Arcimoto, best known for its three-wheeled electric vehicles known as the FUV (Fun Utility Vehicle), has reached an agreement to acquire Tilting Motor Works. Arcimoto has indicated that the technology will be used in new Arcimoto products intended for the micromobility industry.
Tilting Motor Works developed the TRiO, which is one of the most popular three-wheel conversion kits for touring motorcycles.
The tilting technology at the heart of the TRiO kit allows riders to lean naturally into turns, making three-wheelers handle more closely to conventional two-wheeled motorcycles. It also adds stability when stopped, meaning riders don’t need to put their feet down to balance the bike at red lights.
As Arcimoto COO Terry Becker explained in a statement provided to Electrek:
I’ve been riding motorcycles my whole life, and after my first ride on the TRiO, I was blown away by how naturally and intuitively this three wheeler leaned into every turn. This amazing technology manages to combine the added safety and stability of a three-wheeler with the one-of-a-kind ride sensation of a two- wheel bike.
The Eugene, Oregon-based Arcimoto has reached an agreement to buy Tilting Motor Works for approximately $10 million in a deal compromising a combination of cash and Arcimoto shares.
The value of Arcimoto shares has skyrocketed recently, rising to its current share price of $24.77 from $5.75 just three months ago.
The acquisition is expected to help Arcimoto expand its product line into new leaning three-wheeled products for the micromobility industry.
As Tilting Motor Works founder and CEO Bob Mighell explained:
It’s an honor to join forces with Arcimoto, a true thought-leader in the three-wheel EV space. We will continue to build our TRiO kits that make motorcycles safer to ride, and we are thrilled to begin development on new Arcimoto products that utilize our technology to create a better, more sustainable world.
Arcimoto CEO Mark Frohnmayer expanded:
This acquisition is a springboard for creating a whole new line of Arcimoto products aimed at true micromobility. Bob and I have known each other for a long time as we have built complementary technology companies in the emerging three-wheeled vehicle space. I’m very much looking forward to working with him and his team to go full tilt for ultra-efficient transportation.
Arcimoto has been on a roll lately. While still in small-scale production, the company more than doubled its production capacity during 2020. Arcimoto delivered 97 FUVs to customers last year, despite temporary lockdowns that hamstrung production. The company also built another 26 vehicles during the year for testing, marketing, and pilot fleet use.
The core product line was expanded to delivery and emergency/first responder models of the FUV as well as an open-top version known as the FUV Roadster.
Arcimoto also began deliveries on the East Coast of the US in Florida and struck a deal with DHL for nationwide door-to-door delivery with the third-party logistics company.
The company’s balance sheet is also looking healthy, as Arcimoto recently retired its senior secured and convertible debt in addition to taking on five new funding rounds adding up to $56 million.
Arcimoto has pledged that its goal is to reach a production rate of 50,000 vehicles per year in the next two years. The company also hopes to reduce the price of its FUV to around $12,000, which would be a significant drop from the current price of around $17,900.
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Author: Micah Toll
Source: Electrek
