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Harley-Davidson has reportedly determined to wrap up operations in India
Harley-Davidson has determined to discontinue its gross sales and manufacturing operations in India, as a part of restructuring actions that the corporate refers to as ‘The Rewire’ technique. On Thursday, Harley-Davidson knowledgeable its workers of further restructuring prices amounting to $75 million in 2020, which incorporates discontinuing the enduring American model’s operations in India. Total prices related to ‘The Rewire’ technique outlined by Jochen Zeitz, President, Chairman and CEO of Harley-Davidson quantity to $169 million this yr. The motorbike model expects to finish the restructuring actions from August to be accomplished inside the subsequent 12 months, which is able to embody optimising its international seller community, exiting sure worldwide markets and discontinuing its gross sales and manufacturing operations in India. In India, Harley-Davidson will cut back the workforce by roughly 70 workers.
Also Read: Harley-Davidson May Exit India Due To Poor Sales
In a press release to the United States Securities and Exchange Commission, Harley-Davidson outlined the event, including some particulars in regards to the restructuring prices.
“As a result of the actions approved from August 6, 2020 through September 23, 2020, the Company expects to incur restructuring expenses of approximately $75 million in 2020, of which approximately 80% are expected to be cash expenditures, including one-time termination benefits of approximately $3 million, non-current asset adjustments of approximately $5 million, and contract termination and other costs of approximately $67 million. Full implementation of these Rewire actions may require the Company to commit additional funds for additional contract termination and other costs. Including previously disclosed restructuring charges, the Company expects total restructuring expenses associated with Rewire restructuring actions approved through September 23, 2020 of approximately $169 million in 2020. The Company expects to complete the restructuring activities approved through September 23, 2020 within the next 12 months. Announcements associated with additional actions under The Rewire are expected to occur, some of which will likely result in additional restructuring charges,” the corporate mentioned.
Also Read: Harley-Davidson To Re-Look Product Strategy; Future Models May Be Shelved
carandbike reached out to Harley-Davidson India for a press release confirming the event, however there’s been no official response from the American motorbike model. Harley-Davidson has been underneath strain in recent times, with gross sales of the American motorbike model slowing down in a number of markets around the globe. And India appears to be one such market, the place Harley-Davidson has been current since 2009, and the place the primary Harley dealership got here up in July 2010. Harley-Davidson nonetheless led premium motorbike gross sales in India over the previous couple of years, led by the made-in-India Street 750 fashions. In the final monetary yr, Harley-Davidson India offered fewer than 2,500 models, and between April-June 2020, solely about 100 Harleys have been offered in India, making it one of many worst performing worldwide markets.
Also Read: Harley-Davidson Appoints New Chief Financial Officer
Also Read: Harley-Davidson Removed From S&P 500 Index
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Earlier this yr, Jochen Zeitz changed former CEO Matt Levatich as President, Chairman and CEO of Harley-Davidson. Levatich was in Harley-Davidson for 26 years, and with more and more slowing gross sales in recent times, his exit was seen as a transfer to offer new strategic imaginative and prescient to revive the model internationally. ‘The Rewire’ plan outlined by Zeitz intends to re-look Harley-Davidson’s product technique, in addition to deal with about 50 markets, primarily in North America, Europe and elements of Asia Pacific, that symbolize the “majority of the company’s volume and growth potential.” And India, the world’s largest motorbike market, appears to have been given the miss from these necessary markets the place Harley-Davidson sees potential development.
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