German automaker Volkswagen has penned a partnership with Pon Holdings for the manufacture of electric bikes. The entry of Volkswagen into the e-bike segment is remarkable and interesting. It is yet another automaker that has diversified into e-bike manufacturing. It also underscores the importance of e-mobility offerings in several advanced markets. It is noted that virtually all traditional bicycle brands have added electric bicycles to their bouquet of products.
Volkswagen’s pursuit of e-bike presence is driven by its subsidiary, Volkswagen Financial Services. It is in partnership with Pon Holdings, itself a large mobility company. The two companies plan to collaborate to expand electric bicycle leasing in Europe and the United States. The leasing service will both cover employees and commercial customers in both regions.
The deal has seen Volkswagen Financial Services acquire a 49% stake in Pon’s Bike Mobility Services (BMS). Pon’s bike leasing company is operational in Germany, Austria, Netherlands, Sweden, Belgium and the US. The BMS brand has quietly established itself as one of the biggest bike-sharing companies in the industry.
BMS is reported to provide bikes for over 600,000 employees in 65,000 companies. The majority of the bikes on offer at BMS (90%) are electric bikes, which are appealing to a growing audience. These bikes are serviced by a rich network of up to 8,000 dealers.
The Volkswagen-Pon partnership is expected to tap from the opportunities in the US market. BMS recently opened its first US office and some large corporations have signed onto the bike-sharing model. The new partnership is not the first time both companies have collaborated. Volkswagen and Pon’s engagements span over eight decades. Pon Holdings is the largest importer of the Volkswagen Group in the Netherlands.
RELATED:
(via)
