Let’s play a game for a minute. Who is the third largest motorcycle manufacturer in the world? One of the Big Four maybe (Honda, Kawasaki, Suzuki, & Yamaha), that is after all what their name implies, right? Maybe you think it is a European manufacturer, like BMW or Triumph? If these were any of your answers, thank you for playing, but please try again.
Seeing its 27-year-long joint-venture with Honda come to an end last year, Hero MotoCorp has been picking up technology partners with an intense pace. With its 2014 rapidly approaching, Hero already counts Erik Buell Racing as one of its technical partners (as well as a potential acquisition target), and now Hero has now announced that the Austrian engineering design firm AVL will help the Indian company with a new range of larger-dipslacement motorcycle motors.
The move towards larger displacement engines is surely a sign that Hero MotoCorp has its eye on the export market, as it already accounts one of every two motorcycles sold in India. Surely seeing the work that rival Bajaj has done with KTM and the Duke series of motorcycle, we can expect Hero to go after a similar position in Europe, with even larger models for the American market.
Two weeks and two separate rumors about Hero MotoCorp’s acquisition warpath. Last week the Indian motorcycle manufacturer was said to be eyeing a minority equity stake in Erik Buell Racing. Having already hired the American sport bike maker to help innovate on some of Hero’s upcoming small displacement machines, the two companies sweetened the deal with Hero becoming the title sponsor to EBR’s AMA Pro Superbike racing effort.
This week the spotlight shines on Ducati Motor Holding, which has quietly been for sale for almost a year now. Originally wooing an acquisition from Mercedes-Benz, the Italian motorcycle manufacturer has been linked to a variety of other companies, as well as a public offering on an Asian stock index. With our sources telling us that Ducati has been trimming the fat from its books in order to make its earnings more attractive, Hero MotoCorp is the latest potential buyer to enter the fray and to talk to bankers about a Ducati acquisition.
While we have been expecting Erik Buell Racing to join forces with a larger company at some point this year, today it comes as a bit of surprise to learn that EBR has partnered with Hero MotoCorp. The deal sees Hero becoming the title sponsor for two teams in the AMA Pro Racing National Guard Superbikes Championship — Team Hero and AMSOIL Hero, while Erik Buell Racing will give Hero design and technology inputs for bikes destined for the Indian market.
In practicality, this partnership would seem to suggest that Erik Buell Racing will help Hero MotoCorp, a company recently freed/dumped from its partnership with Honda, build sporty two-wheelers for the Indian motorcycle market, while the cash-infused Indian manufacturer will help the boutique American sport bike maker continue to go racing in the United States. This news also puts Danny Eslick on the Team Hero EBR 1190RS for the 2012 season, while Geoff May will continue with the AMSOIL Hero EBR 1190RS. Thanks for the tip Kevin!