Legendary motorcycle manufacturer Harley-Davidson seems determined to destroy its own credibility as its actions contribute to the demise of Alta Motors. Alta, one of the most technologically advanced and economically promising e-bike producers in America, recently closed its doors after HD pulled funding.
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Bay Area-based electric motorcycle company, Alta Motors, ceased operations and locked its doors. Northwest Regional Sales Manager Christian Hansen confirmed what multiple outlets have been reporting was on the horizon.
At 5 o’clock on Thursday, October 18, the company sent staff packing. Alta Motors will purportedly continue to seek funding, but the future appears stormy at best for this former ray of sunshine in the e-bike world.
Since its birth 10 years ago, Alta Motors has been continuously making headlines. Beginning with a clean design slate, the company developed its own proprietary and innovative water-cooled electric motors, the pound-for-pound highest power storage battery in the industry and novel frame designs.
Even with its high-tech prowess, though, Alta was quick to prove that the heart of its business was building a motorcycle that performed. Beyond its ground-breaking R&D work in the lab, the company took its motorcycles to dirt tracks around the world and matched them against the top gasoline-fueled bikes.
In June, the company became the first electric team to qualify for the Erzberg Rodeo. It competed in Supercross events across Europe and Asia as well as the Red Bull Straight Rhythm and EnduroCross. Repeatedly it proved it had the muscle and maneuverability to compete with the uppermost factory teams.
Unfortunately, the company’s finances have never matched its performance on the track or in the lab. It was originally seeded with $27 million from Grassy Creek Venture, most of which was used for research and development. Then, six months ago, it was announced that Harley-Davidson was making an equity investment in Alta in order to bolster its efforts to bring the Livewire electric motorcycle to market by the upcoming model year.
The agreement between the two companies would have given HD access to Alta’s cutting-edge electric drive train and battery design. In exchange, Alta Motors would have received a rather large cash infusion in order to further develop its dealer chain and increase its marketing efforts.
In August, however, Harley unceremoniously withdrew from the agreement, leaving Alta in dire financial straits. As of October 18, Alta determined it could no longer meet its financial obligations and closed its doors. While it cannot be said that HD’s actions directly caused the demise of the burgeoning company, there is little doubt that it was a major contributing factor. Alta has announced that it will continue to seek funding, but as of this writing, there have been no takers.
Harley-Davidson’s part in this drama is more than a little troubling. After the recent release of plans to close or downsize several of its U.S. facilities and the moving of many jobs to overseas locations, the company suffered a severe public relations backlash that included condemnation from the POTUS.
With this most recent move, the company has once again left itself open to criticism. Many people are wondering if the stalwart example of classic American values that the company once was has ceased to exist.
As Florida motorcycle attorney Brad Sinclair expressed it, “Harley-Davidson was once seen as the perfect example of what was best about our country. It and its bikes symbolized freedom, strength and loyalty. That was one reason people were so proud to ride a Harley and stayed so loyal to the brand. The way the company is acting now makes one wonder if all of those old-fashioned values have suddenly gone out of style in Milwaukee.”
Contact Info:
Name: Scot Small
Organization: Sinclair Law
Phone: 888-722-1974
Video URL: https://www.youtube.com/watch?v=L2dcPUg_0UM
For more information, please visit https://www.sinclairlaw.com/
Source: MarketersMedia
Release ID: 439208
