LiveWire and Harley-Davidson are completely separate entities and companies. Yet, almost everything about LiveWire motorcycles is outsourced to Harley-Davidson–at least all that matters when it comes to an automotive company. LiveWire Group has signed a service agreement with Harley-Davidson.
Under the excuse of a “strategic business move”, LiveWire Group, Inc., the manufacturer of loss making electric motorcycles and related parts, announced in December 2024 that it has entered into a comprehensive services agreement with Harley-Davidson (NYSE:HOG), Inc. This announcement came when LiveWire’s stock traded near its 52-week low of $4.74, having declined over 59% in just one year.
Electric Vehicles are supposedly the future of mobility and transportation. One can visualize the magnitude of miscalculation, haste and failure in this latest decline of Harley-Davidson brainchild. No wonder the board had separated LiveWire company from itself — like abandoning a diseased, fatally-ill disfigured family member.
In a fast moving renewable energy infrastructure of Europe and North America—many EV startups have failed but noteworthy are always those which are launched by traditional well-known automotive companies including Chevy Volt and Jaguar E-type, etc.
According to InvestingPro analysis, LiveWire company faces profitability challenges with negative EBITDA of $102.58 million in the last twelve months. This agreement with Harley-Davidson is set to take effect on January 1, 2025, marking the end of the previous agreement dated September 22, 2022.
Under these new terms of Master Services Agreement, Harley-Davidson will provide a broad range of services to LiveWire. Such services include testing and development, regulatory support, and other essential functions such as warehousing, safety investigation, and customer support. It is stated that the collaboration is designed to leverage Harley-Davidson’s expertise in areas that LiveWire has identified as more efficiently outsourced.
Basically, the exiled fugly family member is being spoon-fed and financed from outside the premises of its home—so that no one thinks Harley-Davidson and its CEO Jochen Zeitz is producing and gathering shit inside its pristine historic home.
—Wayfarer the Hun (LOLz)
