Hero Motocorp's technology partner Erik Buell Racing files for bankruptcy!


 Erik Buell Racing 1190RS

In a dramatic move, American motorcycle company Erik Buell Racing has closed down all operations and has filed for bankruptcy. This move has impacted Hero’s share price which fell by over 4%.

Hero Motocorp acquired a substantial stake (about 49.2%) in the American company recently. According to the terms of the partnership, EBR-Hero had plans to sell Hero Motocorp bikes and scooters in United States two-wheeler market. Also Hero Motocorp was to receive technology and design support for its future models. However, Hero Motocorp is confident that this break up would not affect the R&D division of the company.

Erik Buell has issued a statement saying that the company was unable to secure funding and as a result, they had to shut down all operations. The move has left Erik Buell Racing’s 100+ employees out of work.

Stay tuned for more information on this topic.


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