THE AMERICAS There are 595 Harley-Davidson dealerships in the United States and 41 MotorClothes apparel and collectible retail stores. In 1997, 35 dealerships were relocated; 71 dealerships were modernized and/or expanded, 6 new dealerships and 11 new apparel and collectibles retail stores were added to the U.S. network. In Canada, there are 76 Harley-Davidson dealerships serviced by our independent Canadian distributor, Fred Deeley Imports. In Latin America and Mexico, there are 16 dealerships and 7 MotorClothes apparel and collectible retail stores.
EUROPE/MIDDLE EAST/AFRICA There are currently 305 Harley-Davidson dealerships in the European Region, up from 253 dealerships in 1996. Growing our business in the European Region means helping our dealers there develop relationships with new customers. In 1998 we will introduce two new motorcycle models for this market, specifically designed to appeal to the preferences of European cruiser motorcycle riders. Saudi Arabia and Oman were established as new markets in 1997.
ASIA/PACIFIC Building relationships like the one above between Tokyo dealership manager Masatoshi Ohtsubo and his customers is one of the keys to expanding Harley-Davidsons business in the Asia/Pacific region. There are currently 43 authorized dealers and 77 smaller Live to Ride shops serviced by our Japanese subsidiary. There are also 55 dealers in Australia and New Zealand that are serviced by three independent distributors, and direct dealers in Malaysia, Singapore, Taiwan and Thailand.
SUPPLIER RELATIONSHIPS More than 250 of Harley-Davidsons largest suppliers gathered with us at our annual supplier conference to share a vision of growing together. Through these meetings, our Supplier Advisory Council and other efforts such as regular visits to suppliers by senior management, we have been successful in continuously reducing costs and increasing quality.
FAMILY RELATIONSHIPS Since the beginning of the Harley-Davidson Motor Company in 1903, there have always been Davidson family members involved in the business. Many other families are also represented within the ranks of employees, like Alvin Burnett and his daughter Lynn Rhody, both of Tomahawk.
EMPLOYEE RELATIONSHIPS Together, all of our employees across the company are working to grow our business by delivering continuous improvements and first-rate quality. Harley-Davidson and our union partners have developed long-lasting relationships to ensure our continued success. For example, last year the company and Lodge 175 of the International Association of Machinist and Aerospace Workers ratified a progressive long-term operating agreement for York. Like all employees in every part of our business, Bill Dannehl, General Manager of York Operations, and Harry Smith, President of IAM Lodge 175 (bottom left), walk the talk.
RELATIONSHIPS THAT LAST A LIFETIME A special kind of camaraderie marks our Harley Owners Group rallies and other motorcycle events. At events and rallies around the globe, members of H.O.G. come together for fun, adventure and a love of their machines and the open road. As the largest motorcycle club in the world, H.O.G. offers our customers organized opportunities to ride. H.O.G. rallies and events visibly promote the Harley-Davidson experience to potential new customers and strengthen the relationship between members, dealers and Harley-Davidson employees.
H.O.G SPONSORED EVENTS In 1997, U.S. national rallies were held in Portland, Maine; Oklahoma City, Oklahoma; and Portland, Oregon. There were two touring rallies and 46 state rallies in the U.S., and H.O.G. also participated in events at Daytona and Sturgis Bike Weeks, factory open houses and numerous motorcycle races. Internationally, H.O.G. held rallies in Norway, France, Japan, Canada, Australia, New Zealand, Brazil and Mexico. There were also five state rallies in Australia, two provincial rallies in Canada, four touring rallies in Europe and one touring rally in South Africa.
H.O.G. MEMBERSHIP Any Harley-Davidson motorcycle owner can become a member of H.O.G. In fact, the first year of membership is included with the purchase of a new Harley-Davidson motorcycle. The number of H.O.G. members has grown rapidly since the motorcycle organization began in 1983 with 33,000 members in the U.S. and Canada. Currently, there are 380,000 H.O.G. members worldwide in more than 100 countries. Sponsorship of H.O.G. chapters by Harley-Davidson dealers has grown from 49 chapters in 1985 to 988 chapters at the close of 1997. Worldwide membership renewal increased to 71 percent in 1997.
THE DEALERSHIP EXPERIENCE Harley-Davidson dealerships are the envy of the motorcycle industry. The skills acquired by dealers each year at Harley-Davidson University, as well as the capital improvements exemplified by the Atwoods investments, make our dealers the best in the business. The Atwoods three-story, 86,000-square-foot facility is an example of that excellence. In addition to a 5,000-square-foot motorcycle showroom, 15,000-square-feet are dedicated to MotorClothes apparel and collectibles, and parts and accessories. The service department has 15,000-square-feet, featuring 16 lifts and a fully outfitted dynomometer area. The family dealership was started by the Atwoods parents in 1959. One of the most important lessons our parents taught us was to treat our customers well, John said. We believe in this, our employees believe in it, and our dealership is designed to do just that.