The iconic Australian motorcycle retailer has revealed plans to bring an iconic bike to Australia in a deal worth more than $1 billion.
Key points:The giant bike will be built in AustraliaCostco is working on a giant “motorcycle” to be built by a local partner for the Australian marketThe bike will feature a 30 metre (100 foot) wide ‘moto frame’ on wheels that will cost $3,000US$1.2 billion in Australian funds will fund the projectCostco, which has over 2,000 stores across Australia, has partnered with the Australian company, Tractor, to bring the giant bike to market.
Key facts:The bike is designed to be used for long distance trips and is expected to have a top speed of 35 kilometres per hour (20 mph)The bike has a total weight of more than 6,500 kilograms (13,400 pounds)Tractor’s bike will come in three colours and a range of options, including a black and red, a grey and a brown.
Costco Australia chief executive Peter Williams said the deal with Tractor would allow the Australian retail giant to be more responsive to its local customer base.
“Costco’s customer base in Australia is very diverse and there’s a range that’s in that range,” Mr Williams said.
“That’s something that we have a lot of respect for and we know that it will be beneficial to our customers.”
Tractor has done a great job with their bikes over the years and we’re very proud to be a part of that and we look forward to working with them to make this a really successful venture.
“Tractor, which operates in the same region as the Australian chain, has a range including bikes in all colours, but has had a number of models built specifically for the bike market.
The deal will see the Australian brand buy the entire Tractor factory in Adelaide for about $1.6 billion and the company will be able to operate from its new home base in Perth.
Tractor chief executive, Steve Williams said it was important to work with Australian brands to deliver the best value to our Australian customers.
Mr Williams said there were two main factors to the deal.”
Costco and Tractor will build the bike at the Adelaide facility, but a final decision on the size of the machine will be made later this year.”
Secondly, we want the opportunity to build a brand with the same brand and brand image in Australia as it does in the U.S. It’s a great opportunity for us.”
Costco and Tractor will build the bike at the Adelaide facility, but a final decision on the size of the machine will be made later this year.
Mr William said the bike would feature a 20 metre (90 foot) “moto-frame” on wheels and will cost about $3.4 millionUS$700,000 in Australian dollars.
“It’s a brand that we think will be very strong in Australia,” Mr William said.
Traction’s website lists the bike as being built in the Adelaide area, but Mr Williams has confirmed it will also be built at a facility in New Zealand.
Costcos plans to start the process of getting the giant motorcycle into Australia in 2018, and said the Australian government would not be involved in the project.
CostCo’s Australian chief executive Andrew Wilson said the company would be committed to ensuring that Australian customers had the best possible experience.
“We’re going to do everything we can to make sure that the bikes are made and we have an Australian partner in place to support the project and deliver it to Australia,” he told the ABC.
“Our biggest priority is to ensure that our customers have the best bike experience, and this is the perfect way to do that.”
The deal was announced on Monday as the nation gears up for the G20 summit in Brisbane, where trade and investment ministers will be meeting in Melbourne.
Mr Wilson said there was a lot at stake in the deal and it would be an honour to work alongside the Australian Government and Tractors Australian owners.
“They have really worked really hard to create an incredibly unique brand and a brand in Australia that’s very proud of their heritage,” he added.
“When you look at what’s been achieved, I think it’s an exciting opportunity for Australians.”