American Motorcycle Dealer AMD 169 August 2013

™ T H E O N LY M A G A Z I N E F O R T H E W O R L D W I D E V- T W I N PA R T S , A C C E S S O RY A N D P E R F O R M A N C E I N D U S T RY World's largest motorcycle manufacturer takes 49.2 percent stake in Erik Buell Racing AVING embarked on what was termed a "strategic alliance" some 18 moths ago, the ties between Erik Buell's post HarleyDavidson enterprise (EBR/Erik Buell Racing) and Indian motorcycle manufacturing giant Hero MotoCorp have deepened. In what is described as their first ever equity partnership with an overseas company, Hero has taken a 49.2 percent stake in the share capital of Troy, Wisconsin based EBR, in return for a $25m investment. Hero, the world's largest motorcycle and powered two wheeler (PTW) manufacturer by volume, are targeting total annual sales of 10m units in the next few years, and are making the EBR investment through their newlyincorporated and wholly owned American subsidiary HMCL (NA). When their initial relationship with Erik Buell was unveiled, Hero make no secret that it was looking to add design and engineering pedigree that AUG 2013 SHOWZONE ISSUE #169 H would allow it to become a player on the global, and in particular North American and European large displacement stage, with ambitions to enter several key motorcycle segments with a number of platforms. Mr Pawan Munjal, Managing Director and Chief Executive Officer of Hero in India said of the EBR deal that the equity partnership is "reflective of our long-term vision of transforming Hero MotoCorp to a truly global twowheeler major with footprints spread across continents, offering a wide range of technologically-advanced two-wheelers." He went on to say that this was "a natural extension of our existing relationship with EBR, which is going to further strengthen our strategic alliance. "As we go on spreading our footprint in new international markets, we will look at having extended centers of our own R&D at multiple locations around the world, developing two-wheelers for our global customers. "Our evolving relationship with EBR is an initiative in that direction." In addition to its new subsidiary in the United States the company has also recently established a European business in The Netherlands. Hero will now have two directors and one observer on the board of EBR, but the company says that there "will be no organizational changes at EBR" and that "Mr. Erik Buell will continue to be its Chairman and CEO." At present EBR is noted for its limited number production of the acclaimed and multi award winning 1190RS - an aluminum-framed liquidcooled v-twin 1190RS superbike that Buell launched in 2011. Weighing in at under 400 lbs, the 1190 RS retails for $39,999 and up, and delivers 175hp from its 72.6 cu. in/1190cc powerplant - an engine which is basically a bored-out Buell design based on the Continued in this months Bradley Report. See page 12 >>> 4.pdf 4 07/03/2013 13:33:37 C M Y CM MY CY CMY K COMPANY FEATURE PRODUCTS After running Tribute to Hagakure on the salt flats of Bonneville, Laurent Dutruel took second place in the Freestyle class at the 2013 World Championship with the same bike