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Posts Tagged ‘Project LiveWire’

Recently it was reported that the typical CEO at the biggest U.S. companies received an 8.5 percent raise last year, taking in $11.5 million in salary, stock and other compensation, according to a study by executive data firm Equilar for the Associated Press.

Over the last 5-years, median CEO pay has jumped by 19.6 percent not accounting for inflation.  That’s nearly double the 10.9 percent rise in the typical weekly paycheck for full-time employment across the country.

It could be, but this isn’t a rant about the typical line worker vs. CEO wage-gap.

If we’re being intellectually honest, CEOs today are required to master a broader range of skills than in the past, when top executives might have climbed the ranks with just one discipline. Companies are bigger, more global and increasingly complicated, and there’s accelerating competition in countries such as China, India and Brazil. Executives must also adapt to quicker technological change, including shifts brought on by autonomous driving, electric vehicles and the widening use of mobile devices.  And then there is the Board, and the increasing requirement that CEOs push their stock price ever higher to collect their maximum possible payout.

So, who are those CEOs at Harley-Davidson, that made Harley-Davidson?  Below is a historical snapshot of the motor company leadership:

Matthew S. Levatich

Matthew S. Levatich — is the current Harley-Davidson President/CEO which he assumed in 2015.  Mr. Levatich was named COO during CEO Keith Wandell’s tenure.

Mr. Levatich, joined Harley-Davidson in 1994. Prior to becoming COO in May 2009, he held wide-ranging roles in the U.S. and Europe. Those roles included Vice President and General Manager of Harley-Davidson’s Parts and Accessories business, Vice President of Materials Management, and President and Managing Director of the Company’s former MV Agusta business. In addition to an undergraduate degree in mechanical engineering from Rensselaer Polytechnic Institute, Levatich holds a graduate degree in engineering management and an MBA from Northwestern University. He has served on the board of directors of Emerson, a St. Louis-based global manufacturing and technology company, since 2012.

Mr. Levatich is known as an avid rider and an engineer, that demonstrates a clear vision for the company and talks constantly about focus and alignment and helping the organization remain clear on what it is they’re here to do.  No longer is the motor company the “voice of the executive” rather it’s the “voice of the customer.

Interestingly, Harley-Davidson has evolved from platform teams. Dyna platform, Softail platform, which was largely modeled like the automotive industry. Each platform team was competing for the next big capital investment so they could say now it’s Dyna’s turn to have a major refresh. Or now it’s Softail’s turn. Or now it’s Touring’s turn.  And that doesn’t exist anymore.

In an interview with Cycle World Mr. Levatich stated: “We’re not really in the business of manufacturing motorcycles. We’re in the business of building customers.”  

Keith Wandell

Keith Wandell —  hired from Johnson Controls to serve as Harley-Davidson President/CEO in 2009 — retired May 1, 2015 — only 6-years later.

Credited for leading Harley-Davidson back to profitability by cutting jobs and making its production more efficient he transformed manufacturing through a restructuring plan that generated more than $300 million in annual savings.

Mr. Wandell cut millions of dollars in costs and eliminated several thousand jobs in the manufacturing plants. He brought a sense of urgency to the company, saying he did not want it to be like General Motors and the auto industry that had fallen into deep trouble.

Under his leadership, Harley made significant gains in reaching new customers through growth in international markets and sales to “outreach” segments in the U.S., including young adults, women, African-Americans and Hispanics.  Mr. Wandell also was credited with stoking excitement for a planned electric bike, called Project LiveWire.

Mr. Wandell has been the Non-Executive Chairman of Dana Incorporated since October 27, 2016 and served as its Interim Chairman from September 9, 2016 to October 27, 2016.

James Ziemer

James Ziemer — served as President/CEO from 2005-2009.  Retired in 2009.  Mr. Ziemer is a native Milwaukeean who grew up in the neighborhood next to Harley-Davidson’s original Milwaukee factory location on the city’s west side.

He started with the motor company in 1969 as a freight elevator operator while attending the University of Wisconsin-Milwaukee. He worked at Harley-Davidson for 40 years.  Upon earning his undergraduate degree in accounting at UWM, he joined the accounting department where he spent the majority of his career. He was named the Company’s Chief Financial Officer in 1990. In 2005, he was named President and Chief Executive Officer of Harley-Davidson.  When he retired, employees presented Mr. Ziemer with the original wood doors from the freight elevator he operated when he first was hired at Harley-Davidson.

As a sidebar, also in 2009, eleven years after being bought by Harley-Davidson, Erik Buell leaves the company to establish Erik Buell Racing.

Jeffrey L. Bleustein

Jeffrey L. Bleustein — retired as Chairman of the Board of Harley-Davidson in April 2009.  He was Chairman from December 1998 to April 25, 2009.  Previously, he served as CEO from June 1997 to April 2005.

He served at Brunswick Corp in many capacities and was President of Trihawk, Inc., a subsidiary of Harley-Davidson, 1984 to 1985. Remember Trihawks?

Mr. Bleustein was a technology consultant with American Machine and Foundry Co. (AMF).  In 1969, AMF merged with Harley-Davidson and in 1975, AMF assigned him to help reorganize Harley-Davidson engineering operations.  Led by AMA Hall of Famer Vaughn Beals Jr., and 11 other Harley-Davidson executives (including Willie G. Davidson), Bleustein helped execute an $81.5 million leveraged buyout of the company from AMF on June 16, 1981.

To commemorate the buy-back, approximately two dozen company officers, along with their wives and select motorcycle press, made a cross-country motorcycle trek from the production facilities in York, PA to Harley-Davidson’s main offices on Juneau Avenue in Milwaukee. This 900-mile independence journey was also a ride to support the Muscular Dystrophy Association, now the official charity of Harley Owners Group (HOG). The ride followed a host of ceremonies at York which included the signing of documents that marked the ownership change, and pulling the first “new Harley-Davidson” motorcycle off the assembly line. This 4-day celebration began a new chapter in the company’s “new” future.

Mr. Bleustein was responsible for notable engineering innovations which included the rubber engine mounts, redesign of the V-Twin and introduction of the Kevlar drive belts.

During Mr. Bleustein’s tenure (circa: 1998), Harley-Davidson bought Buell Motorcycle Company and named founder Eric Buell Chairman of Buell Operations. The first Buell’s hit showrooms in late 1999.

Rich Teerlink

Rich Teerlink  — served as Chairman and CEO until 1999 at Harley-Davidson until he retired.  Mr. Teerlink joined Harley-Davidson in August 1981 as CFO where he enjoyed great success over his 18-year career.  He started with the company just two months after the group of 13 Harley-Davidson managers had bought the company from its then parent company, American Machine and Foundry Co. (AMF), in a leveraged buyout.

Mr. Teerlink’s greatest accomplishment was establishing the Harley Owners Group (HOG) in 1983.  Mr. Teerlink joined the Vertex Board in 2002, and while serving on the Vertex Board, he also served on the Boards of Johnson Controls, Snap-on Tools and Quad Graphics.

Mr. Teerlink is also a notable author of More Than a Motorcycle, The Leadership Journey at Harley Davidson book.  Mr. Teerlink retired from the Vertex Board of Directors, effective February 4, 2015.

Mr. Teerlink was inducted to the AMA Motorcycle Museum Hall of Fame in 2015.  Mr. Teerlink was awarded an Honorary Degree, Doctor of Laws from Marquette University on May 22, 2005.

Vaughn L. Beals Jr.

Vaughn L. Beals Jr. — served as CEO of Harley-Davidson from 1981-1989 and as Chairman from 1981-1996.

In June 1981, it was a challenging time as American Machine and Foundry Co. (AMF) wanted to cut and run, but no one wanted to buy a company with a limited line of high-priced, obsolete products and a reputation for unreliability.  Vaughn Beals Jr., and 13-other** Harley-Davidson executives (including Willie G. Davidson), led an $81.5 million leveraged buyout of the company from American Machine and Foundry Co. (AMF).

Mr. Beals previously served as a research engineer for North American Aviation and Cummins Engine Company where he negotiated the purchase of logging equipment manufacturer Formac International as he was a minority owner and CEO.  This proved to be valuable during the AMF Harley-Davidson buyout.  He was named Harley-Davidson CEO after the buy-out option.

In 1982, the motor company won an anti-dumping judgment from the International Trade Commission (ITC). This led then-U.S. President Ronald Reagan to impose additional tariffs on imported heavyweight Japanese models, as allowed by the ITC.  The additional tariffs–45 percent on top of an existing 4.4 percent measure–were meant to decrease gradually over five years, until April 1988.

In June 1986, Harley-Davidson went public with a stock offering to raise capital to help pay off the buy-out option.  This was very successful increasing share price from $11 to $24.  Harley-Davidson  used some of the stock sale revenues to buy Holiday Rambler, a U.S. maker of recreational vehicles, for $150 million.  The Holiday Rambler sale pushed Harley-Davidson into the Fortune 500 category for the first time at number 398.  In March 1987 the company asked the ITC to remove the tariffs imposed on Japanese motorcycle imports a year earlier than scheduled.

Willie G. Davidson, V.P. Styling (Left); Vaughn Beals Jr., CEO and Charles Thompson, President (Right)

Mr. Beals was inducted to the AMA Motorcycle Museum Hall of Fame in 2008.

Charles Thompson — served as President and CEO of the restructured Harley-Davidson after American Machine and Foundry Co. (AMF) buy-out option.

Mr. Thompson was a long-time Harley-Davidson employee, well-liked throughout the motorcycle industry and served as president and CEO of the restructured company until his health failed in 1982.

William Herbert “Bill” Davidson — was president of Harley-Davidson Motorcycles from 1942 to 1971.  He was the son of William A. Davidson who quit his regular paying job with the Milwaukee Road railroad in 1903 to get into the business of making motorcycles.

William Herbert “Bill” Davidson

Bill Davidson, started working on the Harley-Davidson shop floor of the family business in 1928 after attending the University of Wisconsin.  He won the AMA National Enduro Championship in 1930 and when he wasn’t winning motorcycle races, Bill worked his way up through the company, becoming a foreman, manager of many departments, and finally president of Harley-Davidson in 1942.

In 1963, Bill brought in his son William Godfrey Davidson (Willie G.) on to head up the styling department of the company. Willie G. would end up creating some of the company’s more popular designs, including the legendary Low Rider and the Super Glide which was inspired by the ideas of bike customizers.

In 1965 Harley-Davidson went public as the two families decided to give up control and put the company’s shares on the market.

In 1969, Harley-Davidson was bought by American Machine and Foundry Co. (AMF), a leisure equipment manufacturer.  The arrangement proved, at least initially, to be a good one for Harley-Davidson, for it was in the mid-1960s that the company experienced its first real competition after Indian went out of business. The financial resources and stability that AMF was able to provide helped the company battle Japanese motorcycle manufacturers, who had begun exporting their vehicles around the world, placing themselves in direct competition with Harley-Davidson.

Bill stayed on as president under the control of AMF reporting to it’s then current chairman and CEO Rodney C. Gott (Mr. Gott served as AMF president, starting in 1962, and chairman and chief executive, from 1968. He retired in 1978).  Mr. Gott was a Harley-Davidson rider and big motorcycle fan.  As a sidebar: In World War II, Mr. Gott was a decorated veteran who served in Gen. George S. Patton’s Third Army and on the staff of Gen. Lesley James McNair, chief of ground forces, and was also commander of the 79th Infantry Division Artillery.

In 1971, Bill Davidson was made Harley-Davidson chairman, but reported that he had little power while under AMF’s control.  It was noted that he was chairman of the Harley-Davidson board that never met.  Conflicts with AMF’s strategy and chaotic market conditions led to Bill Davidson’s resignation in 1973.

It was a period of high CEO turnover at Harley-Davidson.  During this time, AMF named John O’Brian and then Gus Davis as president, marking the first time someone other than a Davidson would sit in the company presidents chair.  Other Harley and Davidson family members continued on at the company under AMF’s ownership.  Bill Davidson’s son John was vice president of Sales, and then moved up to become president after Gus Davis.  William J. Harley was engineering vice president until his death in 1971.  His brother John Harley remained at the company until his death in 1976 as the last Harley at Harley-Davidson.

In 1975, AMF put Vaughn Beals Jr. at the head of Harley-Davidson, and Jeff Bleustein was named chief engineer. Bleustein was charged with making manufacturing improvements, which had  become increasingly necessary as production grew and quality declined.  A limited line of high-priced products and a reputation for unreliable motorcycles marked this timeframe in history.  AMF began to lose interest in keeping the struggling motorcycle business afloat.

Rodney C. Gott (Left) and John Davidson, President Harley-Davidson

In a bit of irony, (circa: 09/1977), the motor company unveiled a motorcycle museum in York, PA., that was named after AMF’s CEO — Rodney C. Gott Motorcycle Museum.  A video HERE.

In June 1981, to save the company, and to effect a turnaround, thirteen Harley-Davidson executives, led by Vaughn Beals Jr., put together a plan for a leveraged management buyout. With the financial support of Citicorp, the management team succeeded in taking control of Harley-Davidson from AMF on June 16, 1981, at a cost of $81.5 million.

The role of the new officers after the company buy-out option included: Charles Thompson, president and chief operating officer; Jack Hamilton, Chris Sartalis, Jim Paterson, Kurt Woerpel, Peter Profumo, Jeffrey Bleustein, Thomas Gelb, William Davidson, and Tim Hoelter, all vice presidents. The president of the various divisions were: John Davidson, golf; David Caruso, parts and accessories; Ralph Swenson, York; and David Lickerman, Harley-Davidson International.

Even though he was no longer actively involved with the company, Bill Davidson lived to see the renewal and success that Harley-Davidson enjoyed starting in the late-1980s.

Bill Davidson died in 1993.  He was inducted into the AMA Motorcycle Museum Hall of Fame in 1999.

Walter Davidson — was president from 1907 to 1942.  Bill Harley was chief engineer and treasurer. Author Davidson is secretary and general sales manager and William A. Davidson is the works manager.

In 1936, six sons of the founders are working at Harley-Davidson.  Walter Davidson’s sons Gordon and Walter C.; and William Davidson’s sons, William Herbert “Bill” and Allan; and Bill Harley’s sons, William J. and John.

In 1942 from his death bed,  Walter Davidson named his nephew William Herbert “Bill” Davidson as president and his own eldest son Gordon, as vice president of manufacturing.

Historical Principal H-D Subsidiaries: Holiday Rambler Corporation; Utilmaster Corporation; B&B Molders; Creative Dimensions; Nappanee Wood Products.

Article References:

Vaughn Beals Jr. – Wikipedia
Growing Up Harley-Davidson – Jean Davidson
Harvard Business Review – Harley Leadership U-Turn
Jeffrey Bleustein – Wikipedia
The Morning Call – Harley Is A Classic Turnaround Story
Rodney C. Gott Obituary
Gus Davis Obituary
Cycle World Magazine – Interview with CEO, Matthew S. Levatich
Cycle World Magazine – Rodney C. Gott Motorcycle Museum
Chicago Tribune – The Real Harley-Davidson Story
James Ziemer – Northwest Harley Blog
People – Buy Back Article
Rick Barrett – Journal Sentinel

Harley-Davidson (Buyout) Management Team

**The Harley-Davidson managers post buy-out option: left to right standing: John Hamilton, Dr. Jeffrey Bleustein, Kurt Woerpel, Chstopher Sartalis, and William G. Davidson.  Left to right, seated: James Peterson, Timothy Hoelter, David Lickerman, Peter Profumo, David Caruso, Ralph Swenson, Charles Thompson, and Vaughn Beals Jr.

 

Photos courtesy of Harley-Davidson

All Rights Reserved (C) Northwest Harley Blog

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Project LiveWire

Project LiveWire

It might make a good chapter in his memoir:  Harley-Davidson’s Matt Levatch:  “My Biggest Mistake.”

I’m talking about Project LiveWire and pivoting the motor company faster toward electric motorcycles.

As I previously posted, Mr. Levatch was “selected” to run the company after Keith Wandell retired.  A year after Harley-Davidson debuted the prototype for its LiveWire battery-powered motorcycle, Mr. Levatch states it will be much longer before the company’s new e-motorcycle will hit the market.  When pressed, Mr. Levatch narrowed down the possibility of an e-motorcycle launch sometime between 2018 and 2020.  Really?

Battery recharges seem to be the culprit.

LiveWire-FrontThat low-pitched whine we hear isn’t the aluminum-bodied prototypes in the wind.  Rather, it’s the ringing of cash registers at Zero Motorcycles and Polaris Industries who plans to release an e-motorcycle later this year.

Is it time for Matt and Musk to meet?  You know, that “Project Tiger” (the local code name for the Tesla battery factory east of Reno, NV) is on track and continues to move forward.  Mr. Musk might have some battery IP to provide Harley-Davidson.

Until they launch LiveWire, we can check it out in the action on the big screen. The latest Marvel blockbuster, called Avengers #27 or is that Age of Ultron, which features a prototype version of the electric bike driven by actress Scarlett Johanssen’s character Black Widow.

Photos courtesy of H-D.

All Right Reserved © Northwest Harley Blog

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H-D LiveWire

H-D LiveWire

Charged up, amped out and delivers a jolt…

Just a few of the colorful words used to describe the Harley-Davidson LiveWire which has received so much free and fawning press coverage about the prototype electric motorcycle that you’d think they invented electricity.

I get it.  The motor company builds good products, but does it really deserve wave after wave of gushing prose in every news article?  I blogged previously about the announcement HERE.

Let’s keep it real.  Is LiveWire any better than the other electric motorcycles on the market?  What are the rider advantages of LiveWire vs. other electric rides?  Are there drawbacks of an increasing reliance on electricity for transportation?  No one is reporting on anything other than regurgitating the marketing talking points.

Has the press failed to notice that there are many electric bikes already in use by riders and a growing number of police departments across the country?  From New York to Oregon, and around the world, including in Bogota, Colombia and Hong Kong.  The police versions of the “Empulse LE” by Brammo, Inc., based in Ashland, Ore., and the “DS” by Zero Motorcycles immediately come to mind.

But it gets worse.  The Harley-Davidson president, Matt Levatich tells the world during the LiveWire press tour that Harley’s are longer just for old guys…  Huh?

He must have been basking in a special Milwaukee sun-imitating light that failed to fend off seasonal affective disorder with that alluringly sales quote.

It happened at the Lower Manhattan Harley dealer during the recent LiveWire electric motorcycle test rides.  Mr. Levatich tells the press that Harley would not be forgetting its core customers who want old-fashioned motorcycles.  “We’re absolutely not abandoning any of that,” he stated.  “We’re going to continue to invest in the great traditional Harley-Davidson motorcycles…

As a current core customer, I guess I’m one of the riders only interested in “old-fashioned” motorcycles?  Hey Harley, hashtag this…  #YoureDoingItWrong.

Wow, nothing like slighting the mature motorcycle rider base, the base that has been paying the company bills with a back-handed comment that is clearly all about reaching out to Gen-X’ers and Millennials.  There’s a thin line between appealing to Millennials and pandering.

Yeah, I get wanting to open new doors to people that are outside of the motorcycle sport and only know the brand for its t-shirts.  But, that “old-fashioned” reference is as if Harley has come to terms with an electric future, which excludes their current customers, so let’s spit out aging and old-fashioned insults at them.

If Harley-Davidson LiveWire is “only looking at rider feedback at the moment” then why all the publicity?  You might recall that prior to Project RUSHMORE rolling out on the touring bikes there wasn’t a peep until it launched.  The motor company has by design crafted a publicity stunt and worked at driving social media outreach.  It’s a marketing campaign pure and simple.  And thanks to Harley, Zero had their biggest single day of Internet traffic in the history of the company on the day Harley made its announcement, according to Scott Harden, VP of global marketing for Zero Motorcycles.

Shouldn’t Harley-Davidson be talking to the “right” riders?  And H.O.G. grey-beards aren’t exactly the wrong people to be getting input from, but relying on this user base for feedback on this new GenX or “Millennial” motorcycle is unlikely the most salient feedback from the “right” people.  Shouldn’t they look for those Portlandia-esque grown men on BMX bikes who are ‘riding’ to weekend pubcrawls and who make their living in a variety of ways — some legally and others by any means within their particular skill set?

The fact is that future customers could be from newly wealthy Chinese looking for style, city-dwelling Millennials who need utility and affordability or retirees who want a trike that doesn’t embarrass them.

Whether electrics take off is anyone’s guess and your welcome to label me a gas station-centric oldster.

Photo courtesy of H-D.

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Project LiveWire - Electric Motorcycle By H-D

Project LiveWire – Electric Motorcycle By H-D

It was a popular movie in 1976 based on the novel by William F. Nolan and George Clayton Johnson.

The movie depicts a dystopic ageist future society in which both population and the consumption of resources are maintained in equilibrium by requiring the death of everyone reaching a particular age. The story follows the actions of Logan, a Sandman charged with enforcing the rule, as he tracks down and kills citizens who “run” from society’s lethal demand.

The loose analogy is that Harley-Davidson sees a future society in which fossil fuel motorcycles will be eliminated by society’s demand and the Harley-Davidson “Sandman” is charged with enforcing the rule.   Killing off fossil fuel motorcycles!

Farfetched?  Well, the motor company rolled out and announced it has developed its first electric motorcycle (video HERE).

Called “Project LiveWire,” it’s a rolling test bed not for technology, but to gauge customer reaction.  According to Harley-Davidson, the LiveWire’s AC Induction motor makes 74bhp and 52lb-ft of torque. That’s enough to give it a 0-60 time of less than four seconds, but a disappointing 92mph top speed. Even less encouraging is the range, which stands at just 53 miles.  No other specs are available at this time.

To be clear, the bike isn’t for sale, it’s not in production and executives stated there is no current plan to put it into production.  Yet the company is creating a lot of social media buzz and starting to promote it nationally.

It’s a good looking motorcycle and takes a number of design cues from existing Electric motorcycle manufactures (Evolve; Zero; Lightning; Mission).

In the movie they had never seen an old person before and were quite fascinated by him.  Could it be we’ll think the same of fossil fuel Harley-Davidson motorcycles in the not too distant future?

Is that blinking red light on your dash the lifeclock of your fossil fuel motorcycle?

UPDATE: June 20, 2014 – A fan of the book and movie I was thrilled to receive a ping back on this blog post from none other than the author of Logan’s Run,  Mr. Nolan.  I didn’t know he lived here in the Northwest (Vancouver, WA) and found this terrific profile from the Columbian paper.

Photos courtesy of Harley-Davidson

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