IACS International Conference LEHMAN TRIKES: A STORY WITHIN A STORY
Download

IACS International Conference LEHMAN TRIKES: A STORY WITHIN A STORY







Advertisement
/ 21 []
Download Presentation
Comments
HarrisCezar
From:
|  
(758) |   (0) |   (0)
Views: 440 | Added: 08-01-2011
Rate Presentation: 0 0
Description:
IACS International Conference LEHMAN TRIKES: A STORY WITHIN A STORY. Don Looney Annette Ryerson Black Hills State University. A New Strategic Alliance. Harley-Davidson - Lehman Trikes . Lehman Trike History. Lehman Trikes. Founded in 1984 Headquarters: Spearfish, South Dakota
IACS International Conference LEHMAN TRIKES: A STORY WITHIN A STORY

An Image/Link below is provided (as is) to

Download Policy: Content on the Website is provided to you AS IS for your information and personal use only and may not be sold or licensed nor shared on other sites. SlideServe reserves the right to change this policy at anytime. While downloading, If for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.











- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -




Slide 1

  • IACS International Conference

  • LEHMAN TRIKES:

  • A STORY WITHIN A STORY

Don Looney

Annette Ryerson

Black Hills State University

Slide 2

A New Strategic Alliance

Slide 3

Harley-Davidson - Lehman Trikes

Slide 4

Lehman Trike History

Slide 5

Lehman Trikes

  • Founded in 1984

  • Headquarters: Spearfish, South Dakota

  • Publicly traded: TSX Canadian Exchange

  • CEO: Ken Hines, formerly VP Lockheed Martin

  • Employees: 140

  • Operations: 5 days / week/ 2 shifts / day – capacity 5000 units per year

  • Marketing: 122 dealers worldwide, 112 in the U.S.

  • Customer Loyalty: Pride Matters Magazine

Slide 6

Lehman Trikes

  • Revenue: 2008 - $22.6 million

  • Revenue: 2009 (Q1-Q2) - $17 million ($35million annualized, a 51% increase)

  • Net Income: 2008 – ($570K) loss

  • Net Income: 2009 (Q1-Q2) - $597K ($1.2 million annualized, a 299% increase)

Slide 7

Lehman Trike’s Business Model

  • Sales of conversion kits to dealers - $13,000

  • Factory assembly from new O.E.M. motorcycles – price range $18,000 - $33,995

  • Factory conversions for dealer supplied-customer owned motorcycles - $13,000 +

  • Conversion & assembly of the Tri Glide for Harley-Davidson – Retail price $29,999 - $32,339

Slide 8

Lehman Trike Product Line

Slide 9

U.S. Motorcycle Market

  • Value of $10.2 Billion

  • Volume of 1.05 million units

  • Second Quarter 2009 – GDP declined 2.5%

  • Second Quarter 2009 – motorcycle sales down 40%

  • U.S. market 15.9% of global total

Slide 10

Harley-Davidson

Slide 11

Harley-Davidson

  • Founded in 1903

  • Publicly traded (NYSE: HOG)

  • Market Cap $6.69 Billion

  • Headquarters in Milwaukee, Wisconsin

  • Employees: 10,100

  • Operations: eight unionized manufacturing facilities

  • 2007 machinists union strike - $27.89 maximum wage

  • Marketing: 684 dealers in the U.S., 74 in Canada

Slide 12

Harley-Davidson Performance

  • Revenue: 2008 - $5.594 billion

  • Revenue: 2009 (Q2) - $808.7 million ($3.234 billion annualized, a 31.7% decrease to prior year Q2)

  • Net Income: 2008 – $222.8 million

  • Net Income: 2009 (Q2) - $19.8 million ($79 million annualized, a 91.7% decrease to prior year Q2)

Slide 13

Harley-Davidson Performance

  • Share price declined from $78 per share in Dec. 2006 to $7.99 in March 2009 a 102% decline

  • CEO, COO, & CFO replaced April 2009

  • 1500 jobs reduced (15%) April 2009

Slide 14

Harley-Davidson - Lehman Trikes

  • 2008 – Three year exclusive supply agreement for the Tri Glide, prices renegotiated annually

  • Lehman must maintain capacity to supply Harley orders

  • Harley currently selling “all the Tri Glides they can get”

Slide 15

Harley-Davidson’s Expectations

  • Low cost, low risk entry into a new market segment

  • Non-union production shop

  • Satisfied enough to launch Street Glide Trike for 2010

  • Allows a ‘wait & see’ strategy for next move

Slide 16

Lehman Trike’s Expectations

  • The Harley agreement will legitimize the trike segment

  • The agreement is providing the cash flow & critical mass for Lehman to grow even during the recession

  • Lehman continues to talk to other major motorcycle manufacturers but now with the Harley seal of approval

  • Lehman continues product development with the 2009 launch of the Victory Cross Bow

Slide 17

The Future For Lehman

  • Lehman’s product sales mix now favors the ‘Harley side’

  • Will that reverse or become more balanced as the recession ends?

  • Will the Harley agreement really legitimize and grow the three-wheel market?

  • Can Lehman capitalize on the Harley agreement to sign supply agreements with other manufacturers?

  • Has Lehman already become overly dependant on the Harley agreement?

Slide 18

The Future For Harley

  • With Harley’s ongoing financial difficulties are they at all focused on the developments in the trike market?

  • Should Harley acquire Lehman to establish a non-union bridgehead?

  • Will Harley use the Lehman agreement with their unions to negotiate more favorable terms?

  • Will the new management’s new strategies include the trikes?

Slide 19

Epilogue for Harley-Davidson

  • Q3 2009 sales down 21% net income down 84%

  • Announced “go forward” strategy

  • Discontinue Buell line, divest MV Augusta business

  • Announced “two path” study of York, PA factory

  • Major union concessions or relocate plant to Kentucky

Slide 20

Epilogue for Harley-Davidson

  • Dec. 3, 2009 announced a new union agreement

  • Job cuts of 50% from 1950 hourly to 750 & 250 “casual” workers

  • Savings of $150 million per year

  • Allows York to resize & become more flexible

  • Job classifications cut from 60 down to 5 allowing workers to do more & significantly different tasks

Slide 21

Epilogue for Lehman Trikes

  • Jan. 16, 2010 H-D announced Lehman will no longer assemble their trikes after 2010.

  • H-D announced moving trike assembly to York, PA plant.

  • Can Lehman effectively restructure to reflect loss of over half their volume?

  • Will economic recovery occur in time to revitalize sales on the “Lehman Side”?


Copyright © 2014 SlideServe. All rights reserved | Powered By DigitalOfficePro