US-based Erik Buell Racing (EBR), in which Hero MotoCorp holds 49% stake, has announced a closure of operations.
“Erik Buell Racing LLC, a limited liability company organised in Wisconsin has filed an Assignment for Benefit of Creditors under Chapter 128 of the Wisconsin Statutes, which is similar to the federal bankruptcy law of the United States of America. Both EBR and EBR LLC have also ceased to undertake any operations”, a note from Hero stated.
According to a the Milwaukee Wisconsin Journal Sentinel, the once Harley Davidson-owned company, with 126 emmployees, has about $20 million in outstanding liabilities.
The Munjal-family controlled Hero Motocorp had bought stake in EBR primarily to benefit from its rich research and development platform to make high-performance bikes suitable to the Indian market.
Hero banked on EBR skills to push growth in the premium (above 200cc) segment to challenge Bajaj Auto, Honda and TVS Motors. While Bajaj Auto teamed up with Austria’s KTM, TVS has a tie-up with Germany’s BMW to produce high-end bikes.
“Hero MotoCorp, with strong in-house R&D capabilities, remains confident that its future product line-up would not be affected despite EBR ceasing operations”, added the Hero release.
