NORTON FINDS STABILITY
British icon is saved from extinction by Indian-based TVS with promises to look after existing customers and restore the brand to its original glory
A new Indian buyer promises to restore the marque’s glory
After decades of uncertainty and turmoil, Norton has some stability at last. The company, which collapsed into administration in January, has been bought by India’s third largest motorcycle manufacturer, TVS, for £16m. Although it always rankles when British brands are swallowed by overseas giants, this particular purchase looks like an excellent deal for Norton staff and customers – TVS say they will keep design and production in the UK, no jobs will be lost, and they have allocated cash to make sure people who paid deposits get their bikes or a refund. “There have been some concerns about those who have paid deposits,” said TVS boss Sudarshan Venu. “Our intention is to get bikes to them as soon as possible. We will announce a plan once we have all the customer details.”
TVS has bought all the important Norton assets – the intellectual rights, the production equipment and work in progress – but Donington Hall was not included in the deal. They have agreed terms to use it in the short term while looking for new facilities. The former owner of the Norton company, Stuart Garner, will have no part in the new set-up. The Pensions Regulator is considering the case of the £14m misappropriation of the Norton pension funds, following investigation by the Pensions Ombudsman.
“The most important thing for us is to build on Norton’s legacy and restore it to its original glory,” said Venu. “We want to delight customers around the world and take Norton into the future.”
TVS say the Commando 961, Dominator and V4 models will all continue in production, and the upcoming 650cc parallel-twin Atlas models will be launched as soon as possible. “We will continue to build the current range, which is the core of Norton, and focus on large-capacity machines,” said Venu. “Hopefully, we will expand globally and perhaps build more plants around the world. We hope to restart building as soon as possible, but there are issues to work with considering the company’s recent challenges. As long as parts meet the quality and Norton-ness of what is needed,
we will work with those brands to make it a reality.”
Marque experts have greeted the take-over with relief. Mike Jackson, president of the Norton’s Owners Club and Norton’s sales director in the 1970s (see page 32), said: “It’s very good news – TVS are the right company and they’re a good fit. A nd the fact that they’ve allocated £3-4m to sort out the customers who’ve paid deposits makes sense, even though they didn’t have to do it. If they hadn’t, customers would have been running down the Norton name for years.” MCN editor Richard Newland agrees: “When I spoke to the new owner, the message was clear – TVS is not just in love with the brand, but with its inherent Britishness. The staff will be retained, the bikes will still be designed and built in Britain, and all those disappointed deposit holders and potential owners will be looked after.”
TVS already has links to the UK, having worked closely with the engineering firm Warwick Manufacturing Group (WMG). It has appointed former WMG chairman John Russell as interim CEO of Norton. Russell has motorcycle experience, having been the managing director of Harleydavidson Europe for nine years, and in a curious quirk of fate also served time as the CEO of Manganese Bronze – the company which owned Norton in the 1970s.
‘WE HOPE TO RESTART BUILDING BIKES AS SOON AS POSSIBLE’