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Indian aims for a classic comeback.
IMAGINE TRYING TO REVIVE A BRAND THAT HAS BEEN extinct longer than DeSoto, Hudson or Packard.
That's the challenge Frank O'Connell took on two years ago when he became CEO of Indian Motorcycle.
"This brand had been out of business almost 45 years, yet its heritage of innovation, styling and romance has gone on," says O'Connell, former CEO of Gibson Greetings Inc., HBO Video and Skybox International; and former president of Reebok Brands, North America.
O'Connell joined Indian after a group of investors that had secured the rights to the Indian name hired a Gilroy, Calif, company, California Motorcycle Corp., to manufacture new bikes.
Refocusing to leverage Indian's classic brand, including expanding into products beyond motorcycling, O'Connell earlier this year assumed the role of chairman. (Succeeding him as CEO is Louis F. Terhar.) Owner of both old and new Indian bikes, O'Connell is trying hard to establish the Indian marque as representative of a total lifestyle-not just a single product. Brand experts point out that the potential for growth is great in Indian's market, not only for motorcycles, but for accessory lines as well. For example, Harley-Davidson Inc., which also makes apparel, had sales of $3.4 billion last year.
The company is embracing the classic styling that distinguishes the brand as well as marketing a high-end line of clothing. Also, a pair of restaurants operate under the Indian Cafe name.
"The apparel may have a life of its own apart from the motorcycle," says Tim White, managing director of the Boston-- based Audax Group, the lead investor in Indian Motorcycle.
Indian, which is privately held and employs about 400, has not released sales figures for last year. However, the company, which had sales of $93 million in 2000, sold 2,042 motorcycles that year, compared with sales of 3,656 cruiser bikes in 2001. Of total sales, apparel and parts represent about 10%, according to a spokesperson.
Making It Genuine
FOR O'CONNELL, TRYING TO put new life into the Indian Motorcycle name hasn't exactly been a smooth ride. For one thing, there was criticism that the resurrected Indian was nothing more than a clone-a $20,000 bike put together with off-the-shelf parts. Then, some riders complained about excessive engine vibration and wheels...