Contrary to the previous report which speculated that world’s largest two wheeler manufacturer (in terms of volume) Hero Motocorp had purchased 100% of its technical partner EBR, both entities went on record to announce that Hero had made a deal with receiver only to purchase assets that are specific to the consulting projects. The remaining assets of the company including the assembly plant in East Troy, Wisconsin, will be auctioned on August 5th.
It’s to be noted that the Indian two wheeler stalwart has been receiving inputs from EBR’s team for the development of its upcoming HX250R fully faired compact sportsbike and an array of future projects including a flagship medium displacement naked sportsbike which was previewed by Hastur 620 concept. By purchasing the assets that are relevant to the technical partnership, Hero would be able to continue with its product development without any setbacks but using EBR as a launchpad for Hero brand in the US now seems unlikely.
As far as EBR’s prospects of springing back to operation is concerned, it hinges on who comes forward as a winning bidder in the auction. The American sportsbike maker is hoping that its defunct status is just temporary and issues would be solved within days of new buyer coming on board.
However, we think Hero’s purchase of assets relevant to its consulting projects may leave EBR with a stunted product development capability.