Posted to German site Speedweek today: Motorcycle Giant Hero Could Easily Save EBR
http://translate.googleusercontent.c...UWqTxXyJQLCGBA
Posted to German site Speedweek today: Motorcycle Giant Hero Could Easily Save EBR
http://translate.googleusercontent.c...UWqTxXyJQLCGBA
I don't know if Hero truly understands how tiny $20 million is compared to the public relations nightmare they could be creating for themselves if they don't handle this right.Originally Posted by Hughlysses
Motorcycles (in the US as opposed to India) aren't logical or rational or practical - they're emotional. Harley Davidson wouldn't exist if that weren't true. Launching an Indian motorcycle in the USA, Europe, Australia etc. will be difficult. Doing it while being known by the motorcycle community as "that Indian company that chewed up Erik Buell, spit him out and then tried to claim his technology as their own" will be 10X harder.
I know that the last thing someone wants to do going into an auction is announce to everybody just how much you want whatever is being auctioned, but in less than two weeks, Hero has squandered all the good will they received after buying into EBR, and unless they make some comments on the whole thing soon, they're going to take on a villainous image that will be hard to come back from.
If, when they start introducing motorcycles to the US market, they can't do so with Erik Buell smiling and standing by their side, they're going to have a very hard time ingratiating themselves to the US motorcycling community.
Last edited by Scott; 04-26-2015 at 01:50 PM.
A short article on Hero with a mention of EBR from this week's Cycle News. I don't know if Hero will acquire EBR, or if they would be free of any responsibility for supporting the existing EBR bikes, but I think if they do, they will rue the day.
I would say, assuming nobody else is interested, they're free to do pretty much whatever they want including walking away.
They could also buy all the technology, take everything to India and start making Hero 1190RX and SX's.
But if they are smart (and I believe they are) and they want to sell motorcycles in the US market, I think they'll buy the company and get it back up and running as a US entity. They'll keep the EBR name, they'll hire Erik Buell (even if only as a symbolic spokesperson) and they'll honor all warranties and make a big effort to make current owners, dealers and suppliers happy.
IMO the public relations and image issues (and dealer network) are more important to selling motorcycles in the US than the actual motorcycles (at least until they've been here for a while and have a product reputation that can stand on its own. I believe they have every legal right to turn their backs on all involved, but that won't help them sell motorcycles.
I had mentioned, somewhat jokingly, a while back that Harley could buy EBR, but I've been starting to think a little more about that.
Does anybody know anything about this Matt Levatich who will be taking over in a few days? I know that when Harley cut Buell loose, there was a split in Harley management and some were friends and fans of Erik, while others had issues with him. Does anyone know if Levatich was friend or foe?
One thing I know about Levatich is that he headed the MV Augusta effort. Does that mean he butted heads with Erik, or does it mean they were kindred spirits? Does it mean that Levatich was soured on the idea of sport-bikes, or, like Erik, did he realize the potential but wasn't given the resources to see it through? We saw that after Harley sold them, MV unveiled some very nice bikes that, presumably, were being developed under Levatich.
Will Levatich want to make his stamp and show that he has a vision for the future of the company? Does he realize that somewhat drastic action might be required to compete with the juggernaut Polaris is assembling? Could EBR make a lot of sense to accomplish some of the goals Harley should have at this point?
And does Harley realize that they'd much rather have EBR as a part of their company rather than a competitor? And let's not forget about the simple proximity and history (including dealers and people currently working at Harley who were a big part of Buell).
The more I think about it, the less crazy it seems that Harley could have some interest here. EBR is a much different company than Buell was when they cut them and could operate as a more independent entity than they had in the past - to the mutual benefit of both Harley and EBR (EBR could even keep their non-Harley dealers if Harley does it right, but Harley dealers could also have the option if they really want it and would invest to do it right). I think Harley should at least be considering the possibilities.
And since Harley owns the Buell name, they could go back to simply 'Buell' if they decide they want to.
Last edited by Scott; 04-28-2015 at 09:13 AM.
Wow, wouldn't that be just the wild ride if EBR returned to Harley.
Wandel, the former Harley CEO, hated sport bikes and saw no reason for them to exist. There's little doubt that entered into the Buell shutdown.
Yea, Wandel came from Johnson Controls prior to joining Harley, and had NO motorcycle background whatsoever.
Which was probably fine for Harley, considering most of their business isn't making motorcycles.
In that case, I'm surprised Wandell didn't stop motorcycle production altogether so they could focus on their core business of selling Harley branded paraphernalia.
I found this piece which has one tidbit of interesting info: http://www.mccormick.northwestern.ed...-levatich.html
That sounds at least hopeful. The guy has a degree in mechanical engineering in addition to his business credentials and according to his entry on HD's website, he's ridden since he was 8.Harley-Davidson’s management rotation exposed him to manufacturing, strategic planning, project management, and, finally, international marketing at Harley’s European headquarters in England. While there, he helped launch the Buell brand, a racing-inspired motorcycle line, and became director of sales for the company’s distributor markets in Europe, the Middle East, and Africa.
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