Hero MotoCorp will buy a minority stake in US motorcycle firm Erik Buell Racing (EBR) for an undisclosed amount. The company just a couple of days back had announced its strategic partnership with Erik Buell Racing (EBR) of the US.
The partnership will help the company support in terms of cutting-edge technology and design to develop future models from EBR.
Erik Buell Racing specializes in designing and manufacturing powerful and high-speed motorcycles.
“We have a flexible free-flowing pact with EBR, which would be developed into a equity partnership,” Hero MotoCorp MD and CEO Pawan Munjal said. The move is aimed at securing uninterrupted technological support from the US racing motorcycle maker once associated with iconic brand Harley-Davidson.
After Hero parted ways with Japanese major Honda, its partner for 27 years, last year, industry watchers had identified lack of cutting-edge technology as the biggest challenge for the Indian firm to hold on to its leadership position in the market. By buying a stake, Hero can have a higher say in the US marquee firm and use the partnership to get a foothold in overseas markets. As we turn global, which is our long cherished aim, EBR is a strategic fit that will help us gain traction in overseas markets,” Munjal said.
“We would look forward to have both technological alliance and partnership with Hero Moto-Corp in the future,” EBR chief promoter Erik Buell said, adding, “A marriage would lead to huge synergies in the long-term.” EBR has an annual capacity of 15,000 units. Hero has not ruled out more such partnerships.
So could we soon have superbikes under the Hero Brand?