GILROY
–– Indian Motorcycle’s brief 2004 production run is about to get
broken up.
GILROY –– Indian Motorcycle’s brief 2004 production run is about to get broken up.

Michigan liquidator Bill Melvin is now selling what he claims are all of Indian’s 2004 bikes – 40 of them, plus two 2005 prototypes – to the highest bidders.

Workers in Gilroy were just starting to build the 2004s when majority owner Audax Group shut the factory down without warning in September, laying off all 380 employees. Thirty to 40 of the 2004 models had made it to completion by then, former Executive Vice President Fran O’Hagan said in September.

Indian later paid a handful of workers to come in for a few days and complete 20 to 25 more 2004 bikes that had been left half-finished, according to O’Hagan and former Indian test rider Daniel Tice.

That would leave anywhere from 50 to 65 bikes, suggesting that Melvin may not have the complete collection for sale. This could be because Indian executives or board members took some 2004s before Melvin bought them, as was speculated at the time. It could also be that some of the 2004s cannot legally be sold because they have prototype parts – cheaper versions that don’t meet safety standards – as O’Hagan said in September.

Melvin’s sale does not include any of the four Scout 210 models that former company test rider Adam Griffith said were finished to sale quality.

While the Scout line dates back to 1920, the 210 version was a new direction for Indian. Its sporty styling and fat rear tire were unique among Indian bikes, which were better known as heavy cruisers. It was the featured bike when Indian displayed its 2004 line in Los Angeles, just before shutting down.

Indian had redesigned its other 2004 models to counter customer complaints about reliability. Improvements included a new engine in the Spirit and Scout models and new braking systems, hand/foot controls, lighting and wheels.

Indian staff, dealers, riders and motorcycle journalists expected the new, improved machines to sell well.

Melvin’s company, National Retail Equipment Liquidators of Grand Rapids, Mich., bought the entire inventory of Indian’s Tenth Street factory in January and sold off everything except the motorcycles. Being a collector of new and antique motorcycles, Melvin said at the time he was considering keeping them for himself.

NREL is selling a total of 76 Indian motorcycles, including specialty bikes used in Hollywood movies: A black-and-white ”police” version used in ”Terminator 3,” a lavender one from ”The Cat in the Hat” and a red Scout from ”Scooby Doo 2.”

Melvin was one of several parties trying to buy and restart the historic brand, but he dropped his bid in the spring. Gilroy resident Rey Sotelo has done the same, according to his associate George Nobile, but Sotelo has not confirmed this.

Audax Group had still not sold the Indian brand as of early this week, according to Chuck Klaus, an estate manager with Audax’s liquidation broker, Credit Managers Association of California.

Indian made America’s first motorcycle in 1901, in Springfield, Mass. It folded in 1953 and was nonexistent until 1998, when it was reborn in Gilroy.

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A staff member wrote, edited or posted this article, which may include information provided by one or more third parties.

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