California-based Zero Motorcycles and Integrated Micro-Electronics Inc. (IMI), a Electronics Manufacturing Services company with headquarters in the Philippines, have announced a manufacturing deal.
IMI will assemble Zero Motorcycles’ EV motorcycle models and other motorcycle sub-assemblies in IMI’s facility located in Laguna, Philippines. This work will be done in conjunction with the manufacturing facilities for Zero located in Scotts Valley, CA. The modular assemblies and complete motorcycles supplied by IMI will be delivered to Zero’s customers and dealers globally with a primary focus on the European and Asian markets.
The manufacturing will include the full assembly of motorcycles as well as partial, modular assemblies to be finally completed by Zero manufacturing teams, together with the battery module and electronics of the vehicle. Zero said of all the potential partners it considered, only IMI possessed the expertise in both electronics manufacturing and motorcycle assembly all located under one roof.
Zero said IMI’s parent company, Ayala Corporation (AC Industrials), has made great strides toward sustainability, and the collaboration with Zero is expected to open more possible synergies with AC Industrials in the future
“We are thrilled to partner with IMI and bring their expertise in electronics manufacturing and motorcycle assembly to the Zero Motorcycles lineup of products,” said Zero Motorcycles CEO, Sam Paschel. “This collaboration will be transformational for Zero Motorcycles’ operations. Expanding our manufacturing footprint into a new region allows Zero Motorcycles to efficiently scale up to meet the rapidly growing demand for our products and improve customer delivery and satisfaction in the fast-growing EV market.”
Mass production is projected to start as early as the second quarter of 2023 as a turnkey program utilizing IMI’s current capability for assembling motorcycles coupled with efforts to develop localization of certain components and parts.
IMI CEO, Arthur R. Tan said, “IMI is excited to partner with Zero Motorcycles and help bring their innovative electric motorcycles to the world. This collaboration aligns with our commitment to supporting companies in their growth and sustainability efforts while providing high-quality manufacturing services.”
Zero said the facility in Laguna, Philippines will play what it described as a crucial role in Zero Motorcycles’ expansion into the global market and will support the company’s goal of reducing its carbon footprint and promoting sustainable transportation while increasing its market share.
The announcement comes less than two months after Zero announced it was laying off 10% of its workforce. Zero currently builds all of its motorcycles in Scotts Valley, CA. Zero’s latest announcement did not address what percentage of manufacturing would remain in the U.S. or what its expected overall worldwide output of motorcycle production would be.