Harley Davidson exits India market, set to find partner for running business
In what may comes as a heartbreak for many, American cult bike manufacturer Harley Davidson on Thursday said it is discontinuing sales and manufacturing operations in India, a decade after it started selling its premium bikes in the country.
In what may comes as a heartbreak for many, American cult bike manufacturer Harley Davidson on Thursday said it is discontinuing sales and manufacturing operations in India, a decade after it started selling its premium bikes in the country. The bike maker is now likely to find a partner to run its business and meet consumer demand in India. The India action will include an associated workforce reduction of approximately 70 employees, Harley-Davidson Inc said in an SEC filing.
The development is part of the company's global "2020 Restructuring Activities". In the second quarter of 2020, Harley-Davidson had initiated restructuring activities like workforce reduction and the termination of certain contracts that would result in the elimination of approximately 700 positions globally, including the termination of approximately 500 employees.
In a separate statement, Harley-Davidson said it plans to close its manufacturing facility in Bawal (Haryana) and significantly reduce the size of its sales office in Gurgaon. The company's dealer network will continue to serve customers through the contract term, Harley Davidson said, adding it is communicating with its customers in India and will keep them updated on future support.
"As part of The Rewire, an overhaul of its operating model and market structure, the company is changing its business model in India and evaluating options to continue to serve its customers. These actions are aligned with The Rewire which is planned to continue through the end of 2020, leading to The Hardwire, a new strategic plan for 2021-2025 aimed at building desirability for the Harley-Davidson brand and products," the statement said.
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