Harley-Davidson has announced its strategic investment in Alta Motors, which will see the two American companies co-developing two new electric motorcycle models. As one can imagine, the news has big ramifications for both brands. For Harley-Davidson, it means having access to cutting-edge electric vehicle technology, and a technical partner that can help them navigate the coming shift to electric drivetrains. And for Alta Motors the news is perhaps even more impactful, as Harley-Davidson brings not only a key monetary investment into the San Francisco startup, but the deal likely provides access to a variety of assets for Alta, namely purchasing power with parts supplier, access to a worldwide dealer network, and instant credibility with other future investors.
Get them while they’re young. It worked for the tobacco industry, it worked for Michael Jackson, and it is the new mantra for Aprilia Motorcycles, as the Italian marque is getting aggressive with its offerings for young and future motorcyclists.
Regular Asphalt & Rubber readers will know that we have talked at length about the motorcycle industry’s aging demographic, and that the younger generations are not filling in sales that are being left behind by Baby Boomer motorcyclists.
Getting Gen-X and Millennials on motorcycles has been a key part to every motorcycle brand’s marketing strategy, and now Aprilia is taking that move to its next logical level, and focusing on getting kids on bikes at as early of an age as possible.
The folks in Talent, Oregon have some exciting news today, as electric motorcycle manufacturer Brammo has announced a strategic partnership with TEAM Industries, a leading drivetrain technology firm. The partnership with TEAM brings a variety of advantages to Brammo’s production and design process, and it also sees TEAM becoming an investor in the electric vehicle startup.
TEAM’s ability to develop and produce, locally in the United States, will help Brammo not only develop its future products more effectively, but also help lower the cost of its current offering. Talking to Brammo CEO Craig Bramscher, he called TEAM Industries “American manufacturing at its finest,” and highlighted TEAM’s commitment to creating jobs throughout Minnesota, and its ability to work on a wide variety of manufacturing stages
Aside from the capital infusion, which is the lifeblood of any startup company, Brammo seems to be getting a wide array of benefits by working with TEAM.
The big news out of India today is that the country’s fourth-largest motorcycle manufacturer, TVS, is in talks with Germany’s leading two-wheeled maker, BMW Motorrad. While there are few details on what is occurring between the two companies, it is being reported by the Wall Street Journal that TVS is hoping to get some technical know-how from BMW in making larger-displacement motorcycles.
Likely to end in some sort of strategic partnership, BMW is surely eyeing TVS’s distribution network in exchange for its 500cc+ help, as all the major OEMs are currently jockeying for position in the growing Indian market. Other rumors around the deal suggest that TVS could help BMW create smaller-displacement machines, specifically designed for India, which would presumably also be available in other emerging markets like South America and Southeast Asia.
After being courted by several major OEMs according to our sources, electric motorcycle manufacturer Brammo received a minority investment by Polaris Industries today. The move will give Polaris access to Brammo’s proprietary electric powertrain technology, and positions the large OEM to enter further into the electric motorcycle market as a strategic partner to the Oregonian company. In the process of this investment, Brammo has also closed a $28 million Series B round of funding that also included contributions from repeat investor Alpine Energy and first-time Brammo investor NorthPort Investments, LLC.
Polaris has already been aggressively expanding into new market segments this year by buying both Indian Motorcycles and electric car manufacturer GEM. Polaris’s investment in Brammo, the two companies will form a strategic partnership that will presumably see Brammo’s electric drivetrain in different Polaris Industry products, which gives the American company a formidable ally in the move to electric-powered vehicles. For Brammo, the news bodes well as it not only means an infusion of fresh capital, a roadmap to further funding, and a step closer to a possible exit, but Polaris will also be sharing its vast array of technical, sales, and support knowledge to the electric startup.
Bajaj must be celebrating a late Thanksgiving (we might be talking about the wrong Indians here) as the Pune-based automotive group has gobbled up some more shares of Austrian company’s stock. Strengthening the two companies’ strategic partnership, Bajaj has modestly increased its 35.67% interest in KTM, becoming a 38.08% shareholder. Also coming out of the orange brand is news that Stefan Pierer will continue on as CEO of the company through 2015, and Friedrich Roithner, formerly of DGF Cross Industries, will take on the role of Financial Director in the new year.
Announced last night at the L.A. Auto Show, Ducati and AMG (Mercedes-Benz’s tuning house) have formed a partnership between the two brands the will first manifest itself by having the German car tuner sponsoring the Italian company’s MotoGP team. Rumored for over a month now, this announcement finally puts to bed the speculation that Fiat would sponsor Ducati now that Valentino Rossi has joined the Rosso Corse team, and is also the first official sponsorship announcement for Ducati Corse’s 2011 season.
It’s hard to make strategic business partnership announcements sound sexy. Between all the hyperbole about how two companies are going to shift the industry paradigm and synergize the supply chain matrix, the average consumer’s eyes glaze over, and drool starts seeping out from the corners of their mouths. So bear with us on this one, because the announcement (or is the term Brammouncement?) of Brammo and Flextronics is an important one not only for the Ashland based company, but also for the electric motorcycle industry as a whole.
Some of the biggest problems facing any startup in the motorcycle industry are distribution and assembly. With the demand for electric motorcycles being a global issue, electric motorcycle startups, which are based primarily in the United States, have to not only grow their businesses domestically, but perhaps more importantly they need to foster a presence abroad in foreign markets.
With Europe and Asia easily out-pacing the demand in the US for electric transportation, an issue of contention for cash-strapped startups like Brammo has been how to grow globally and effectively with their limited budgets. The solution in this case for Brammo, is partnering with Flextronics, and using their scalable global production facilities.