This comes as a shock to the entire motorcycle fraternity. Erik Buell Racing has declared that it is shutting down its operations in the United States. The company has declared bankruptcy and is in the process of laying off 126 employees at its Milwaukee facility.
The American manufacturer said the lack of investments made them do this. The company has a debt of over Rs 125 crore and is seeking Chapter 128 or bankruptcy protection from its creditors. Hero MotoCorp bought a 49.2 per cent stake in EBR for Rs 150 crore, but looks like that wasn’t enough for the company to continue its operations. While the company managed to perform well in racing, it didn’t see good sales with the 1190RX and the 1190SX.
"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," said Erik Buell, founder, Erik Buell Racing.
Over the last few months, Hero MotoCorp has invested heavily in their research and development division. But with EBR going out of business, only time will tell if we will see new and technologically advanced products coming out of Gurgaon-based manufacturer.
