As with any manufacturing business starting from
nothing and growing into what it is today - a multimillion pound company that
sells hundreds of motorcycles a year - Norton has faced its fair share of
challenges. However, thanks to the dedication and determination of
its CEO Stuart Garner, the company has turned the corner and the future
for Norton looks brighter than ever.
In recent weeks Norton has been the subject of unbalanced
negative articles in the specialist press. Unbalanced because Norton themselves were not given a
fair opportunity to comment or contribute to those
articles. This is an interview with Stuart himself that addresses
the concerns raised in that coverage*
Critics are saying Norton Motorcycles have
consistently failed to fill orders on time and there have been problems with
holding deposits. Do these accusations
have any basis in truth?
Stuart Garner: In the last two years we have
delivered many hundreds of motorcycles into the UK. Due to great demand and a
difficult UK supply chain, it has sometimes taken longer than we would have
liked to deliver customer’s bikes. The supply chain issue is the primary
reason. When our very first bike built left the factory, we had 200 suppliers.
Now we have less than 100 suppliers, which is an indicator of the
challenges that we’ve had selecting the best suppliers. Suppliers that are able
to both make quality parts and deliver on-time. It is also an indicator of
just how much work and investment we have done to bring a huge amount of
manufacturing in-house at our factory at the Donington Park race circuit.
Any customer who does not want to wait for their new
Norton can ask for a refund at any time. I can also say that all refund
requests have been settled in full. Customers’ deposit money is very safe. We
should take a moment to look at the up-market car industry. Those
manufacturers regularly have long waiting times and routinely require a deposit
from a potential customer up-front at the time of purchase. The reason they do
this is to form a fair and transparent waiting list, which you join at the time
of your deposit. This then gives the buyer a proper position for delivery and
shows a clear commitment from them thereby ensuring they simply do not walk
away leaving the manufacturer during the building process. At Norton, all bikes
are hand-built to order in a similar way to a bespoke and up-market car. This
is why we use a deposit style system for direct sales to UK customers only.
This is the key differentiator between Norton and other motorcycle
manufacturers that use traditional assembly line processes and build
speculatively. The relatively small amount of deposit money held at any one
time makes no difference to the funding of the company. When we do take an
order the price for the motorcycle is fixed at the time of deposit. Some
customers have placed orders at the fixed price and due to factory increases
after ordering they have benefitted by well over £1,000 at delivery time.
Our website [www.nortonmotorcycles.com] carries regular
news so you can follow the factory progress
Is it true some customers have waited almost two years
for a bike?
SG: The Commando 961 was launched at the NEC UK
Motorcycle show in 2009. We had a huge
amount of interest and established a UK order book. All these bikes have now
been built and delivered. We do have a small number of customers who have
waited over a year. We were overwhelmed by demand and we should have been
much more cautious on delivery dates. Hindsight is of course a wonderful thing,
but if we had to do it over again we would have advised much longer delivery
times to customers. Generally the longer waiting bikes are dual seat models
that have been ordered with specifications chosen by the customer around 18
months ago. The delay here has been for the tooling of the new seat moulding.
This particular issue is the fault of Norton as we had tooling problems with the
first design and had to redo the drawings which took a long period of drawing
time to get right. I apologise to all of our customers who have had to wait
beyond the period of time which they were quoted, and I thank them for their
patience.
Some people are saying Norton can't provide spare
parts and that you're having difficulties dealing with suppliers.
SG: Norton maintains a good stock of parts at the
factory and this has not been an issue for some time. It has taken time to grow
our parts stock as we were faced with having to choose between supplying our
dealer network with spares or continuing to manufacturer new Norton
motorcycles. This issue was again a standard issue facing a start-up
manufacturing business. Again, due to the increased manufacturing
capability that we have in-house within the Norton factory, we are able to meet
our part needs both for manufacturing and for our dealers. I have transparently
tried to set out where Norton is right now. Turning to suppliers, I have a
personal belief of keeping the Norton factory as British as possible. We have a
mind-blowing choice of Japanese and other brands bikes out there. With Norton
we have the chance to bring back a fabulous brand in an authentic way. Norton
motorcycles are manufactured using quality British-made parts to assemble a
truly hand-built bike. Unfortunately as we all know the halcyon days of the
British motorcycle industry passed by many years ago. This left the UK
with only the bare bones of a suitable supply chain. It has taken a huge amount
of effort to re-educate and engage the supply chain in the UK back to the
requirements of a production motorcycle business. As stated earlier we started
with some 200 suppliers and stand here today with less than 100. Some suppliers just don’t want the work as
the aerospace, oil industry or military markets keep them busy and pay top
prices. Making parts to a limited volume and having the discipline of regular
timely supply is not the demands some suppliers want or can actually achieve.
Having worked hard at this for over two years now we have an amazing nucleus of
UK suppliers emerging. This is great
news and bodes really well for the years ahead. Not just for Norton but the
knock on effect of all the jobs being created at these suppliers with the
Norton orders coming through to them.
SG: I do not think it is polite or appropriate for me
to comment too much on individuals who have or had vested commercial interests
in Norton. However, I will say Norton respects Fritz and his business, you
simply have to listen and respect someone who has been around forever and
achieved as much as he has. We continue to work closely with his company and
have been shipping bikes and parts recently.
I make no excuse or apology whatsoever for moving
supply to more professional suppliers and am not surprised to learn that
previous suppliers speak negatively of the company. Norton has a duty to its
customers to supply a best quality hand built motorcycle on time; suppliers
that do not help us achieve this let everyone down and must be replaced. There
are over 1,000 components to our bike, and if just one supplier lets us down we
cannot complete a bike. This in turn means we let the customer down by failing
to deliver their bike on time and we let the rest of the supply chain down
as our volume drops and we buy less parts from them – a vicious cycle. Ex-suppliers
should look at themselves and ask why they failed, an element of honesty to
themselves would help rather than blaming everyone else...
Is Norton in a financially sound position?
SG: Norton is today in better financial health than it
ever has been. It is a hugely expensive undertaking to simultaneously bring
back an iconic brand and a manufacturing business. For sure we have had highs
and lows in cash-flow. This is quite common in start-up manufacturing
businesses. We have managed these highs and lows whilst continually investing
for the long-term in the items that the company needs to make a quality
motorcycle. Today the company is well-financed to take on both today’s
challenges and those further ahead in the coming years.
Why did you decide to compete in the Isle of Man TT
and why do you think you are being criticised for elements of your
participation?
SG: Norton has a huge history with the TT races.
We won the first race in 1907 and have won many since. Everyone at the
factory wants to race, and it’s a great way to test new ideas and components
while giving the brand a level of global awareness in a way that is unique. We
know that some people questioned why we put an Aprilia V4 engine into the bike.
This was done for both cost and reliability reasons. It takes a several years
and a few million pounds to develop an engine that is capable of winning at the
TT. As CEO I would be irresponsible to commit such funds to a racing effort
when we are still investing and building up our road bike business. We felt we
should go to the TT to begin the learning process of what is required both from
a chassis perspective and of course to learn what is required from an engine.
We need this knowledge in order to slowly develop our race platform at a rate
that is viable. Racing also allows us to bring this knowledge in-house where we
can develop new capability, wisely using the data we have captured. Currently
our total race budget is made up from sponsorship, road bike suppliers and team
clothing sales. No funding at all comes from the factory and, I am not prepared
to gamble the future of Norton on racing. Only when it is financially viable
will we spend funds on racing. We understand some of the different views of
what constitutes a Norton, but we must balance them against some of the
personally vested interests and passionate support for other brands. In other
words, fans of competing brands will always have negative things to say about
Norton. I would ask our Norton loyalists for the patience to let us develop
at a pace that is suitable to the business we have today and the business we
want to have in the future. I passionately want what we all want: a 100% built
Norton on the Senior podium. We’ve started the journey...
You've taken on a major task in reviving Norton – a brand
beloved by motorcyclists around the world. What do you see as the challenges
and responsibilities of your company in this task?
SG: The challenge is to get a quality motorcycle to
market that is fit for the brand and something that all stakeholders can be
proud of. The responsibility is not to mess that up!
SG: I’m generally in the factory seven days a week and
do not read forums or other types of posts. I do listen to credible advice and
opinion of course, but I also take care not to get too distracted. If you’ve
not had experience of operating a global production motorcycle brand and
business then what qualifies your opinion? This is Britiain, the home of the
doomsayer and the negative all-talk do-nothing attitude. Which of these sources
have actually got their money out and had a go? As mentioned, reviving a brand
of such iconic stature is a huge challenge, but we're doing it and succeeding.
We were told we would never buy the brand, we did. We were told we would
never make a bike, we did. We were told we would never sell a bike, we did. We
were told we would never Euro 3 the bike, we did. The doomsayers list of ‘you
never will’ is endless.... Understandably there will always be many opinions.
However there are reasons why former employees and former suppliers are no
longer with Norton. Their opinions remain their own and will not
influence the forward direction of the brand or its strategy. We do listen
carefully to experienced engineers within our supply chain as well as our
knowledgeable and experienced staff. There are many reasons why Britain lost
its entire famous bike manufacturing industry, it is no easy task keeping
British supplied and hand built, simple as that. However both I and the Norton
team are committed to working hard to put Norton back on the map.
In a perfect world, what characteristics should define
a Norton Motorcycle and why would a rider want a new one?
SG: We believe our British heritage is key. We now
have the opportunity to bring back an authentically hand-built British bike. We
will never make tens of thousands of bikes or have hundreds of dealers
globally. These factors will continue to make the bike an exclusive and
sought-after machine, which in turn gives great pride of ownership. All these
factors together then help the residual price stay very high, meaning that the
bike will hold its value over the long-term. Here in the UK used bikes still
command a premium over new.
You're obviously a man of some wealth. Why did you
take on the challenge of reviving one of the most iconic brands in the history
of motorcycles?
SG: Ever since I was at Donington watching the JPS
Norton’s winning the Super Cup, I’ve loved the brand. I had an opportunity to
bring the brand back. Who on earth would turn that down!?
What kind of rider needs a Norton?
SG: Norton has a huge pedigree and over the years has
built up an iconic status. For riders wanting huge speed and cheap performance,
Norton motorcycles are not for you. If you want to enjoy real-world fun
motorcycling and value the pride of ownership, we are the logical choice. We
are looking to build exclusive beautiful bikes for the rider that enjoys all
the things that motorcycling can bring. Our owners range from 24 to 82 years of
age and from all walks of life. Motorcycling has a habit of leveling all the
classes and when riding it brings us all together.
Given the difficulties you’ve faced, would you do it
again?
SG: Not one day have I ever regretted doing this. The
Norton factory has a very special buzz about it. The staff here are
amazing and are dedicated and committed to building quality bikes. It has been
a complete privilege to be involved. Very many of our customers have become
personal friends as have suppliers and dealers.
In all an incredible experience.
Looking back, what would you change in your efforts to
re-define and revitalise Norton Motorcycles?
SG: My one and only regret is the time we have taken
to deliver early customer bikes. I truly wish we could turn the clock back and
do a better job setting expectations, communicating and meeting our delivery
schedules. We are working hard and have now got on top of this, but we have let
some people down and for that I’m sorry. The whole team is committed to
building Norton back into a world-class manufacturing business.
What bikes are you riding now?
SG: Norton 961 Cafe Racer
What, in your opinion, is the greatest motorcycle ever
made?
SG: Norton 30M
If you had one thing to say to anyone who's
considering buying a new Norton Motorcycle, what would that be?
SG: You can trust both the factory and our dealers to
support and look after you as one of the Norton family. This is not just for a
new sale, but for many years after as you enjoy the pleasure of ownership that
your Norton brings.
These are tough times for motorcycle manufacturers.
Who do you see as the top players in your market segment?
SG: Norton are quite different in our market position
and don’t really have direct competitors for the Commando 961. Generally I
think the quality US and European brands will do well going forwards, while the
Japanese segment is crowded both in brands and models. This segment is going to
come under increasing attack from other Far East manufacturers. These bikes are
sold on numbers, price, horsepower, and speed. It’s an ever decreasing circle
and looks really difficult for the companies to make money in this
economic environment.
*With thanks to Todd Halterman - http://www.motorcycleinsurance.com/interview-with-stuart-garner-on-the-reincarnation-of-norton-motorcycles-and-nortongate/
*With thanks to Todd Halterman - http://www.motorcycleinsurance.com/interview-with-stuart-garner-on-the-reincarnation-of-norton-motorcycles-and-nortongate/