Indian manufacturer Hero buys 49.2% of Erik Buell Racing
The total amount for Hero to pay will be $25m. About $15m has already paid while the remaining $10m will be invested by the end of this fiscal year.
Hero MotoCorp has to upgrade its R&D capability soon, after its split with Honda which is the motive behind the new partnership.
Hero MotoCorp is India¢s largest two wheel manufacturer by volume, interested also in collaborating with, or acquiring Eric Buell Racing. The American company had some difficult time after the closing of Buell motorcycles by Harley Davidson in October 2009.
Over the last months the strategy of the collaboration between the two companies has been clarified. Hero is to enter the racing world by sponsoring two teams in the US AMA Pro Road Racing Championship.
The bikes will be the latest EBR 1190 RS street-spec Superbikes. Eric Buell Racing has received some $20m funding these days, probably form the Hero MotoCorp. The photos show the EBR 1190 RS.
Hero MotorCorp is planning to introduce a single cylinder 250 c.c. sporty street bike which will be launched in two years time and will compete with Ktm-Bajaj Duke 200, Honda CBR 250 and Kawasaki ninja 250.
The bike will also be exported to foreign countries. Eric Buell Racing will provide technical support at the design and development of the new bike.