Once a top 5 Gilroy employer, the former site on 10th Street
employed nearly 600 people
By Rachelle Gines Staff Writer
Gilroy – The Indian Motorcycle company announced that North Carolina will be the future home of it’s world headquarters, despite Gilroy city officials’ efforts to court owners of the company to set up shop where the plant was located from 1999 to 2003.
The future site will be located in Kings Mountain, about 40 miles west of Charlotte.
Once a top-five Gilroy employer, the 10th Street site employed as many as 600 people.
Gilroy was in competition with Florida, Alabama, North Carolina and Indian’s original hometown of Springfield, Mass. to become the new home of Indian. The brand is known for building motorcycles that competed with Harley-Davidson’s. Production of the bikes began in 1901, and Indian touted itself, “America’s first motorcycle.”
News that operations would stop on September 19, 2003 at the 10th Street site shocked the local motorcycle-making workforce and most Gilroyans. Security escorted small groups of employees into the facility that same day and the next to retrieve their belongings. There was no severance pay, as per an employee handbook that had just been rewritten.
In spite of rising sales and improved quality control, company officials said the closure happened because costs vastly outstripped profits and required more capital than the company could convince anyone to invest. Mounting part recalls and warrantee claims contributed to the debt load.
Stellican Ltd., a British firm that specializes in refurbishing distressed, classic bikes, bought the brand July 2004 for an undisclosed amount.
Rachelle Gines is an intern attending San Francisco State University. Reach her at 847-7158 or rg****@gi************.com.
