Hero MotoCorp inked Pact with Erik Buell Racing of USA

World’s largest two wheeler manufacturer Hero MotoCorp on 22 February 2012 inked a pact with US-based Erik Buell Racing [EBR]. As per the pact the EBR would provide technological assistance to the Hero MotoCorp to develop high speed motorcycles.

Hero MotoCorp which was earlier known as Hero Honda, was separated from Japanese firm Honda in December 2010. In the joint venture the Indian firm was highly dependent on its Japanese partner for technical aspects of business. With the termination of joint venture Hero Honda’s position of the leading two wheeler company was under serious threat, as it did not have the technical expertise. By signing a pact with EBR Hero MotoCorp is aiming at getting the technical edge in developing the high end motorbikes.

Hero MotoCorp was founded in 1983 under a joint venture with the Japanese firm Honda. Under the joint venture Hero group could not export to international markets (except Sri Lanka). Honda owned 26% stake in the joint venture. In December 2012 the joint venture was terminated which led the foundation of Hero MotoCorp.