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Buell gone again...

Discussion in 'General Motorcycling Discussion' started by NetriderBot, Apr 16, 2015.

  1. In sad but not completely surprising news to those in the industry, Wisconsin based motorcycle manufacturer Erik Buell Racing has ceased operations as of today. Even their website has been taken offline. The story has broken from the Milwaukee Journal Sentinel which stated that the company has also filed for court protection from its creditors with attorney Michael S. Polsky acting as the receiver.

    “The turn we recently took, after we thought we were moving forward, was unexpected. We thought we had secured funding, but in the end, we were not able to get the funding in place. Therefore we need to do the best we can under the circumstances for all parties in interest,” Buell said in a statement.

    The company is closed for now, Buell said, and is seeking protection under a state statute which is similar to federal bankruptcy law. Bids will be solicited for the company as part of the Chapter 128 process, with the winning bid to be determined by the court.

    “To say this setback is a disappointment does not begin to express what I feel right now. I am personally grateful for the support of our outstanding workers, customers and vendors. While this is a sad ending, I personally hope for a new and better beginning,” Buell said.

    Buell has had a colorful history in recent times. After being owned and then dropped by Harley-Davidson in 2009 (after over a decade of partnership), Buell came back with Erik Buell Racing which initially produced race-only motorcycles and parts based on the Buell 1125R production model, under license from Harley-Davidson. That was followed in 2013 with EBR’s first production model, the 1190RX (reviewed here) and later the naked 1190SX.

    Things were actually looking positive for EBR, especially after an investment of $25 million by Indian motorcycle giant Hero Motocorp in 2013, which would see EBR help develop higher end motorcycles for Hero while distributing Hero motorcycles and scooters in North America.

    Given that EBR has been unable to secure further funding, that relationship would appear to have ended, at least for now. Erik Buell Racing’s problems no doubt have stemmed from lack of sales. While the 1190RX and 1190SX are great bikes, they’re expensive in comparison to the competition, relying on jingoism and national pride to entice consumers to buy an American made sportsbike. Patriotism might work for Harley-Davidson but it hasn’t worked here.

    Given their desire to expand into western markets, we wouldn’t be surprised if Hero Motocorp takes a serious look at buying the assets of EBR – whether Erik Buell has a future in the industry however remains to be seen.


    The post Erik Buell Racing Files For Bankruptcy appeared first on TheRideAdvice.com.

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  2. Don't know about that, they are saying the funding they thought was secured didn't come through, Hero would be their biggest investor... adding that up I assume Hero pulled out when the sales didn't come through. Could be right though...
  3. Funding any business on debt is risky, doubly so when facing stiff opposition...
  4. Missed that one... Yes, but there's not really any other way to do it for such a business. Tooling, R&D, wages, there's heaps to do before you even start production & start making money.
    • Agree Agree x 1
  5. All good, threads merged for continuity.
  6. Walked by a dealership in my neighbourhood yesterday and noticed all the EBR bikes gone from the showroom with just entry space where they were. Thought that was a bit strange.
  7. Either stock recovered by the bankruptcy administrators or put aside until sales conditions are resolved would be my guess.
  8. Eric Buell has had a tough run, no chance of a bail out?
  9. Well, I think his problem is neatly summed up in the article; people will buy an American bike for patriotic reasons, but not when it costs twice as much as the other American bike.....
    Still sad, diversity is the essence of life...
  10. hope he gets bailed out again good looking bikes with a great sound
  11. The world needs more people like Eric Buell and Soichiro Honda.

    Engineers first and foremost who move their world along with innovative designs.
  12. That's sad I enjoyed the variety they brought to the superbikes

    Attached Files:

  13. Personally I think they lost their way when they stopped using Harley Sportster motors (I know that wasn't entirely by choice).
  14. So just walked pass the local dealer to pick up some pizza and saw the the EBR's back on showroom display having disappeared 2 days ago.
    Thought that was interesting.
  15. I expect they took 'em off the floor while they sent a query up the chain, and have now had the situation (as it relates to them) clarified.
  16. It's a shame because they're a fun bike to ride. And they have a press launch scheduled next week in Sydney for the 1190SX which is still going ahead
  17. Its a pity that Eric's second go at cracking the spotsbike market has again failed. The first time around he was bought out by Harley, who subsequently decided it didn't understand how to sell sportsbikes and in the GFC decided it was just easier to shut Buell down and give Eric a non compete clause. the EBR bikes were again interesting, but a lack of success on the racetrack probably didn't help.

    Eric probably just needs to work for someone else whilst developing his radical ideas under a different name - the Harley Superbike (yes, there was one - VR1000 - google it) was from memory an Eric Buell chassis.
  18. Or to put it more succinctly - Eric was completely fcuked over by HD.