Hot of the wires this morning is news that Erik Buell Racing has just secured $20 million in foreign capital. ”The funding will allow the motorcycle company to design and produce additional models of street bikes and to expand its exports,” stated FirstPathway, the investment bank which handled the funding. ”The next step is to build a much more affordable motorcycle,” states Erik.
Photo: Grant Ray
“It’s very exciting actually to start over again,” continues Erik. “I really appreciate the opportunity we had with the old company because we got a lot of fans, made quite a few motorcycles, sold them worldwide, and we also learned a lot. Now, getting a fresh start where we can be kind of independent and very much focused on the sport bike customer is a real breakthrough for me and the team here.”
According to reports, EBR will expand its existing production facility and create up to 200 new jobs. The company’s sole model, the EBR 1190RS, costs over $40,000. EBR is now going to aim to create new products in the $20,000 price range, taking rivals like the Ducati 1199 Panigale head on.
That $20 million may sound like a lot to you and me, but increasing staff to 200 and ramping up production is going to cost far more in the long run. We’ve heard through anonymous sources that EBR is already seeking additional financing.