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[wavelet]

https://electricmotorcycles.news/energica-motor-company-and-dellorto-sign-agreement/
This could be interesting.
The 8kW-11kW ("small") and 30kW (medium) motors segments appear to be between the moped-class electric scooters and full-power electric motos, which AFAICS haven't been served until now. I assume that "power units" means drivetrains here, not just motors, and that the two companies intend to offer them as subsystems to various motorcycle manufacturers.
A 30kW e-motorcycle could make for a fun equivalent  to 250-500cc ICE bikes in terms of power and performance, enough for commuting & 1-up day trips at highway speeds, but remaining  reasonably priced. My first "real" bike was an '87 Suzuki GSX400S (was never sold in the US AFAIK, but basically an updated version of the GS450 which was); with 44HP, it could cruise at 85-90mph and was great fun on the twisties.

This could be a way for Energica to generate significant income, without relying on the growth of the high-performance electric bike market, which might be very slow in the next few years.


(I recall the highly doubtful "fun" of disassembling & cleaning the Dell'Orto carbs on my moped and Vespa...)

[Bill822]

Brammo and Alta supposedly put a lot of effort into selling powertrains too. Zero sells powertrain components, but on a limited basis. It's usually best for small businesses to focus on their core product rather than burning engineering hours supporting customers who buy only parts, driving down gross sales and ultimately margin. If Energica wants to build drivetrains for smaller bikes they should build the bike as well rather than giving potential competition a leg up.

Source: Been there done that.

[wavelet]

Brammo and Alta supposedly put a lot of effort into selling powertrains too. Zero sells powertrain components, but on a limited basis. It's usually best for small businesses to focus on their core product rather than burning engineering hours supporting customers who buy only parts, driving down gross sales and ultimately margin. If Energica wants to build drivetrains for smaller bikes they should build the bike as well rather than giving potential competition a leg up.

Source: Been there done that.

I'm no expert in this field, but have a lot of experience of scaling startups in the software business.
Energica itself is still startup-sized (<50 people, AFAIR), despite already being listed on a stock exchange.  They don't have the marketing/sales/service/training organization that would be needed for large-scale expansion;  while they do have a larger corporate parent, AFAICS that parent has no experience in automotive/moto consumer sales either.
Building such an organization takes a lot of money & time.
Under those circumstances,  I can see the attraction of partnering with an existing large motorcycle-component supplier, who already has the relationships in place with moto manufacturers, and letting that supplier take care of sales & training.

Yes, you make less profit per bike that way than you would selling complete bikes, but it's also less risky, and I suspect Energica simply doesn't have enough money or time at this point to grow significantly otherwise. Scaling automotive manufacturing requires a lot of upfront investment, as does scaling the sales/service. Not every new moto company can do what Tesla did, relying on Silicon Valley to invest millions of VC capital.

It's notable that Zero isn't doing very well scaling their operations the usual way, slowly adding dealers -- the number of complaints about service is still quite large, and they've already pulled out of entire countries multiple times due to issues with distributors (and it doesn't matter whose fault it was in each case). OTOH, significant scaling is the only way they'll be able to lower the price of the bikes, which is a clear barrier for wider adoption (recall it took them a few years until 2015 when premium component makers Showa, Bosch & Pirelli agreed to supply them).

Also, Rimac have been doing a similar thing:
Selling EV components to various EV makers to fund the R&D of their own cars, and they now have a strategic agreement in place with Hyundai/Kia to help them develop high-performance BEVs, in exchange for an €80M investment.

[Bill822]

As a startup you do what you have to do for cash flow. I would think that with MotoE starting up Energica is seeing sales increase. Reinvesting income into product development and manufacturing capabilities not only allows growth, it also makes them a more appealing target for acquisition.

On the other hand, life as a component supplier means always facing stronger margin pressure than with sales to the public. It also exposes the company to competition, notably from China. Being a nameless supplier to an OEM is a huge risk. Building a brand identity is key for small businesses. Being an Italian manufacturer of sporty motorcycles is an extremely appealing identity. Who makes starter motors and wire harnesses for Triumph? Absolutely nobody cares. If Energica lacks the facilities to build thousands of motorcycles they certainly lack the ability to affordably build the tens of thousands of motor/battery/controller kits a larger OEM might require.

It all comes down to what the owners/investors want. I didn't realize Energica was publicly held. Going public or taking on outside investors is not a good move for a small company in a changing industry. It reduces flexibility and makes it difficult to "take a flyer" on some product or technology that just may change the market. Energica has a moment to make its mark before the big players roll in. Tesla is still a thing because they have continued to pour cash into engineering and capabilities. They have kept far enough ahead of the traditional OEMs so that Tesla's product is still superior to other company's latest offerings. That scenario is the best that brands like Zero and Energica can hope for. And, yes, it worked for me.