Harley-Davidson has entered into a partnership with Taiwanese manufacturer Kwang Yang Motor Co Ltd (KYMCO) as the companies will collaborate to develop electric vehicles in the future. KYMCO will be investing $100 million into LiveWire, Harley-Davidson's electric motorcycle division and AEA-Bridges Impact Corp (ABIC), a special purpose acquisition company, which will combine to form a new publicly traded company. Once the deal is completed, LiveWire will be the first publicly traded electric motorcycle company in the US with an estimated post-money valuation of $2.3 billion. Harley will also be investing $100 million into the new venture.
Also Read: Harley-Davidson Says Electric Motorcycle Unit Will List On NYSE
LiveWire is a sub-brand from Harley-Davidson and will focus on developing and building electric offerings. The company unveiled its first product, the LiveWire One earlier this year, which is the LiveWire motorcycle that was previously sold under the Harley name. In a statement, the company said that the net proceeds of the transaction "will fund LiveWire's strategic plan to accelerate its go-to-market model, invest in new product development, and enhance global manufacturing and distribution capabilities."
Furthermore, KYMCO will be bringing its "engineering expertise, manufacturing footprint, distribution, supply chain infrastructure and global logistics capabilities," to the table in this partnership. The alliance could help LiveWire develop more cost-friendly products with KYMCO as it aims to tap emerging markets as much as developed markets across the globe.
Also Read: Harley-Davidson Announces LiveWire As A Standalone All-Electric Motorcycle Brand
Jochen Zeitz, Chairman, President and CEO - Harley-Davidson, said, "Today's announcement is a historic milestone with LiveWire set to become the first publicly traded EV motorcycle company in the U.S. By building on Harley-Davidson's 118-year lineage, LiveWire's mission is to be the most desirable electric motorcycle brand in the world, leading the electrification of the sport. This transaction will give LiveWire the freedom to fund new product development and accelerate its go-to-market model. LiveWire will be able to operate as an agile and innovative public company while benefitting from the at-scale manufacturing and distribution capabilities of its strategic partners, Harley-Davidson and KYMCO."
John Garcia, Chairman and Co-CEO - AEA-Bridges Impact Corp, said, "We are at the confluence of two seminal shifts impacting the industry - vehicle electrification and sustainability. LiveWire is well-positioned to become the premier sustainable electric motorcycle brand and redefine the industry by leveraging the manufacturing and distribution expertise of Harley-Davidson and KYMCO. We're excited to partner with Harley-Davidson and the LiveWire team to help define the future of electric motorcycles as the industry continues its rapid transformation."
Also Read: Harley-Davidson LiveWire ONE Launched At Much Lower Price
LiveWire also said that it will develop and invest in the capabilities needed to lead the transformation of motorcycling. The company will design and develop products in the US, and already has presence in North America and Europe. It plans to expand to Asia among other markets. LiveWire will also ensure that the future technology developed by the company is applicable to Harley-Davidson's core segments. The company will also make the STACYC all-electric balance bikes for kids.
