When new Harley-Davidson CEO; Jochen Zeitz, took charge of the American motorcycle brand, many within the motorcycle world wondered whether the ‘shoe salesman’ would lead the company in the ‘right’ direction under the ‘Rewire’ program.
Almost immediately there seemed to be a quantum shift in focus and intention from his predecessor. Less focus on global emerging markets and introducing young new riders to the brand, but more on exploring and evolving the premium status of the brand, where many might have felt it had drifted from.
Earlier in 2021, the company decided to isolate itself from its electrical vehicle aspirations and create a new independent company called LiveWire, which would take over the LiveWire motorcycle program and subsequent EV products too, however the confusion still remains as the company is still selling the H-D LiveWire…yes clear as mud you might observe.
However, whilst the world has suffered under the affects of Covid, Jochen Zeitz has began to steer the brand into a more promising financial position, albeit their market share has suffered and profits were initially down but then rallied…as did it for all manufacturers in this new world order.
In recent weeks, Harley-Davidson share price (HOG) has seen a substantial rise and much of this is to do with the much anticipated new model launch in January 2022, however many fans of the brand might be somewhat dismayed to find out that the company is now indirectly joining forces with a Taiwanese motorcycle manufacturer more associated with producing low powered scooters, mopeds and entry level motorcycles.
The LiveWire company is being floated in the stock exchange in a SPAC deal with ‘sustainability-focused special purpose acquisition company AEA-Bridges Impact Corporation (aka ABIC)’, whilst getting a $100million injection from Kymco…the Taiwanese motorcycle company.
The new public LiveWire is projected to be worth $1.7Billion and is set to go public in the first quarter of 2022, subject to approvals and due diligence checks…but with Jochen Zeitz to remain as this company’s CEO for a further two years.
Kymco, for their role as new ‘strategic partner’ will also be tasked with production of components for LiveWire products and future products too.
LiveWire…the company, was thought to still retain some R&D function for EV technology that would be adopted in the mainstream Harley-Davidson products of the future. If this is still the case, then this will mean that indirectly, Kymco produced products will be found in main H-D products of the future.
This in itself should not be a surprise as all manufacturers source raw materials and component manufacturing from around the globe, but for hard core Harley-Davidson fans who may be under the illusion that they are buying American made motorcycles with American products, then this new arrangement at the higher corporate level and the potential affect on future products, may give some customers pause for thought.
However this arrangement should not necessarily spark fear into the hearts of die hard fans but more act as a reminder that corporate manufacturers will undoubtedly seek to form strategic partnerships on a global scale to explore and secure markets. If LiveWire and Harley-Davidson are to see the fruits of the EV endeavours, then this kind of arrangement is to be expected and this will reflect in the stock value of the company…whether LiveWire company will be a success or not, or whether it becomes absorbed in a future corporate incarnation that delivers the automotive tech for the future.