GE Capital financing EBR dealership network

[Jesse]

Things are moving along for Buell! Good news! Passing on a story I saw on svrider.

http://www.jsonline.com/business/bue...182534141.html

Quote: Erik Buell Racing, in East Troy, says it has secured financing from GE Capital to build a motorcycle dealership network.

 The company, founded by motorcycle racer and former Harley-Davidson employee Erik Buell, says the financing from GE Capital's Commercial Distribution Finance unit will allow dealers to stock, market and sell a wide variety of motorcycles and related products.

 Buell's first production motorcycle is the EBR 1190RS, a street bike that sells for about $40,000. The company also says it's developing other models aimed at the high-performance motorcycle market.

 "As we ramp up our production capabilities and introduce other models, it's great to know that we have a finance company that can support us as we expand," Erik Buell said in a statement.

 In 2011, GE Capital says it provided nearly $32 billion in financing for more than 30,000 manufacturers, dealers and distributors in North America.

[veefer800canuck]

Wow. Gotta hand it to Erik, it's pretty ballsy trying to stick it out building a ground up motorcyle manufacturing biz plus dealer network, right on the edge of that there "fiscal cliff".

One thing he aint is skeered.

[Baz]

Good for Erik, however starting a dealership network with one $40,000.00 motorcycle to sell might be a bit of a challenge. (Even in good times).

Even the big kids are struggling these days.

[loadedmind]

Good for Erik, however starting a dealership network with one $40,000.00 motorcycle to sell might be a bit of a challenge. (Even in good times).

Even the big kids are struggling these days.

"The company also says it's developing other models aimed at the high-performance motorcycle market."

My guess is they'll end up with a line of bikes that will be similar to the cost model of the established vendors, e.g. Kawi, Suz, Honda, etc.  I think Eric is smart enough to realize not everyone can afford a $40k bike.

[DogBoy]

Good for Erik, however starting a dealership network with one $40,000.00 motorcycle to sell might be a bit of a challenge. (Even in good times).

Even the big kids are struggling these days.

EBR has already annouced a less exotic version of the 1190rs, which will sell for less than half the price of the top of the line unit, among other models.

[X1Glider]

 I think Eric is smart enough to realize not everyone can afford a $40k bike.

Maybe in a year or 2 of releasing his EBR models at a premium price, Hero will oblige him with the ability to start mass producing at a reasonable priceline for everyone else.  Hopefully those models have completed the design stage and all that is left is taking his new found access to capital to build some test mules, refine them then start tooling up.  Because the only model he has available now won't cut it for me.  It's too frail for a 225# rider to abuse.  I thought the 1125R was already on the border of frailty with those thin wheels and meager subframe.