Erik Buell Racing has received a $20 million injection from investors. The increased funding is expected to expand the company’s product line and create about 200 jobs. The investment comes through the somewhat fittingly-named “EB-5” program, a product of the Immigrant Act of 1990 designed to encourage investment in American companies by potential immigrants. Erik […]
Hero MotoCorp Forms Joint Venture with Magneti Marelli
Indian manufacturer Hero MotoCorp is teaming up with electronic fuel injection expert Magneti Marelli in a new joint venture. Hero will hold a 60% share in the company with Magenti Marelli controlling the other 40%. The two companies are initially investing a combined US$8.5 million into the joint venture, with a planned investment of US$27 million total over the next ten years.
The new company, to be called HMC-MM Auto Ltd., will develop new EFI systems for Hero that will help improve performance and fuel efficiency while meeting various emissions standards around the world. The technology will also allow Hero motorcycles to have proper fueling to meet the needs of different climates, altitudes. At the moment, the Karizma ZMR (pictured above) is the only Hero model equipped with fuel injection.
Advanced fuel injecting systems will also allow Hero motorcycles to add other new technologies including ride-by-wire throttle, control, selectable fueling maps and traction control. Hero will also be able to adapt its products for markets such as Brazil where gasoline and ethanol flex-fuel motorcycles are common-place.
“This is one of the most important areas in various technologies involved in making of better fuel-efficient, environment friendly modern engines,” says Pawan Munjal, managing director and chief executive officer of Hero MotoCorp. “Fuel technology has undergone a major shift over the past two decades. The advances in electronics and control technology, which have become smarter and real time, have given a very useful tool in the hands of engine designers to precisely optimize fuel supply for control of output performance, emissions, fuel consumption and usage of certain fuel blends.”
The joint venture is an important step for Hero which intends to increase its presence into other markets including North America where its motorcycles will be distributed by Erik Buell Racing. The deal with Magneti Marelli will be the company’s first joint venture since Hero’s split with former partner Honda.
For Magneti Marelli, the joint venture will see its technology equipped by the world’s biggest motorcycle manufacturer.
“The scope of this agreement is quite significant for Magneti Marelli as our partner in this JV is the world’s largest manufacturer of two-wheelers,” says Eugenio Razelli, CEO, Magneti Marelli. “The aim is to partner with Hero MotoCorp in order to equip with advanced powertrain solutions all Hero motorcycles and scooters, and indeed most two-wheelers circulating in a country where current sales are already close to 15 million units per year. We are also proud to be able to contribute to initiating a technological revolution in favour of sustainable mobility for two-wheeled vehicles as well, in one of the most important markets in the world.”
[Source: Hero MotoCorp]