Serotta lays off 40% of workforce, planning shutdown

[MarleyMon]

There's always hope.
"While many details remain between now and the future, the one thing that is certain, is that we’ll continue to make fabulous bicycles, because, that’s what we do."
C'mon, Serotta is not going to build any bikes, fabulous or not, after 2 weeks. This is pie in the sky wishful thinking.

"but all of us here gain resolve from each other to find a path for a viable continuum of building the finest bicycles"
it takes more than resolve
"but without the complications, restrictions and frustrations that come along with ‘outside’ corporate structure."
how about the money, can you do it without the money? Apparently not.

[Ken Robb]

I wonder what all that expensive machinery will bring at auction. Heck, I wonder what the Serotta Building will bring. Wouldn't it be funny if Ben et.al. could buy all or part of it at distresses prices and thereby be back in business on some level?

[dd74]

Originally Posted by firerescuefin

Did you read this thread (Letter from Ben Serotta)

Sadly, that letter is just a letter and nothing more. It's not a business plan, case study or creative brief explaining to how the Serotta brand can be resurrected.

The letter is more an apology to Serotta fans than anything else.

[firerescuefin]

Originally Posted by dd74

Sadly, that letter is just a letter and nothing more. It's not a business plan, case study or creative brief explaining to how the Serotta brand can be resurrected.

The letter is more an apology to Serotta fans than anything else.

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.

[dd74]

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.

Who knows what's in the works? All I know is I saw a response similar to Ben's when Buell went out of business, thanks to Harley-Davidson. It was a note of contrition and apology, and since then (4-5 yrs ago), I haven't heard any thing about members of that brand starting anything new.

[firerescuefin]

Originally Posted by dd74

Who knows what's in the works? All I know is I saw a response similar to Ben's when Buell went out of business, thanks to Harley-Davidson. It was a note of contrition and apology, and since then (4-5 yrs ago), I haven't heard any thing about members of that brand starting anything new.

First off...I have no special knowledge and you may be right. I have a hunch that Ben and Bill don't want to go out this way and will go down trying to make it work.

Not sure motorcycle production correlates well with frame building....but I don't think that was your point anyway. Hopefully, you're wrong

[dd74]

Originally Posted by firerescuefin

Not sure motorcycle production correlates well with frame building....but I don't think that was your point anyway. Hopefully, you're wrong

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.

[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.

[christian]

Originally Posted by dd74

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

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

[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.

[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."

[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.