 With this recapitalization and diversification, if we would put them together with Harley Davidson's numbers for 1986, the revenue would go up to 587, which is the first time that our numbers were combined. Our revenues grew from 70 million to 162 million, and the income from operations from 2 million to 12 million. This occurred because of the commitment that we have amongst all of our employees, the dealers working together. It was really how they were managing their business. We realized that we were the problem management, and so we looked at ourselves and tried to change the way we were running our business. We tried to focus on what our most important asset was, people. We needed to learn to utilize our people that work for us. We learned that quality of our activities and techniques, such as just-in-time manufacturing and statistical process control, gave our employees new skills. These skills, combined with the skill and dedication of our workforce, allow us to make these improvements you see in the chart. These are some measures of our successes. Warranty costs per motorcycle down 26%, defect-free motorcycles up 48%, defects per motorcycle down 70%, manufacturing errors down 68%, an asset or inventory utilization up 176%, and a productivity increase of 50%. These results were not achieved with capital expenditures because if capital would have been required, we couldn't have done it because we didn't have any money. They were done with people, not with robots or automation. In fact, the cash generated from operations with our inventory- Introduced Jerry Knackard, president of AIW Local 209. Jerry represents the workers at Milwaukee Plant. Thank you, Jerry. Mr. President, over the last four years, Harley Davidson, with a cooperation of allied industrial workers, Local 209 and Local 460, and the International Association of Machinists, Lodge 78 and Lodge 175, have developed and refined an active insourcing program. This program consists of our product, motorcycles, and this system we call jelly beans. Prior to 1981, we were AMF Harley Davidson, and we manufactured bikes in group lots. When you look down the line, you saw 20 black sportsters and 20 red soft tails. With this system, we had problems keeping the parts to the line. If we were building a lot of 20 red soft tails and they got to station 47, which is where we put the gas tanks on, and we only had 16 sets of gas tanks, this meant that four bikes went to the floor without tanks and other parts that couldn't be put on. Other bikes waited. They were candidates for damage, such as scratches and chips to the painted parts. Another problem was that some of our group lots only called for 20 bikes a month. So with a month between lots, you almost had to retrain yourself, and the first few bikes of a lot suffered in quality. Also, with 20 or more bikes coming at you, all looking alike, you were more apt to get bored and forget whether you did or did not tighten a bolt on one or more of the bikes. When they all look alike, who can remember? And once they passed, you didn't have time to go back and check. Then in 1981, along came our new name, Harley Davidson Motor Company Incorporated, and our independence. With our change in name came a lot of changes, and one was the jelly bean. What this means is we no longer work and we now run a mix of colors and models, such as one models. It could be described as jelly beans. With this system, each bike coming down the line is different, and at each station, your job is a little different for each model. It's exciting to see all of this, and at the same time, I had a great feeling of familiarity, because as I was telling you earlier, during my eight years on a television program called the GE Theater, I would spend about 10 or 12 weeks every year visiting GE plants, and I met 250,000 employees in those years, and I think it was 139 plants in 39 states, and I came to the conclusion then, if the people who are the customers out there could see what goes into the products they take for granted, they'd be deeply moved and very excited. I want to thank you for this excellent presentation, and when I hear all this talk about how unbeatable some foreign competitors are, I am reminded of a little incident in World War II. At my age, I'm always being reminded of things like this. It was General Douglas MacArthur and Admiral Chester Nimitz during one of the campaigns in the South Pacific. They were changing ships and the waves overturned the small boat they were in, and Admiral Nimitz called out to General MacArthur for help, and the General finally got to him and held him above water so he could breathe until they were finally rescued. And when it was all over, the Admiral said, Doug, he said, please, don't ever tell my men I can't swim. And Doug said, I won't tell them if you can't swim, if you won't tell them I can't walk on water. But I've heard a lot about this comeback before coming here today, but what's impressed me most was not any one thing, not changes in financing or marketing or in the product or the way it's made, but something much bigger, and it's been very evident here in what I've been hearing right now, that Harley-Davidson is moving forward because Harley-Davidson has become a team. You're working together and there's literally a hotline between the factory and floor and the top office, and ideas are coming from every part of the company. You work in small teams to figure out how to do things better, and this isn't a top-down company. This is a company in which everyone's standing shoulder to shoulder on the front line, everyone. But it didn't take huge new investments, as you've pointed out here today, in exotic technologies to put Harley-Davidson back on top. It just took a huge new investment of faith in each other. You know, listening here I can't help but think that there's something familiar about the source of your success. It sounds a lot like what was at the bottom of another success story. Now we all know that story, but maybe sometimes we get a little indifferent and let it slip from our minds. It concerns people from every corner of the earth. They had a little more drive, they dreamed a little more than others around them, and they had that little extra ounce of courage to leave everything behind and make a long, difficult journey across the ocean to a new continent, a new world, and where they built a new nation called America. And the strength that comes when free men and women join together and work for a common purpose, it's a story as old as our great nation and as young as the reborn Harley-Davidson. And yes, it's the key to America's success in the competitive world of the 21st century. For the last few months I've been talking about how we've got to begin preparing for the 21st century. I've talked about quality in education, about training for the jobs of the future, and about how America will continue to grow. The economy of the 21st century will be an international economy where American companies like Harley will compete on every continent and in every country. Now some want to hide from that world, not to compete, just to throw up walls and protection and hide. But if we really look back, America has never been afraid of a challenge. We've always been ready, still, to compete, to not ask for quarter and to go forward. And I just thank you for all you've done. And as president of my own union one time, just God bless you all. This is what it's all about and you've shown it. And I hope that this is a seed that's spread throughout American industry. Thank you. Well, pleased to be here. Can we ask you, sir, for a comment on the passage of your old friend's notation? I have issued a statement that you all have and there's no question about our sorrow about that. We've lost a very devoted friend and a great public servant. Secord is saying that Bill Casey was involved in the secret network to arm the country. I'm not going to. Secord also says that he always thought that arms were a hostage deal, Mr. President. If he thought so, how come the White House didn't know? I'm not going to. Also, for that great music. Will you get my soul? I'm not going to. It's a little bit like the cover that you're going to race. Going back to the track, you open the door after the fifth race. You get down to the number five horse. And the horse's name is five by five. So that did prevent the whole country. I'm at the horse number five in the fifth race. And the horse came in fifth competition. It's like getting a box for a few extra weeks of training before the fight. We looked at it carefully. We asked this Harley-Dade business, really serious about getting into shape. And the answer came back for resounding, yes. There aren't no better ways to make better bias. And I'm going to say about it. I'm not going to. I'm not going to. I'm not going to. I'm not going to. I'm not going to. We had a schedule. You said to us, you didn't need any more agreement. You were ready to take it. You gave some folks in Washington an important lesson about how we go about buying and selling with other nations. You see, we've shaken hands on the agreement that most of the other nations do work. And agreement that sets the rules for international of those nations. The ones that don't let us sell their people as freebies, they sell to ours. But the agreement, called the GATT agreement, as the general agreement on terrorism trade, gives us ways of dealing with those problems. And it also gives us ways of giving industries the kind of agreement we gave you. And if they're as serious as you were about shaping up, how wrong that is and what the truth is, American workers don't need that kind of agreement. 25 percent were unemployed, including me. The Harley-Davidson example makes a very strong statement about how government, through the judicious application of our trade laws, can help the best and the brightest in America not shut it off. That's what's at the heart of our fair trade policy, opening foreign markets, not closing ours. Where U.S. firms have suffered from temporary surges in foreign competition, we haven't been shy about using our import laws to produce temporary relief. What it says is to President Ronald Reagan, an appreciation for your administration's critical and timely support of Harley-Davidson's efforts to regain competitiveness in world markets, and is signed by the Harley-Davidson family, employers, employees, dealers, and suppliers. Thank you. There's nothing like getting some real praise from the boss. And you know, Boatville, Brock and I, we work for you. You're the boss. The father founded this company, and the guy that designs these beautiful motorcycles has a gift for you and your good wife. Mr. President.