The agreement is “tentative” so nothing is final but we will try to bring you more information. Looks like Highland changed their website a lot recently so have a look.

Hit the break to read the press release.

US Highland (OTC.BB:UHLN – News) announced today that management has reached a tentative agreement with a large global OEM for the license of Highland motor technology and is in joint venture discussions for the manufacture of privately branded motorcycles. These agreements could extend US Highland global sales beyond 20,000 units per year and result in an exponential increase in US Highland’s revenue stream within the next two years.

US Highland, Inc. is a US-based designer and manufacturer of high performance, premium quality Motocross, Supermoto, Quad and Enduro motorcycles. Highland’s remarkably light, robust and powerful engine platform has drawn the attention of several significant global brands. “Highland is in a very strong position with complete engine and fuel injection technology. Our engine and fuel system designs are unique and patent application processes to protect our growing suite of Highland IP is proceeding well. This gives our potential partners confidence,” states Mats Malmberg, President of US Highland, Inc.

For additional information concerning US Highland Inc. visit www.ushighland.com.

Forward-looking Statement:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events of future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluation such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company’s SEC filings. These risks and uncertainties could cause the company’s actual results to differ materially from those indicated in the forward-looking statements.

It’s ironic that a bike so prone to dying would be reincarnated so many times. In early 2000 Cannondale transformed itself from US based bicycle manufacturer to US based powersports innovater with the launch of the x440s dirtbike and the Cannibal ATV. Both were based on a gound breaking programmable fuel injected four stroke with a reverse cylinder similar to the 2010 Yamaha YZ450, minus the reverse slant. Air in the front, exhaust out the back.

The all aluminum frame was covered with top shelf components from Domino throttle to Ohlins suspension to Talon hubs. The only problem was the bike had issues with the motor grenading, sealed fuel system leaks and slightly porky weight. Cannondale did a great job of servicing it’s customers (I know, I fried the ECU on my 2002 e440) but they eventually went bankrupt. ATK purchased the motorcycle rights and did a lot of work improving reliablility. Dinli purchased the ATV rights originally but ATK now sells a version of the Dale Quad.

Now it looks like the Cannondale ATV frame has made it’s way to the newly restructured US Highland group based in Oklahoma. Highland is a group of that has had it’s share of growing pains but has some amazingly powerful and lightweight engine designs. The 450 motor is now in the ex-Dale frame and will be the new US Highland ATX Quad Racer. It will also be available in a 507cc version. Cannondale quads were known for their amazing power so no doubt the chassis can handle the power of the Highland lump. I will post more details on the ATX and the Cannondale link as I get it.

Source: Highland Forum Images: QuadZone Foums

Dale Franks is reporting that US based ATK and South Korea based S&T Motors have entered into an agreement where ATK badged Hyosungs (owned by S&T) will be built in the USA by ATK and sold by select Harley dealerships. The company Harley Davidson is not involved in the deal, the dealerships are taking it upon themselves to work with Frank White, one of ATK’s owners.

The press release on Dale’s site is vague about what models will come out of the agreement but it mentions ATK will leverage Hyosungs street bikes and S&T will leverage ATK’s dirtbike knowledge. Frank White explains:

By joining forces, we believe, we believe we can strengthen our distribution network, reduce our production co sts, spread development costs and substantially accelerate our entry into the street bike business. We also look forward to sharing some of our off-road technology with S&T.

Dale goes on to mention that his sources say a plan is being considered for ATK to restyle and rebrand the GT and GV series of sport bikes and cruisers including the classic styled GV700 introduced this week at EICMA. This would not be a big strech for S&T.

Hyosung is known to be more than willing to allow other companies to rebrand their bikes. The flexibility and quality of the Hyosung products and engines makes it a great option for a marque to leverage for breaking into new markets without the cost of tooling up and staffing production.

United Motors sells most of the Hyosung product line in the US with it’s own graphics and has long term agreement to build it’s own bike around the 650 and 250 cc Hyosung vTwins. Italjet was working on a new version of the Griffon which was a restyled Hyosung GT650 and Fischer Motors uses the GT650 engine in it’s MRX650.

This partnership is a win for all groups involved. ATK may be able to diversify from being a low production niche dirtbike manufacturer and add sport bikes and cruisers to it’s lineup. Hyosung will increase sales using a brand agnostic production driven formula they are very comfortable with. S&T Motors displayed 450cc prototypes of supermoto and dirt machines which were well received by enthusiasts. I’m sure ATK would do a great job helping them make the bikes a reality.

This will be an interesting development to watch unfold. Follow the source link below to Dale’s site to see the press release.

Source: Dale Franks