California Choppers

Heathcliff immediately began developing markets in the rest of the United States by encouraging existing motorcycle dealerships to carry CC’s products. She also invested heavily in new factory equipment to accommodate the expected higher sales volumes and to increase factory efficiency. Initially new CEO was very careful not to incur unnecessary overhead costs and, instead, focused on debt reduction. 1n 2004 and 2005Heathcliff did undertake the construction of a new corporate headquarters building, along with a new product development facility, which was to be managed by Amber Doakes under the supervision of her farther. The advisory board concurred with this decision after heavy lobbying by Arlen Doakes; they

also advised Heathcliff to begin expansion into the Canadian and European markets, despite her recommendation that CC complete its expansion in the U.S. market before undertaking expensive development work abroad.

Prior to 2000 CC’s performance was poor, but its non-unionized workforce continued to receive above­ average wage rates. Arlen Doakes had great empathy for thess people, having started out as a line worker at an auto manufacturing facility himself. Many of the supervisors were people who had been with him since the company began, and he was committed to treating them well. Also, had refused repeated requests by his production staff to outsource the production of parts to lower-wages factories in Mexico and Asia. Arlen Doakes was truly a “ flag waving “ American, and he felt strongly that a California

Chopper should be “ made in U.S.A.”. 1n late 2003, CC gave its workforce a large increase in wages and benefits, and Arlen Doakes made a public announcement that the company must share its new-found success with its workforce.