Harley waving goodbye to Lehman trikes

[Kansas]

http://www.bizjournals.com/milwaukee/stories/2010/01/11/daily74.html

This article is the first I heard of this happening.  I wonder if all the engineering development remains behind and Harley will design it's own trike or how it all shakes out.  Anybody know anything beyond what this article says?  Maybe trikes are more of a growth market than I am aware of.  My local dealer has two trikes on the floor so I would assume they plan on selling them.

[truck]

The Trike is another nail in Harley's coffin, I think.

[PoorUB]

The Trike is another nail in Harley's coffin, I think.

I wonder if it is a wise move, at this time anyway! 90 million to restructure the York plant? Is that just to manufacture trikes? Seems to me that holding on to the agreement with Lehman a little longer until the economy improves and to see how trike sales continue would make more sense. I don't see trikes as ever being a big seller, and HD usually don't hang on to low selling models very long!
I can see HD dropping a bunch of cash into a plant for trikes, then dropping trikes completely in a few years!

[Deye76]

Cutting their way to prosperity, is a national passtime for corporations. 

[UltraManPaul]

Seems to me it gets them out of a contract and they can wait until the economy improves to start making trikes if they decide that's what they want to do....

UMP

[HyperDetroit]

Cutting their way to prosperity, is a national passtime for corporations. 

I think cutting spending is the only way to prosperity, at least I have never met anyone who spent their way there.  Just look at GM and Chrysler who spent untold amounts of money on pensions and healthcare for those who do not produce.  The only thing to derive from them is a lesson in what NOT to do.

Hyper

[Ultrashovel]

I couldn't understand why Harley-Davidson contracted with Lehman in the first place. They make nice trikes but Harley had more than enough engineering knowledge to build their own trike. They were building them long before Mr. Lehman was born.

There's going to be a lot more cost-cutting in large corporations such as Harley. They will stay in business but slimming down to the point where they are still making a profit. That's the way corporations manage to get by in hard times.

[Princess Butt]

I wonder if HD figured out they're just better off making all the bits in house and paying Lehman a royalty for any patents involved?

That would be a win-win for both of them. Not the first time HD has paid someone for patent and design services, and HD manufactures the stuff themselves.

[deathwish]

as I understand they are moving it in plant to cut cost on the end product. I am sure trikes are here to stay. This way they can either make more money or cut final product cost or both.

[codyshop]

The Trike is another nail in Harley's coffin, I think.

Agreed.  It was a move towards the wrong market share.  Unless trikes become reimbursed by Medicare, you'll always make more money making videogames than you will by making walkers.  Ray

[blacknchromehd]

For those who do not live in the York area they are closing up the older plant on the west side of the complex. They plan to keep it open and build more buildings on the softail plant. When this is done the entire operation will move up the hill to that plant...Trikes will be made along with the CVO line..produce only for demand...''

The older plant will either be torn down or reworked to become the supply center for the new plant..many smaller companies selling products direct to harley to keep costs down..I understand the tank stamping presses will not be going to the new plant..then the factory will order what it wants from the supplier in the older building..cutting costs from 26$ labor to $16-20.

I have lived in this area since 73 and have heard all the same stuff before..Harley going away but it survives..it always will...Lehman trikes moving to the plant will allow some of the local workers to keep their jobs..

Bill

[Thorns]

Double edged sword...vendor can leave you high and dry.  If you rely on them for lower cost, then the vendor does his homework and finds out he's the only game going, so he wants to raise his prices for more margin.  To renew the contact with the vendor, you must comply with his new prices which lowers your margin.  Back to square one.  Proprietary components at least insure you will still have the parts needed for "your" manufacturing base.  Might cost a few penny's more, but if the manufacturing line is stopped due to no parts, and no means to make them...uh-oh!

Thorns 

[boooby1744]

I think at least 10%of the dealer network will go under by june.

[Ridetard]

"The sky is falling".
Harley may not be doing as well as it did a few years ago, but who is?   I applaud Harley for venturing out into different markets in a time when other vehicle manufacture's are dropping lines and holding their hands out to our government for a hand out due to poor management decisions.   The ecomony will bounce back and Harley will survive.   

Was the trike a good idea?   My feeling is a trike is something you need, not want so right from the start it is limited market.   Also, how much did HD actually invest in the trike project?  Cant imagine that it was enough to break them.  What does bother my is the simplicity that harley was once know for is gone.  Harley was the first choice was targeting the back yard mechanic and now we have been left in the dust.  Now it seems HD is targeting the "ME" , "I want it now" generation.   HD has also taken ideas and innovation from the old school guys only to patent it or call it "custom" and charge 40 grand...  I cant imagine what would prompt a peson to spend that kind of money...and there sure are a lot of them.(can I say RUB?)

Im going back to the garage to work on my 11 year old bike.    And it just gets better with time.

[Dresser]

I think the trike is a good move. Harley has been worried for years about an aging customer base. Trikes are the way to keep us in the fold as we age. It will also help draw in folks scared of dropping two wheelers.

The only thing standing between me and one of the new Street Glide style trikes is $30K.

[GaryD]

I agree with Ridetard and Dresser. I would have a trike now if the price was a lot lower, but that ain't gonna happen. I'll soon be on a fixed (Social Security) income so I can't afford a trike or sidecar.  So unless the Tow Pac is still in buisness in a year or two, I'll have to hang up my boots and jacket.

I would like to see Harley come out with a scooter again or some other other low priced leadin to a motorcycle. To get more people into the sport. Look what Honda did with it's "You meet the nicest people" advertisments. It saved the whole motorcycle industry.

[tomcat64]

we are still damn near 1 year out on trike orders, hopefully moving the assembly to your will allow HD to step up production. i am assuming the dealers who have them on htere floor are charging way over MSRP and thats why they are stitting on the bike, we have yet to have one on the floor (except the XXX)
hopefully most of you realize that the triglide IS NOT a lehman trike kit on a Harley, if not, do a little research.
right now the Shipping is sort of a nightmare and again i think moving the assembly to York will help.

i guess i shouldn't have bought 3,000 shares of lehman stock... LOL (.30 per share)

t-c

[96dynabagger]

Having toured the Lehman plant while Tri-glides were being assembled, I disagree...
What Harley is bolting on to their bikes is 95% Lehman.  Lehman did the engineering,
not Harley, was my take on it.  Harley added their 2 cents to the design to make it
theirs (body features, reverse (starter)motor), but it was nothing that really distinguished it from the Gold-glides being assembled 50 feet away.

It really seemed like Harley was only marginally involved with the back end of that bike,
and only as a consumer.  They had no investment in it at all.  Lehman did the work, Lehman took the risks.  Now that its selling, Harley is screwing Lehman, who sunk a
lot of money into meeting Harley's demands.  I was really impressed by the cleanliness and
quality systems in place at Lehman.  If you've got a trike built there, you got a good one.
Back half, anyway...

[Ridetard]

Having toured the Lehman plant while Tri-glides were being assembled, I disagree...
What Harley is bolting on to their bikes is 95% Lehman.  Lehman did the engineering,
not Harley, was my take on it.  Harley added their 2 cents to the design to make it
theirs (body features, reverse (starter)motor), but it was nothing that really distinguished it from the Gold-glides being assembled 50 feet away.

It really seemed like Harley was only marginally involved with the back end of that bike,
and only as a consumer.  They had no investment in it at all.  Lehman did the work, Lehman took the risks.  Now that its selling, Harley is screwing Lehman, who sunk a
lot of money into meeting Harley's demands.  I was really impressed by the cleanliness and
quality systems in place at Lehman.  If you've got a trike built there, you got a good one.
Back half, anyway...

I'll drink to that!

[msocko3]

  I was really impressed by the cleanliness and
quality systems in place at Lehman.  If you've got a trike built there, you got a good one.
Back half, anyway...

I beg to differ on Lehman quality. My dad has a 09 Triglide and I have a 10. While working on his 09 I found several loose fasteners on the Lehman installed back half not to mention Lehman did the paint on the back half and it sucks. When I say loose fastener I mean finger tight. The paint is soft and marks easily, the trunk door doesn't match it actually looks kind of pink when in the sun. His Trike is the Red Hot Sunglow, the door match is so bad the MoCo is replacing it. I know of some other people who had loose fasteners and the bracket the muffler is bolted to installed upside down. I think the MoCo may be moving production to their plant in hopes of better Quality Control. So far I've been lucky and only found a couple loose things on my 2010 Triglide.

[Ridetard]

  I was really impressed by the cleanliness and
quality systems in place at Lehman.  If you've got a trike built there, you got a good one.
Back half, anyway...

I beg to differ on Lehman quality. My dad has a 09 Triglide and I have a 10. While working on his 09 I found several loose fasteners on the Lehman installed back half not to mention Lehman did the paint on the back half and it sucks. When I say loose fastener I mean finger tight. The paint is soft and marks easily, the trunk door doesn't match it actually looks kind of pink when in the sun. His Trike is the Red Hot Sunglow, the door match is so bad the MoCo is replacing it. I know of some other people who had loose fasteners and the bracket the muffler is bolted to installed upside down. I think the MoCo may be moving production to their plant in hopes of better Quality Control. So far I've been lucky and only found a couple loose things on my 2010 Triglide.

Sunglow paint is a major PITA to match up with existing.  Also, typically takes up to one year for paint to fully cure. 

[fxstdavew]

"90 million to restructure the York plant?" I don't know that it's that much but , I tend to think it would cost much more once the economy turns around. If your going to restructure the plant now is the time.

[msocko3]

Sunglow paint is a major PITA to match up with existing.  Also, typically takes up to one year for paint to fully cure.

The MoCo did a great job matching the tour-pak spoiler to the rest of the HD painted parts. The district mgr who looked at the trunk door said it looked like they were shy a couple coats of clear which I agree. I used to paint for a living so I'm no stranger.

[Ridetard]

Sunglow paint is a major PITA to match up with existing.  Also, typically takes up to one year for paint to fully cure.

Shy a "couple" coats of clear? With todays "quick clears"  you need one coat , maybe two and since when does clear change the color of the paint?
The MoCo did a great job matching the tour-pak spoiler to the rest of the HD painted parts. The district mgr who looked at the trunk door said it looked like they were shy a couple coats of clear which I agree. I used to paint for a living so I'm no stranger.

[Ultrashovel]

No manufacturing company could build vehicles with paint that takes a year to cure. I never heard of that with catalyzed paint.

Multiple coats of clear? I never heard of that with modern paint, either. I think Harley uses powder coat on their clears. Once that's cooled, it's done.

Something is strange here. Maybe they need to hire a different engineer if their paints aren't drying for a year. I can just imagine all of their production sitting in a warehouse somewhere waiting for a year before they can be shipped since the paint takes that long to dry.