Its not a new news that the Indian biggie, Hero MotoCorp is entering into a strategic tie up with the US motorcycle firm Erik Buell Racing (EBR) after parting their ways with the long time partner Honda two wheelers. To stay alive and to retain their leadership in the market, the Hero MotoCorp is looking forward to this US based company for latest technologies and innovations.
Hero MotoCorp will buy a minority stake in US motorcycle firm Erik Buell Racing (EBR) for an undisclosed amount, and thereby enter into a strategic partnership which is expected to be fruitful for both the companies. The company officials refused to give the financial details of this historic deal which will enable Hero MotoCorp to get renowned globally.
"We have a flexible free-flowing pact with EBR, which would be developed into an equity partnership." said Mr. Pawan Minjal, MD and CEO of Hero MotoCorp. The move is aimed at securing uninterrupted technological support from the US racing motorcycle maker once associated with iconic brand Harley-Davidson.
It was reported that by buying a stake, Hero can have a higher say in the US marquee firm and use the partnership to get a foothold in overseas markets. "As we turn global, which is our long cherished aim, EBR is a strategic fit that will help us gain traction in overseas markets," Munjal said.