Join Date: Aug 2006
Location: Knoxville, Tennessee, USA
The Edmonton Journal; with files from Bloomberg
Published: Saturday, September 02, 2006
EDMONTON, AB, Canada - Traditional Harley-Davidson owners may be snickering down the highway, but Westlock's Lehman Trikes is laughing all the way to the bank after signing a deal with the legendary motorcycle manufacturer to produce a three-wheeled hog.
Lehman shares (TSXV:LHT) jumped more than 200 per cent Friday after the deal was announced to build trikes on a Harley platform and brand them as original equipment.
The company is delighted and honoured to be chosen, Lehman USA president Daniel Patterson said in a release.
"Lehman continues to provide innovative options to the motorcycle enthusiast, leveraging off its 20 years of experience of providing quality trike products and customer service."
Lehman, which produces trikes, conversion kits and accessories at Westlock and Spearfish, North Dakota, already has agreements with Honda and Suzuki to produce branded trikes.
Harley-Davidson vice-president Ron Hutchinson said the company is continually looking to develop new products and expand the appeal of its brand.
"Trikes are another way we can inspire the dream of owning a Harley-Davidson."
Adding three-wheelers gives Harley "access to less experienced riders, less confident riders," said Kevin Tynan, an analyst at New York-based Argus Research. "They would hope to move them up through the product portfolio."
Milwaukee-based Harley-Davidson is the world's most profitable motorcycle maker, but sales growth has slowed in each of the past three years, falling from 20 per cent in 2002 to seven per cent last year.
Neither company gave details on the timing of the project or when the trikes would be available for sale.
Lehman shares closed at 92 cents on the Toronto Stock Exchange up 62 cents, or 206 per cent.
Shares of Harley-Davidson rose 46 cents to $58.97 in early trading Friday on the New York Stock Exchange.
\'99 GL1500 SE w/CSC Trike