Indian's Next Act
INDIAN'S NEXT ACT
ROUNDUP
THINGS WERE LOOKING more than a little shaky for the resurrected Indian Motorcycle Company. After a strong start-up in 1999 with lots of hoopla and PR dollars being spread around, there came a serious snag. Inventory was hanging about unsold, forcing the layoff of some 200 workers at the company’s factory, a converted grocery warehouse in Gilroy, California. There was no money for the promised proprietary engine, meant to replace the stopgap Harley-clone motor. Likewise, sorely needed chassis upgrades were set aside.
Salvation may have just arrived, in the
form of $45 million in investment money and a new CEO. The cash comes from Audax
Private Equity, a Boston-based outfit described as “a diversified alternative asset management
firm.” New man in charge is 58year-old Frank O’Connell, avid rider (he owns 15 bikes, including a 1946 Chief) and hotshot corporate guy with a track record of successful business turnarounds, among them Reebok and HBO Video.
“This isn’t a job, it’s a passionate mission,” says O’Connell of his new assignment.
“The additional funding will allow substantial design and engineering improvements, but our goal is to be true to the Indian DNA, to live up to the expectations of the brand and the consumer. We do not want in any way to abuse the Indian name.”
O’Connell’s first order of business was to downgrade production goals from an over-optimistic 10-12,000 units annually
to a more realistic 5000. Unsold bikes are no longer a problem. “We’re almost totally build-to-
order now,” he says.
Asked to comment on rumors that an all-new engine design had been aborted in favor of a simpler and far less costly “reskinning” of the current S&S Harley-style Big Twin, O’Connell refused comment, though he did squelch suggestions that Indian might have purchased rights to the defunct ExcelsiorHenderson Super X motor.
“We were approached,” he confirms, “but we were already well down the road we’re taking.”
On the
styling side, it appears Indian has taken note of the current shift toward hotrod cruisers, O’Connell announcing that Chip Foose, award-winning custom car designer, has been retained on a consulting basis. The next-generation Indians will be “more
sporty, lighter, lower, sleeker,” promises O’Connell.
David Edwards
