TVS Norton deal is all over the news in the automobile world. Of course it is a great moment of pride for a humble Indian motorcycle manufacturer. It is a matter of great pride in owning a chapter of automobile history in form Norton Motorcycles. Norton motorcycles and its CEO Stuart Garner had been in news for some time now. But all for wrong reasons. In this post we will give you a glimpse of the background of the fall of Norton Motorcycles. Also we will comment upon likely problems ahead of TVS motor company in the future.
TVS Norton deal.
The news came in on 19th April 2020. The TVS motor company of India acquired UK based Norton motorcycles. It is a proud moment for India and the TVS motors alike. Like TATA acquired Jaguar Land-Rover in the past this is a very welcome move. The Norton Motorcycles have been great chapter of history filled with pride of motorcycling. But there are some underlying problems that TVS might face with this purchase. To understand TVS Norton deal we have to peek a little into the background of the Norton. And why Norton was for sale and in news all for wrong reasons.
The background of this deal.
Norton has been in news for some time now. But, not for good reasons. Yes they have presented the Atlas range but there is a Scandal under waters. And this is not a small one. There is a 5 million pounds government grant, a more than 5,00,000 pounds of loan and advance payment with no security and a $3,91,000 tax evasion fraud. The scandal was smelled and world came to know about it when on February 13, Stuart Garner, the CEO of Norton did not appear in the hearing. The hearing was scheduled before Pensions Ombudsman and Stuart Garner was supposed to answer matters regarding mishandling of pension funds.
The hearing was initiated by 30 members of three pension schemes run by Garner. These funds were, ‘The Dominator 2012 Pension Scheme, The Donington MC Pension Scheme, The Commando 2012 Pension Scheme. It has been cited at that point a total of 228 people were affected by these three pension schemes.
When the Administrators were called upon.
After this happened Stuart Garner went under ground and company affairs were transferred to government administrators. The decision was made that the company needs to get going in order to pay debt to creditors. It was proposed that Norton should change its business plan and start making profit or to find a buyer that can cover up everything. Everything means a common agreement between all creditors of Norton and the buyer of Norton to cover up the money lost. Here is where the TVS motor company comes in light.
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TVS Norton deal. what lies in the future.
With this acquiring it is for sure TVS is getting several good things. First they will have access to some of the best 1000cc engines with a proud British character. They will also get the tech laden 1200cc V4, a four cylinder engine from Norton. This is for sure a first V4 ever been in possession of an Indian motorcycle company. This deal has put TVS decades into future. But the road wont be easy. With protecting the company’s interest TVS also be in pressure of performing and making profits on an already lack luster sales record of Norton.
And with the Scandal in background it will be more challenging. I really wish luck to the TVS. I hope they would move production here in India and we would be able to get substantially cheaper classic British motorcycles in our garage.
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