Apparently nobody saw it coming. Indian Motorcycle’s
announcement Friday that it was ceasing production and closing the
doors at its Gilroy production plant stunned the company’s
employees and city leaders.
Apparently nobody saw it coming. Indian Motorcycle’s announcement Friday that it was ceasing production and closing the doors at its Gilroy production plant stunned the company’s employees and city leaders.
What began as a joyful resurrection of a unique American company that enjoyed enough mystique to outlast a 50-year exile into the judicial system over trademark ownership, has apparently ended with a dull thud.
The stark local reality: 380 Indian employees are out of work and the community has lost its third largest employer.
Given the comments in today’s paper from Indian CEO Frank O’Connell there appears to be a chance for yet another Indian revival. Maybe that’s not likely to happen in Gilroy, but the possibility should have Economic Development Director Bill Linsteadt in fever mode. Is there anything the city can do to help? Every member of Gilroy City Council as well as City Manager Jay Baksa should be considering creative ways to assist Indian.
Can the city play a role (incentives, tax deferments) in helping to entice investors to infuse Indian with the capital necessary to get the bikes back into production?
Rumors continue to swirl that the company – brought back to life in part by local motorcycle builder and entrepreneur Rey Sotelo after a 45-year hiatus – will be reopened in another part of the country.
We need those jobs in Gilroy. Gaeta’s Taqueria needs the employees to buy lunch. Orchard Supply and Rite-Aid need a solid work force nearby to prop up sales and the city needs the tax revenue produced by an employer.
Local companies that sold Indian supplies – vending machines, office supplies, light bulbs, shipping, packaging – will also feel the impact.
Clearly, there was debate about the marketing and product decisions Indian had made – some of those debates led to the Sotelo’s departure. Clearly, the motorcycle industry is tough business, and breaking into it is akin to trying to launch a new soda to compete against Coke and Pepsi.
But Indian has a beloved trademark with a storied history and enviable mystique. Let’s not give up on Indian just yet. A new investor with deep enough pockets, a vision and a plan could save Indian.
Just ask Sotelo: “The potential for the company is huge,” he said. “The company is perfectly poised for a takeover.”
Let’s think outside the box to come up with creative ways to help Indian roar back to life in Gilroy.
