American Motorcycle Dealer AMD 250 May 2020 | Page 28

THE BRADLEY REPORT
Polaris: Additional
COVID-19 Impact
Measures Tone Deaf H-D Announces New
Performance Bagger and "Custom
Inspired" P&A Programs at Height
of Corona Emergency
On March 30, Polaris Inc. announced
several additional actions in response
to the COVID-19 pandemic, saying
"these actions will help the company
navigate the current environment by
reducing expenses and improving its
cash position and financial flexibility.
"This is an unprecedented crisis with a
sudden and stark impact on our
business, but in difficult times Polaris
has always responded with agility and
proved our resilience," said Scott Wine,
Polaris Chairman and CEO. "While the
immediate future is uncertain, what is
crystal clear is that Polaris must act
judiciously but decisively to win both
during this situation and after it is
resolved. The measures we are taking
today are necessary responses to a
dynamic environment that compels us
to bolster our liquidity and rapidly adapt
to extraordinary circumstances."
Temporary Measures on
Employee Compensation
In response to continued uncertainty in
market demand and the escalating
near-term impact of COVID-19, Polaris
made the necessary decision to enact
several temporary changes related to
employee compensation and hiring
practices for exempt and non-exempt
employees, including:
• Delaying merit increases for exempt
and non-exempt employees through
the end of the year
• Implementing a hiring freeze on
exempt and non-exempt positions
• Furloughing most exempt and non-
exempt Polaris employees for two
weeks in the second quarter. Employees
will not be paid, but will maintain their
health care benefits and may be eligible
for unemployment benefits, subject to
federal, state, and local regulations
• Exempt and non-exempt employees,
including Polaris' Executive Leadership
Team, who are not furloughed will have "It’s the details that make you unique,"
says Harley of its new Performance
Bagger and 'Endgame' P&A program -
introduced on March 19, the day after
it announced it was closing production
down and had an activist investor
openly questioning the direction of the
company.
No. What makes H-D unique is just how
inured it is to the reality of what's going
on around them! Now and for the past
15 years. From "Soho down to
Brighton", this is one "deaf, dumb and
blind boy" whose intuition, smarts and
savvy waved goodbye to reality with
the wait lists of yore.
For what it's worth, "from fender to
fender, these are the elements that will
make your bike an expression of your
individual style. When making a
personal statement, let your bike do the
talking." Harley discovers definition of
the word "custom," shock! There are
three new P&A programs on offer.
"The 'Endgame' collection is defined
by its slotted design and high-tech,
industrial look. The intense black
rubber inserts on the controls are set
against a matte graphite or black finish
that complements black or bright
bikes."
The collection includes hand grips, rider
and passenger footpegs, brake pedal
pads, rear brake lever, shifter peg,
shifter lever, footboards and a shed
load of black (or graphite).
Whereas the 'Endgame' collection is
designed to deliver an industrial
derived styling, the 'Streamliner'
collection is "inspired by the curved
forms and long, horizontal lines of
streamline modern architecture. The
black Streamliner collection takes a
contemporary spin on this classic
Harley-Davidson style. Featuring
polished chrome bands surrounded by
a sea of rich black, the black
their pay reduced by approximately 20
percent beginning April 13 through the
end of the second quarter
In addition, Polaris Chairman and CEO,
Scott Wine, will forgo his salary for the
remainder of 2020.
Update on Plant Operations
Following the temporary production
halt instituted on March 23, Polaris
continues to carefully calibrate its
manufacturing operations with
anticipated product demand.
Production will restart this week on
select manufacturing lines for products
with adequate demand and supply
chain coverage. Polaris continues to
ship finished vehicles to dealers, and to
produce products that are consistent
with governing federal, state and local
directives.
Increasing Financial Flexibility
In addition to the steps listed above, the
company is taking further action to
increase financial flexibility and
liquidity, including reviewing all
operating expenses, postponing non-
essential capital expenditures and
suspending share repurchases. The
company has also elected to draw
down an incremental $150 million
under its current revolving credit facility.
As of March 31, Polaris has more than
$420 million in cash-on-hand to help
weather the current COVID-19 crisis.
The company says it will
"continue to evaluate its
operations and make
adjustments based on the safety
of its employees, demand
signals, the health of its supply
chain and distribution network,
and government mandates and
local orders."
Streamliner collection adds a dark and
aerodynamic look to your bike."
Available in black.
This collection also includes lots of
black plus hand grips (heated or
otherwise), rider footpegs, brake pedal
pad, rider footboards, passenger
footboards and mount kit and a left
and right passenger footboard insert
kit.
Finally, in order to "command
attention without saying a word" and
"push aggressive style to the limit,"
Harley's 'Board-to-Peg' conversion kit
features "leading-edge controls,
custom wheels and board-to-peg
conversion kits" for Touring and FL
Softail platforms that "deliver the
unmistakable attitude and
performance you need to stand out
from the crowd."
"These support kits are designed to
allow installation of mini footboards
and footpegs - the kit includes left and
right mounting brackets and all
necessary installation hardware." Mini
footboards and footpegs are sold
separately.
The other new parts to set the pulse
racing are the Fugitive wheel, 80GRIT
rider footboards, brake pedal pad, foot
controls, footpegs and HDMC engine
trim selection ("contemporary style
machined to perfection") consisting of
a timer cover and derby cover for
selected late models.
Whoopee doo!
Delphi Acquired by BorgWarner
Harley-Davidson Tier 1 EFi vendor
Delphi Technologies PLC has been
gobbled up by BorgWarner Inc. as the
automotive supply chain continues to
scrabble for critical mass in the face of
auto industry changes and
consolidation.
Delphi has been Harley's go-to default
electronic fuel injection component
supplier since 2001 (for the 2002
model year) when it was added to
Magneti Marelli as a Harley partner.
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Now, like so many vendors, its
traditional markets and business model
face the disruption of electrification and
the whole of the OEM and aftermarket
vendor communities are looking at a
potentially uncertain future.
Powertrain products specialist
BorgWarner will acquire Delphi
Technologies in an all-stock transaction
that values Delphi Technologies'
enterprise value at approximately $3.3
billion.
AMERICAN MOTORCYCLE DEALER - MAY 2020
In fiscal year 2019, BorgWarner and
Delphi Technologies estimate that they
generated $10.17 billion and $4.36
billion of net sales, respectively.
Headquartered in London (UK), Delphi
operates technical centers,
manufacturing sites and customer
support service centers in 24 countries,
employing more than 21,000 people
around the world.
Delphi is still Tier 1 to Harley (so is
Magneti Marelli), supplying ECMs and
various other components. The rumor
mill suggests that the new Street
Fighter and Pan America will be using
Marelli ECMs.
Following the closing of the transaction,
the combined company will be led by
Frédéric Lissalde and Kevin Nowlan,
BorgWarner's CEO and CFO
respectively, and will operate as
BorgWarner. The combined company
will be headquartered at Auburn Hills,
Michigan.
www.AMDchampionship.com