Audiovox to purchase the Klipsch group

[RT FAN]

Exactly Fini, Mondavi's pride and joy was their high end cabs but it was Woodbridge wines that kept the firm afloat.

[seti]

OMG! Don't panic and always bring your towel!

Also peanuts and beer for re-entry

[Deang]

(avoiding some smart arse remark about the young and naive as Doc is a very bright guy.... for someone so young who's not yet morphed into a cynical old fart)

It could be Audiovox is trying to change it's image and Klipsch would become one of it's flagship subsidiariars or brands. I mean Klipsch is now know as a headphone company! How's that for reinventing a company but at the same time still maintaining their core design principles and actually grow business in the crappy economy of the last few years?

Well apparently the young and naive is more informed about how Audiovox operates today. Take a look at their long list of branding. Everyone is looking at this as if Audiovox was gonna stick their label on future Klipsch products, which is totally not going to happen. Also, the Klipsch Group itself is really no different than a smaller Audiovox....they aren't even dedicated to audio brands, but own companies that sell garage doors and who knows what other stuff. Anyways, the Audiovox CEO's are looking at whether or not the Klipsch brand that they would be purchasing would allow them to acheive the future market penetration they would need in a saturated industry in order to achieve the growth that a public company needs to see.....the purchase isn't gonna happen if they don't see a strong brand with future potential.

I definitely would expect to see an increase in mass market goods, but Klipsch needs to get structured that way to survive in our culture. This piddly little forum certainly does not have enough people to support the company, and we're the only place that the image of the Heritage and other unsellable product exists....and everyone here is obsessed with the used market or DIY. I would love to see a company like Audiovox come in and provide the backbone and logistics structure to actually do mass market correctly, and then maybe the highend speakers that carry the brand image can last a few more years.

Nice job Mike -- best post in the thread.

[CECAA850]

In 1969, American Machinery and Foundry (AMF) bought the company, streamlined production, and slashed the workforce. This tactic resulted in a labor strike and a lower quality of bikes. The bikes were expensive and inferior in performance, handling, and quality to Japanese motorcycles. Sales declined, quality plummeted, and the company almost went bankrupt.^[40] The "Harley-Davidson" name was mocked as "Hardly Ableson", "Hardly Driveable," and "Hogly Ferguson",^[41][42] and the nickname "Hog" became pejorative

Anybody can write a Wikipedia article. Fact is, AMF saved The Motor Company. It was in serious trouble before AMF bought them, with "low performance, poor handling, and quality issues" existing before 1969. This was because Harley was selling 1950s design motorcycles and ignoring foreign competition. AMF made a substantial investment in Harley that set it up for later growth.

I find it interesting that after all these years Harleys from AMF years sell for more than they cost new. And the Jap bikes of that era? Gee, I don't know. There are none around for sale. Either they didn't hold up very well or no one wants a 1971 Honda.

How about from motorcycle.com?

1969 Although Harley-Davidson stock is publicly traded, it is still a relatively closely held corporation. The shareholders – perhaps sensing that the “Japanese invasion” is about to open a new front in the heavyweight category, with the Honda CB750 Four – sell the company to the American Machine and Foundry Company. AMF has hitherto been known to the American consumer as a maker of bowling balls, but it is in fact a large, diversified manufacturer.

AMF could have risen to the challenge presented by the sophisticated and comparatively affordable Honda. Instead, AMF’s managers roll a real gutter-ball. Harley-Davidson quality plummets. Before long, dealers are forced to rebuild motors under warranty and magazines are brutally critical of test bikes. Used Harleys are described as “pre-AMF” in classified ads.

[lobster999]

The problem is who on Audiovox's executive team is going to care enough about the higher end Klipsch product to justify them using their lower end but revenue generating products to subsidize the higher end ones? Why not just eliminate the higher end product all together? A passionate audio engineer will have a heck of a time justifying the costs going into R&D and manufacturing for a big time speaker to corporate bean counters when the $$$ could be served by making ipod docks with the klipsch label on them.

The wine maker analogy only works if the company shares the same passion for great wine that the wine master does. I'm afraid i've seen no evidence that Audiovox has ever shared the same passion for audio that PWK did and the current klipsch engineers do. Best case scenario for me is that Audiovox is wanting to get into the higher end markets and they see this as a great vehicle to do that. Maybe we'll get bargain bin Palladium's []

[Saul2Paul]

I guess my Chicken little picture did not survive the upload. That is proof the sky is falling and the end is near.

[Don Richard]

How about from motorcycle.com?

1969 Although Harley-Davidson stock is publicly traded, it is still a relatively closely held corporation. The shareholders – perhaps sensing that the “Japanese invasion” is about to open a new front in the heavyweight category, with the Honda CB750 Four – sell the company to the American Machine and Foundry Company. AMF has hitherto been known to the American consumer as a maker of bowling balls, but it is in fact a large, diversified manufacturer.

AMF could have risen to the challenge presented by the sophisticated and comparatively affordable Honda. Instead, AMF’s managers roll a real gutter-ball. Harley-Davidson quality plummets. Before long, dealers are forced to rebuild motors under warranty and magazines are brutally critical of test bikes. Used Harleys are described as “pre-AMF” in classified ads.

Motorcycle dot com????? Uh, dude, they were not even around in 1971, so what can they know? Anecdotal info tends to fall into the class of urban myths. But the point I was trying to make is that Harley survived, and AMF helped make that happen. The AMF-designed Evo is widely credited as the bike that saved Harley. Whether a 1970 Harley leaked oil or not is totally irrelevant. The fact is that Harley survrved a corporate buyout and as a result is still around. I feel a similar result could happen with Klipsch, including the employee buyout.

[juniper8]

as you all know history shall repeat itself! I wonder if americans are a little spoiled? we all love capitalism which turned into globalization but if you look at it's conclusion it is an interesting picture! we all complain about our debt that is funded by china and others, but many americans shall make a great deal of money from within this system. The emerging markets are the new gold mine that has hardley been taped, any american brands that still have weight shall be exploited from our perspective. the truth may be a little deeper and more lucrative for some, perhaps china and india deserve a little klipsch sound? even if it is not what we remembered it as. We all long for the days of well made american products, but capitalism in conjunction with technology equals a different lifestyle for most of us and a great amount of wealth for others. on the bright side china loves buicks!!!

[jacksonbart]

,.

[homemadeheresy]

First scores of dead animals inexplicably washing up on shores and falling from the sky, now this. The end of days is upon us.

I haven't been on in a while and to tune in to this is scary. I hope and pray that the optimism expressed by the employees is a sign that Klipsch will be able to run as a stand alone company. Leaving no doubt that the passion and morals of a man who started the company in a tin shed would continue to show in the products that bare his name.

[Chris A]

Sure, change is scary. That's human nature. Sometimes change is a great thing and needed in order to take that next step forward. I think this is one of those changes not only for Klipsch, but for Audiovox, too. If/when this transaction goes through Audiovox will now be a proud owner of a high end speaker company who builds the best speakers on the market. They will also be the leadership of a team of people who not only come in to do their jobs everyday, but put their passion behind it, too. I don't think that's a bad thing.

Don't worry guys, we are ok! We will continue to be ok and continue to improve! Hang in there with us, it's an exciting time!

I remember a conversation many moons ago when the company that I was working for experienced a big change. The common attitude wasn't good at all. I talked to one guy that had been through many company ups and downs--surviving mass layoffs and poor working conditions. His comments came in the form of questions...

1. Does a company have to stay competitive to remain in business?
2. What does a company have to do to increase its competitiveness? Is that difficult?
3. If there was good change that occurred (in hindsight), what would it look like at time it actually occurred?

The problem is that these questions don't change just because a company gets big (like Klipsch or anyone else for that matter). Change is resisted in organizations (including this forum - which is an organization of its own) because those changes include things that many people are heavily invested in--the status quo.

Remember the stories of how PWK started out--I'm sure it was wild and scary for a long, long time.

There are good people at Klipsch - I know at least two, and they're made of good stuff.

Chris

[JJkizak]

Maybe they will put wheels and GPS on the K-horns.

JJK

[CECAA850]

Motorcycle dot com????? Uh, dude, they were not even around in 1971, so what can they know? Anecdotal info tends to fall into the class of urban myths. But the point I was trying to make is that Harley survived, and AMF helped make that happen. The AMF-designed Evo is widely credited as the bike that saved Harley. Whether a 1970 Harley leaked oil or not is totally irrelevant. The fact is that Harley survrved a corporate buyout and as a result is still around. I feel a similar result could happen with Klipsch, including the employee buyout.

Dude, LOL.

I'm sure the writers for motorcycle.com are older than the company they work for. Regardless, being around during an event doesn't necessarily exclude you from accurately writing about that event.

You think Harley survived because of AMF, I think they survived despite AMF.

I think we can find common ground in the fact that we both want the brand (Klipsch) to survive and flourish. Harley always stayed with their core belief in the V-twin, Klipsch will hopefully stay with their core belief in horns.

You are an optomist, I am a pessimist, it's what makes the world go round.

Thanks for the back and forth Don, now back to our panic attack.

Honk!

[Don Richard]

You think Harley survived because of AMF, I think they survived despite AMF.

Here's why I know that Harley survived due to AMF's purchase of the Motor Company:

28,850 units sold 1969

75,403 units sold 1975

$49,000,000 revenue 1969

$300,000,000 revenue 1981

So exactly how did they harm Harley considering that more units were sold and more money made during the AMF years? I thought that more sales and more income indicates success.

[BLSamuel]

The problem is who on Audiovox's executive team is going to care enough about the higher end Klipsch product to justify them using their lower end but revenue generating products to subsidize the higher end ones? Why not just eliminate the higher end product all together?

Do we really know that the higher end Klipsch products aren't paying for themselves? And keeping the Heritage line available hasn't required a lot of R&D and improvements but the Heritage models basic desgin hasn't changed just evolved to get better and better. Like a fine wine the Klipschorn just seems to get better with age. And don't forget the home custom install market. It may be quite lucrative. People with money still make money no matter how bad the economy tanks.

The high end product can also be a valuable marketing aid?

Also allowing the briliant engineers to push further into the high end keeps their passion alive which may also aid them greatly in newer innovative mass market products?

Maybe Audiovox is looking to upgrade their image so keeping the high end in the mix can only help in that direction as all.

We really don't know much about Audiovox's executive team so who knows. It is non-binding so may not happen and could be as good as we fear it to be bad should it occur. (Says one of the Forum's resident cynics.)

But we should be thankful at how much Klipsch has grown and kept the Heritage line alive over the past few years in this rough economic climate when nobody buys new HUGE speakers we still can. (Not yours truly at the present but there's always the PowerBall)

[mike stehr]

Hey look on the bright side... at least KRACO isn't buying Klipsch!

Who here remembers KRACO car stereos from the late 70's and early 80's?!

I do.

I had a couple of those "Sound Exploder" 40 watt amps they had...er, maybe 10 watts...

They must not of had a protection circuit from speaker shorts. I would short a side by accident, and it would wipe out the channel. Rather quick, if I remember.

A friend and I are sitting in his room, looking over this Audiovox "Sound Exploder", with the cover off. He makes a comment, "How can they get away with making this kind of sh*t."

One side of the amplifier still worked. So out of boredom, we disconnected the working transistor from the heatsink and let it hang there out in the open. We then scrounged up all the speakers and speaker drivers we could find.

We were using a cheap Radio Shack "Micronta" 12 volt DC supply to power the "Sound Exploder". We started connecting speakers in parallel, with some music playing through the amp from a tape deck. After six speakers we started drawing too much current from the supply.

So we went and grabbed a car battery. We manged to connect 14 or 15 speakers in parallel on that one channel, before the transistor finally made this moderate sounding "Tink!" Cracking the die, and putting off a cute little white mushroom cloud.

We were kinda impressed with how many drivers we connected in parallel before it broke...we never thought we would make it to 14 or 15.

[Romak]

"1981--On February 26, thirteen Harley-Davidson senior executives sign a letter of intent to purchase H-D motor company from AMF. By mid-June, the buy back is official, and the phrase "the Eagle Soars Alone" becomes a rallying cry."

"1984-- Harley Davidson unveils the 1340cc V2 Evolution engine on 5 models including the all- new Softail."

http://www.harley-davidson.com/wcm/Content/Pages/H-D_History/history_1980s.jsp?locale=en_US

Harley nearly died because of AMF. My mechanic lived in Milwaukee during these times and seen the effects of it first hand. No way, no how did AMF help H-D, they just kept it on "life support" till H-D (Willy) could regain control and head it in its proper path.

Also the nick name "HOG" came from....... Beginning in 1920, a team of farm boys, including Ray Weishaar, who became known as the "hog boys," consistently won races. The group had a hog, or pig as their mascot. Following a win, they would put the pig (a real one) on the back of their Harley and take a victory lap. In 1983, the Motor Company formed a club for owners of its product taking advantage of the long-standing nickname by turning "hog" into the acronym H.O.G., for Harley Owners Group. Harley-Davidson attempted to trademark "hog", but lost a case against an independent Harley-Davidson specialist, The Hog Farm of West Seneca, NY, in 1999 when the appellate panel ruled that "hog" had become a generic term for large motorcycles and was therefore unprotectable as a trademark.
On August 15, 2006, Harley Davidson Inc. had its NYSE ticker symbol changed from HDI to HOG.

Now to Klipsch..... Don't let it go overseas!! This past summer my company(CASY) was in a raging battle with a Canadian hostile take over. Scarey times to say the least. America NEEDS to stay American owned....PERIOD!

[Fish]

I'm in the middle on the Harley debate.AMF sucked and made junk, they still may have saved Harley, I dunno.I have a few friends that really like the AMF era bikes,(shovel) they still gush oil and are totally not dependable.The EVO is the best thing they ever done or I'd still be ridin' Jap bikes.I saw a 1971 Honda 70 sell for $2k recently.Now back to the program.

[mikebse2a3]

Well whatever happens I do want to express my very best wishes for all the people (and especially the ones that I've personelly met over the last few decades) that because of them have made Klipsch a very special company to me.

mike tn[]

[xtreme4099]

If something happens to the employees we're all gonna be collectively peeved, course could i also suggest starting Clipsch : The Other Horn Company ? Let us know if you need donations to make this happen ...