Team-BHP - TVS in talks with Norton for an acquisition. EDIT: Confirmed!

According to a media report, TVS is in talks with UK-based Norton Motorcycles for a possible acquisition.

TVS in talks with Norton for an acquisition. EDIT: Confirmed!-norton.jpg

It has been reported that TVS has approached Norton's administrators about a potential deal. The company went into administration in January this year after it failed to pay taxes.

Neither TVS nor BDO LLP, which is handling the liquidation of the company have confirm these reports.

Norton produced its first motorcycle in 1902. In recent times, under the leadership of Stuart Garner, Norton produced the Commando and Dominator models.

Source

Link to Team-BHP News

I hope not!

TVS is in a good place with the BMW partnership, that has got them covered, at least, for the short term. Norton is a MESS and there are no two ways about it!

The CEO Stuart Garner is being investigated for fraud in the pension scandal, the company went into administration without cash and millions of pounds in debt, the brand value and recall (especially in the Indian market) is pathetic, the firm had zero business ethics and the factory themselves allegedly stripped down customer bikes for parts to build new motorcycles, and very recently - a Chinese firm (Jinlang) has claimed to have acquired the rights to their bread and butter 961 engine in a non-publicized deal that happened last year!

Looks like a lost cause!

Quote:

Originally Posted by nkrishnap (Post 4785289)

I had the same thoughts too, why Norton and has TVS gone nuts. Its better for them to currently stick with BMW and improve ties to get a mid ranger bike sooner with a 500 or a 600 cc engine.

Think about it like the Jawa case. TVS can develop larger motorcycles with their technical partner BMW for sure, but selling a retro-styled cafe racer or naked bike under the TVS brand is definitely going to be tough. But, if they have a name associated with heritage like Norton, then it has a much better scope.

Mahindra would have made another sales dud if they had not bought the Jawa brand name. Though the informed would understand that the Jawa that is being sold here is a Mojo ( a peculiar case of new wine in an old bottle :uncontrol ) to the not so well informed it is a Jawa, a name that has an emotion. Mahindra on its own could not have enjoyed the success that the Classic Legend's Jawa is enjoying today.

The trouble with Norton, and the fraud cases are a different matter altogether, but TVS will need a heritage association to break into the mid-size segment.

Quote:

Originally Posted by GTO (Post 4785507)

Is there any value in the Norton brand? Can TVS use it for higher-value motorcycles, or retro-styled bikes like the Royal Enfield?

Absolutely it does. Norton is a phenomenal brand with lovely British heritage mind space. You could say Norton-Triumph is like Indian-Harley Davidson. In the car space, Norton is probably like the yesteryear Jaguar.

I think Indian went through similar bankruptcy pains and has now emerged as a very niche but aspirational brand for motorcyclists worldwide because of good management. I think TVS will do a better job with Norton, than either Mahindra did with Jawa or Hero ever did with Buell.

I think TVS probably spurred into action after seeing the relative success of the jawa brand, Royal Enfield's continued success with the retro themed 650, and Bajaj's cafe racer styled Husqvarna's. And lets not forget the Bajaj Triumph juggernaut is incoming.

I think a lot :D

Quote:

Originally Posted by payeng (Post 4785575)

Jawa? A Success?

Where are the SIAM Numbers or Bikes on Roads (have seen just a couple till date ) for that matter

I said "relative" success. Relative with respect to what Mahindra has achieved so far in the two wheeler space.

I have also written further below that TVS will do a much better job than Mahindra could ever do with the Jawa brand.

Let's not dilute this discussion to Mahindra/Jawa. There are other threads for that.

Quote:

Originally Posted by GTO (Post 4785507)

Is there any value in the Norton brand? Can TVS use it for higher-value motorcycles, or retro-styled bikes like the Royal Enfield?

Quote:

Originally Posted by Red Liner (Post 4785525)

Absolutely it does. Norton is a phenomenal brand with lovely British heritage mind space. You could say Norton-Triumph is like Indian-Harley Davidson.

Absolutely! Norton has great heritage alright, but no connect with the Indian market- unlike Jawa! Its international appeal is rather damaged now, especially in its home market.

Also, what is more important here is that the deal is not straight forward - thanks to all the licensing intricacies surrounding the brand. It was reported earlier that Kinetic Motoroyale (Norton's earlier partner for not only India but SE Asia), had put in a bid for the brand - but withdrew it after a good look at the company's books.

Some details - Source

Quote:

Kinetic’s due diligence process revealed a complex web of third party involvement which compromised any prospect of a deal. For example, anyone who buys Norton will not be purchasing exclusive rights to the use of the name or the logo. Although Garner / Norton own the trademark, other companies have licencing deals in situ which allows them to use it irrespective of whoever happens to own the brand. One of these is Andover Norton, along with its German parent company Norton Motors. Their licensing agreement represents an entitlement to use the Norton name and manufacture/market spares, worldwide and in perpetuity. Two other companies (Norvil and Unity Equipe) have rights to the Commando and Manx Norton names respectively.Manufacturing rights in SE Asia (Kinetic) and China (Jinlang and Zongshen) are off the menu, and Norton’s own IP rights don’t appear cover South America, Canada, Africa or Russia. Since the marketing potential of the intellectual property was unsurprisingly thought to be the only real game in town, the diligence revelations may well have put the kibosh on any prospect of a sale to anyone. Which would mean liquidation.

Quote:

Originally Posted by TusharK (Post 4785229)

According to a media report, TVS is in talks with UK-based Norton Motorcycles for a possible acquisition.

Attachment 1991171

It has been reported that TVS has approached Norton's administrators about a potential deal. The company went into administration in January this year after it failed to pay taxes.

Neither TVS nor BDO LLP, which is handling the liquidation of the company have confirm these reports.

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Had read about the bad times that Norton had fallen into earlier this year. A maker of quality motorcycles, it had failed though to keep up with the other high-profile peers, who are more sought after by the buyers.

It's just two years ago that I had posted this thread of a Triumph Bonneville doing a 35,000 km world tour with the biker being Mr Aditya Kapoor, son of the late actor Shammi Kapoor. He was so much in awe of his bike that he assertively said that he faced no mechanical issues of any kind all through his trip.

https://www.team-bhp.com/forum/motor...onneville.html

The tale is another saga of an iconic British automobile brand falling apart like umpteen others, most of which have dissappeared from the scene.

The icing on the cake is the TVS group's initiative to acquire Triumph. With their track record, TVS would be able to steer the company out of the muddy sludge it has fallen into. TVS needs to aggressively market the brand worldwide (Norton had failed badly here) by hiring some top of the line marketing executives. Triumph had rarely advertised or showcased it's products here in India through the media and through Expos. Mr Aditya Kapoor's achievement could have been advertised by Triumph India which they never thought of at all. Maybe in India, they could have sold a few hundred more bikes with better marketing, but their dormant attitude gives us an insight to their globally, low profile existence.

Norton's dealerships in India were in limited cities and metros. They had not reached many Tier II cities, where Harley Davidson has already reached and made it's presence felt.

We hope Triumph will see much better times ahead.