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Dec 14
Love0

Harley’s electric motorcycle division to go public via $1.7 billion SPAC deal

By General Posts

from https://www.cnbc.com/

Key Points :

  • Harley-Davidson’s electric-motorcycle division will go public through a merger with a blank-check firm in a deal valued at $1.77 billion, the company said on Monday.
  • The company launched LiveWire earlier this year, hoping to claw back lost market share as its core baby boomer customer base grows older and interest in motorcycling as a recreational activity fades.
  • Harley-Davidson will retain a 74% stake in the company, which is expected to list on the New York Stock Exchange under the symbol “LVW.”

Harley-Davidson’s electric-motorcycle division will go public through a merger with a blank-check firm in a deal valued at $1.77 billion, the company said on Monday, as the 118-year old brand bets on younger customers to boost volumes.

The company launched LiveWire earlier this year, hoping to claw back lost market share as its core baby boomer customer base grows older and interest in motorcycling as a recreational activity fades.

A broader awareness about climate change is also paving the way for automakers to lean towards greener vehicles. Valuations have gained as money managers are also increasingly factoring in ESG policies in their investments.

Harley is the latest to cash in on an uptick in valuations of electric-vehicle makers. Last month, Amazon-backed EV maker Rivian shot past $100 billion in valuation in its market debut, surpassing Ford and General Motors.

“If anything this underlines what we’ve been saying for a long time. Detroit, wake up! The train has left the station! EVs are inevitable,” Roth Capital analyst Craig Irwin said.

“Many traditional OEMs (Original equipment manufacturers) with emerging EV businesses can obviously do similar spinoff transactions,” Irwin added.

Harley’s shares rose 11.3% in premarket trading, while those of AEA-Bridges were up 3.4%.

Jochen Zeitz, Harley’s chief executive, will be the chairman of LiveWire for up to two years following the completion of the deal. In an investor presentation, LiveWire projected units sales volume of 100,961 electric bikes by 2026.

Harley-Davidson will retain a 74% stake in the company, which is expected to list on the New York Stock Exchange under the symbol “LVW.” ABIC’s shareholders will own about 17%.

Sep 06
Love0

U.S. moving to block California vehicle emissions rules

By General Posts

Two U.S. agencies are preparing to submit for final White House regulatory review a plan to revoke California’s authority to set its own vehicle greenhouse gas standards and declare that states are pre-empted from setting their own vehicle rules, two people briefed on the matter said on Thursday.

WASHINGTON: Two U.S. agencies are preparing to submit for final White House regulatory review a plan to revoke California’s authority to set its own vehicle greenhouse gas standards and declare that states are pre-empted from setting their own vehicle rules, two people briefed on the matter said on Thursday.

The Environmental Protection Agency in August 2018 proposed revoking a waiver granted to California in 2013 under the Clean Air Act as part of the Trump administration’s plan to roll back Obama-era fuel economy standards through 2025.

The EPA and the National Highway Traffic Safety Administration (NHTSA) are expected to seek approval to finalize the first portion of the rule dealing with California and other states before completing action on setting yearly fuel efficiency requirements. The plan would not revoke California’s ability to set low-emission vehicle standards that has been in place since 1990, the sources said.

The move comes as President Donald Trump has expressed anger with automakers over the issue. In July, four major automakers, including Ford Motor Co and Volkswagen AG, said they had reached a voluntary agreement with California on fuel efficiency rules.

California and other states had vowed to enforce stricter Obama-era emissions standards, after Trump proposed rolling back the federal rules. Automakers had worried that court battles between state and federal governments could create years of uncertainty for manufacturers.

The plan, also backed by BMW AG and Honda Motor Co Ltd, is more stringent than Trump’s proposal but looser than the Obama-era rule. California, the most populous U.S. state, accounts for about 12% of American vehicle sales, and if the administration recognizes the deal, it would allow automakers to operate under one set of rules.

An administration official said it was close to submitting a rule internally dubbed the “One National Program rule” aimed at ensuring a single national level for fuel economy standards.

But other automakers, including General Motors Co and Toyota Motor Corp, have declined to back the deal. Mary Nichols, who chairs the California Air Resources Board, told Reuters in July that the four automakers had agreed not to legally challenge California’s vehicle regulatory authority.

Under Trump, federal regulators backed freezing emissions requirements for new cars and trucks at 2020 levels through 2026. Administration officials say its final regulation will include a modest boost in annual efficiency requirements but far less than what the Obama administration had set in 2012.

News Source: Reuters