According to a press release from Hero MotorCorp, the U.S. arm of Hero, HMCL (NA), has agreed to purchase 49.2% of Erik Buell Racing for $25 million. HMCL (NA) is said to have transferred $15 million to EBR with the remaining $10 million to be paid within the next nine months. Hero says it will have […]
Erik Buell Racing Secures GE Capital Dealer Financing
Erik Buell Racing has taken a vital big step forward by securing inventory financing from GE Capital. With support from GE Capital’s Commercial Distribution Finance program, Erik Buell Racing can expand its dealer network across the U.S. and sell its new motorcycles such as the 1190 RS.
“As we ramp up our production capabilities and introduce other models, it’s great to know that we have a finance company that can support us as we expand,” says Erik Buell. “I’m pleased that GE Capital, with its decades of experience in the motorsports industry, continues to support emerging manufacturers like EBR.”
Securing short term financing for dealerships is an important step for EBR. With the floorplan financing in place, dealers can now stock EBR motorcycles in showrooms. Otherwise, dealers would either have to buy the inventory outright or face the difficult task of selling a product they don’t have in stock.
“We’re not just bankers, we’re builders,” says Sameer Gaur, the commercial leader of CDF’s motorsports group. “Across businesses and industries, it’s important for us to contribute to the growth of American manufacturers at every stage of their development.”
At the moment, the only model available is the EBR 1190RS but the fledgling manufacturer has three new models in the works, the RX, SX and AX.
[Source: GE Capital]