Is this good for Alta? (Harley Davidson Investment)

zookie
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zookie 3/1/2018 2:43pm
3/1/2018 2:43pm
early wrote:
Motofinne: dealer network seems like the most attractive aspect of the deal for Alta Zookie: there seems to be a fair amount of joint development with...
Motofinne: dealer network seems like the most attractive aspect of the deal for Alta

Zookie: there seems to be a fair amount of joint development with this deal. The last time something like this happened with an innovative company that would diversify HDs portfolio it did not end well for Buell.

Of course none of us (so far) have inside details on the deal so this is all educated speculation.
Early,

IIRC, Buell used Harley engines in their bikes. Harley did not go to Buell and say "let's sell a sportbike under the HD name using your tech", Buell had some sort of agreement to use Harley engines.

This Alta deal is very clearly one from which Harley will get some of Alta's electric tech for their bikes + some equity in Alta in exchange for giving Alta some $$ and exposure. More than likely, Harley might have a seat on Alta's board, which, IMO is a good thing since Harley clearly has a ton of connections in the world of motorcycles...a powerful network.

The company I work for right now has a very similar development deal. We develop a tool that a company wants to integrate into their product/workspace. They invested in us for a seat on the board + access to the tech + equity and in exchange, we get their expertise + exposure + a fantastic use case for our technology. This is a strategic investment

Venture capital firms invest solely for an "exit" (company goes public, gets acquired, etc). They want their $$. Strategic investors are in it for more than the exit and are, therefore, in my opinion, far more valuable.

There's always a chance that Harley copies the tech and leaves Alta hanging, but see my original point, which is that Harley and Alta are not in competitive spaces. Customers shopping are not choosing between the brands. One customer may buy from both, but the choice isn't "Alta MX bike or big fat Harley cruiser?"
early
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early 3/1/2018 2:55pm
3/1/2018 2:55pm
early wrote:
Motofinne: dealer network seems like the most attractive aspect of the deal for Alta Zookie: there seems to be a fair amount of joint development with...
Motofinne: dealer network seems like the most attractive aspect of the deal for Alta

Zookie: there seems to be a fair amount of joint development with this deal. The last time something like this happened with an innovative company that would diversify HDs portfolio it did not end well for Buell.

Of course none of us (so far) have inside details on the deal so this is all educated speculation.
zookie wrote:
Early, IIRC, Buell used Harley engines in their bikes. Harley did not go to Buell and say "let's sell a sportbike under the HD name using...
Early,

IIRC, Buell used Harley engines in their bikes. Harley did not go to Buell and say "let's sell a sportbike under the HD name using your tech", Buell had some sort of agreement to use Harley engines.

This Alta deal is very clearly one from which Harley will get some of Alta's electric tech for their bikes + some equity in Alta in exchange for giving Alta some $$ and exposure. More than likely, Harley might have a seat on Alta's board, which, IMO is a good thing since Harley clearly has a ton of connections in the world of motorcycles...a powerful network.

The company I work for right now has a very similar development deal. We develop a tool that a company wants to integrate into their product/workspace. They invested in us for a seat on the board + access to the tech + equity and in exchange, we get their expertise + exposure + a fantastic use case for our technology. This is a strategic investment

Venture capital firms invest solely for an "exit" (company goes public, gets acquired, etc). They want their $$. Strategic investors are in it for more than the exit and are, therefore, in my opinion, far more valuable.

There's always a chance that Harley copies the tech and leaves Alta hanging, but see my original point, which is that Harley and Alta are not in competitive spaces. Customers shopping are not choosing between the brands. One customer may buy from both, but the choice isn't "Alta MX bike or big fat Harley cruiser?"
The scenario you layed out sounds very very good. Let's hope things work out that way. There are Harley dealers everywhere and with Alta just getting into building that network, a piggy back deal would be ideal. I'm hoping that I can buy an Alta in 3-5 years and would have no problem going to the Harley dealer for the bike and parts.
Ghost of Jabroni 3/1/2018 3:56pm
3/1/2018 3:56pm
Dirty Points wrote:
100% situational. Harley branding, dealership network, capital, and manufacturing would be a boon to any motorcycle company. But if Harley management is added to the mix...
100% situational.

Harley branding, dealership network, capital, and manufacturing would be a boon to any motorcycle company. But if Harley management is added to the mix, the fit can become a whole lot more questionable.
Agreed.

My first thiught tho were RIP Alta. We hardly knew thee.
motoarmageddon 3/1/2018 3:59pm
3/1/2018 3:59pm
the sooner people buy Alta bikes, the sooner will be the demise of gas powered MX. I don't know why some people are in such a hurry for this.

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Johnny Depp
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Johnny Depp 3/1/2018 5:12pm
3/1/2018 5:12pm Edited Date/Time 3/1/2018 5:43pm
Now they can go kick the door in at the AMA and shit on the desk.

Then they sit at the head of the table.
Motocross Kid 3/1/2018 5:23pm
3/1/2018 5:23pm
AHRMA361 wrote:
Harley will swallow Alta whole with it's bureaucracy and matrix management style. RIP Alta Motors and Buell before it..
LOL - they're investing in Alta, not taking over operations. Sheesh
526
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526 3/2/2018 6:05am
3/2/2018 6:05am
AHRMA361 wrote:
Harley will swallow Alta whole with it's bureaucracy and matrix management style. RIP Alta Motors and Buell before it..
I agree 100% Sad to See for the Alta Guys hope the payout was good
BAMX
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BAMX 3/2/2018 6:45am
3/2/2018 6:45am
Motofinne wrote:
I just thought about one thing that could be positive. I wonder if Alta will be able to start selling the bikes worldwide through HD dealers...
I just thought about one thing that could be positive. I wonder if Alta will be able to start selling the bikes worldwide through HD dealers.

The market in Europe needs a competitive electric bike like Alta considering that the EU regulations are getting stricter and stricter.
colintrax wrote:
I read the plan is for Alta be sold at HD dealers. Can't say this is true, or that means Alta is coming to Europe. But...
I read the plan is for Alta be sold at HD dealers. Can't say this is true, or that means Alta is coming to Europe. But I'd say your odds of getting an Alta are better.
I can't imagine trying to buy a MX bike at a Harley dealership.
526
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526 3/2/2018 7:41am
3/2/2018 7:41am
AHRMA361 wrote:
Harley will swallow Alta whole with it's bureaucracy and matrix management style. RIP Alta Motors and Buell before it..
Motocross Kid wrote:
LOL - they're investing in Alta, not taking over operations. Sheesh
They will incorporate their manufacturing style and input, they aren't just writing a check and checking in twice a year.

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