GOVECS acquires electric scooter of Spanish motorcycle manufacturer Rieju and secures additional production capacity

ADHOC Release

Munich, 18 October 2018 – GOVECS AG ("GOVECS") has signed a purchase agreement with the Spanish motorcycle manufacturer Rieju S.A. The object of the contract is the acquisition of a new electric scooter model that GOVECS will further develop. The new model is expected to be launched under the name "FLEXY" already in the second quarter of 2019 and will thus contribute to sales growth in the financial year 2019. With the new FLEXY e-scooter, GOVECS complements its product portfolio with an e-scooter model in the mid-price segment. Thanks to their modular design, the FLEXY e-scooters are suitable for all GOVECS target groups, whether sharing providers, delivery services or end users.

Series production of the further developed FLEXY e-scooter model will be carried out by Rieju on behalf of GOVECS. In this context, Rieju has contractually guaranteed capacities for the production of up to 12,000 e-scooters per year, which will also be used for the production of the ELMOTO models. GOVECS expects to be able to have other e-scooter models manufactured at Rieju's production facilities in Spain if required. GOVECS therefore believes that the production capacity will be sufficient to meet the expected growing production requirements up to the year 2021 and that it can implement the growth strategy faster and with lower risk. Against this background, GOVECS expects that the planned investments in the expansion of the company's own production capacities in Wroclaw can be reduced by up to EUR 10 million.

 

About GOVECS:

The GOVECS Group is the leading manufacturer of electric scooters in Europe and is developing future-oriented solutions for urban mobility. The Company’s success is based on high-quality “Made in Europe” products for international vehicle sharing platforms and on custom-made designs for the rapidly growing merchandise delivery segment. GOVECS is selling electric scooters and accessories to the high-growth private customer segment via its own HappyScooter e-commerce platform. The GOVECS product range currently includes the e-scooters of the Schwalbe, GO! S, ELMOTO and GO! T brands.

www.govecsgroup.com

 

Contacts for media enquiries:

GOVECS AG, Daniele Cesca, dcesca@govecs.com, +49 89 411 09 77 15

Kirchhoff Consult AG, Nicole Schüttforth, nicole.schuettforth@kirchhoff.de, +49 40 60 91 86 64

 

 

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