High Gear Engine Company (HG) is a global automotive supplier with operations around the world. Founded in 1937, HG specializes in engines for all kinds of automobiles, from high-end sports cars to farming equipment. HG is split into three business units (BU) that operate fairly independently and are marketed under different brand names:
- Velocity Engines – Focuses on high-end sports cars and consumer-grade engines. These products command a premium in the market.
- Long Haul Motors – Produces diesel and large engines for semi-trailer trucks. Long haul is known well known in the market for its durability and is a recognized leader in the trucking industry.
- Bigger Digger Power and Motor – Specializes in mining equipment engines and motors. They supply to the major mining and industrial equipment manufacturers and often “white label” their engines as their customers’ brand.
HG is located in Detroit, Michigan and has over 75 plants, performance labs and manufacturing facilities worldwide. Like most automotive suppliers and original equipment manufacturers (OEM), HG was hit hard by the economic downturn of 2008. Faced with bankruptcy, HG was forced to reduce its employee headcount and close several global locations. However, in the recent five years business has turned around and orders have picked up to the point that factories are re-opening and the company is once again profitable with global revenues totaling just over $9 billion (US). HG is planning for 17% compounded annual revenue growth and has a healthy (and growing) profit margin of 15%. HG is now ready to begin its path to growth which will require major change in the technology environment. This includes upgrading its technology infrastructure and applications that have been deferred for almost a decade.