EBR Auction Scheduled For August 5, 2015
The fate of Erik Buell Racing remains in limbo despite having already agreed with Hero Motorcycles to sell of its consulting projects with the Indian motorcycle company for $2.8 million. That represents only a small part of EBR’s overall business so a majority of the company remains without an owner. That will likely change after a new auction date has been set to finally determine the fate of EBR.
The auction for the remaining assets of EBR has been set for August 5, 2015. If the past auction was any indication, the hope is that a buyer will finally buy the entirety of Erik Buell Racing and not break it up piece by piece. The latter scenario occurred when Hero Motorcycles’ bought out its existing tech and development projects with EBR. But what everyone’s waiting for is for the whole EBR pie to be sold so everyone can finally know what’s going to happen to the American motorcycle manufacturer.
There’s no telling what company will step up to the plate to buy Erik Buell Racing. There have been rumors circulating that Polaris Industries, which has a history of quick-trigger acquisitions in the bike industry, will add to its growing list of purchases by buying Erik Buell Racing.
Given how much shopping Polaris has been in over the past few years, it’s not unreasonable to think that the company will make a run for Erik Buell Racing and set it up as its horse in the ever-competitive American sports bike market. Polaris already counts Indian Motorcycles and Brammo as its latest acquisitions. It would definitely make sense for the company to use Indian Motorcycles as its cruiser and tourer platform to complement what it can do with Erik Buell Racing should it win the auction on August 5, 2015.
Nothing will be set in stone until the end of the auction so until then, all we can do is wait and see what will happen once the hammer is slammed.
Continue reading to read more about the new auction date for Erik Buell Racing.
Why it matters
The ongoing saga surrounding the closure and pending sale of Erik Buell Racing has dragged on long enough. Seriously, I don’t know how long it’s going to continue buy I want a resolution on the case as soon as possible. I’m not the only one who has that sentiment too.
A lot of people want to see this issue end because we all want to know what’s going to happen to Erik Buell Racing. Is it going to live on? In another name, perhaps? Maybe a different incarnation? These are just a few questions of the many that people have asked regarding the fate of EBR.
Unfortunately, we won’t have an answer to these questions until after a buyer successfully steps in takes full ownership of Erik Buell Racing. Any company with even the slightest hint of interest should be happy to know that Hero Motorcycles’ acquisition of its shared projects with EBR for $2.8 million dropped the potential cost of buying what remains of EBR. Since that $2.8 million went straight to the company’s creditors, that should cut into EBR’s estimated price of $20 million.
Would that be enough of a bait to entice a company to step in? See, that’s another question! Oh, and while I’m it, how about this one: how long is it going to take for Erik Buell Racing to re-open again, if it ever does?
For now, all these questions lead to the same answer: nobody knows.
The only time we’ll have some clarity is when a company finally steps up to the plate and buys EBR. Hopefully, that answer will arrive on August 5, 2015.
If it doesn’t, well, prepare yourselves for more rounds of speculation in the summer.