Erik Buell Racing (EBR), an American motorcycle sport company which manufactures street and racing motorcycles, has closed operations. Two-wheeler giant Hero Motocorp Ltd holds a 49% stake in the company. EBR has also filed for bankruptcy protection from creditors.

Back in 2013, Hero MotoCorp, an Indian motorcycle giant, purchased stake in the company for $30 million. One of the products, New Delhi-based Hero developed in partnership with EBR is a sports bike HX. This product is scheduled to be launched in the second half of this fiscal year.

A Hero spokesperson said, “The Company is confident that its future product line-up would not be affected despite EBR ceasing operations”.

Chief executive Pawan Munjal had said in a 2013 interview that Hero had plans to enter North America and Europe in partnership with EBR and they also had planned to export 1 million two-wheelers by 2017.

It was expected that Hero will use EBR’s distribution network in North America. The two companies intended to sell about 20,000 EBRs by 2017. It has been notified that 1190cc bikes of EBR were sold at $40,000 each. EBR founder Erik Buell was chairman of the company and Hero selected two directors on the board.

Buell is well-known for his engineering skills in motorcycle racing. The company was started back in 1983 to create motorcycles in Wisconsin. Finally, the unit was taken over by Harley-Davidson and distributed the Buell Motorcycle Co. machines through its dealers.

It is expected that Hero’s research and development centre in Rajasthan will begin operations in 2015-16. According to the company, more than 500 engineers will be there from India and around the world. In 2014, Markus Braunsperger from BMW was hired by the company as chief technology officer.