Skip to content

Whither LML? *Updated

June 12, 2017
Stella Automatic

Genuine Stella Automatic (Photo: Genuine Scooter Co.)

There is news about LML, aka Lohia Machines Ltd., the manufacturer of Genuine Scooter Company’s Stella. The news is not good.

ScooterLab.UK reports that the company has entered into what is known in India as an Insolvency Resolution Process, what in the U.S. is called Chapter 11 bankruptcy.

ScooterLab had reported on the LML factory’s shutdown for “restructuring” in 2016. LML has until November 2017 to come up with a plan to pay creditors; if fewer than 75% of them agree to the plan, the company will be liquidated.

The company had been slow to respond to demands imposed by bans of 2-stroke engines in many of its largest export markets, and the implementation of Euro 4 emissions standards, which none of its scooters presently meet.

While their 2-stroke scooters share many parts with Vespa P-Series models, there are reportedly already shortages of parts for their 4-stroke manual and CVT scooters.

In the U.S., LML’s scooters were sold as the Stella and Stella Automatic. Genuine Scooter Company issued the following statement Monday:

Genuine has been monitoring LML’s financial situation and was sad to receive notice of their insolvency. Until LML’s situation is resolved, Genuine will not be importing new Stella models. We do have access to parts through several suppliers and we will continue to sell Stella accessories through Scooterworks USA. We are truly disheartened by this turn of events as LML has been a valuable vendor for Genuine Scooters. Without LML, there would be no Stella, our first and most beloved scooter that we brought to market. We wish LML the best as they go through this process. If you have questions, please contact Trey Duren at tduren@genuinescooters.com or Dorothy Hanley at dhanley@genuinescooters.com.

Scootin’ Old Skool will be following this story. More news as it becomes available.

Advertisements
One Comment leave one →
  1. Dr. Greg E. Sedbrook permalink
    June 12, 2017 12:21 pm

    Not good news at all!

Share your thoughts.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s