THE TRUE STORY OF HIGHLAND MOTORCYCLES
Preface: Not many American dirt bike riders know the name Highland. It was a genuine American motorcycle company brought to life through the sheer tenacity of Swedish engineer Mats Malmberg. Its roots were in a Swedish engine developer by the name of Folan. Mats took their prototype V-twin to eventually build a motorcycle company in the heartland of the U.S. Along the way, there were twists and turns that led through various chapters that included one in China and another in the original Husqvarna factory in Sweden. The whole saga ended in a fiery tragedy in 2010. Gunnar Lindstrom put together a detailed account of the story for the Swedish Magazine Race, where it appeared in three consecutive issues. He translated the saga for print in the October, 2024 issue of Dirt Bike. Due to space limitations, we could only print the final chapters. Here is the story in its entirety.
Michael Leib test rode the prototype Highland 450 MX bike for Dirt Bike Magazine in 2009.
THE START IN AMERICA
During 1994, a small group of engineers in California started work on a new type of Adventure bike that used the Folan V2 engine. They had just finished a year-long job at the ATK brand in Utah, where they designed several different new models with Rotax engines. But that job was over and the group decided to start a new project in California with the promising Folan engine. Power and weight were outstanding, all that was needed was a suitable chassis. Components were easy to find in California and the guys had the experience and contacts in the industry that were needed. Through a combination of investing their own time plus some financiers, it was started in the spring of 1994.
A bike was built during the summer and during the test period, improvements and modifications were discussed directly with Folan. Thatâs when everything came around a completely new, largely untested engine design. It was originally intended to call the bike Excelsior, but the name was already taken, it had existed as a motorcycle brand since 1910, so the gang decided to take the name MCM, for Motorcycle Costa Mesa, the place where the workshop was located.
They wanted to show the bike at the annual MC show in Cologne, so that it would generate good publicity in Europe, but everything was state-of-the-art and the coffers were small. The group then decided to disassemble the bike and take it as luggage on the plane. The frame fit in a bag intended for pedal bikes, the motor in another and finally they brought everything to Cologne although they had to pay for extra weight on the plane.
Through contacts, they were allowed to display the bike in a corner of the American Pavilion. The bike and its performance attracted a lot of attention at the show and many were interested to see a more refined variant; it was, after all, a first prototype. Back home in Los Angeles, the search began for financiers to build a small production run. It costs money to buy all the components, get a room to work in and so on. But finding financiers proved difficult, no one wanted to pitch in. Not only was it risky, it would take a long time before the money came back in the best case. Attempts were even made in Sweden, where Ronneby showed some interest, unemployment in Blekinge was a problem, but the negotiations ended up in the sand
The MCM group realized that by then they had run out of leads to financiers and the project faced an uncertain future.
Mats Malmberg
MATS MALMBERG GROWING UP
Mats Malmberg was a farm boy from the SÀvsjö region. Even as a child he proved to be a talent on two wheels, he started riding motocross in Vrigstad in the 80cc class, before switching up to bigger bikes. A back injury later caused him to switch to the speedway in Vetlanda, where he drove several matches in the elite series. For a while he co-owned a Husqvarna Forest and Garden shop in SÀvsjö and was later also part of Palles Suzuki. But ambitions were all along to create their own motorcycle of some kind. With a friend he had often sketched different types of motorcycles, which he thought from the looks of them were cool horses.
THE HIGHLAND CONCEPT STARTS
One day in the late autumn of 1994, a person stuck his head in the door of the MCM workshop in California and shouted: âIs there anyone who speaks Swedish here?â There was, of course, and thus MGM began the discussion with Mats Malmberg.
Mats had probably seen the bike at the MC show in Cologne earlier that year and the engine was well known in Sweden, where it had been introduced several years earlier. The MCM bike was close to the ideal Mats had envisioned; light and agile, with high power. He had caught wind of what was going on with the MCM dilemma and had soon snooped around where the MCM group was staying.
An agreement was made, where Mats could take over the MCM concept, but the prototype bike would stay within the MCM group. Mats returned to SÀvsjö, Sweden to plan for the next move.
Mats knew the city council and he persuaded the officers of the municipality to supply a grant to start up the business, which he described as the assembly and sale of an already complete and finished motorcycle. He had with him a simple Power Point presentation with images of the MCM bike, to which he now had full rights. It was a finished bike, he said, just to manufacture and sell, and that would mean jobs for the area. What could be better for the municipality? Mats had the ability to sell his project and overcome all counterarguments.
The calculations in this case showed that a production of 1000 bicycles per year would make it all work and that was the plan that he presented to the municipality. Of course, it took some time, but after a while he had received his approval. Mats showed that he really had the gift of storytelling.
In 2008, Highland showed its new 450 motor and stainless steel frame at the Indianapolis trade show. At that time, the plan was to market the bikes under the ATK name.
THE FIRST HIGHLAND BIKE IS MANUFACTUREDâBUT IN LOS ANGELES
As soon as Mats got access to money, it was decided that a couple of new prototypes, called the Outback models, would be manufactured in California, which would then be sent to Sweden as models of what would be manufactured. These two bikes were manufactured in a workshop in the Los Angeles area during 1995 and at the end of the year they were ready to be sent to Sweden together with fixtures, tools and drawing materials. Part of the year was partly devoted to all the paperwork required to start a new company, and partly to engine development, test riding and tests of components. The two Californian prototypes were used extensively as test beds for new parts and for experimentation. Late in the fall of 1996, Mats decided to register for the Milan show. Since there was no new bike yet, it was one of the prototypes that was shown. Everything was last minute, so much so that the bike was put together in the bus on the way down through Europe to Italy. The show was an annual event, and the contacts there were invaluable. KTM was one of the factories that saw possibilities with both engine and frame on the Highland bike, and in return Highland could negotiate to buy various components, such as WP suspension. But also all the other parts that were needed, for the rest of the bike, were represented in Milan. There were component manufacturers from all over the world, contacts were made and agreements were signed. Distributors who wanted to sell Highland motorcycles in different countries also met at these shows. They were the industryâs lifeline.
THE FOLAN ENGINE REQUIRES A BIG EFFORT
Back home, work continued on building one complete bike and it was the engine that still required the most time and work. The first problem was the starter motor drive, which was easily bent. If the engine backfired, and it happened often, the drive was damaged. Vibration levels that were acceptable on a racing bike were not okay for a street bike. The carburetor arrangement was also worked on a lot. The engine originally had a single carburetor, but it was difficult to get both cylinders to work smoothly under acceleration. Two worked better, but of course were more complicated and cost more. Space under the tank was another problem. Fuel injection was still in its infancy, it took another five years before this got an acceptable solution. The Folan engine was a good concept, but needed a big effort to be ready for sale to customers who had high demands. When the premises on KÀllebegsvÀgen in Vrigstad were ready, in the summer of 1997, everything was moved there. There, work was intensified to get it ready for sale.
The single cylinder bike came later.
FIRST REAL HIGHLAND BIKE
The first real Highland prototype was shown at the Milan show in 1997. Interest was high, both within the industry and among the general public. A slim V-twin engine of 100 horsepower and with a total weight of just under 130 kilograms, was impressive data. At home, work was now more focused on putting together an assembly line. The plans were gigantic; 1,000 motorcycles per year would eventually be manufactured, it was promised. Just a few parts were made in house by Highland. In some cases, subcontractors were involved, often abroad, which made the whole process complicated and time-consuming. The build list contained almost 1000 different components, the engine and gearbox more than 250 parts. Everything from valves and pistons to gearbox gears and electrical systems, would be bought in and assembled into a complete bike in Vrigstad. All large parts, such as a complete tank or a frame, down to the smallest details washers and nuts, were in a database that contained part numbers. prices and not least delivery time from order. These parts would need to be
documented in some way with a drawing or a photo, and some kind of part number that could be stored digitally. One problem was the small numbers ordered of each part in the beginning, which meant that the subcontractors were not very willing to compromise if changes or price adjustments were needed. Assembling a motorcycle might seem simple, but it quickly becomes complicated as soon as the number rises to two, five or a thousand. And if only a single part is missing, the whole assembly stops. In the best case, the bike can be set aside and completed laterâif there is room in the factory, that is. Planning for production is not for the faint of heart or those who struggle to see the big picture.
FINALLY READY TO PRODUCE
In March 1998, after two years of feverish work, they finally finished prototypes and decided to show the first bikes at the factory. Ten people were employed in the company and these were not beginners in the industry. Mats had employed people who had expertise in various areas such as purchasing, planning, inventory control and engine assembly. Marketing and sales mostly took care of Matâs soul. At the prototype stage the frames had come complete from the Californian supplier that MCM had used. Now the whole frame was made by a local supplier and they were delivered, painted and finished to Vrigstad. The fuel tank came from a supplier in southern Sweden and was manufactured in a rotary mold. The exhaust system came complete from Southern Europe.
Before production and official sales could start, EU certification was required. The sound test was the most complicated and expensive part of this, and was carried out at an airport near StrÀngnÀs. The fuel tank was not approved because the material was too porous and would sweat into the air, but a change to a better material solved that problem.
There was great interest from many countries, but especially from Germany. A large part of the first bikes were also delivered there. But the bike was not ready for the autobahn, due to a misunderstanding with the piston manufacturer, a large number of the first bikes came back with cut pistons. The start could have been better. Many at the factory stated in retrospect that the engines were not suitable for the autobahn, but that they received a lot of praise in Sweden.
Highland bought all rights to the engine from Folan and were now fully responsible for development, purchasing, machining, quality control, stocking and assembly. A designer moved from Folan to Highland and now spent all his time in Vrigstad keeping the blueprints up to date.
New capital was brought in continuously, Mats was constantly looking for investors. In July of the same year, 14 people were employed, but financially the company did poorly, the financial statements showed a loss of SEK 10.8 million. According to an interview with the local newspaper, it was said that it was largely due to the problems with the Folan engines that they had bought and that Highland had now bought the rights to manufacture themselves.
When the year 1998 came to an end, they had sold 16 motorcycles, significantly fewer than expected.
OLYMPUS DIGITAL CAMERA
PRODUCTION WILL WAIT
The company was listed on the Aktietorget stock market and during 1999 it was supported heavily by the German market. After the slow start in 1998, they now got off to a better start when, despite financial problems, they sold approximately 110 bikes. But a combination of a lack of money for purchases and reduced demand meant that it didnât work. A total of 120-130 motorcycles were manufactured in Vrigstad, most shipped to Germany.
In August, the company laid off 12 of its 19 employees. The solution was to attract new investment of SEK 25 million, said Mats in a newspaper interview. The problem was finding those investors. In September 1999, the company applied for corporate restructuring, but the situation did not improve. By May, 2000 a bankruptcy auction was held where the majority of the company and the trademarks were bought by an Eksjö entrepreneur with the intention of moving production there. He did so, but it never came to fruition and by the autumn Mats Malmberg had bought back the company with the help of a new investor. That required the company to be moved to SkÀllinge, outside Varberg.
The agreement with the Eksjö entrepreneur was that Mats would continue to lead the work in new premises, in Eksjö. Personnel from the time in Vrigstad were offered to continue and after a short break production would start. But Mats Malmberg and the new owner soon had different opinions. The reason for the problems and the poor financial result in Vrigstad, had been that the engine was not fully developed.
Typical of Mats, he always had something going on. He was constantly looking for financiers, and that was his great talent. During the summer, he had also found people with the capital to buy off both the Highland name and all the inventory, including all the technical documentation. In the fall of 2000, Highland therefore moved into a former curtain factory in SkÀllinge, outside Varberg. That was a demand from the new investors, who at the same time took the name Nya Sweden Highland Motors AB.
THE START IN SKALLINGE
Before production and sales could start again, a major effort was needed to satisfy the new EU regulations that had come into effect, and also to correct the technical problems that previous customers experienced. Work began in early 2001 and it took almost two years, until November of 2002, before approval came.
And there was a long list of items to be fixed: fuel injection system on all bikes, stronger starter motor drive, improved internal lubrication with pressurized crankshaft, modified clutch and pressure equalizer. With all this clear, the production of motorcycles was started in SkÀllinge during the early winter of 2003. The approval included a new model, the 950 Motard, with more road-oriented wheels and tires (17Ⳡboth rear and front), but which came with the same braking equipment as the Outback. Side panels were available in silver, gray metallic and the black finish was given a metallic look.
Now it was important to get started with sales; there was no other source of income. But it was slow. Less than one bike per day was produced at the beginning of 2003. There was a general look at what was needed to increase and even out the production rate and one problem was that two identical bikes were rarely put together one after the other, which made parts purchasing difficult to plan.
There were also continuous design changes. There was so much to do on the design side that another designer was hired in early 2003. Everything was now drawn on CAD, but when it came to new part numbers there was still a lot of work to do as the drawing changes were continuous.
Prior to the start of production for the 2004 models, a small number of improvements were made. The designers had been busy designing new Nikasil-treated aluminum cylinders, improved the starting system with a slip clutch that provided protection against kickback and a stronger freewheel. Also a new injection system was developed. During this time, Mats handled all the paperwork which was needed for EU approval. He also handled marketing and sales through a part-time position. This continued largely unchanged in the following year, when the workforce had expanded to nine full-time and two part-time positions. Before the 2005 model year, a new, more restrictive exhaust was required from the EU. The exhaust system supplier was changed and a passive catalyst became standard. In connection with this, a new model was also developed. This was called the 950 Allroad, which got slightly lowered suspension and lower wheels (19âł front and 17âł rear). Highland also received approval for more powerful front brake, mainly for the 950 Motard.
Production continued in SkÀllinge and a major relaunch took place at the Milan Show in September 2004, where the Outback as well as the Motard and Allroad were exhibited. Also, there was a Dirt Track model in race configuration, which was a loan from the USA.
A side-by-side project was in the works at one point.
HIGHLANDS AND CHINA
Unfortunately, the sales of the Outback and Motard did not meet expectations. In the early summer of 2004, not even 100 bikes had been sold and the money had simply ran out. A large part of the force was therefore laid off during the summer. Once again, however, Mats had a solution in his back pocket. During the Milan Show, he came into contact with Luojia Northern Enterprises, from China, and began diligent negotiations there. He was barely visible in Highlandâs booth during the entire show. Later in the autumn, the Chinese company visited SkĂ€llinge and a Joint Venture agreement was signed.
The result was that Luojia would get the rights to manufacture the 950 Outback for the domestic market in China and Highland could buy components for both engine and chassis from both Luojia and their subcontractors at good prices. The money that Loujia paid to Highland was necessary to continue, and expand the SkĂ€llinge activities. Once again, then, Matsâ negotiation skills had saved Highland.
Most of the workforce that had been laid off during the autumn were offered reemployment. On the development side at home in SkĂ€llinge, brake benches were now built. A specialist in combustion technology and fuel injection was hired to cope with both todayâs and future yearsâ requirements on the exhaust side. As part of the agreement, ten Outbacks and Motards were shipped with a container to Luojia in China for demonstration, training and analysis.
A first trip to China for the Swedes took place in November/December of the same year. Mats, a lawyer and two product specialists were on the trip, which went by flight from Copenhagen directly to Beijing and then, after many hours of waiting, on a domestic flight to Luangyong, where they were picked up by car. Luojia Northern Enterprises had a factory in the southeast part of the city, with a development workshop in an old hospital from the time of World War 2. Lots of brick, gray dust and stone stairs, as well as stall toilets. The workshop had foot-high thresholds. Mr. Ai, (Development Manager) Mr. Bai, (Middle Manager) and Mr Li were initially the closest contacts.
The Chinese were always polite and had a hard time saying no. Almost everyone smoked and spoke a mushy English. Language got better over time but the smoking never stopped. After the final negotiations were completed, and a formal contract signed, one complete motorcycle was assembled, and a loose engine was prepared for testing on the dyno in Xiâan.
The test center in Xiâan was state-owned, but Loujia Northern Enterprises was an old defense industry, so even though the tests were slow, the requirements were finally met. A lot of time had to be spent on getting the drawing material up to the desired standard. 3D-CAD was required, but much was still hand-drawn on planks. On the way home in December, the group stopped in Lintong for a visit to the Terracotta Army, and also dined on a meal with suspicious meat.
The second trip in February 2005 was concentrated on updating the blueprints as well as finding sources for components such as screws, nuts and ball bearings, preferably locally, but also with a continued build of the motorcycles sent over. It was about bridging the differences in thinking and working methods. The Chinese were theoretically knowledgeable but fairly rigid, while the Swedes were more experienced and flexible. A problem in China was difficulty in answering questions about surface treatment of pistons, details in front forks and build-up of the nickel surface in the cylinder bores with the desired accuracy.
ADVENTURES ON THE GREAT WALL OF CHINA
In the fall of 2005, Mats and Highland were invited to participate in a fair and get-together in Yinchuan, Inner Mongolia. Most of China had limitations of 400cc and just under 30 horsepower, but autonomous provinces did not suffer from this and the fair therefore ended up in one.
Outside the hotel, a local gang was seen riding Kawasaki ZX11, Honda Super Blackbird, Honda Fireblade and Yamaha V-Max. Just like at home, but Urban camo pants and enduro protection on the outside of the jacket were of course a little different. The fair was opened in monumental Chinese show long tables with delegates on podiums and pompous speeches before anything even happened. The off-road demonstration area for the public consisted of an open gravel area with lots of small bikes and a few advanced riders. During the fair, a desert race was run with a special test on, among other things, the Great Wall of China.
Off-road competition with rough vehicles suited China well, but suited Highland less. Mats rode a Highland Outback with knobby tires. The Highland showed superior power, speed and handling, but was felled by a boiling engine several times. No win that time, but there were many contestants, a large number of spectators and brand representatives from Chinese industry, who were impressed.
2006 began with samples from China. Both material and dimensional accuracy were better than expected. Crank parts were completely of the same standard as Highlandâs own production. Mats and a buyer made a side trip to Chongqing to evaluate more modern manufacturers of components. In addition, a load test of the Outback was organized on a local mountain road, with passengers to evaluate cooling improvement measures. A bit of Highland freedom in China, then, and a petrol price of two kroner per liter. The old development workshop was demolished, but the new workshop was as unsuitable as before. However, without thresholds.
In 2006, a new management was also installed at Loujia Enterprises. The new group did not have the same enthusiasm for the Highland project but, as I said, the Chinese found it difficult to say no. In early 2007, instead, it was a series of reasons regarding the motorcycleâs design and quality that caused the project to be terminated.
The new Sweden Highland Motors ABâs Joint Venture with Loujia Northern Enterprises was thus over until the summer of the same year, without a single bike being produced or sold in China. Despite this, Mats got to keep the money that the Chinese had invested.
NEW ONE CYLINDER PROJECT
At home in Sweden during the same period, 2005 to 2007, sales of the V-twin models had been sluggish, and since the agreement with China was that parts could soon be purchased at much better prices, they were put on the backburner. And when Mats now received Chinese money in Highlandâs account, the long-awaited, and necessary, new single-cylinder 450 engine project could finally be started. That had been on the wish list for a long time.
Since the cylinder head is the most expensive and critical part of a 4-stroke engine, it was first tried with a Highland Outback top on a KTM LC4. When that yielded good results, negotiations began with Folan to buy the rights to their single-cylinder S-100 engine. At the same time, Highland also bought rights and parts to a more compact S-105 engine, to later be able to have as a basis for a 250cc. Because now, as I said, there was money.
However, a new cylinder head was required for the smaller cylinder diameter, which therefore had to be postponed. A future that never happened, so the 250 engine became nothing more than analysis and modeling of 3D drawing materials. When work began on the 450 enduro and supermoto rider Martin Lind was hired as test rider and developer, specifically for this bike. At the end of March 2005, the first 450 engine was test-started in a chassis built in SkÀllinge and at the same time a representative of Outokumpu PlÄt came to visit, which was the start of the stainless frame for the single-cylinder engine. A design firm was also contacted, for the design of frame beams and body shape on this new version of frame. Mats had also started collaboration with the Arnhem University of Technology in the Netherlands and students were brought in for special work. They followed up the single-cylinder engine with a 350 model, which, however, was soon shelved for cost reasons.
After the holidays in 2005, a second 450 chassis and engine was completed. They ventured out for a test on a stump farm. The engine lasted 20 minutes of hard driving before it crashed. The frame was the right size, but too soft around the steering head mount which extended the wheelbase. This was quickly reinforced before the next test.
With improved finances from the China collaboration, layoffs ended and in 2005 a period of hiring followed instead, just as it looked in 2003. Personnel arrived to strengthen the testing operations, with runs on rolling country roads. To bolster purchasing and marketing, staff were hired, as well as a person to help with chassis development. During the spring, Mats put a lot of effort into expanding the dealer network in Europe. The UK was judged to be a big market, but the results were disappointing. Germany was still the biggest country, but the number of bikes sold there was small, at best five per month.
During the 2005 Milan show, Highland re-exhibited the 950 Outback, Motard and Allroad, and also had the 450 in a cross version. And when one of the early Outback bikes was tested in the US, Mats had come into contact with a dirt track frame builder, who became interested in the engine. Mats had ridden speedway in the elite series. Highland had now received a custom test chassis, called the Street Tracker, for the 950 engine, which was brought to the show. However, some Street Trackers would never be produced. In any case, it was decided the design would be refreshed with more exclusive 950 components. The chassis got Marzocchi forks, an aluminum swingarm with an Ohlins shock and Braking Wave discs with four-piston calipers for the Motard model. Carbon-fiber silencers and black and gold anodized rims also spiced up the design
But even though the bikes were now significantly better, after a huge effort to increase the performance and coolness of the 950 models, the reception was lukewarm. During 2005 to 2007, less than 150 units were sold.
GAMBLING ON RACING
The 450 models are still far from ready to be sold and would need investment to be competitive. The competition from the Japanese, and also from Husqvarna and KTM, was intense in the class and Highland was not ready to release the model too soon. But development and competition activities with the single-cylinder variants stopped taking over the company
Both the 450 motor and the stainless frame were soon deemed safe enough for a competitive debut. And in 2006, Highlandâs test rider Martin Lind competed in a Supermoto event in the Somme where he finished in a strong top 10 position. In June of the following year, a group including Mats himself took part in a local downhill race in Erzberg, Austria, where Highland filled the podium in the open class. And later that year, Martin Lind made the enduro premiere at the RĂ€nneslĂ€ttaloppet in Ekojo, where he finished seventh.
After these positive results in 2006, the Highland group gave more emphasis to Motard racing, which was an expanding class. Next came a new injection system from Niru, with new throttle bodies and frame refinement. Ola Eitrém, who had been brought in as a factory rider, left Husqvarna and switched to Highland as soon as the bike could demonstrate operational reliability, and with impressive results.
After seeing such favorable results with the 450, interest was taken to try the same parts on a 950 twin. With the two updated 35mm throttle bodies alone, 125 horsepower was achieved. The 450 showed 68.5 horsepower and the 505 had 73.5 hp on Highlandâs admittedly optimistic dyno.
The durability of the 450, 505 Motard engine was improving, so Mats and Highland decided to participate in both the 450 and Unlimited class in both Motard-SM and Enduro-SM. 2007 looked promising In this team for the single cylinder 450. But with poor sales of V -twin models, Highlandâs cash chest was thinning.
Over a decade ahead of the Stark Varg, Highland was working on an electric motocross bike.
BACK TO THE USA â BUT MONEY IS NEEDED
Mats had long had thoughts of a launch of Highland USA, a large market compared to Sweden and Europe. Ever since the first trip to California in 2004, when he first met MCM group, Mats had continuously visited the USA and there acquired a wide network of contacts. Five Outbacks had already been sent during the Vrigstad era and since then more to private buyers. With the marked improvements made to the 2005 model, interest were rekindled. Chase Bales was a person Mats had been in contact with since 2004. Bales was an Oklahoma businessman and motorcycle enthusiast who owned a 950 Outback, a model he thought would become popular in the United States. And he saw further possibilities with the single-cylinder 450. With Baleâs encouragement and financial support, in 2008 and 2009, a big investment was made in Motard racing in the USA. Mats wanted to ride the 450 and Martin Lind wanted to ride the 507 in the Unlimited class, where he aimed for gold. And 2009 saw several successes for Highland and Martin Lind, including SM gold and an eighth record in a regional competition in Fontana, California.
But the money was pretty much gone. Competition costs money and the trips to the races were often partially paid for by others and by the riders themselves. Sales of the Highland 950 models during the spring and summer of 2006 had not met the expectations that had been set, despite all the improvements shown at the Milan show the year before. The newspaper MC-Nytt also made an extensive test trip to Norway, with excellent results, and afterwards wrote a positive article. But when it became clear that the China project was close to the ropes, Mats Malmberg set about picking up new business ideas again.
He quite brazenly went straight to one of the board members of Husqvarna garden equipment and suggested that they buy back the Husqvarna Motorcycles brand name from BMW, as apparently the Germans were having problems with the development of a 450 enduro. Malmberg suggested renaming the Highlandâs 450 Motard/Enduro/Cross to Husqvarna SM/FE/MX and that they should pursue development of both engine and frame together. This could become a Husqvarna product that helped strengthen the brand, which would benefit all their products, Mats said.
Husqvarna was not interested in motorcycles, but they countered that an ATV was interesting for their Forest & Garden division. During the fall of 2006, component and cost analysis was done and the project was officially started in the winter of the same year, when Husqvarna formally contracted Highland for the development of a Husqvarna ATV. The idea was to use, largely unchanged, the Highlands 950 V-twin, something that later turned out to be completely wrong.
A number of 4-wheelers of various makes were bought in and tested, and after test drives it was decided in consultation with Husqvarnaâs project manager that the Honda 800 would be the benchmark. They put together a list of 30 points where Husqvarnaâs ATV would be better than the competitor, or at least equal. Yamaha, Kawasaki and Bombardier were also examined and measurements were made on wheel suspensions and weights in particular. When they were driven, it was mostly as companion vehicles to Highlandâs own tests, with the possibility of towing home in the event of a breakdown.
Additional personnel were brought in for the four-wheel project, both in project management and construction. One of them was a student engineer from the Royal Institute of Technology in Stockholm, who worked on chassis assembly as a degree project.
Justin Jones testing the Highland ATV.
AN ALMOST NEW ENGINE
A new variant of the 950cc engine was designed and the gearbox was sourced from Taiwan. The engine received the same geometry, cylinder angles, cylinder head and crankshaft dimensions as the Outback 950. However, it was equipped with double balance shafts, a HyVo cam chain and a stepless belt drive for the gearbox. Both lubrication and cooling systems were significantly increased in size. The collaboration with Arnheim University of Technology in the Netherlands continued with two new students. The original group had been working on a stainless swingarm, but it had to be abandoned because it became both clumsy and impractical. The new guys contributed with data analysis and strength calculations on the ATV frame. Husqvarnaâs own technical knowledge soon came into use and many details were constructed in collaboration with, or under the supervision of, Husqvarnaâs specialists. The same frame material as on the 450-motard was approved by Husqvarna for the frame and a first chassis was produced in SkĂ€llinge. Just before midsummer 2007, a first test machine rolled out in SkĂ€llinge. Highland was now completely focused on ATVs, but the distance between SkĂ€llinge and Husqvarna, about two hours by car, started to become a burden. Husqvarna expressed wishes that premises in the Jönköping/Huskvarna area would be better. Mats searched and in the autumn Highland moved the business to new premises, in the southern end of Jönköping.
In the fall of 2007, the premises in SkÀllinge were therefore emptied and Highland had again found a new home. Once in Jönköping, the workforce of the ATV project was increased. The premises were larger, which meant that motorbikes and ATVs were divided and got their own departments, with their own storage areas. On the motorcycle side, however, it was basically just the racing side that was being developed.
This was the end of the production of the Outback 950 and its various models. The last bike assembled had frame number 320. No 450 or 507cc bikes were sold and the 10-15 prototypes made were eventually all shipped to the US. Now it was full speed planning for a Husqvarna ATV instead.
Husqvarna had a better contact network and higher prototyping capacity, which meant that castings and forging were now done significantly faster than before at Highland. Finishing was done in a fraction of the time it had taken previously.
Also, making plastic prototypes at Husqvarna was quick and easy, both in terms of clean covers and panels, but also prototypes of functional parts such as air cleaners, CVT transmission housings and intake manifolds. A plastic intake manifold in SLS material was used on an early engine and tested for over 250 hours.
Husqvarna began to demand a better and more uniform level of documentation, so training in their Catia CAD system was given to everyone in the project in the ATV department. Consultants were also brought in to Highland via Husqvarna and, among other things, the design was done by Husqvarnaâs designers. Tools began to be produced. Casting tools for engine covers and housings were made as far as possible at Husqvarnaâs suppliers, and forging tools for axles were made at subcontractors. Frame and chassis parts were required early on for prototypes and were manufactured for a long time in makeshift jigs, to capture the final adjustments.
Aven Elektronik was developed and the entire electronics side was outsourced to Bosch, who were clearly more positive towards a customer like Husqvarna. Ignition and injection were added to Nira Control, in order to get the most modern system for emission reasons. Modern diode lights and electric servo for winch maneuvering were also incorporated.
A number of prototypes were built, both with the modified 950 engine with belt drive, but also with the 450 engine which retained the standard gearbox.
THE FINAL CHAPTERS
For years, Mats Malmberg had planned to introduce Highland motorcycles to the United States under the name âATK.â This was a well-known company and had an established network of dealers. The source of the initial funding for the move, however, had nothing to do with motorcycles. To stave off another Highland bankruptcy, they had taken on the job of developing an ATV for Husqvarnaânot the motorcycle company, which was owned by BMW at the time, but the lawn and gardening firm in Sweden. The plan was for ATVs to be manufactured in Sweden using the Highland engines, while motorcycles were to be built in Utah using the same engines.
Unfortunately, the collaboration broke down. Husqvarna eventually realized that the engine technology that Highland would contribute was unsuitable for an ATV application. The Highland engines were more racing oriented and never intended for a utility machine with four-wheel drive. Husqvarna thus decided to buy out the ATV project from Highland.
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LIFE AFTER HUSQVARNA
After Husqvarna canceled the ATV project, Mats Malmberg was no longer tied to Sweden. With new money from a generous settlement and with the encouragement of Oklahoma businessman and motorcycle enthusiast Chase Bales, he immediately began to plan a move to the United States and also restart the development of the 450 bike that had been left behind due to lack of resources.
At the end of 2007, several motorcycles had been prepared and sent to ATK outside Salt Lake City. These were exhibited at the motorcycle trade show in Indianapolis in February 2008. There were not only Highland bikes with ATK on the tank, but also other self-made or purchased bikes, which were said to be âMade in USA.â
A large and well-planned effort had been made by both Highland and ATK to prepare for the Indianapolis show, and an agreement was signed there by Chase Bales to underwrite the operation.
But, Bales soon changed his plans and now wanted to run Highland with Mats from Tulsa using the facilities, contacts and investors he had in his network. At Baleâs initiative, the deal with ATK was scuttled, causing sour feelings in Utah. Beginning in the summer of 2008, all activity was now focused on moving Highland to Tulsa, Oklahoma, rather than Salt Lake City.
The partnership with Bales took off in 2008, and Oklahoma then served as Highlandâs U.S. base. Both Supermoto and enduro versions were tested with a new injection control from Niram Corp. and in-house production of rolling-slide throttle bodies in machined-aluminum housings.
The big investment in racing in the USA continued in 2009. Mats himself wanted to race, and Martin Lind, who was an accomplished racer, wanted to ride Supermoto in the Unlimited class. In the beginning, several spare engines were needed in each discipline due to the breakdowns that they suffered. But, in 2009, the engines proved capable of surviving entire race weekends, and Martin was able to take a Supermoto gold.
In the fall of 2009, the final two containers and later several separate pallets of items were shipped from Sweden to Balesâ hometown of Tulsa. Attempts to sell the 950 engine to other companies were ongoing, and in June 2009, TGB in Taiwan sent three ATV chassis for testing to determine if the 950 engine could be used as a power source. That project eventually ran aground.
TWO CULTURES MEET
During the autumn of 2009, planning was feverishly carried out for the move from Jönköping to Tulsa. Everyone who remained at Highland after the Husqvarna project ended was offered the opportunity to move with them. Mats himself was all in with constant phone calls and e-mails to Chase Bales to prepare for the rest of the force. The Malmberg family moved in late autumn of 2009, and the rest of the Swedes who took up the offer would follow soon after.
Work operations were first set up in suburban Bixby, where they would share an office and workshop with Millennial Development, one of Chase Balesâ other companies. Millennial Development had an advanced electric motor, which could also be used as a generator, and there was even an attempt at collaborating on an electric bike. The first thing that struck the visitors from Sweden when they were picked up at the airport were all the big cars and pickups with V8 engines. Cars of all different sizes were loaned out freely within the Highland group. Mats drove around a Chevy Silverado Crew Cab with custom wheels. Extra automobiles seemed to be everywhere, so personal transport was never a major problem.
At the end of February, an unusual blizzard devastated the entire Tulsa area, and the Swedesâ winter driving skills were appreciated, even admired, when Tulsa was at a standstill. Martin took the companyâs Dodge pickup truck and performed a magnificent broadslide, on purpose, on one of Tulsaâs two twistiest streets. It was witnessed by the local police, but they were satisfied after he explained where he came from.
The Swedes quickly got used to local food, as well as Mexican spices, once they figured out how to order. Lunch was usually at Marioâs Pizza or at a Mexican restaurant. Then, on Swedish flag day, there were meatballs at the home of a local family. Midsummer celebration, a big event for Swedes, became an even bigger event at Matsâ house.
Mats turned 40 in 2009, and that year was celebrated with pomp and circumstance by Chase. He got a semi-automatic hunting rifle as a gift, but as a Swedish hunter, he did not really trust the American firearm when he later went on a hunting trip to Canada. After about half a dayâs pursuit he felled a bear, but which weapon he used was never told. Flying was also of great interest, so with the help of a local instructor, both Mats and Martin began to learn to fly.
Mark Tilley testing the Highland Outback.
A NEW DEALER NETWORK
As a parallel track to off-road bikes, the construction of an ATV MX quad, with a frame from the stock Cannondale and a 450 superbike for road racing, began. Brake and suspension equipment were borrowed from a Yamaha R1. Above all, Highland now needed a network of dealers, because without sales, no business succeeds. However, the job of acquiring one is both time and cost-consuming, as they had experienced in Sweden. Chase and Mats agreed on a new sales plan, where the customers specified and ordered exactly the configuration of the vehicle they wanted on Highlandâs website. Engine, frame, wheels, suspension, degree of trim, colors, et cetera were ordered online. When prototypes for all models were ready, everything was set up outside the premises for a group photo. There were all the motorcycles, a quad racer and 26 employees. Of course, no one could know at the time that this would be the last photo taken of Matsâ life work.
By March 2010, Highland had moved into the premises in Glenpool and set up a factory there. Production quantities and models for 2011 were decided at the same time. The plan was to move most manufacturing to the USA. While some engine parts were cast in Sweden, other things could be manufactured in the USA with a shorter delivery time. Suppliers of pistons and cylinder liners, clutches, gearboxes and other more standardized engine components were sought out. From a marketing point of view it was important that a âMade in USAâ tag line be used as much as possible.
At the same time, a new stainless frame was created for a more modern adventure bike model. The idea was that the Street Tracker would come next, then a new 950 and finally the racer. Highland also had thoughts of a two-seater side-by-side. A prototype was built by installing a 950cc engine into an existing purchased chassis. A large stock of Cannondale components was brought in from ATK, primarily for the ATV project. Cannondale had been a mistake of enormous proportions, and there were parts for chassis and engines to be found for very little money.
Mats started looking at another new building for engine development and a dyno. At the end of May 2010, they expected that the premises would be ready, so Highland planned an open house, partly for industry representatives, but also for potential customers and nearby residents who had expressed doubts about their new neighbor. An MX course was even built adjacent to the factory. The open house was a very popular event, both within the industry and locally, despite being met with some hesitation from people beforehand. The weather was brilliant, and the motocross course was well used.
From those who had the chance to test ride during the event, there were only good reviews. It got a little tougher when the more professional test riders from the American motorcycle magazines got to grips with the bikes. By then, other competitors had refined their products over a 10-year period, and Highlandâs machines were not as well finished. Dirt Bike Magazine wrote that nothing had improved since the bikes were originally shown earlier in the year. That was probably true.
At Christmas, Martin was behind in his planning, and a V-twin with a new intake took more time to complete than calculated. Once it was ready for test riding in July, Mats set off across the yard with a wide grin. His comment afterwards was, âThis is how the 950 should have been from the beginning!â It was the last time he sat on a motorcycle. The next morning he was going on a business trip to Michigan.
Mats Malmberg and Chase Bales at the Highland warehouse. This photo is dated July 9, 2010, one day before the tragedy that took their lives.
DISASTER IN THE HEARTLAND
By July, the start of assembly was fully planned but not yet financed. Mats and Chase would therefore fly up to Pontiac, Michigan, to secure the last money there. They took Damian Riddoch with them, who was the financial manager for U.S. Highland.
Chase Bales had a Cessna 410, a twin-engine, six-seat private plane, which he used extensively for business travel. The trip from Tulsa to Pontiac went well and took about three hours, but on the way back the plane crashed on approach to Tulsa International Airport, a few miles short of the runway. All three perished. The official reason listed by the NTSB was fuel shortage.
This was a Friday evening around 11:30 p.m., July 10, 2010, and it didnât take long for the news to spread. Just after midnight there was a knock on the door at the home of one of the Highland group. The plane had apparently crashed in one of the only wooded areas around Tulsa, just north of the airport, but nothing seemed real that evening.
Several employees went to inform Matsâ and Chaseâs families. The idea was to then go to the office where people could gather as the information became available. They tried to get a handle on the situation, but this was beyond anything anyone had ever experienced. Several people were already there, and the atmosphere was subdued to say the least. Nobody said much. Someone put coffee on. A couple of the guys went to the engine assembly department and started working. Yes, weâre still here, and thereâs not much else to do today, they thought.
Slowly, the office, factory and field outside the entrance filled up, and it became obvious how many people were touched by the tragedy. Two companies, just making plans to put a product into production, had lost their management. Chase was not only the CEO of U.S. Highland, but also for Millennial Development. Damian was finance manager for the entire organization, as well as mechanical designer at Millennial. And Mats was CEO of Swedenâs last motorcycle manufacturer, the man who had managed to keep it afloat against all odds for more than a decade in Sweden and the U.S. Moreover, in an instant, 10 children had lost their fathers. As the day wore on and everyone realized that the future would have to be replanned, they slowly headed home, each one separately. It was just as well; no one was in the mood for small talk.
THE END OF HIGHLAND
The following week, a memorial service was planned at a funeral home in Bixby, one mile from the factory. The Oklahoma Highway Patrol offered to help along the route so that Highland bikes could be ridden in procession to the chapel despite their lack of mufflers, lights, license plates and proper tires. The Highway Patrol blocked access along the route for the procession. The employees simply took everything that was rideable. On the way home, many of the bikes were loaded into trucks and trailers so as not to burden traffic for a second time.
The Swedish group made a difficult decision to return to Sweden, where they attended Matsâ funeral. It took place at the end of August in Barkerydâs church, not far from the city of SĂ€vsjö. But, no one wanted the business in Tulsa to stop. Therefore, Martin Lind returned after the funeral, and under his leadership with the help of more than 20 employees, the launch of the new bikes was again tackled. Originally, plans had been to sell 700 units of the 2011 models and then double that for 2012. But, after only a couple of months, it was clear that too much of Highland was lost with Mats Malmberg and Chase Bales. Highlandâs new board decided to continue operations in Tulsa under new American management, while the design group would work from a new company in Sweden under the leadership of Martin Lind. The new company was called âRollox,â located in southern Sweden. They secured the rights to production tooling and all drawings. They would supply certain parts from Sweden, such as castings, suspension and other components. U.S. Highland in Tulsa would manufacture and purchase all other parts and handle the assembly, marketing, and sales of complete bikes. In the spring of 2011, they concentrated on the single-cylinder 450. But, it never came to fruition, and itâs questionable if any bikes were ever produced and sold.
After an aborted attempt to order 50 single-cylinder engine kits a year later, U.S. Highland shut its doors forever. In November 2013, the saga of the last American dirt bike quietly came to an end.
