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Harley-Davidson

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Our favorite brand from Milwaukee continues to surprise us, as we’ve gotten confirmed reports that Harley-Davidson is considering an electric model to its line-up.

Details are scarce on the project, but the company has made a poor secret out of its desire to return as an industry innovator (yes, there was in-fact a time when you could call a Harley-Davidson a trendsetter in the motorcycle industry…it just hasn’t been in this blogger’s lifetime).

Likely eyeing the next big trend in motorcycling, internally the Bar & Shield brtand has been exploring the idea of an electric or hybrid ICE/electric drive train.

Bottpower may have not had the most success in the Moto2 racing category, but they sure know how to make some drool-worthy motorcycles. Taking its hands to a different style of motorcycle, the Spanish firm envisions a flat track racer that’s not too disimilar from the Harley-Davidson XR1200. Cool, but not crazy, right?

Well the best part about this one-off motorcycle, which Bottpower is making the frame for a special customer (a kit for other customers may be possible if the demand is there), is that the BOTT XR-1 will be built from spare Buell parts, which is a sorta of perverse and ironic twist of fate if you ask us.

Last week Harley-Davidson reached a deal with the leadership at the International Association of Machinists and Aerospace Workers (IAM) Local 176 and the United Steelworkers (USW) Local 760 labor unions, but details on the deal were under wraps until the labor unions’ membership at Harley-Davidson’s Kansas City plant could vote on the deal. Ratifying the seven-year contract, Harley-Davidson will be implementing a new production operating system that is being rolled out across all of Harley’s production facilities, including the Missouri plant.

While Harley-Davidson’s new production system is expected to provide greater flexibility for seasonal and other volume-related production changes, it will also allow for great flexibility in customizing customers’ bikes directly on the assembly line. Harley-Davidson has been touting its H-D1 factory customization service, and this new production system would appear to be the back-end changes necessary to make that program possible. We imagine the union members cared less about this added flexibility in Harley’s production line, and were instead more concerned over the 145 workers who would be moved from full-time positions to flexible positions.

While we’re still poring over Harley-Davidson‘s annual report, making Excel spreadsheets, and winning at bullshit bingo, a couple interesting facts have struck us about the company and some of the trends it is experiencing. While it’s been mostly doom and gloom around Harley-Davidson in 2010, the Milwaukee-based company does appear to be solely in business because of the strong cost-cutting CEO Keith Wandell has been able to achieve during his tenure. Despite the moaning and groaning from the Bar & Shield loyal about Wandell’s non-motorcycle riding lifestyle, the CEO knows how to trim the fat, which is exactly what this HOG needed. Find five interesting facts for you to mull over this weekend after the jump.

Maybe it’s the low-key feel-good guitar music, or the fact that this video is about a small motorcycle mechanic based in the picturesque city of Florence, Italy (a villa this author used to live in), but there is something about this short film that just makes us feel good about life, motorcycling, and everything else. Promoting a specialty shop for vintage Harley-Davidson motorcycles, the time and effort gone into this five+ minute video is perhaps indicative of the sort of service you’d find at Vintage Cycle Service of Firenze.

With macro shots of some of the finer things regarding zen and the art of motorcycle maintenance, we get a glimpse not only on the rich heritage of the Milwaukee brand (note the AMF co-branded tanks scattered about), but a full-immersion into the off-beaten path of motorcycle culture (note the human skull in open-face helmet). You could probably spend hours poking around this shop, looking at different interesting items…or just whittle the time away as the mechanic perfects one of America’s less-than-perfect designs.

The quality is so good, we thought for almost a minute that Harley-Davidson had finally put together a compelling demand marketing campaign, nope just some guys who love bikes and film, achieving what a Fortune 500 company cannot.

Harley-Davidson has instructed its dealers not to talk about how sales have been throughout the recession, but the news that 36 dealerships have closed in the past year, and more closures are expected in 2011, speaks for itself on how sales have been. On a conference call with analysts CFO John Olin said, “This contraction was expected and in-line with our desire to modestly consolidate our U.S. dealer network in response to lower overall volume since the economic downturn took hold,” which is a very glossed over way of saying that American brand has become too bloated over the past years, and needs to go on a diet.

Harley-Davidson expects to ship between 221,000 & 228,000 motorcycles worldwide in 2011, which is up 8% over last year’s figure, but still pales in comparison to the numbers the Milwaukee brand was posting before the economic collapse (303,479 in 2008). Since 2006, sales at Harley-Davdison have continued to slide, but the most dramatic affect was in 2010, where sales were down 30% compared to before the recession (over 36% in the domestic market).

Harley-Davidson has registered a recall with the NHTSA for 6,964 Softail models that have the factory security system option installed. Affecting only 2011 model year Softails that were built between June 7, 2010 and October 8, 2010, the recall is the result of an improper seal on a component in the security system, which could leak and let water in, thus causing an electrical short that could stall the bike.

Fresh from the International Motorcycle Show’s stop in New York, Harley-Davdison has released a new motorcycle for its 2011 line-up that’s set to be another entry point into the Milwaukee brand. Based off the Softail platform, and a part of Harley’s Dark Custom thought process on design, the 2011 Harley-Davidson Blackline has that hardtail bobber look, and that features a new asymmetrical fuel tank styling and split drag handlebars.

At the core of the Blackline is a rigid-mounted, counter-balanced Twin Cam 96B v-twin motor that makes 89 lbs•ft of peak torque at 3,250 rpm, which is mated to a six-speed transmission. New from the Harley-Davidson parts bin are the split drag handlebars that connect directly to the top yoke, giving a near shoulder-height arm position.

If you’re looking for that old-school bobber look on a Harley-Davidson this summer, when gas prices will surely climb to ridiculous levels once again, the Blackline with its $15,499 MSRP, and 54 MPG highway / 35 MPG fuel economy rating might be the place to start. Photos of noticeably rebellious 20-somethings and press release highlights after the jump.

As much as we harp on the them, Harley-Davidson really is one of the few motorcycle companies that truly seems to grok the idea that motorcycles are about personal expression, and are an extension of a rider’s personality. This simple understanding has lead to the company’s brand marketing and lifestyle business strategy being taught in business schools around the world, tattoo parlors keeping a healthy array of Bar & Shield designs at the ready, and ensuring the State of South Dakota stays out of Canadian hands.

So it should come as no surprise then that the Milwaukee based company has started a factory-level customization program that will allow Harley-Davidson customers the ability to purchase a nearly one-of-a-kind motorcycle that is built from Harley’s 8,000+ genuine parts & accessories, which will then be built at the factory and shipped to the customer’s local dealer.

After a long absence, Triumph North America has once again joined the Progressive International Motorcycle Show, after being absent from the American event for several. Looking to come out of the gates in strong form, Triumph is showing its largest collection of motorcycles ever in the company’s 109 year history. With 23 models spanning six motorcycle families, Triumph will make its 2011 American debut at Long Beach this weekend.

With the Tiger 800, Tiger 800 XC, Daytona 675R, and Speed Triple being the crowning jewels of Triumph’s new model line-up, Triumph’s North American subsidiary will also be introducing its new CEO Greg Heichelbech.

Harley-Davidson filed papers today with the SEC disclosing that the company has bought back $297 million in papers (essentially paying off a loan) from Davis Selected Advisers, L.P to the tune of $380.8 million. Taking the loan amount at 15% interest, Harley-Davidson borrowed roughly $600 million from Davis Select and Warren Buffett ($300 million each, despite what other blogs seem to think) back in February of 2009. This announcement marks the first step Harley-Davidson has taken in repaying that debt, and with the added $100 million in interest payments, it’s easy to understand why.