeal to not only the baby boomers but the next down, the Generation Xers and younger," Brown said. "They have a battle in regards to demographics but this is a big industry and there is growing interest in motorcycles." That "Indian DNA" distinguishes it from the style of Harley Davidson, Hansen said. Carolyn Waygood, owner of Evolve Day Spa in Palmetto, agreed. "I fell in love with it and sold my (Harley Davidson) Sportster and bought an Indian," she said. Waygood is not the exception, Hansen said, but the norm. "Once you get an Indian, you cease thinking about yourself as anything other than an Indian rider who owns other motorcycles," he said. "Something changes in their psyche." Related Articles: Growing Up Harley-Davidson Harley taking an uneasy ride Crossover between sports car and motorcycle - The world premiere of the VW Confederate Motor Co. Inc. BMW K1200S Viper Motorcycle Company Gears Up for Production Everything you ever wanted to know about chrome plating

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