| Author | Message | ||
     Hughlysses |
Yea, that was me. I posted a similar comment this morning on one of the stories about their profits being down 14%. | ||
| Mr_grumpy |
I recently stumbled across this, can't find a link to authenticate it though. In an interview with staff writer Alfred E Neuman, from Motorcycle And Dip*hit magazine, industry outsider Mr G Rumpy said, "I haven't a f*****g clue what's going on or who's to blame." When pressed by MAD's journalist for more details he expanded "Many people in this sad situation think they know more than they really know, but what they think they really know isn't in actual fact what they know but what they think they know from extrapolated information obtained from the internet. We can guess what we think those in the know really know, but we can't know what they know, only they know and they're not telling." A telling point I'm sure you'll all agree. | ||
| Fast1075 |
When I was 6 years old, my dad took me to a motorcycle race. It as a clay short track. On that day, I knew I wanted to ride a motorcycle. My first was a Honda 90. The day after I graduated from High School, I walked into the Honda shop and announced that I would be the next new mechanic. I worked there until economic downturn forced me to leave and pursue a different career. (economic downturn of 1975). I bought my first Buell (a Blast) a few years ago, then bought an XB12s. I am a dyed in the wool fan of small bikes, and waited anxiously for news of a "small" Buell, then a "small" EBR. Things have gone full circle with the final demise of EBR. If Erik starts over, I, quite frankly will be too old for that, by then. I recently took ownership in a Honda PCX, and look to add a 300 to the fleet this summer. I took my old scrap book to the Honda shop last weekend. It is now owned by the third owner since way back then. I sure wanted a 450 Rotax powered XB-like bike. Never to be, sad. Remember the days when hard core Harley guys burned Hondas? I want to see a Hero roasted. | ||
| Hughlysses |
Another bit of info on Hero's Q4 losses:
Source: http://www.business-standard.com/article/markets/s ensex-reclaims-27-000-rate-sensitives-gain-1150508 00310_1.html Hopefully a Badwebber (Ft_bstrd?) can clarify this. Hero supposedly bought 49.2% of EBR a couple of years ago. I'm guessing this "one-time impairment payment" wasn't money actually spent this quarter; they're just writing off their previous $25M investment in EBR and considering it lost. Here's another article that words it slightly differently:
http://profit.ndtv.com/news/market/article-hero-motocorp-falls-on-disappointing-march-quarter-numbers-761397 So it seems Hero's 14% loss this quarter is largely because they wrote off the $25M they invested in EBR a couple of years ago as being lost.  (Message edited by Hughlysses on May 08, 2015) | ||
| Steveford |
Something is kind of screwy: Why would you: Invest $25 million (or perhaps $15 million with a promise to pay another $10 million later on) in a company in a market that you wish to break into Commission $20 million worth of work Refuse to pay for the work Let the company go into Receivership and write off the loss and then Announce that you plan to manufacture motorcycles in the US? There's a big block of information that is missing. Either there was a falling out between EBR and Hero that we don't know about or Hero got the information they were after and threw away EBR because being a minority shareholder didn't fit into their plans. (Message edited by SteveFord on May 08, 2015) | ||
| Mr_grumpy |
There's a big block of information that is missing. Several I'd say. | ||
| Hughlysses |
No doubt. Hero's stock price has also taken a hell of a hit over all this. | ||
| Hootowl |
"wrote off" doesn't mean they lost it. It means they deducted it from their net profits for tax purposes. Just like you "write off" your mortgage interest. | ||
| Fast1075 |
It's called ruthlessness. I'll bet Hero got what they wanted, then told Erik to go piss up a rope. Or Erik got screwed and told them to go piss up a rope. | ||
| Hughlysses |
"wrote off" doesn't mean they lost it. It means they deducted it from their net profits for tax purposes. Just like you "write off" your mortgage interest. Yes, I understand. The fact that they wrote it off would seem to indicate they've completely lost interest in any further association with EBR and won't attempt to acquire it from receivership. | ||
| Steveford |
I know what it means to write off a business loss (I was self employed for many years). Getting 13 bike designs and the knowledge of how the North American motorcycle business works would be worth taking some short term lumps. Eventually the story will come out but I can't help but wonder if there's more to it than what basically amounts to industrial espionage. I don't believe that anyone has mentioned Return On Investment. That's assuming that Hero was operating in good faith, of course. Oh well, enough pointless speculation from me. | ||
| Davegess |
IT sounds more and more like a nasty plan. Lets hope someone steps in toby the company our of receivership and keeps those designs away from Hero. Honda might interested in Hero not having new bike designs  And if the think that ANYONE who worked for Erik would ever work for them they are smoking some very funny weed. The EBR crew would design baby strollers before they would work for these jokers. | ||
| Hughlysses |
It's just wacky that Hero would apparently self-inflict such a huge hit on their stock value. I'm guessing they lost considerably more than the $20M they apparently "saved" by not paying EBR. | ||
| Gobadgers |
Wonder if Hero paid for the patent assignments? http://www.badweatherbikers.com/buell/messages/253 912/755120.html?1420564057 | ||
| Court |
One significant, long term, cost to HERO is trust and integrity ...... Precisely what Erik Buell could uniquely bring like no other living soul in motorcycling. If already planned to buy a couple low end HERO bikes for fun. I would take a dump on one in a parking lot at this point. I find it laughable that HERO has, today, announced their bold "Take on the USA" marketing plan. I will write any dealer in my area and let them know, if they associate with HERO, I wouldn't so much as air my tires there. I doubt HERO understand ...... As we Jarheads used to say ......'they shit in their own mess kit" (Wolfie will get it) | ||
| Hughlysses |
Interesting- a couple of guys at www.ebrforum.com report that www.ebr.com was working again around midnight last night. It's not working this morning. | ||
| Dave |
Some links appear to be working. https://www.erikbuellracing.com/motorcycles/1190SX -2/ DAve | ||
| Hughlysses |
^ Thanks for that. I downloaded ALL the wallpapers and all the SX photos while it's still up. It seems many of the pages are mostly working. | ||
| Steveford |
What do you know, my comment was approved and is up (at least for a few minutes): http://www.business-standard.com/content/b2b-manuf acturing-industry/hero-motocorp-to-set-up-subsidia ry-in-us-115050800741_1.html | ||
| Hughlysses |
^  | ||
| Dave |
Careers too... :-( | ||
| Hughlysses |
Apparently Hero has indicated they'll produce the Hastur shortly: http://www.indiancarsbikes.in/motorcycles/hero-has tur-600cc-streetbike-project-almost-complete-11859 6/ It'll be interesting to see if they can actually successfully build these EBR-designed bikes. | ||
| Finedaddy1 |
So when is all the legal mumbo jumbo over with? I'd like to see the Ragged Edge get more exposure and maybe someone with deep pockets see it and possibly give support. Having said that, it's sad that a foreign company has to come in and help support an American business like those bastards at hero did. EBR just can't end like this, I want to see those workers in East Troy go back to work and building innovating bikes for the masses. | ||
| Hughlysses |
So when is all the legal mumbo jumbo over with? EBR owners received a letter from Attorney Michael Polsky (the "receiver") last month that includes this statement: "All creditors of EBR are required by Order of the Court entered in these proceedings to file their verified claims with the Honorable Phillip A. Koss, Walworth County Courthouse, 1800 County Road NN, Elkhart, Wisconsin 53121, on or before July 22, 2015. Those failing to timely file their claim with the Court will be precluded from participating in any dividend in this matter." (You can see a scan of one of the letters in the EBR sub-forum.) Based on that, I'd guess the soonest anything official can happen is sometime after 22 July. I guess they have to figure out exactly how much EBR owes before they can move to the next step of hopefully actually selling the company. | ||
| Stevel |
H-, Is it not the case, that when EBR's assets are calculated would the Hero unpaid services bill not be counted as an asset? If so, how collectible would that debt be? | ||
| Hughlysses |
Steve- I would think so. It would seem if EBR has documentation to back that up (and I'd sure think they do) they can take legal action, which might be especially problematic for Hero if they follow through with their announcement to enter the US. | ||
| Ft_bstrd |
Unpaid invoices for services rendered should appear as an Accounts Receivable on the balance sheet of EBR. It is still owed to EBR by HERO. Now that said, Hero owns 49% of EBR, so does that mean that Hero owes 49% of the $20M to itself? | ||
| Ljm |
If I were to continue my wild-a$$ed guessing, some potential accounting gyrations COULD occur, with Hero owing nothing to EBR, and EBR not being owned in any part by Hero. An accounting divorce, leaving the assets of the company up for sale with the liabilities to be accounted for by July 22. Say, 25 million or so. Asset value TBD. | ||
| Hughlysses |
Now that said, Hero owns 49% of EBR, so does that mean that Hero owes 49% of the $20M to itself? Ft_bstrd- since Hero wrote $25M off of their income this year as a "one-time impairment payment" (see posts above), does that mean they no longer claim to own 49% of EBR? | ||
| Ft_bstrd |
One-time impairment charges are associated with the writing off of goodwill that no longer has any value. In this case, I don't know that it affects ownership of EBR but is more an instrument of tax reduction and balance sheet reconciliation. Legally I think Hero still owns 49%. |
