Hero MotoCorp`s Technical Partner Erick Buell Racing files for bankruptcy
We`ve heard of business empires shutting down due to inadequate funds and this is exactly what happened with American motorcycle manufacturer, Erik Buell Racing (EBR), co-owned by Hero MotoCorp. EBR has declared bankruptcy and is seeking court protection from its creditors to which it owes around $20 million.
Eric Buell Racing was basically formed after the Harley Davidson group dropped the Buel Motorcycle Company during the year 2009. Hero thereafter, joined hands in partnership to increase their technical skills after it dropped its JV with Honda.
The Company’s founder, Erik Buell when asked, clearly stated that they thought they would be able to get the funding, but at the end, the story turned out to be something else. In such a situation, this is the best decision they could take in the interest of everyone. EBR is very thankful for all the cooperation and support from their workers, customers and the vendors they dealt with. A truly sad ending where they have no words to express the deep pain within but even being in this situation, Erik is still hopeful and prays for a better new beginning again.
Hero MotoCorp, on the other hand, clearly stated that the ceasing of the operations by EBR would have no diverse effect on Hero’s future product plans. Hero is quite optimistic, as they will always have the opportunity to re-hire Erick Buell to work on any of their projects. Secondly, its R&D will not be affected, as their internal R&D team is confident and skilled to satisfy the needs and demands. In fact, Hero’s Centre for Global Innovation, Research & Design is going to commence its operations at the Kukas located on the outskirts of Jaipur (Rajasthan) in the financial year 2015-16. It is said that this new centre will incorporate around 600 engineers from India.