Harley-Davidson Livewire will be the first American electric motorcycle brand to go public
ABIC will merge with LiveWire (the e-bike division of Harley-Davidson) to build a new publicly traded company. This common stock will be listed on the New York Stock Exchange under “LVW”. This new coalition will make Harley-Davidson’s LiveWire the first publicly traded electric motorcycle company in the United States.
Harley-Davidson expects the net profit from the transaction to be $545 million. The brand will use these reserves to accelerate the future of its first model, generate new products and improve global production and distribution. This IPO is accompanied by an increase in wealth in the form of a PIPE (Private Investment in Public Equity), the Taiwanese manufacturer of two-wheelers Kymco, already a partner of LiveWire, implanting 100 million dollars. The transaction will be funded by ABIC’s $400 million held in trust and a $100 million investment from Harley-Davidson.
What does this mean for the future of Harley-Davidson Livewire?
Via: Harley-Davidson
Harley-Davidson will be the majority shareholder (74%) of the company following the closing of the transaction. ABIC shareholders will own 17%, while ABIC and Kymco founders will own 4% of LiveWire. Jochen Zeitz (Chairman, President and CEO of Harley-Davidson) will be the director of LiveWire and will serve as CEO for the first two years following the closing of the transaction. Harley-Davidson expects the joining forces to have an industry value of approximately $1.77 billion when it goes public.
Via: Harley-Davidson
Jochen Zeitz, President, President and CEO of Harley-Davidson, said: “Today’s announcement is a historic milestone, with LiveWire poised to become the first publicly traded electric motorcycle company in the United States. Building on Harley-Davidson’s 118-year lineage, LiveWire’s mission is to be the world’s most desirable electric motorcycle brand, leading the electrification of the sport.” He explained, “This transaction will give LiveWire the freedom to fund new product development and accelerate its time-to-market model, LiveWire will be able to operate as an agile, innovative public company while benefiting from the large-scale manufacturing and distribution capabilities of its strategic partners. , Harley-Davidson and Kymco.
Via: Harley-Davidson
For reference, in February 2021, Harley-Davidson unveiled its goals to build an electric motorcycle business as part of its five-year “Hardwire” approach. The brand’s first model is the LiveWire One, a relaunched version of the popular LiveWire e-bike at a much lower price. In May, the LiveWire model name was changed to a proper brand name. The US launch of the new LiveWire One initially took place in California, New York and Texas. Beyond the United States, the LiveWire One will be available from 2022.
Expand LiveWire Wallet
Via: Harley-Davidson
The LiveWire One is now in production. The next product plan will be the launch of LiveWire S2 Del Mar, named after the California town of the same name. This bike, smaller and lighter than the original LiveWire One model, will be a mid-weight offering. It is obviously based on the Arrow platform. The S2 range will be accompanied, logically, by the S3 range. LiveWire envisions these models to be scaled-down versions of the Arrow architecture with smaller batteries and motors, so they can fit into the “lightweight market.”
Via: Harley-Davidson
ARROW, a modular and scalable EV system integrating a motor and battery with an on-board charger, is the basis of the future product line. Zeitz said Harley designed the EV systems to meet the needs of the motorcycle market. He also said that spatial constraints and the impact of battery weight on handling were therefore of major importance.
Jochen explained that Harley LiveWire can innovate faster by controlling the IP of motor, battery and power electronics. This allows them to avoid the limitations imposed by third-party options. They can quickly expand vertically and horizontally with the ease of an EV-powered powertrain and the benefits of a modular, scalable architecture. Harley-Davidson can bring new models to market faster with less R&D.
Via: Harley-Davidson
LifeWire’s latest statement on IPO plans says it will focus on applications for urban electric motorcycles. It will first establish a brand presence in North America and Europe, and then expand into other markets, including Asia. LiveWire says it will expand its product line while focusing on the rapidly evolving future of electric vehicles. This will ensure that core Harley-Davidson elements are protected by future technology.
SPAC mergers are a popular way for electric two-wheeled vehicle makers to quickly enter the US stock market. Gogoro is taking a similar route with a SPAC, which will take him to NASDAQ.
Via: Harley-Davidson
LiveWire’s claim to be the first publicly traded electric motorcycle company may need a little explanation. Although Gogoro’s electric two-wheelers can travel over 80 km/h (50 mph), they were considered scooters rather than motorcycles. Arcimoto’s publicly traded three-wheeled fun utility vehicles, legal in most US states, are honestly motorcycles. However, Arcimoto does not refer to its vehicles as bicycles, so it will not protect this label. HD’s LiveWire is sure to be the number one electric motorcycle company on Wall Street, compared to the others.
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Karan Rawat
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