LiveWire flags survival doubts as cash reserves shrink
LiveWire Group, the electric motorcycle manufacturer controlled by Harley-Davidson, has warned that it may be unable to continue operating over the next year, citing mounting financial pressures and insufficient liquidity. The company disclosed the warning on Thursday alongside third-quarter results, saying recurring operating losses, negative operating cash flows and anticipated funding…
Electric motorcycle maker LiveWire Group, a subsidiary of Harley-Davidson, has expressed concerns about its long-term viability due to dwindling cash reserves and persistent financial losses. The company reported a third-quarter loss of $18.6 million, despite a 38% increase in revenue to $7.9 million, driven by sales of its electric motorcycles and electric balance-bike, the STACYC.
LiveWire's cash position, $39.9 million, has dwindled from $82.8 million in December, despite efforts to cut costs and improve performance. The board set up a special restructuring committee on October 22 to explore options like debt and equity financing, asset sales, and restructuring. The company has appointed Roy Gallagher as chief restructuring officer.
LiveWire's warning pertains to its own operations and does not extend to Harley-Davidson, its majority shareholder. The company's cash reserves, while improving slightly, remain insufficient to sustain operations independently, and its market share in the U.S. remains limited despite strong sales in electric motorcycles. LiveWire is exploring significant capital raising, strategic partnerships, and potential sales to secure its future.
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