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[peebee]

Indian motorbike maker revamps Norton in bid for US expansion

 

[Lippo]

Indian motorbike maker revamps Norton in bid for US expansion

I knew that TVS had been around for a few decades, but hadn’t realised they are 100 years old. Let’s hope the new models are worthy of the Norton name.

 

[hhh]

I knew that TVS had been around for a few decades, but hadn’t realised they are 100 years old. Let’s hope the new models are worthy of the Norton name.

I can't see how they possibly could be when they expect to make $7500 per bike sold.

 

[City Garage]

Indian motorbike maker revamps Norton in bid for US expansion

Since then, TVS has invested about £200mn?? Is that number right? At today's market, that's 2,687,400,000USD, and they "hope" to sell 20000 annually, which would equal 10k per bike sold.

And comparing to Royal Enfield in the US market isn't a good example since not many are sold here either. And the resale market for them is dismal

 

[BritTwit]

Since then, TVS has invested about £200mn?? Is that number right? At today's market, that's 2,687,400,000USD, and they "hope" to sell 20000 annually, which would equal 10k per bike sold.

And comparing to Royal Enfield in the US market isn't a good example since not many are sold here either. And the resale market for them is dismal

But obviously, TVS don't expect Norton to be profitable within a year.
It will take probably a decade to achieve this, if at all.
I'm sure they well expect their first year to be a rocky one, with plenty of red ink.
Just like Triumph's first year back.
TVS will expect constant progress from year to year, if not, then they could at some point cut their losses and pull the plug on Norton.
With their competition, and the global economy they have to play the long game.

 

[City Garage]

But obviously, TVS don't expect Norton to be profitable within a year.
It will take probably a decade to achieve this, if at all.
I'm sure they well expect their first year to be a rocky one, with plenty of red ink.
Just like Triumph's first year back.
TVS will expect constant progress from year to year, if not, then they could at some point cut their losses and pull the plug on Norton.
With their competition, and the global economy they have to play the long game.

But 3OO MILLION DOLLARS???? So far.....

 

[marshg246]

Since then, TVS has invested about £200mn?? Is that number right? At today's market, that's 2,687,400,000USD, and they "hope" to sell 20000 annually, which would equal 10k per bike sold.

And comparing to Royal Enfield in the US market isn't a good example since not many are sold here either. And the resale market for them is dismal

Must be something wrong with all that math! It would take pretty stupid company to invest $2.7 billion dollars in the hope of selling 20k bikes/year. That would take 54 years to get back the investment at an unlikely $2500 profit/bike assuming no operating costs for the 54 years!

Even $500 million makes little sense. That would take 10 years at $2500 profit per bike.

 

[BritTwit]

Hold on.
£200mn is approximately $272 Million USD, not 2.7Billion.
And TVS know they will loose money the first year, the second, the third.......
The point is that it takes time for a new startup to break even, and begin to turn a profit.
With the reputation left by Garner, Norton will have an extra difficult row to hoe.
I'm sure TVS have a business model that includes losses in the early years.
The company has been in business for quite some time, so it's not run by idiots.

 

[City Garage]

Hold on.
£200mn is approximately $272 Million USD, not 2.7Billion.
And TVS know they will loose money the first year, the second, the third.......
The point is that it takes time for a new startup to break even, and begin to turn a profit.
With the reputation left by Garner, Norton will have an extra difficult row to hoe.
I'm sure TVS have a business model that includes losses in the early years.
The company has been in business for quite some time, so it's not run by idiots.

So I was off by a zero . Thanks for fixing it!

 

[City Garage]

Must be something wrong with all that math! It would take pretty stupid company to invest $2.7 billion dollars in the hope of selling 20k bikes/year. That would take 54 years to get back the investment at an unlikely $2500 profit/bike assuming no operating costs for the 54 years!

Even $500 million makes little sense. That would take 10 years at $2500 profit per bike.

I was off by zero its 272 millon Still 300 million dollars!!

 

[BritTwit]

I was off by zero its 272 millon Still 300 million dollars!!

That's not chump change, for sure.
However, pretty sure TVS know what they are doing.
Anyway, If their products at EICMA are sound, then the campaign to success will begin.

 

[NorTriDuc]

But obviously, TVS don't expect Norton to be profitable within a year.
It will take probably a decade to achieve this, if at all.
I'm sure they well expect their first year to be a rocky one, with plenty of red ink.
Just like Triumph's first year back.
TVS will expect constant progress from year to year, if not, then they could at some point cut their losses and pull the plug on Norton.
With their competition, and the global economy they have to play the long game.

Norton will NEVER be profitable. NEVER. NEVER EVER. They’re already millions in the hole.

 

[NorTriDuc]

Hold on.
£200mn is approximately $272 Million USD, not 2.7Billion.
And TVS know they will loose money the first year, the second, the third.......
The point is that it takes time for a new startup to break even, and begin to turn a profit.
With the reputation left by Garner, Norton will have an extra difficult row to hoe.
I'm sure TVS have a business model that includes losses in the early years.
The company has been in business for quite some time, so it's not run by idiots.

Really, people need to stop with the blaming of Garner. That horse has been wiped to death for 5 years now. TVS is the only one responsible for their own present and future.

Outside of the UK, how many people really know about today’s Norton? Not enough to sell bikes to make a profit in the next 5-20 years.

It’s easier to sell cheap small bikes than it is to sell expensive premium bikes. That’s common sense.
Hmmmmm let’s see, who makes more money? McDonald’s or a high class steak house. I’m going with McDonald’s for 5million Alex.

 

[robs ss]

I suggest a new forum be created called "Whinge, Whinge & Shit Can Each Other"

Seems to happen far too often in what, otherwise, appears to be a innocent (productive even ) thread.

Geeez!

 

[Stephen_Spencer]

Ya noticed Rob!!

 

[robs ss]

Ya noticed Rob!!

View attachment 121893

The word "share" is used twice there.
I can't see too much sharing (of the nice kind) in posts #4 - #13.
I bet @peebee is rueing starting this thread.
Cheers

 

[Bevelheadmhr]

TVS are the McD, Norton is the steak.. all owned by the same group. TVS want to expand outside their home market, to do so they decided they needed a better known brand worldwide.. they bought Norton.

 

[NorTriDuc]

TVS are the McD, Norton is the steak.. all owned by the same group. TVS want to expand outside their home market, to do so they decided they needed a better known brand worldwide.. they bought Norton.

More to my point as to why it wouldn’t make any sense for Norton to offer a TVS made, small cc bike that’s priced for economic reasons.

Won’t make any sense for Norton to add better branded components to a TVS bike just to raise the cost.

The TVS made BMW small cc bikes are made for an entry level. There’s a reason why they don’t have higher quality, name brand components such as Brembo and Ohlins on them, it would only increase the cost.

Same as to why Toyota owns Lexus, Honda owns Acura, Vw owns Lamborghini etc.

 

[peebee]

The word "share" is used twice there.
I can't see too much sharing (of the nice kind) in posts #4 - #13.
I bet @peebee is rueing starting this thread.
Cheers

Na it's a simple equation really , some believe in God, some think aliens are amongst us, and you wont believe it, but quite a lot of Umans think that the Earth is definitely flat as a pancake. You can spend the rest of your life trying to convince them that they are wrong but your just wasting your valuable time you have left on this planet . They remind me of the Budgie in a cage talking to themselves in a mirror until it's sleep time, then when they wake up it all stars again best to ignore them and walk on by and find something more constructive to do with your precious life.

 

[Bevelheadmhr]

BMWs are hardly cheap, whatever the size. Its been confirmed that there will be a 450 twin Norton built by TVS.