When current US Highland CEO John Fitzpatrick III first unlocked the storage facility that contained the remains of the company in Tulsa, Okla., he found row after row of well-finished prototypes — a 950 adventure bike, a street tracker and a string of dirt bikes — all coated in dust.
An enthusiast would see them as an invitation to go riding. An investor might see millions of development dollars idling. The polished Fitzpatrick held executive positions with Harley-Davidson, Hewlett-Packard and Indian, and is the newly appointed CEO of US Highland. When he first confronted the row of dusty bikes on the floor, he saw both overwhelming choices and a great opportunity.
The line of bikes was created due to the efforts of Mats Malmberg, a man who was part of the group of Swedish engineers who created the technology for Husqvarna as well as Folan, Cannondale and others. He founded Highland AB in 1997 and used a Folan-designed 950cc V-Twin engine to create the Outback 950 adventure bike, selling a few units worldwide.
Oklahoma-based entrepreneur Chase Bales purchased one of the Outback 950s. He and Malmberg crossed paths while working with ATK. Bales proposed to move Malmberg to Tulsa and build an entire line of new motorcycles. Malmberg agreed, and US Highland was born in 2009.
Malmberg and Bales worked together to create an enthusiast’s dream. Their idea was to create engines and frames that were modular and customizable. Buyers could order a street-oriented dirt tracker, adventure bike, dirt bike or street bike.
Engines could be single or V-Twin, each available in a range of displacements and states of tune. Dealers would have demo bikes, and customers would order through the dealer. In a video interview, Malmberg called the US Highland bike “a works
motorcycle for the consumer.”
On Feb. 23, 2010, US Highland opened a new 33,000-square-foot facility in Mounds, Okla., in anticipation of building 700 units that year and 1,500 in 2011. The company announced a tentative agreement with a major OEM to custom build branded bikes. The Tulsa World reported that 200 to 300 people would be working at the facility by the year’s end. Journalists were put on the prototypes, and the early reviews of the light, powerful bikes with high-dollar componentry were enthusiastic.
On July 10, 2010, Malmberg, Bales and Damian Riddoch, US Highland CFO, were killed when their multi-engine Cessna crashed on the way back from a business meeting. An interim COO was appointed three days after the crash, and the 30 employees maintained their jobs, while management looked to secure financing.
Interim management did its best to raise the funds needed to continue on course, but new investors were reluctant to jump on board without the founders. In December 2010, the facility’s doors were locked, most of the 30 employees let go, and the line of bikes sat idle and gathered dust as the company continuted to struggle to maintain the resources needed to put US Highland back on track. A Tulsa-based advisory group located new financing and began the search for a new management team. In September 2011, Fitzpatrick was hired. That’s when he opened the doors and let the sun shine on the line of motorcycles in storage.
Fitzpatrick was a key manager for Harley-Davidson, and helped develop and ramp up production at the Kansas City plant. He intimately understands production systems and how to quickly produce a large number of machines. Hired by a revitalized US Highland, Fitzpatrick was tasked with picking up where the founders left off. Malmberg and Bales had let their enthusiasm for motorcycles and innovation drive their company. The two built anything and everything that seemed interesting, and the dusty facility in Mounds contained enough machinery to power the company through a dozen product launches.
“These guys were ahead of their time,” Fitzpatrick said. “They were completely passionate about everything they did. They were probably on the cusp of making their dream come true.”
The US Highland team included several members who had worked with the original founders. Deborah Engles ran the office for the company before and after the crash, and former racer/motorcycle designer Martin Lind of Rollox AB was one of the key designers for the entire line of motorcycles.
“They know. They were there all along,” Fitzpatrick said. “There’s this thread of continuity.”
Lind’s perspectives on the history of each bike has been invaluable to Fitzpatrick and his new team, as has his technical expertise and development work. The heart and soul of the engineering team lives on with Lind.
“[Martin] was the magnet that drew me into this,” Fitzpatrick said. “Thank God he wasn’t on that plane.”
As Fitzpatrick began to understand his new product line, he also began adding team members. One of the first hires he made was his friend and neighbor, James B. McCoy. McCoy brought a blend of experience with sales, franchising, licensing and start-up companies. Nearly equally as important, he’s a hardcore enthusiast, with experience racing off-road, riding adventure motorcycles and more. He and Fitzpatrick had discussed their thoughts on US Highland long before any discussions about working together. In February 2012, Fitzpatrick hired McCoy as vice president of sales.
“We thought we were walking into a company where we would be manufacturing bikes immediately,” said McCoy. “As soon as we saw the bikes, we realized we had some R&D to do.”
In fact, McCoy made a conscious decision not to ride the bikes for several months. He knew that as an enthusiast, his reaction would be to want to finish the motorcycles. Producing motorcycles was not, however, the first priority in the US Highland mandate.
“We could see that the first product we were going to create was an OEM motor,” McCoy said. “We knew the motors were very close to being done.”
The motor concept has been refined and clarified by the addition of Josh Whitaker, who has been the director of marketing for KTM and Red Bull and directed the off-road segment for Tucker Rocky. He approached Fitzpatrick in August 2012, who immediately brought him on to help the company define and communicate its vision.
The motor was what attracted the investors to purchase US Highland. I sat with Fitzpatrick, McCoy and Whitaker in a coffee shop in downtown Tulsa, where Fitzpatrick explained his group’s vision.
“How can we … not just build something, but change the face of the powersports industry?” he said. The V-Twin and the single-cylinder engine have been well-tested, are designed to be easily customizable, and the manufacturing systems and suppliers are on hand.
That makes it simple for the company to offer the same engine for any OEM. US Highland offers an off-the-shelf power plant — similar to an S&S motor — that can be used in nearly any configuration imaginable.
They are currently pursuing partnerships with chassis builders that range from street customs to off-road vehicles. The product will be the motor, set up to match the OEM’s requirements.
Need a 120-horsepower 1050cc V-Twin for your sand rail? A 950cc V-Twin tuned for torque for your ATV chassis? A 507cc single-cylinder for your custom-built motorcycle? US Highland can supply those.
The idea is to work with the growing number of custom manufacturers and supply this engine. The machines will be badged “Powered by US Highland”.
As the two men talked excitedly about their vision, the sound of a barely-muffled V-Twin rolling down the street rattled the windows as it parked out front. Steven “Posie” Pfaff, director of manufacturing for US Highland, stepped off a US Highland 950cc V-Twin-powered Street Tracker. He’s a V-Twin performance guy who cut his teeth building high-performance Harleys.
“I come out of the trenches, brother,” he later said to me, flashing a toothy grin as he showed me the rapid prototyping machine in the US Highland shop. Posie joined us in the coffee shop, adding some biker cred to the khaki and button-down of the rest of the team.
“Powered by US Highland” took a new meaning during quick test rides of several of the bikes. I sampled the single on an off-road bike with a 450cc engine, which Corey Green rode in the 2010 Summer X-Games. The bike had a number of innovative features and looked as polished and finished as a production bike. Riding the bike was shockingly seamless. The power was smooth, clean and strong, with a strong hit down low that flattened out into the top end. The chassis felt as tight, comfortable and sorted as a Japanese motocross bike.
I also rode an updated version of the 950 Outback. The adventure bike is incredibly tall, and feels light and agile. The seating position is well sorted and natural, with a plush ride. The motor is a torque monster, and the bike would loft the front wheel in the first two gears with ease.
I also rode the V-Twin-powered street tracker that Posie piloted to the coffee shop. The bike is tiny and vicious. The fuel injection mapping left a flat spot off idle. The exhaust note was tuned, tight and loud enough to set off car alarms. Feather the clutch to rev the engine past the spot, and the bike accelerates savagely. The stiff rear lets the rear tire slip a bit, which probably prevents wheelies at every input.
The engine stars in the Street Tracker, and even with the V-Twin detuned to a claimed 80 rear-wheel horsepower, is the overwhelming feature of the bike. The Street Tracker to be introduced this coming spring will be a single-cylinder, which I suspect will be a much more rideable, fun machine. But a portion of the public will want that vicious little V-Twin — and will eventually be able to get it.
Fitzpatrick and McCoy have gone away from the founder’s vision of high prices, and hope to price their bikes very competitively. They also intend to offer consumers the option of saving more money by ordering a bike that is partially assembled.
US Highland intends to offers dealers a competitive margin so they can sell customized bikes, parts and provide service. Dealers also have the option of creating their own brand by specing a motorcycle built to suit their customers and finished with whatever graphics and components they see fit.
The facilities in Tulsa are gleaming and clean, with racks and parts and stations where engines can be manufactured. Fitzpatrick told me his team is fielding nine sales leads a day from people interested in the new engines.
US Highland promises to offer enthusiasts and dealers alike an American-made option in the powersports area, built by visionaries and now in the hands of experienced motorsports professionals with a promising blend of motorcycle enthusiasm and industry seasoning.
