From: dobosz_m@wfooff.enet.dec.com (Mike Dobosz)
Newsgroups: rec.motorcycles
Subject: more Indian Motocycle news...
Summary: I'll believe it when I see it...
Date: 5 Oct 92 18:23:00 GMT
Article-I.D.: nntpd.1992Oct5.172417.28752
Organization: Digital Equipment Corporation, Westfield, Massachusetts


From the Springfield (Ma.) Union-News, Friday, October 2, 1992

Indian Motocycle promoter eyes plant
by John O'Connell

SPRINGFIELD, MA. - The revival of the Indian Motocycle appeared to take a 
step forward yesterday, when company owner Philip S. Zanghi announced he 
has taken possession of a building in East Windsor, Conn., to be an assembly 
plant for a new line of motorcycles.  

Zanghi, who makes and sells clothing with the Indian logo out of a North 
End building, said he has an agreement to purchase a vacant, 276,000-
square-foot factory building at the East Windsor industrial park.

The Springfield businessman said he plans to begin assembly of new 
motorcycles at the factory in May 1993, and this week installed 8-foot-high 
wooden gates, painted with the Indian logo, at the entrance of the plant.

Zanghi has been working for more than two years to revive the motorcycle 
company, which was founded in 1901 in Springfield and built cycles in the 
city until 1953, a few years before it went out of business.

Questions have surrounded Zanghi's efforts since he first negotiated with 
Springfield officials in 1990 to buy a city-owned building as a factory 
site, and yesterday's announcement was no exception.

Jeffrey Cugno, a lawyer for Zanghi, said he is still negotiating with the 
owners of the East Windsor factory building and the 87-acre property it 
sits on.

"It's simply not a done deal," Cugno said.  He said Indian Motocycle has 
"limited possession of the building in order to secure it and do a little 
maintenance."

The building's owner, A.J. Lane & Co. of Framingham, has declared 
bankruptcy and so any sale would have to be cleared by U.S. Bankruptcy 
Court, Cugno said.  In addition, town Tax Collector Janet Regina said Lane 
must pay $462,455 in taxes, interest and penalties dating to 1987 before 
any sale goes through.

But the prospect of an Indian assembly plant excites First Selectman Walter 
Gudzunas.  He said the building at 96 Newberry Road has been vacant since 
1980.

"I think it's an interesting proposal," Gudzunas said.  "If it comes to be, 
believe me, this would be a big shot in the arm for East Windsor."

Zanghi has said in earlier interviews that he offered to pay $3 million for 
the building, but Cugno would not comment on any details of the negotiations.  
Officials at Congress Realty of Boston, who are court-appointed trustees of 
the building, could not be reached for comment yesterday.

Zanghi said in recent interviews that he plans to finance the purchase of 
the building and design and assembly of new Indian Chief motorcycles 
through the licensing and sales of expensive leather jackets, other 
clothing and accessories that feature the Indian logo.

Zanghi, who owns the rights to the Indian trademark, said he has sold 
licensing rights for clothing sales in 52 countries.  The largest single 
revenue source so far has been for the rights for clothing and accessory 
sales in japan, sold for $2.5 million to a Tokyo businessman, he said.

A prototype of the new Indian Chief cycle is under construction by Pioneer 
Engineering of Dearborn, Michigan, according to Zanghi and officials of 
that company.  Zanghi said he has placed $1 million in escrow for that 
work.

Frank Sposite, director of product design at Pioneer, said the company has 
worked for 50 years in auto design, mostly for Ford Motor Co., and the 
Indian will be it's first motorcycle project.

"It will be a pretty bike, I can tell you that," Sposite said.  He declined 
to discuss details of the motorcycle.
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