Erik Buell has an interesting article in Forbes stating “I’m Placing My Bet On American Manufacturing.”
In 10 years, we will look back and say this was our moment in time when we turned it around. The re-trenching–or in the case of the American auto industry, re-wrenching–brings us back to our roots. It lets us scrap our production lines and stand empty-handed in the garage or backyard, and start again. From this time of crisis, American manufacturing will be reborn.
Sounds like a “doer” doesn’t he? A hands on guy, too. I like his attitude.
Mehul Kamdar says
Erik Buell is a brilliant man and if he decides to do something, he is sure to pull it off. At the very least, his taking this challenge up means that there would be interesting additions in design to the Buell stable. A big thumbs up!
John says
I feel the same way Eric Buell does, I think the industry will make it through this and be in the best shape it’s ever been in.
the other Larry says
I think Harley needs to get rid of the new non-rider CEO and put Eric there.
Buellish says
The previous topic is a good starting point. HD – give this man additional pull for the entire brand.
Dorzok says
You bet he’s a doer. Or a re-doer, as in fail at starting your own motorbike company something like three times before you get it right.
Richard Gozinya says
Happens a lot Dorzok, the difference is Eric Buell didn’t give up when things got difficult.
Thiago says
Chuck Norris rides a Buell….
Dorzok says
that’s my point Richard. It doesn’t happen as much as it should. it’s one thing to be a doer but it’s quite another to be a re-doer.
Kirill says
prices for manufactoring labor in US are not competitive. either u face it or u won’t make it. only engineering is for US. I know of a person from a high-tech start-up who lost his job because R&D was moved to china. and manufacturing bikes/cars is easier and cheaper in other countries. what are the advantages of manufacturing in US? labor in US is more expensive because people are more educated and can do more complex things. so that is what they should do. i’m not a PhD in economics but for example, R&D or look after robots that do manufactoring or design those robots OR work on the products that require fast radical changes from the people who understand the market (like buell or bmw). mass-production should be done outside of US. if k1200s would be produced in chine it would cost at least 10-20% less but it wouldn’t have a hossack.
kenny says
Kirill is right, manufacturing occurs in the cheapest possible economic climate depending on the skill level, all the American companies that came to Ireland with the prospect of major tax breaks and a highly skilled work force for low wages back in the eighties and early ninties have almost all started to scale back and move to eastren europe or asia. Had a job lined up with a R&D department of one of those companies when they just fecked off.
I am now working for another one of those companies and i’ve seen a comparison between the plant here and in the US. The US plant is vastly inferior when it comes to production efficiency but the the operational costs are lower so they still manage to make a profit. Not sure how this applies the rest of the US but if they got their act together they could become a power house again
stever says
Question: If a BMW or Harley Davidson were made in, say, Mexico or China, would it STILL be a BMW or Harley? I work on medical x-ray equipment, and a LOT of the parts we are now using are made in Mexico, and I can tell you for a a fact that the quality is not there. I recognise that making something here in the states adds a tremendous cost, but are we just going to become a nation of consumers? Do we just think up things and have others make it for us? Last year I was able to finally be able to afford a new bike (never had a NEW one before), came real close to a Ulysses, but could not get past the dealer attitude and the negative press. My point is: I really wanted to buy something made HERE, but just couldn’t.
Rick Maiman says
How timely, when just in the last day the appearance of the MAC motorcycle designs utilizing the Buell Blast motor appear everywhere. The Blast is a cute but puny little canyon carver and also double duty’s as the Harley Rider’s Edge learners program machine. I’d like to see Buell put his design excellence where his mouth is and make a revamped hot rodded Blast Ultra. Keep it’s best virtues like the dent proof plastics, belt drive, etc and give it larger wheels, better bearings, and a stout front end. Harley’s done this with all manner of basic designs. MAC is proof that the Blast motor lends itself all too well in updated, but with a tip of the hat to essence and purity of design. Where’s Buells American Manufacturing here? Why sell motors when he could be selling more motorcycles.
Jim says
Stever: BMW subcontracts the engine manufacture of the G- model bikes to Kymco in Taiwan. When the F650 Funduro was introduced in the early 90’s the motor was sourced from Rotax (Austria) and the bike manufactured under contract by Aprila.
Beyond that both HD and BMW source assemblies and components out side of the US and Germany, HD has also outsourced its engine R&D to Porsche. In reality for both companies it is engine manufacturing (K&R bike motors for BMW) and final assembly are done in their respective home markets.
A number of years ago there was a meme that contended that the Gold Wing had greater US domestic content than the ElectraGlide. No idea if that was true, but it sure pissed off some Harley folks.
This is simply the way it is.
4Cammer says
I wrote a letter to the struggling Buell company some 16 years ago for a catalog of the then current RS1200 models…that was when HD just purchased 1/2 of Buell. In return I got a 4 page catalog and letter thanking me for my interest, typed on a dot-matrix printer and signed by…..Erik Buell. Same signature he gave me in person on my 2007 XB9R. Yeah, took a long time, but I finally got my Buell.
This guy is the real deal. Read the book on the 25 Years of Buell and see what he has accomplished. The man has his critics, and I can not see why. He has lived the American dream and proven that passion,determination and brains are still great attributes to have.
Tin Man 2 says
Kind of a shame HD just pulled the plug on his new Bike Factory. Yes I agree, wish Eric had more power in the HD decision making process. I sure would not let the negative press talk me out of buying an Ulysses. As far as labor costs go, Look to Germany, High labor costs with low productivity but the workers are protected in their home market and supported by their fellow countrymen. By sticking with high quality asperational products Germany has kept a strong manufacturing base, only using a minimun of cheap, 3rd world slave labor.
jeff says
ok….I’ll ask the question that nobody here wants to…..if he is placing his bet on American manufacturing, then……why does their top line bike use so many components manufacturted overseas?
there is a big difference between ‘assembly’ and ‘manufacture’……
dresden says
There’ll be a point where these poor countries won’t be so poor anymore, and our manufacturing will eventually return here. I’d say within my lifetime. You can only exploit people for so long, especially with the rapid globalization we already have, before they wake up and want their piece of the pie too.
Scott says
To me, as a sport-bike enthusiast, Erik Buell represents the most pure embodiement of the American Dream I have ever seen.
He started from nothing and painful step after painful step he has slowly built a company that he . . . (and we as Americans) . . . can be proud of.
And I am absolutely AMAZED that every step of the way people crap all over him and try to pick him apart. It’s almost as if there are jealous people out there who want him to fail because he’s doing what they wish they could do.
When I was a boy, there was no such thing as an American Sport-motorcycle.
Admitedly, the early Buells were under-powered, over-weight, unreliable and expensive, but Buell worked on improving all of those points and we began to see better and better motorcycles each year.
I’ve heard people complain that Harley engine would never work, the muffler shouldn’t be underneath the bike, the fuel-in frame was dangerous, the ZTL brake couldn’t be competitive with “real brakes” etc., etc, etc.
Now we’ve come to the point were the complaints seem relatively minor: “It can only compete with 600’s” (even though Shawn Higbee and Steve Crevier are racing against Superbikes) and “the engine is made in Austria” (even though the actual bikes – including frame now – are designed and made in the US).
. . . and I’ve come to feel this will always be the case. When Buell wins AMA Superbike, people will complain that it isn’t WSBK. When they start making their own engines in the US, people will complain that they still buy their wheels overseas.
I don’t know how Mr. Buell maintains his sanity (by some accounts he hasn’t), but I’m thankful that we have him. He has made my dream of seeing a world-class American Sport-bike in my life-time a reality (there were times when I really thought I’d never see it).
Here’s a hearty, sincere and heart-felt: “THANK YOU MR. BUELL”
dan says
I used to ride from Madison to Jainesville to see Eric’s house and fly back on my beefed up KZ1000. That is one nice ride! I’d like to see more out of him at this point but he keeps trying. His current sport bike looks goofy but is getting closer! The standard version is a very good bike according to the reports. The thing is he has moved away from his roots, less is more stripped down bike, with the engine as a show piece. American car manufacturers will again regain market share because they are now competitive globally and there is a strong momentum to buy America!!!!!!!!!!!!!
tonyp says
Kirill has it right.
If we can retain manufacturing AND be price competitive w/out subsidy, great! If not, move on.
When your done washing the dishes at home, you go do something else. For a lot of US manufacturing, the dishes were done a long time ago.
An incomplete metaphor, but I think it gets most of the way there.
tonyp says
Trade creates wealth due to efficiency, comparative advantage and competition. Dislocations can be painful at first. But its the only way forward.
Where do you draw a border?
You can say, “I don’t want stuff made in China” What about Ohio? I live in NY I don’t want to trade with those jerks in Ohio! I only buy stuff from NY! Or keep drilling down…If you live in Buffalo, do you only buy stuff made in Buffalo? Those Rochester freaks make crap!
I worked for a company that had an efficient and beautiful factory in NY. They turned out high quality stuff at a competitive return on sales. They moved the operation to Singapore to take advantage of lower labor rates and proximity to the heart of the market where they competed. It was sad and painful at first, but if it were my company, I probably would have done the same thing given the knowledge and perspective I have now.
Its the seen and unseen. What’s seen? ‘American’ jobs lost. What’s unseen is the people making these units in Singapore have jobs and potential middle class lives that they otherwise wouldn’t. We have units that cost less to buy, we can re-deploy working in other sectors of the economy. Learn new skills
Maybe even manufacturing! Let the energy flow through the path of least resistance. 200 dollar oil has a way of making domestic industry look cheap.
Trade also has a tendency to make people amiable. I would rather be trading with China than worry about being nuked in the future.
Trade has its downside and pitfalls, but take an honest look at the history of tariffs and protectionism and see which side you end up on.
Trade wins every time.
JB says
The 1125 motor is manufactured where? Mmmm,I better check my globe,can’t seem to find a place called Austria in North America….JB
todd says
I don’t buy motorcycles to keep people employed I buy what I want to ride. Chances are, there are probably hundreds or thousands of people who are employed because of the bike I bought. I don’t care where they live, I don’t care if they are living any sort of dream. I only care that they produce what I’ve paid for – that they do the job they applied for and get paid for. I think any number of countries are doing a good job at that, don’t you think?
Kudos to Mr. Buell for doing what he has done with the resources he’s been given. Other than that, I have no personal involvement with the man. I could care less about him or anyone else I don’t know who runs or works for a motorcycle company – or any other company for that matter. If I wanted to buy a Blast I’d buy it if it was “made” by Buell or Yamaha or Kymco or Dnepr as long as it was a proven product.
-todd
Kenny says
Ditto todd
Well said.
ROHORN says
Kneeslider,
Here’s another quote from that (excellent) article:
“With any spotlight comes whining, finger pointing, and what we can only interpret as self-doubt from all those that believe America can’t do it. Those that told themselves the only way to win was with carbon copy clones of what the other guys were doing.”
It shouldn’t be a surprise that he doesn’t take advice from the whiners or that said whiners, as always, have nothing original or productive to say. Too bad they only read the first sentence (if that) before responding…..
Den says
Mr Buell is an innovator, he always seems to choose the path lass trodden. I am an Australian and although we are a small country we have produced a great amount of innovators and inventions only to have them lost overseas, the black box flight recorder is an example.
I generally try to by local craft made products but when buying from overseas or interstate (Perth is the most isolated capitol city in the world) , I try as much as possible to choose products that are the most ethically sound in terms of environmental sustainability and social conscience, no matter where they are from. This recession (depression) should, if handled correctly, give us the opportunity to change skills and manufacturing for a more sustainable future both in terms of society and the environment.
They are not perfect but these are a couple of imported brands that I purchase:
Doin’ manufacturing in the USA, I wish someone with the expertise of these guys did something similar here in oz and if these guys can do it the rest of the USA can too, http://americanapparel.net/
Making sustainable business and communities and giving decent pay and conditions to craftspeople in third world countries, including Australia where our indigenous people,the traditional owners of our land live far below par to the rest of the country,http://www.oxfam.org.au/shop/
Ando says
Eric’s got some great bikes and I dig his attitude. Anyone who dusts himself off and jumps back in the game a few times with a great idea deserves to do well. Buells are a cool bike. I’ve been riding GSXR’s for 23 years but I appreciate most bikes and Buell is one of my favorites. I almost picked up a Lightning about 4 years ago.
As far as his comments go about American manufacturing, I think the whole of North America needs to have an honest look at the wages workers are making on the assembly line. The reason big auto is in the toilet is because they can’t manufacture vehicles in a cost effective manner and the unions have them in a stranglehold over wages; So much so that Chrysler couldn’t get a deal with Fiat and GM is entering bankruptcy….
Personally, I think it’s great if workers can get paid $60 – $70 per hour but when it means the company is stuck to the point that it goes under because of wages and pension obligations there’s a problem. As a result, when these companies do go bankrupt the workers can forget about pension and wages. When there’s no company, there’s no money.
Those of us in the workforce haven’t really experienced the tough times of an economic meltdown an as a result we’re kind of spoiled and seem to think we have the right to high wages and all the comforts we enjoy. It may be that there will be an adjustment.
John says
These guy’s that go on and on about how they don’t care where it’s made ,they’ll buy what’s best like to make it sound as if anyone buying American is doin it only because they are some kind of crazy super patriot or are doing it for the image.I don’t give a crap if anyone likes what I have but it is nice when so many people comment positivley. Over the years I’ve riden Honda CBX 6 cyl,Yamaha XS1100,Kawasaki KZ1000 and a no. of the modern Jap bikes and compared to my HD was unimpressed and felt silly.Ride whatever you like but when you go on and on about what you think makes someone pick what they ride your proving your a fool.
Jon says
Interesting that the next item down in your blog concerns the Blast Eric didn’t build which will now be coming from England — probably just a coincidence. And look at the price! Eric could build that for $8500 and have a very nice niche bike — just what you are often talking about here. — Eric?
Tin Man 2 says
How can someone buy a product and not care how or by who it was made? Child Labor, Slave Labor, This is supposed to be an enlightened time to be alive, Do people still buy Tennis Shoes made by children? Motor cycles assembled by workers who live in Tin Huts? Grow Up, this personal greed has no place in the new world, Take the time to do the right thing, That does not include supporting a country that ignores Copy Write laws, Patent laws and the health and safety of its labor force. There is a reason it costs more to produce in Europe and the U.S.A., it is called civilized behavior, along with protecting the enviroment. How can this be ignored???
JC says
“There is a reason it costs more to produce in Europe and the U.S.A., it is called civilized behavior, along with protecting the enviroment.”
With a stroke of the pen both the US and the EU could enact laws that require all goods imported into the country to be made in factories that pay US/EU minimum wages and abide by all safety and labor laws as well.
Should they is another question.
I have a feeling that US wages will decline, as out of work automakers will either retire or find other jobs, and there aren’t many manufacturing jobs left for them all, so some will end up working for less money.
You can take the opportunity to pick up skilled workers and build motorcycles, or you can do something else with their talents.
Kenny says
So you’d take away some poor taiwanese family’s only means of supporting themselves just so you could stick a “Proudly made in America” badge on your bike or shirt or whatever and put a couple of bucks in the charity box. Then feel good about yourself and your eco friendly life. Which is right and moral and civilised
P.PEREZ says
Expanding on what Ando said above, the ability for a company to sell a product at a particular price has less to do with where its made, and more to do with how the particular product is positioned in the market. If you a company marketing an exclusive or high end product that the consumers are willing to pay for, you will be paying higher wages to your workers and support staff in order to support the product in accord with what your buyer expects.
In this context, if a motorcycle company feels it can effectively build and market an American built bike using an American designed or built engine, Italian suspension,
English body work, German exhaust, etc, etc., in order to meet their goals of a superior product, they should be applauded for their efforts but the market will ultimately decide if the combination is successful.
davidabl says
He’s “betting on America” his doesn’t he have to import the engine for his “latest and greatest” bike?
todd says
Why is everyone [… edited …] thinking that only the US (or Europe) can make quality products? And, please, do you think Honda or Kymco uses slave or child labor? Besides, what passes for a civil rights violation in one country may not be so bad in another. When I was 10 I would have loved to have worked for Kiehin assembling carbs or at Ducati machining engine cases, then coming home proud knowing I was helping my father put food in our mouths. When every day of the year is 85 degrees and sunny and people don’t break into your living room to steal your 50″ plasma you’d love living in a tin hut too.
I’m often stifled in the thought of how much people expect to make to survive in the US and we still produce so-so quality stuff. I look at some countries and am amazed at the levels of productivity they have. The people are happy and don’t go around with some feeling of self entitlement; they don’t even worry about wearing shoes – they don’t care. The US used to be a place where you could buy fine quality, made-in-USA, handcrafted kitsch and not break the bank. We’ve become so greedy and expect so much for the little we do that it is more economical to ship a shirt or chair or motorcycle around the world than it is to buy one made by the guy down the street.
I shouldn’t have to care, I shouldn’t have to worry how far away something came to get here. Why should I take responsibility for the greed of the American people? I’m more affective when I do my own part; I am happy working hard for a lower wage than is expected in my industry, I hold my consumption in check, I watch a 19″ TV I bought at Montgomery Wards in 1983 – if at all.
If an American company made a motorcycle that could compete head to head, in quality and price – or made something I was interested in at all, I would consider buying it. That is, if for some reason the bike I have now is no longer capable of doing what it was designed to do.
But this topic isn’t about me or what I’d buy. It is written to highlight the success of a corporate manager at a multinational manufacturing company, i.e. “The Man”. Good for him. I’m sure he deserves every bit of the millions of dollars he is paid.
-todd
John says
Todd, where do you get these ridiculous ideas that the quality of a Harley Davidson is below anything made in Japan or anywhere else?And if you come back by saying you didn’t say HD, then whom do you mean when you say “American products” on a motorcycle web site?You must percieve quality differently than I do.I look at the Japanese cruisers with the tank seam below the gas tank and the plasti chrome and cheesey wantabe overdone styling and I see crappy.My functionally styled Superglide with excellent quality paint,chrome and reliabilty and great sound that originated with functional engine design and not trying to sound like someone else is the bike that makes me happy.You buy what you want, who cares,the only reason I have to reply to your post are that you make these passive aggresive statements to justify your choices by putting down other peoples choices and then act surprised anyone responds.
Dr Robert Harms says
Responders might be well served to read or reread the actual E Buell missive as short as it is. [ … edited …] He has done a great job with Buell vehicles (God knows I have used enough of them for specials) but generalizing beyond a boutique micro-brand to the future of American manufacturing is ridiculous , particually when his “winning” example is winning based on an Austrial developed motor…oops.
todd says
I did imply HD and Victory (they DO make motorcycles, right?). I like the SV650 and the Tiger 1050 (a Tiger 675 would be great). I don’t think I can find anything in the 450 LB, 650cc range for approximately $7000 from an American company that compares in quality or durability. What are my choices? The Buell Blast. I tried one, I read a lot about them, my GB500 was (still is) a much better, higher quality motorcycle that fits me nice, doesn’t look dorky, and doesn’t have any sort of reliability issues. I’ve been looking at the Tiger and some Ducati ST2’s and 750SS. Again, what is there from an American company that compares on quality, price, and styling with those?
This is nothing anti-American or even anti-HD. Only the opposite! I’m saying what everyone else is saying; I want HD (or Buell) and Victory and any other American motorcycle company to add more choices to the type of bikes that I like so that I don’t have to worry about slave labor or shipping motorcycles around the world.
-todd
John says
OK Todd,I misunderstood where your head was at,while you had in mind 500cc or equivalent,I’m thinking what I know,which is large Vtwin and it’s competition.I’d compare the quality of my bike with anything out there.Of course it doesn’t use any titanium or anodised aluminum like some manufacturers but it wouldn’t make sense in the nich it’s in.
Tex says
The american auto industry does need to get back to its roots, they need to make cars / bikes that people outside to US will buy. If they can’t make affordable cars and bikes (and they can’t because of labour costs) then they have to do what Europe has and use technology and quaility of manufacture to drive sales. Eric Buell is really smart and uses some smart ideas on his bikes but he still needs to look at why his company doesn’t compete against the Japanese or the Europeans.
ep says
as long as chinese and mexican workers will slap it together for less, that’s how American manufacturers will do it. it’s simple economics.
we need to retrain our workforce for higher skilled, more competitive jobs that pay better. will this happen? no. why? because as soon as you say the two words “education” and “funding” in the same sentence politicians run and hide.
the bottom line is that despite Erik Buell’s optimistic go-getter attitude, most of the guys pulling the strings in corporate america don’t have as much talent, drive or imagination as Buell does in his pinky.
we’re screwed.
Tin Man 2 says
The Cadillac V series beats the compitition in every catagory, Cost, Quality and Performance. Harley Davidson is cost competitive, has Superior Quality and provides a superior cruising experience. Buell is competitive with its compitition on all fronts, there is nothing and no way to appease the nay sayers on this issue. Things will never improve for the poor of the world if our educated consumers continue to approve of exploiting workers to save themselves a dollar. Keep sending your cash out of the country, your kids will thank you.
ep says
It’s virtually impossible to live in this country without buying things that have been manufactured/assembled/packaged overseas. It’s too costly. Certainly, it doesn’t have to be that way. My point is that it IS that way.
And with good reason. You want to explain to millions of families living in poverty in this country why they should burn up their meager paychecks buying genuine made-in-the-US-of-A stuff when they could buy Chinese-made products at Wal-Mart or Target for half the cost? Ideals are all good until they hit the brick-hard wall of reality.
Tin Man 2 says
Millions of people living in poverty in this country? Our poor people have 3 tv sets, 2 cars and a roof over their head (unless their druggies). We dont know what poverty is in this country, and as you well know Im talking about the educated consumer taking the time to make the effort to support manufacturing here when possible. How do expect your poor people to get good jobs if you wont buy goods they produce?
todd says
the low income people work at Walmart and Target. If you don’t shop there they’ll lose their jobs. Manufacturing jobs in the US make fairly OK money.
-todd
ep says
I grew up in rural West Virginia, a fact I rarely share. Most of my extended family has been living in poverty for the last 100 years. It is real, I assure you. And no, they do not have 3 TV’s and 2 cars each. Nor are they “druggies.”
This discussion is about manufacturing, and if we can’t do it cheaper than China or Mexico then we shouldn’t be doing it at all. Either find a more efficient way to do it via research and development or outsource the jobs and retrain the workforce. It is that simple.
Tin Man 2 says
ep, Every person can not be in R+D, A country can not survive without actaully making something. Too many Chiefs and not enough Indians, The only reason this country can afford the R+D it does do is because of the wealth created by past manufacturing. We are living off the efforts of our fathers generation, Once our capitol is sent offshore we will be a 3rd world country, With only the wealthy and the poor!!
todd says
Here’s to striving to be in the “wealthy” lot.
Joe says
Years ago Cat got complacent and took the market for granted they made the best machines in the world.Quality and sales dropped off and the new kid on the block, Komatsu started making inroads into Cat’s world domination.Guess what, Cat saw the light and upped thier quality and competitiveness.As we know today,Cat is back on top of the plant & equipment,transport and marine engine manufacturing game and a very inovative company..
Hendrick says
Eric Buell is a genius and that’s all that needs to be said. 1125R is by far the most comfortable, fast as hell nimble motorcycle available. It has superior handling at any speed and more power is available at a touch of the throttle. This masterpiece was truly designed from the rider down and for a very reasonable price. Go for it Eric you are definitely an asset to the American motorcycle industry !