Hero's Former Partner Eric Buell Racing Set for Auction Yet Again

Eric Buell Racing was set up after Buell Motorcycle Company, the maker of high-performance bikes, was dropped by owner Harley-Davidson in 2009, after more than a decade of ownership. Eric Buell Racing was started by company founder Eric Buell.

The world's largest two wheeler manufacturer, Hero MotoCorp, acquired 49.2 per cent stake for $25 million in Eric Buell Racing in 2013, before the company filed for receivership earlier this year. Part of that investment was also to develop bikes and technology for Hero MotoCorp. As part of a settlement in July this year, Hero MotoCorp purchased Eric Buell Racing's consulting work, which included projects EBR was executing for Hero, for $2.8 million.

Around the same time, Bruce Belfer, a motorcycle enthusiast and owner of several companies, agreed to purchase the manufacturing assets of EBR. However, the sale of the manufacturing assets went back to court after another auction, because problems with the first settlement prevented Belfer from securing finances to capitalize the business and close the deal.

Now, it seems problems with the beleaguered EBR are far from over. Buell's most recent bike, the EBR 1190RX received critical acclaim and interest in the market before the company shut down. Buell bikes are known for their racetrack victories against some of the world's largest motorcycle manufacturers. In 2014, the EBR 1190RX won all four races on debut at the National BEARS class at the Pirelli Road Race Series on Australia's Phillip Island. Independent teams are reportedly still competing with EBR sportbikes in the racing scene. In the US though, dealers are wary of doing business or stocking Eric Buell Bikes again, losing confidence in the brand and the company.

What EBR offered Hero MotoCorp was access to technology to make high-performance motorcycles, a stake and playing field in the World Superbike Championship, and also a network in the US and Europe. It remains to be seen, what Hero has been able to salvage from the consulting work EBR was doing for Hero MotoCorp.

In January 2016, Hero is all set to showcase its new R&D and technological centre in Jaipur, reportedly housing over 600 engineers from India and around the world. And Hero MotoCorp already has hired big names, roping in Markus Braunsperger from BMW as Chief Technology Officer and Markus Feichtner from Austrian engine maker AVL for Hero engine design and development. Whether the HX250R project, reportedly developed with EBR, will be completed and presented in India, remains to be seen.