The Relation Between Erik Buell Racing And Hero MotorCorp. What You Need To Know.

Hero-MotoCorp-Erik-Buell-RacingFollowing Erik Buell Racing ceasing operations on April 15, 2015, 5 points you need to know.

1- Erik Buell Racing (EBR) was created in November 2009 in East Troy, Wisconsin following the shutdown of his previous company, Buell Motorcycle Company, by parent company/majority stakeholder Harley-Davidson. EBR was an independent venture by Erik Buell from Harley-Davidson, but Harley still owns all the Buell brand rights.

2- Hero MotoCorp Ltd, (HMC) formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based in New Delhi, India. The company is the largest in volume two wheeler manufacturer in the world. In July 2013, HMC (through its US-based wholly owned subsidiary HMCL Inc, acquired 49.2% of Erik Buell Racing.

3- EBR and HMC intended to help each other enter the North America and Europe markets and to sell on both continents a total 1 million two-wheelers (motorcycles and scooters) by 2017. The deal was also for EBR to bring engineering research and development capabilities to Hero MotoCorp in the higher end of the product offering.

4- To achieve the plan, EBR started to hire engineers from Yamaha, Boeing Corp and General Motors. EBR also started to work on an electric scooter. During the same time, HMC started to build a global Innovation, Research & Design Center in Rajasthan, India hiring about 600 engineers from around the world. Among notable hires, Markus Braunsperger from BMW as Chief Technology Officer and Markus Feichtner from Australian firm AVL to lead the engine design and development team.

5- On April 14, EBR’s Board Of Directors passed a resolution for an assignment for the benefit of creditors under Chapter 128 of the Wisconsin Statutes, which is similar to US federal bankruptcy law. On April 15, at lunch time, EBR’s 126 employees were informed that the company had 20 million in outstanding liabilities, was ceasing operations immediately and was seeking court protection from its creditors. Hero MotoCorp being a public corporation (it counts Bain Capital and GIC as large shareholders),the following day the company made an official statement to declare its confidence on future product development and line-up, stating that it will not be affected by EBR ceasing.

11 Responses to “The Relation Between Erik Buell Racing And Hero MotorCorp. What You Need To Know.”


  1. 1 Boomer Apr 24th, 2015 at 8:31 am

    So HMC only backed out after the EBR board of directors declared bankruptcy? Did the board of directors lose confidence the $20m could be paid back? Seems like a lot of people were hired and moved around for something that could be foreseen. I feel bad for all those engineers who gave up one job to work for EBR or HMC and then got let go over this.

    Big business and legalese has never been my forte. Thanks for trying to explain it though.

  2. 2 Mike Apr 24th, 2015 at 8:46 am

    This explains nothing.
    Did they keep the debt secret from hero?
    How did they sell so much to hero when the company was so close to death?
    Is this all an accounting trick?

  3. 3 Mike Apr 24th, 2015 at 8:47 am

    This explains nothing.
    Did they keep the debt secret from hero?
    How did they sell so much to hero when the company was so close to death?
    Is this all an accounting trick?
    WTF

  4. 4 TJ Martin Apr 24th, 2015 at 8:54 am

    All one really needs to know is ;

    1) HERO did nothing to prevent EBR’s closing down despite having invested in EBR

    2) HERO then taking all the work EBR did to create a foothold for HERO sales in the US and running with it the minute EBR starting looking like its days were numbered [ in the business and popular vernacular thats known as ; ” The rats jumping ship ” ]

    3) The end result being …

    a- Its looking more and more like HERO’s sole intent with investing in EBR was to gain a foothold in the US
    b- No more EBR
    c- A US market about to be flooded by even more India built substandard motorcycles
    d- And once again …. the big guns [ HERO ] coming up smelling like a rose … while the rest of us .. from Erik – to his investors/employees etc and right on down to us …. lose out .. smelling more like fertilizer each and every day

    Lesson to be learned ? Never … ever .. enter into a contract with ANY company based in India . They’re nice enough people and all …. but the fact is …. their business ethics and ours ] Western ] are at polar opposites 😉

  5. 5 Jester Apr 24th, 2015 at 9:37 am

    In bankruptcy court Hero is going to get all the tangible and intangible assets (designs, patents, good will created under EBR) of EBR. Then hire a few former guys to continue the work of Erik Buell. Hero ready for the US market at lower cost. Amen.

  6. 6 SIGFREED Apr 24th, 2015 at 2:11 pm

    From HERO to ZERO…

  7. 7 Blackmax Apr 24th, 2015 at 3:58 pm

    T.J. & Jester are spot on
    Sometimes you’re a hero,
    Sometimes you’re a zero !!!!

  8. 8 Steve Hog Radio Show Producer Apr 24th, 2015 at 8:35 pm

    I’m with Mike on this – no one outside the board room knows what is happening other than they closed their doors. As for Hero? 20 mil is small change to this company who looked at EBR as a possible partner and may still be working with him for all anyone knows.

    Some day we may know what really happened until then its all conjecture so until that day arrives I for one wont spend any more time commenting or thinking about it.

    This being my last comment on RBR

  9. 9 Pop Apr 26th, 2015 at 1:04 pm

    1) HERO did nothing to prevent EBR’s closing down despite having invested in EBR

    That would have fallen under mergers and acquisitions. This was an investment partnershp. Not Hero’s obligation and, just throwing darts here, I doubt EBR wanted that intimate a connection either.

    2) HERO then taking all the work EBR did to create a foothold for HERO sales in the US and running with it the minute EBR starting looking like its days were numbered [ in the business and popular vernacular thats known as ; ” The rats jumping ship ” ]
    No, in the monkey house that’s the vernacular. It business that’s called…business.

    3) The end result being …

    a- Its looking more and more like HERO’s sole intent with investing in EBR was to gain a foothold in the US
    Gee, color me amazed.

    b- No more EBR
    Now who could have seen that coming considering the stellar track record of Buell products?

    c- A US market about to be flooded by even more India built substandard motorcycles
    Right. This is a variation on the 70’s warcry that many, me included, bellowed to frame the Japanese motorcycle invasion.We were only half right then, they did endeavor to flood the market, but they were not substandard by any means. The end result was that American motorcycles were compelled to become a more robust and varied entity. If Hero reinvigorates that back and forth, well, don’t you threaten Pop with a good time.

    d- And once again …. the big guns [ HERO ] coming up smelling like a rose … while the rest of us .. from Erik – to his investors/employees etc and right on down to us …. lose out .. smelling more like fertilizer each and every day.
    Really, poor me/ poor us? In almost fifty years of motorcycling I have not spent a penny on a Buell product. I kept abreast of his exploits and certainly applaud his grit. His current state is not cause for celebration for me, but it is not going to mean a hill of beans to my motorcycling future whether EBR or Hero or the moco or Polaris makes a go of it or not. I owned a Gilroy Indian. I know this dance.

    I have some sympathy for the employees that have had the doors shut in their faces. American workers have a dysfunctional relationship with companies. We kid ourselves that loyalty is reciprocal. If (big if) the EBR employees get paid for every hour put in then that’s the deal. Hours work, hours pay. Doors close every day. As for investors… if they see fit to put money into motorsports startups that have an already checkered history and the proverbial wheels fall off, then I’m supposed to feel sorry for them why again? I have to ask because I do not.

    I do agree that there is some difference in how Americans tend to do business compared to how it is done elsewhere. In the case of India, my experience has been that they have some ethics. We have some practices.

  10. 10 Max Frisson Apr 26th, 2015 at 3:23 pm

    This is just the first round of the coming shake up. Look for Triumph to go to Tata, or maybe PII
    look for Ducati to get dropped by VW in the power transfer there and one Japanese brand to disappear.

  11. 11 airboard scooters Oct 7th, 2015 at 12:37 pm

    Hey there I am so glad I found your weblog,
    I really found you by error, while I was looking on Yahoo for something else, Nonetheless I am here now and would just like to say kudos
    for a incredible post and a all round exciting blog (I also love the theme/design), I don’t have time to read through
    it all at the moment but I have book-marked it and also added in your RSS s, so when I
    have time I will be back to read more, Please do keep up the great
    work.

Comments are currently closed.

Socialize

Search

Sponsors


profvest.com/2017/09/oilindex-hyip-otzivi-obzor.html

read more

http://medicaments-24.com