1
NEWS
Polaris buys Brammo
Acquisition of the electric motorcycle company includes certain assets, technology and trademarksPolaris Industries has acquired the electric motorcycle company Brammo, extending the minority stake it acquired in the start-up company nearly four years ago.
In addition, Polaris is acting as a leading investor in a recapitalisation of the Oregon-based Brammo that enables the company to focus exclusively on the design, development and integration of electric vehicle powertrains.
Going forward, the two companies will leverage Polaris’ leading position in the global powersports industry to market a variety of electric vehicles utilising Brammo’s lithium-ion electric drivetrain technology, while freeing Brammo to continue developing its innovative electric vehicle powertrains.
As part of this transaction, Polaris will utilise the assets acquired to begin manufacturing electric motorcycles in the second half of 2015 at its Spirit Lake, Iowa facility.
“We have enjoyed our involvement with Brammo Motorcycles over the past three years, and our excitement about their industry-leading lithium-ion electric drivetrain technology has increased commensurate with their improvements in cost and performance," said Scott Wine, Polaris Chairman and CEO.
"Polaris and Brammo share a goal of adding the most advanced and highest capability electric solutions to Polaris’ portfolio of leading powersports products.
“Today’s announcement strengthens not only Polaris’ commitment to bringing our consumers lithium-ion electric solutions, but also this partnership’s ability to continue innovating and developing leading electric drivetrain technology. We anticipate a return on these investments and believe the new alignment brings us that much closer to delivering world-class electric solutions across our products.”
Bikesales sources suggest that Brammo, as a stand-alone company, had been labouring under multi-million dollar debts and was struggling to pay staff salaries. As a start-up company – as opposed to heavyweights like KTM and BMW Motorrad branching into the electric sphere – Brammo's pockets weren't obviously quite as deep to keep the wheels of production and development turning.
Since the Polaris announcement, a number of bloggers have come out swinging, suggesting that Polaris had enough of Brammo's lack of focus and that it saw the purchase as a way of cutting its losses and setting Brammo's management loose. Others have suggested that a chapter could be written about corporate self-interest, short-sighted profit-seeking instead of product development.
In Australia, the future of Brammo is now unclear. In 2014, it was announced that Newcastle-based company Elmofo would become the Australian importer for Brammo, but with the new arrangement – and Polaris' established dealer network – Polaris could now decide to bring the operation entirely in-house – just as KTM eventually did when it took over ownership of Husqvarna. The CEO of Polaris Australia and New Zealand, Peter Alexander, didn't want to make comment when contacted by Bikesales.
Meanwhile, Elmofo continues to push Brammo on its website, with the 2014 Empulse-R still listed as being available for $24,850.
Tags
Share this article
Written byBikesales Staff
See all articlesStay up to dateBecome a bikesales member and get the latest news, reviews and advice straight to your inbox.
Subscribe todayDisclaimer
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
Contact
Advertise with us
Local marketplaces
International marketplaces
Consent
Download the bikesales app
