GE Capital reached an agreement with Brammo to provide financing necessary for the e-bike maker to expand its inventory. The agreement will help Oregon-based Brammo expand its dealer network.
This isn't the first time GE has stood behind the concept of electric-powered transportation. Not even close. GE has said it will buy as many as 25,000 plug-in vehicles for either its customers or its own company fleet.
In March, Brammo reached an agreement with North Carolina-based Sheffield Financial to provide customer financing for Brammo's bikes. Last year, Brammo, whose models include the Encite, Enertia, Empulse and Engage (hey, we notice a trend there), got a $28-million equity investment from Polaris Industries, which also owns neighborhood-electric vehicle maker Global Electric Motorcars (GEM).
Access to capital helps emerging technology company expand U.S. distribution
HOFFMAN ESTATES, Ill.--(BUSINESS WIRE)--GE Capital's Commercial Distribution Finance (CDF) business has agreed to provide Brammo Inc. with inventory financing to support the expansion of its dealer network in the U.S. The Ashland, OR-based manufacturer designs and develops electric motorcycles.
"This program with GE Capital will support the rapid growth of our distribution network, allowing leading motorcycle dealerships to capitalize on the growing demand for electric motorcycles."
In addition to supporting the expansion of a rapidly growing American company, this announcement reinforces GE's commitment to accelerate the adoption of hybrid and alternative fuel vehicles globally.
"We've proven that we can successfully marry technology with performance and now we're ramping up our efforts to deliver our unique products to the marketplace," said Craig Bramscher, founder and CEO of Brammo. "This program with GE Capital will support the rapid growth of our distribution network, allowing leading motorcycle dealerships to capitalize on the growing demand for electric motorcycles."
CDF already provides inventory financing for other brands of alternative fuel and hybrid motorsports products. This type of arrangement, also known as floorplan financing, allows dealers to stock, market and sell a wide variety of motorcycles and related products from manufacturers. It is an important element of a successful manufacturer-dealer business model.
"Our deep expertise in the motorcycle sector leads us to believe that dealers are excited about advertising these new products to draw customers into dealerships," said Neeraj Mehta, president and CEO of CDF and a GE corporate officer. "We're glad to work with Brammo to drive the adoption of electric vehicles."
GE owns one of the world's largest vehicle fleets and operates a leading global fleet management business, GE Capital, Fleet Services. By 2015, GE has committed to purchasing 25,000 electric vehicles for its own fleet and for those of its customers. On May 31, GE Capital, Fleet Services opened the GE Vehicle Innovation Center at its headquarters in Eden Prairie, MN. The center is a first-of-its-kind, world-class facility that provides customers with first-hand experience with alternative fuel vehicles and GE's enabling technologies. Brammo products are on permanent display at the Vehicle Innovation Center. For more information, go to http://www.gefleet.com/eco/home.
Brammo Inc. is a leading electric vehicle technology company headquartered in North America. It designs and develops electric vehicles including the Encite, Enertia, Empulse and Engage motorcycles. Brammo is the current TTXGP eGrandPrix champion of North America. In addition, the company is an OEM supplier of its innovative Brammo Digital Drivetrain systems, including the Brammo Power battery pack and Brammo Power vehicle management system. It has vehicle distribution and marketing operations in North America, Europe and Asia. Investors include Polaris, Best Buy, Chrysalix and Alpine Energy.
The following are trademarks of Brammo, Inc. in the United States or other countries or both: Brammo®, Enertia®, Empulse®, Engage®, Encite®, Brammo Digital Drivetrain, Brammo Power, the Brammo logo and bulls head graphical device.
To learn more, visit www.Brammo.com.
About GE Capital, Commercial Distribution Finance
GE Capital, Commercial Distribution Finance provided nearly $32 billion in financing for more than 30,000 manufacturers, dealers and distributors across North America in 2011. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management and related financial products. Customers have access to exclusive online tools and analytics to manage their accounts and inventory. For more information, visit http://www.gecdf.com/or follow company news via Twitter (@GEInventoryFin).
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (@GECapital).
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.