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The closure of Eric Buell Racing's business operations in the US wont have any impact on Hero MotoCorp's product pipeline.
EBR, which has filed for bankruptcy protection from its creditors, is nearly half owned by the Delhi-based company. The two companies were involved in jointly developing products not just for the Indian market but also for US and European markets.
"The closure of EBR does not impact our future product line-up and launch plans. Most of the projects we were working on with EBR have either been completed or nearing completion", said a spokesperson of Hero MotoCorp.
Hero paid $25 million (Rs 148 crore) in 2013 to buy 49% stake in EBR. Prior to that the two companies worked together for research and development for a year.
When asked if Hero would consider bailing out EBR by buying out the remaining stake, the spokesperson did not rule out the possibility.
"At this point, the receiver will determine the go-forward plan for EBR and no auction has been scheduled. HMCL will evaluate alternatives as the receivership develops", added the spokesperson.
Hero was keen on tapping the technology of EBR to counter the increasing shift of Bajaj Auto and TVS Motors towards high-end bikes. While Bajaj tied up with Austria’s KTM and successfully launched products above 200cc, TVS will follow suit later this year riding on its partnetship with BMW.
