| Author | Message | ||
     Hughlysses |
As posted previously, everything at www.ebrracewear.com is half off. I did what I could tonight to keep them employed. | ||
| Dmhines |
I ordered some EBR stuff from race wear too. | ||
| Henshao |
In a sort of paradoxical way, fears of EBR's closing is the very reason why many didn't buy them. | ||
| Reepicheep |
You aren't far off. If I don't make omelettes, I'm not going to lecture somebody who does to tell them how they were idiots for trying. If I don't like omelettes, I won't eat them, and I can say I don't like them. But I won't criticize others for trying to make them. The most accurate thing you could say was "If I was racing WSBK, I would have...." then say your piece. Of course your credibility is zero, because you lacked the talent, courage, and resources to race WSBK, so anyone that shows up at the track, even if they grenade the bike as they pull it off the trailer, is far far more accomplished in the matter than you will ever be. So you will have to forgive us if we don't give your criticisms the weight you think they should carry. Go find somebody else's dream to pee on if that's what you need to do to make your self feel good. | ||
| Jon |
They say if your pee is not clear you are not drinking enough water. | ||
| Fresnobuell |
I don't see the 50% off at ebrracewear.com | ||
| Ljm |
Doesn't work until you check out. | ||
| Hughlysses |
Cycle News article on EBR closure starts on page 28: http://cyclenews.uberflip.com/i/498661-cycle-news- 2015-issue-16-april-21 No new information as far as I see. They seem pretty confident Hero will buy EBR. | ||
| Hughlysses |
Here's a brief article from an Indian business newspaper about the closure that includes some interesting legal language:
Source: http://www.equitybulls.com/admin/news2006/news_det .asp?id=158107 Can anyone explain the "Delaware corporation" business? Why would a company in Wisconsin have anything to do with the state of Delaware? Note that there are technically two companies, EBR, Inc. and EBR LLC. Perhaps this ensures Erik keeps the rights to the name "EBR" even if the motorcycle company goes out of business? | ||
| D_adams |
Delaware LLC/Corporations are the norm. I had thought about it myself at one point. It's one of the easier places to set up the business, that's all. | ||
| Hughlysses |
^ Thanks for the clarification, Dean. I figured it was something like that. | ||
| Hughlysses |
BTW- Something occurred to me this morning (this seems like something Court would have asked us): How did EBR manage to get $20M in the hole? Supposedly they were making plenty of money doing outside consulting work. Hopefully that at least paid the engineering staff's salaries for the last ~2 years. If EBR built the 1190's for ~$15k a piece their cost (hopefully less), $20M / $15k = 1333 motorcycles. My WAG is that's about how many they've built. They were supposed to build 1000 1190RX's for WSBK homologation requirements, they probably built a few extra, plus they've built some quantity of 1190SX's. (I realize these numbers are complete conjecture and could be totally wrong.) Clearly I'm leaving a lot of stuff out, but even if they hadn't sold a single motorcycle, it doesn't seem like they could have gotten $20M in the hole.  | ||
| Reepicheep |
How much do you suppose it costs to set up an assembly line? | ||
| Ratbuell |
"Investing" doesn't mean they handed EBR 25m cash and said "go spend it". They contracted/committed to supplying X dollars over Y timeframe. If EBR doesn't produce...daddy yanks the allowance. My suspicion is this is a way for Hero to end up wholly-owning EBR without weighing on Erik's conscience as a "you sold it all" spectre. That, and (I'm sure someone more money-smart than I can elaborate) this may be the most economical avenue for both parties, buyer and seller, tax-wise. Bankruptcy tends to negate or mitigate lots of encumberances. I just hope it all works out for the elves, and for Erik. | ||
| Hughlysses |
Ratbuell- I do remember it wasn't a one-time investment of $25M, now that you mention it. According to this article: http://www.motorcycle-usa.com/576/16566/Motorcycle -Article/Hero-Buys-49-2--Stake-in-Erik-Buell-Racin g.aspx Hero invested $15M initially and then planned to invest $10M more "within the next 9 months" (statement dated ~June 2013). | ||
| Arcticktm |
Motorcycle cost may have been one of their lesser expenses. 126 employees x $45k/yr each (just an average, probably on the low side given many were engineers) x benefits = easily $7-$10 Million/year payroll cost. I think this is pretty conservative. Plus a building, marketing, all the tooling for suppliers plus internal assembly. Tooling up an engine is particularly expensive, and has put many companies over the edge. That's why so many startups buy an engine. Plastic injection molding tooling can also add up pretty quickly, especially for larger parts (body panels). Low volume = high tooling cost built into each bike. Very, very tough business to get into "new" even for someone as experienced as Erik Buell. | ||
| Arcticktm |
tried to buy some ebrracewear items, but the website doesn't seem to work now. You can "add" as many items as you want, but then check your cart and it always shows empty. Perhaps they have to freeze everything while they go through the legal process. | ||
| Lloydxt |
I just bought some EBR Racewear items minutes ago and the site worked fine. | ||
| Buelliedan |
the ebr race wear website is a seperate site so it should be working fine. Let me know if it is not working and I can make a call for you. (Message edited by buelliedan on April 21, 2015) | ||
| Natexlh1000 |
Any idea if the parts and accessories biz will come back? I have been wanting a race ECU for my 2008 XB12X. | ||
| Henshao |
If EBR were wholly Hero owned, then they would simply be Indian bikes made in America and I would probably not buy one. | ||
| Fred_is_not_me |
Natexlh1000, I ordered something the day the EBR site went down. I don't know if my stuff will ship at all... They took my money, though. I ordered the 1125CR rotor. | ||
| Hybridmomentspass |
"If EBR were wholly Hero owned, then they would simply be Indian bikes made in America and I would probably not buy one." Why? If it is the same product, same employees, and, possibly, a better value/lower price, why be so opposed to it? | ||
| Henshao |
The same reason I bought a Buell and not, say, a made-in-America Honda. | ||
| Ferris_von_bueller |
How would EBR suddenly become significantly lower in price simply by being owned 100% by HERO? sell at a loss? use cheaper quality parts? pay the employees less? | ||
| Henshao |
Avoid American business tax. | ||
| Steveford |
I've been going back and forth with this for a bit but after reading some of the earlier articles about the business venture I've made up my mind. I sure hope that Hero doesn't absorb EBR like The Blob. | ||
| Hughlysses |
^ It seems to me that "receivership" may be a move on Erik's part to ensure that doesn't happen, or it could be something else entirely. | ||
| Squish |
Anyone know if Buell/EBR/Hero will be back to selling Buell motorcycle parts? I have an 1125R and am hoping to get the modified rotor (oil hole drilled for better stator cooling), race ECM, solenoid-denoid resistor, carbon-fiber engine guards, etc. I hope I can still get these parts. Anyone know what will happen with Buell's motorcycle parts supply??? I presume someone will take on this part of the business since it is most likely lucrative. Thanks, John | ||
| Court |
Buell will not be selling Buell parts . . . unless the owner, Harley-Davidson, Inc. . . . decides to. EBR will not be selling Buell parts. Hero will not be selling Buell parts. Most the Buell parts are now transferred (I would guess) to Vintage Parts. http://www.vpartsinc.com/partners The business could be lucrative . . . IF you are selling vintage parts for 45 different companies. I suspect there are some good options available. |
