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ElMotoMike
15 September 2010, 1259
359

via press release on Sept 15, 2010

Brammo, Inc. a global leader in the electric motorcycle business and Flextronics a leading global Electronics Manufacturing Services (EMS) provider today announced that Brammo has selected Flextronics as its global manufacturing partner for the production of plug-in electric motorcycles and components. This strategic partnership enables Brammo to rapidly scale its manufacturing production in order to meet growing international demand for its products. This partnership is a continuing expansion of Flextronics’ Automotive segment and augments services to include new clean tech technologies and electronic systems for electric vehicles.

“As Brammo pursues its international growth strategy it is critical to our success that we continue to build our strong reputation for quality, reliability and serviceability,” stated Craig Bramscher, CEO and founder of Brammo, Inc. “Flextronics is focused on providing a high quality end-to-end solutions approach to leading global companies, including automotive, and this is why we have selected them as our strategic manufacturing partner. We can now scale globally with the demand and the rapid evolution of this growth industry.”

“Brammo offers one of the most innovative, electric two-wheeled vehicle product lines in the marketplace and we are delighted that they have selected Flextronics as their exclusive partner for the manufacture of state-of-the-art electric motorcycles. This strategic partnership allows us to further expand our portfolio for battery powered vehicles and complements our strong expertise in high voltage and energy recuperation applications for the automotive market,” said Herbert Schoeffmann, president of Flextronics Automotive. “We look forward to this very exciting partnership, where we will provide Brammo with our world-class global resources, strong vertical integration capability and supply chain logistics enabling Brammo to achieve its ambitious growth plan.”

About Flextronics

Headquartered in Singapore (Singapore Reg. No. 199002645H), Flextronics is a leading Electronics Manufacturing Services (EMS) provider focused on delivering complete design, engineering and manufacturing services to automotive, computing, consumer, industrial, infrastructure, medical and mobile OEMs. Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in 30 countries on four continents. This global presence provides design and engineering solutions that are combined with core electronics manufacturing and logistics services, and vertically integrated with components technologies, to optimize customer operations by lowering costs and reducing time to market. For more information, please visit www.flextronics.com.

About Brammo

Brammo Inc is a leading electric vehicle technology company headquartered in North America. Brammo designs and develops electric vehicles including the award winning Brammo Enertia motorcycle and the recently announced Empulse. Brammo is an OEM supplier of its innovative Brammo Digital Drivetrain™ systems including the Brammo Power™ battery pack and Brammo Power™ vehicle management system. Brammo has vehicle distribution and marketing operations in North America, Europe and Asia.

For more information visit www.brammo.com. and Brammo on Twitter at BrammoSays and on Facebook at Brammo Powercycles. See the Brammo Empulse in action: http://tiny.cc/brammo-empulse.

Contacts:

Adrian G. Stewart
Director, Sales and Marketing
1-541-482-9555 ext. 310
astewart@brammo.com

Kevin Kessel
Vice President, Investor Relations
1-408-576-7985
kevin.kessel@flextronics.com

Renee Brotherton
Vice President, Corporate Communications
1-408-576-7189
renee.brotherton@flextronics.com

Richard230
15 September 2010, 1416
This announcement didn't take long to hit the mainstream. I picked up a link on my BMW web site to this subject a few minutes ago. Here is the link to the announcement on the motorcycle news site, "Hell for Leather". I am feeling real good about my decision to order an Empulse 10.0:

http://hellforleathermagazine.com/2010/09/brammo-goes-global/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+HellForLeather+%28Hell+For+Le ather%29

ZoomSmith
15 September 2010, 1700
It makes you feel better that the product is being sourced overseas?
Am I missing something?

Richard230
15 September 2010, 1755
It makes me think that the product is backed by strong resources and that it is likely to actually live up to its specifications and actually land on my door sometime next year. As someone who has owned 40 motorcycles, I have gotten used to products being manufactured overseas. I have bought motorcycles that were made in Japan, Germany, England and Austria. Not a one of my motorcycles were manufactured in the US - unless you want to think of my GPR-S having been "made" here. You can hardly buy anything made in the US any more. Even most of the US cars are made in another country and the few vehicles that are assembled here have most of their parts made overseas - and that includes HD and Victory. And then you have electronic products. How many of those are made in the US (other than my D&D electric motor)?

magicsmoke
15 September 2010, 1915
For what it's worth, the other electric sport bike player Roehr, I believe uses the Hyosung GT250 chassis manufactured by S&T in Korea.
This from S&T's website ..

"S&T Motors has expanded it's global presence through establishing Hyosung Motors America in the US and has entered into a joint venture agreement with Chonqing Yinxiang in China for the manufacturing of parts, securing global customers and advancing one more step into the global market."

Rob

ZoomSmith
15 September 2010, 2206
Good points Richard. Even most of your GPR-S was made in Taiwan.
However, there is more to building a reliable Supply Chain than "inking the deal". There is also a big difference between global sourcing of components and 100% contract manufacturing. I will wait to pass further judgment until the first round of Empulse(s) hit the street.

Brammofan
16 September 2010, 0519
Hey Zoom - this is more complex than "outsourcing overseas." It actually fits within Brammo's philosophy of sustainability. The bikes for Asian customers will be assembled in Asia. EU customers' bikes will be built in Europe, and North American customers' bikes in N. America. Why build a bike in Ashland and then crate it up, throw it on a truck, put it on a ship, throw it on another truck and get it to its destination a few weeks after it's ordered, when you can build it closer to its final destination? Flextronics will be able to buy huge lots of parts for all of the assembly plants at once, rather than small lots to be shipped to multiple plants world wide on an as-needed basis. Big savings to Brammo and ultimately, to the consumer.

markcycle
16 September 2010, 0632
I wish Brammo all the luck but it has a Russian roulette component to it, such that Flextronics will require a certain minimum number of bikes to be build. They are not going to build 500 bikes (unless some very special deal was made) its there specialty to make tens of thousands of things. It seems now Brammo has to come up with sales on a scale they haven't done to date. I would guess they are contracted for a certain minimum number of units that's well beyond there current sales level. I'm also guessing by using Flextronics Brammo is hoping to rebrand the Empulse, have other companies use the Empluse platform for there branded bikes. Flextronics has the connections and may be able to help make that happen.

I'm speculating there is no way Flextronics would enter this deal at Brammo's sales levels if there wasn't another angle to it, again my speculation not fact. If Flextronics can help make it happen it's another story. If they do; Brammo is on the map and Honda and others should be worried about the future or start showing some real E-Motorcycles and redefine there future.

Mark

Richard230
16 September 2010, 0735
I suspect that Flextronics might be in this deal more for the good press, especially in Europe, than any idea that they are going to make a lot of money in the near future. Plus, partnering with a small start-up company that has sorted new technology is a good way to buy into a market without having to reinvent the wheel yourself. The Toyota/Tesla partnership is a good example of this.

If it makes anyone feel any better, my RCA X-100 television set was made in the USA by union workers - in 1976. I have not replaced it because it still works just fine.

ZoomSmith
16 September 2010, 1242
Brammofan,
I'm sure Craig, Brian & Co. know what they are getting into. But the press release (and subsequent media coverage) give the impression that it will be a slam dunk for Brammo.
The reality is that they are giving the responsibility for building Brammo's to a 3rd party that has never done this type of work before. . It is a monumental task to validate processes not under your supervision, not to mention the cultural and communications issues to deal with. I happen to work for a manufacturer that does exactly the opposite for one reason - quality.

Kudos to Brammo for being agressive and I hope it works for them.

billmi
16 September 2010, 1306
Why build a bike in Ashland and then crate it up, throw it on a truck, put it on a ship, throw it on another truck and get it to its destination a few weeks after it's ordered, when you can build it closer to its final destination?
To create more jobs in Ashland and improve the local and national economies by bringing in profits on exported goods. If I recall correctly those were reasons Brammo received government grants and financial incentives.

Considering the text or the release and the price tag of an Empulse compared to popular scooters in Asian markets, I suspect what we may see in volume from this are scooters and light motorcycles from Flextronics for Asian markets, with Brammo designed electronic systems.

"You buy Flextronics... You like very much... has Brammo guts."

Richard230
16 September 2010, 1345
I do miss not having BrammoBrian stop by occasionally, but I suspect he is kind of busy right now.

lastb0isct
17 September 2010, 1231
I'm really excited for this change. Hopefully, with enough deposits/orders, it will bring down the total price of these bikes.