NORTON’S NEXT STEP
Firm will offer discounted new V4 to troubled owners
Norton’s new owners are assessing the total cost of repair work to existing V4SS models and working with the liquidators to make the process of fixing the bikes simpler.
The new Norton business, under the ownership of Indian giant TVS, have identified at least 35 major defects with machines built by previous incumbents, Norton Motorcycles UK Ltd.
Interim CEO John Russell wrote to all those affected on Thursday, June 3, to say that the firm were currently working through all of the identified problems with bikes, in order to help owners recoup the cost of repairs from the liquidator BDO.
“We have already recommended that BDO take a broad-brush approach and accept that every V4SS has each of the 35 faults we identified,” the letter states. “BDO’s letter to owners shows that they have agreed with our recommendation.”
When TVS purchased the rights to the Norton name last April, they set up a new company, meaning no legal obligation to existing customers, with any outstanding warranty work remaining the responsibility of the old company – which is currently going through liquidation. However, as the severity of the faults was exposed, the new firm have been working to assist the receivers and owners in finding a resolution. Seven of the identified issues could result in the V4 engine seizing, with three more causing potential fires and others a loss of control. The DVSA say that 55 bikes are affected, and new Norton have strongly urged owners not to ride their machines on safety grounds, and recommended they disconnect the bike’s battery until the issues are resolved.
Russell continues in his letter to owners: “We have been supporting BDO by detailing each of the defects and the repair required Our purpose is to persuade BDO to accept our assessment of the repair cost for all 35 defects on all V4SS bikes.
“If we succeed, you will then be in a position to complete the proof of debt form that you have been provided with, without having to go to the time and considerable expense of engaging your own expert motorcycle engineer.
“The final sum you receive will be determined by the liquidation process and is not something we can comment on or influence.” Away from the ongoing assessment of repair costs, the letter also confirmed that a second-generation V4SS was on its way, with preproduction models set to be ready in July, ahead of production starting at the company’s new Solihull headquarters in August. Russell continued: “The bike will be fully re-engineered, tried, tested and worthy of carrying the Norton name. By the end of June we hope to be in a position to present an offer to all V4SS owners to buy one of the new bikes at a special price.” Details of the offer are not yet clear, but owner Shaun Taylor has voiced concerns, saying: “I highly suspect that a pre-condition will be for owners with bikes to hand back those machines to achieve the discount. Should the assumption be correct, then in effect, the generation one bike has been reduced down to scrap value, and owners will be tens of thousands of pounds out of pocket.” MCN pushed Norton for further clarification of the offer, and were told the proposed discount is a goodwill gesture for owners. They insist there will be no requirement to hand over an existing bike, while details of the scale of the proposed discount have not been confirmed.
‘The bike will be worthy of the Norton name’ JOHN RUSSELL, INTERIM CEO