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The American Technical partner of the Hero Motocorp, the Erik Buell Racing, has recently filed Cahpter 128; Wisconsin's bankruptcy. The American sports motorcycle manufacturer has dismissed its operations; reportedly abolishing 126 employees from its Milwaukee based factory. Earlier to that, the brand has tied up with the Indian two-wheeler giant Hero Motocorp, in order to rescue from being converted into ashes. But, unfortunately everything goes down and the EBR shuts its door of the factory, its website and start roaming around the court for its protection.
According to the Milwaukee Journal Sentinel, the EBR has more than USD 20 millions in its outstanding debts. The American firm has partnered with the Hero Motocorp since February, 2012 and moving onwards, the Indian firm has purchased around 49 percent of stakes in EBR. The 49 percent of stakes cost USD 25 million (around Rs 155 Crore). For the Hero Motocrop, the EBR is a route to enter into the North America and European two-wheeler market. The Indian firm is effectively using its dealer networks to sell its products in North America. And, the EBR is also technically assisting the Hero Motocorp for its high-end sports motorcycles, which are yet to come in the Indian market.
Buell says, "The turn we recently took, after we thought we were moving forward, was unexpected. We thought we had secured funding, but in the end, we were not able to get the funding in place. Therefore we need to do the best we can under the circumstances for all parties in interest. To say this setback is a disappointment does not begin to express what I feel right now. I am personally grateful for the support of our outstanding workers, customers and vendors. While this is a sad ending, I personally hope for a new and better beginning."
The product range offered by the EBR includes majorly sports motorcycles, such as 1190RX and 1190 SX. We will definitely look further for the R&D of these under-development products soon to be launched by the Hero Motocorp.
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