I worked for a Rosenbauer dealer just prior to when Spartan started to get pissy with them, this was when they cut off ALF, KME, E\-One and anyone else that had their own chassis line. I was well aware that Smeal had ALF and Spartan re-branding chassis, just as HME did/does for Ferrara and Rosenbauer, etc.
Spartan can say what they want, but they took an enormous hit in sales when they cut off Rosenbauer. If you read corporate profit reports, etc. the company is not doing well. If I owned stock, I wouldn't be pleased. See: https://materials.proxyvote.com/Approved...AR_201450/
Spartan Motors as a whole was profitable or was moving to be profitable (one division, I believe delivery trucks started making money in the second half of the year) in every segment BUT emergency chassis and vehicles, and the loss was so great in this one segment it drove an overall loss for the company as a whole of $8.2 million in 2013. Share prices for Spartan are a whopping 5.05, up from their lowest of the year of 4.70. The high over the year was 7.18. I truly think you will see Spartan continue to slip.
I would be curious if Spartan is still the largest builder of custom fire chassis any longer. Who is their big user? Smeal and ERV?
Smeal will do fine with LTI (LTC) because Smeal's focus is on aerials. Yes they build engines, but I'd bet money they sell three or four aerials to every engine they build. Enhancing that production capacity with an already respected and skilled workforce can't hurt them. I would also be surprised if all of LTI's existing lines survive intact long term, Smeal will determine what lines are too close to one another and trim the fat if needed.
Spartan can say what they want, but they took an enormous hit in sales when they cut off Rosenbauer. If you read corporate profit reports, etc. the company is not doing well. If I owned stock, I wouldn't be pleased. See: https://materials.proxyvote.com/Approved...AR_201450/
Spartan Motors as a whole was profitable or was moving to be profitable (one division, I believe delivery trucks started making money in the second half of the year) in every segment BUT emergency chassis and vehicles, and the loss was so great in this one segment it drove an overall loss for the company as a whole of $8.2 million in 2013. Share prices for Spartan are a whopping 5.05, up from their lowest of the year of 4.70. The high over the year was 7.18. I truly think you will see Spartan continue to slip.
I would be curious if Spartan is still the largest builder of custom fire chassis any longer. Who is their big user? Smeal and ERV?
Smeal will do fine with LTI (LTC) because Smeal's focus is on aerials. Yes they build engines, but I'd bet money they sell three or four aerials to every engine they build. Enhancing that production capacity with an already respected and skilled workforce can't hurt them. I would also be surprised if all of LTI's existing lines survive intact long term, Smeal will determine what lines are too close to one another and trim the fat if needed.
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<p style="font-family:arial;font-size:10pt;">Smeal has re-branded chassis for years. The 1st Sirus series is a Spartan, Altris was an ALF, and the new S series is a Ferrara which every Smeal Dealer will tell what it is (Not like there is already 1,000 giveaways on who builds it). When Smeal does this with another chassis they have their "requirements" that changes or in some cases makes the cab/chassis better. As I was told Smeal wanted more options for there customers on a chassis. They ALF version was a low end and the Spartan was the High end but from what I understand the Sirus will still be available if requested but the "S" series will be the standard. This also allows Smeal to answer the "sole source" questions when asked. To be honest Ferrara, Smeal, Rosenbauer, and Spartan are not truley sole source because the cabs are actually built by someone else. Marion for Spartan and Rosey and CTC for Ferrara, Smeal,and HME.
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<p style="font-family:arial;font-size:10pt;">As for Ferrara telling Smeal what to do I don't see that happening since Smeal is it's own company and stands alone. They just has an agreement with Ferrara to supply a chassis. Ferrara has more to loose in the deal if they push the "our chassis only" BS because Smeal builds aerials where as Ferrara doesn't. Now will the purchase of LTI there is really no options for Ferrara. I was really thinking Ferrara or Rosey would have bought up LTI but they didn't which could be a very good thing.
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<p style="font-family:arial;font-size:10pt;">The Rosey/Spartan break up is a nasty business fight full of ugliness and Spartan is still doing fine and will continue to do so. Remember Spartan is still the largest chassis builder in the US fire service and companies like Pierce, Seagrave, Sutphen and E-One wouldn't allow their products to built on another brand chassis for years or forever.
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<p style="font-family:arial;font-size:10pt;">Smeal buying LTI is puzzling to me but I hope it works out because LTI is a very good product and with "freshening up" as the Smeal CEO put it could make it even better. ALF wouldn't put money into LTI so many left for Seagrave, Smeal, KME, and Pierce who used designs and improvements developed by fustrated exLTI designers in their aerial products. I feel that Smeal will use LTI to get a ton of North East/Mid Atlantic business and have a facility to repair/refurb if needed. I see a huge push in the TDA world which other than Seagrave if you wanted a "Working class/all business" TDA LTI was it. I understand Smeal already has a workforce finishing up a few rigs at LTI as we speak.
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<p style="font-family:arial;font-size:10pt;">I hope this works out and the LTI/LTC brand stays a stand alone option in it's own facility. You would think every MFG has learned from what E-One did to Saulsbury, putting a name plate on a RD Murray isn't a Saulsbury.
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