Serotta lays off 40% of workforce, planning shutdown

[firerescuefin]

Originally Posted by dd74

They correlate very closely. In both instances, a larger company owns and potentially funds (or not) a smaller more boutique brand. The Buell and Serotta situations almost mirror each other.

Production and Supply Chain issues are exponentially less/more complex...Ben and Bill could scale back tomorrow...you just can re-open a mass production line of motorcycles.

[dd74]

Originally Posted by christian

I don't think you've been paying attention.

Uh huh, and the sales?

[eddief]

but it does look as if Buell will come back:

India's Hero Motorcorp has taken a 49.2-percent stake in Erik Buell Racing at cost of $25 million; $15 million of that is in immediate investment, the remaining $10 million to come over the next nine months. The two companies formalized a partnership in February last year, when Hero sponsored EBR's two bikes in the AMA Pro Racing series and Buell sent engineers to India to help Hero develop new products.

Things have apparently worked out, the equity stake representing Hero's faith in its partner. Until 2010, Hero was the Indian JV partner of Honda; it was known as Hero Honda and was the leader in the Indian market. But when the Japanese company divested its share after 27 years together, Hero needed to find a partner that could help it maintain its tech edge. Now that it can call its own shots it is also able to export its products, something it couldn't do when it was with Honda, and it will want offerings that can compete globally.

The investment keeps Buell in charge of his company, leaves the company headquartered in East Troy, Wisconsin, and allows EBR to continue to develop its 1190 RS road racing superbike and expand its line-up.

[dd74]

By looking at the Buell website, it looks like that motorcycle (and only that version motorcycle) is by order only. And at $40,000 a copy. Wrong approach as Buell was never known as an outrageously-priced product, but more a practical response to what Harley Davidson's couldn't be in the crotch rocket world.

Nice try, but that's not the correct way to resurrect a brand, particularly what is now an overpriced brand. I'd rather have a Ducati.

This is definitely not the route Serotta needs to take.

[sitzmark]

Originally Posted by MarleyMon

They have stated their plan. Why can't you believe them? They are closing in 2 weeks - they said so! Ben Serotta does not own anything, not the brand, not the building, not the tooling.

The flesh of the fruit may rot, but if you have the seed(s) ... ideas and knowledge are far more valuable than the physical trappings that surround them. The intangible (brand) is most valuable at this point, but even if it can't be regained, the seed that created it still remains.

Dreamers forge forward and fatalists give up. Sounds like Ben is a dreamer, so I wouldn't count him out.

[christian]

Originally Posted by dd74

By looking at the Buell website, it looks like that motorcycle (and only that version motorcycle) is by order only. And at $40,000 a copy. Wrong approach as Buell was never known as an outrageously-priced product, but more a practical response to what Harley Davidson's couldn't be in the crotch rocket world.

Nice try, but that's not the correct way to resurrect a brand, particularly what is now an overpriced brand. I'd rather have a Ducati.

This is definitely not the route Serotta needs to take.

It's ok to say, "I was wrong and uninformed. Erik Buell is making motorcycles again."

[docmaduff]

A red Serotta TIG was my first road racing bike. Colorado Legend II Ti was my first college racer and cross country companion. Fell in love with carbon fiber on a 2007 HSG. Learning this news is like finding out an old college buddy has cancer. How sad.

[dd74]

Originally Posted by eddief

but it does look as if Buell will come back:

India's Hero Motorcorp has taken a 49.2-percent stake in Erik Buell Racing at cost of $25 million; $15 million of that is in immediate investment, the remaining $10 million to come over the next nine months. The two companies formalized a partnership in February last year, when Hero sponsored EBR's two bikes in the AMA Pro Racing series and Buell sent engineers to India to help Hero develop new products.

Things have apparently worked out, the equity stake representing Hero's faith in its partner. Until 2010, Hero was the Indian JV partner of Honda; it was known as Hero Honda and was the leader in the Indian market. But when the Japanese company divested its share after 27 years together, Hero needed to find a partner that could help it maintain its tech edge. Now that it can call its own shots it is also able to export its products, something it couldn't do when it was with Honda, and it will want offerings that can compete globally.

The investment keeps Buell in charge of his company, leaves the company headquartered in East Troy, Wisconsin, and allows EBR to continue to develop its 1190 RS road racing superbike and expand its line-up.

How about the sales? The sales. I'm near motorcycles on a daily basis & haven't seen a single Buell like this on the road.

Meanwhile, I see tons of so-called boutique brands to America, such as Ducati, KTM, Aprilia, etc. What's the difference between these brands and Buell's resurfacing? Marketing and approachability in price (within reason), not exclusive one-offs.

[dd74]

Originally Posted by christian

It's ok to say, "I was wrong and uninformed. Erik Buell is making motorcycles again."

I never said he wasn't making them again, in fact I never knew he was. But at that price point, I can't see for how long he will be (or have funding).

[jtakeda]

Surprised.

Glad I decided not to sell the 7-11 huffy/serotta.

Was seriously considering it about 3 weeks ago.

[dd74]

Originally Posted by christian

It's ok to say, "I was wrong and uninformed. Erik Buell is making motorcycles again."

Oh, and just so we're clear, Christian:

Originally Posted by dd74

I haven't heard any thing about members of that brand (Buell) starting anything new.

That doesn't read they're not making anything new.

It's okay to say, "I read that statement incorrectly."

[binxnyrwarrsoul]

Sad day. Some of the nicest bikes I've ever seen.

[BumbleBeeDave]

Originally Posted by firerescuefin

You don't think that isn't in the works....did you expect them to float it here?....I'd bet it's being worked on as we speak...or completed and in others' hands.

I have no skin in the game...don't/haven't owned a Serotta...have been critical in the past, but liked what I saw in their latest iteration.

. . . pretty much my feeling. I strongly doubt they are just making plans to go lie on the beach. But they're not going to present them here for us to critique.

BBD

[AngryScientist]

my fear is that someone like BikesDirect.com who sell motobecane and bottechia want to be able to brand gas pipe road bikes under the Serotta name, and are willing to pay DCG a decent penny for the branding rights.

[soulspinner]

Wishing for an eleventh hour break, all the best to Ben and company.