Posted Jul 26th 2012 8:43AM
Erik Buell Racing has gotten its hands on $20 million from foreign investors in a first step toward starting production on a range of new, affordable bikes. The cash will be used to hire more staff and expand the company's current Milwaukee production facility to 54,000 square feet. Details are skinny at the moment, but Buell says EBR plans to start selling a $20,000 bike in line with the current EBR 1190RS (seen above), though with less hardcore components. That price tag puts the newcomer in the same playground as creations like the Ducati 1199 Panigale and well above the BMW S 1000 RR.
But the stack of cash doesn't mean EBR's plans are set in stone. It reportedly takes around US$100 million to get a startup bike manufacturer off the ground with all of the necessary dealerships and production capability, which means Buell will likely continue to court investors for the foreseeable future.
EBR hasn't disclosed its mystery investor just yet, though the minds at Asphalt & Rubber believe the funds could have come from Hero MotoCorp, an Indian motorcycle manufacturer. The company has made waves about possibly acquiring Erik Buell Racing in the past, and the two motorcycle builders already have a strategic partnership in place.