38.6c New Delhi, India, Thursday, October 31, 2024
Top Stories Supreme Court
Political NEWS Legislative Corner Celebstreet International Videos
Subscribe Contact Us
close
Business

Poor Sales Force Harley-Davidson To Leave India

By VANDANA KOTHARI      27 September, 2020 03:18 PM      0 Comments
Harley-Davidson Leave India

On Thursday (September 24, 2020), Harley-Davidson one of the most known motorcycle brands announced that it has decided to wrap up its sales and manufacturing operations in India, as part of restructuring actions that the company refers to as The Rewire strategy. The company informed its employees of additional restructuring costs amounting to $75 million in 2020, which includes discontinuing the iconic American brand's operations in India.

In August, the Milwaukee-based cruiser bike maker had indicated exiting some of the loss-making international markets to reroute focus on the US market. Harley said earlier in the year that it planned to reduce its product portfolio and exit lower volume markets, without specifying which ones. Covid-19 pandemic has impacted the companys sales record and forced it to exit from India.

The move involves 70 redundancies and the closure of its Bawal plant, walking away from a market worth about 17 million bike and scooter sales a year. It will retain only a scaled-down sales office in Gurgaon, south of New Delhi.

For years now, the company has been struggling to grow its sales beyond baby boomers in the US. In the past 14 quarters, it has not posted retail sales growth there. 

In February, Chief Executive Officer Jochen Zeitz took the reins at the company, unveiled a major Rewire in July to boost profits by reducing Harleys product portfolio by 30% and investing in 50 markets with growth potential in North America, Europe, and parts of Asia Pacific. 

The statement given by the company on Thursday, states that this step to leave had been pushed through since 6th August. The company expects restructuring costs to be a total of about $169 million in 2020. It warned that this program of restructuring was referred to internally as The Rewire strategy was likely to incur more charges. 

India was one of the markets in which the company wanted to invest heavily. India competes in investment by being cheaper and poorer than other developing countries.



Share this article:



Leave a feedback about this
TRENDING NEWS


TOP STORIES

sc-tells-ncp-led-by-ajit-pawar-to-declare-use-of-clock-symbol-sub-judice
Trending Judiciary
SC tells NCP led by Ajit Pawar to declare use of Clock symbol sub judice

SC directs Ajit Pawar-led NCP to declare ‘Clock’ symbol use as sub judice in all election materials, pending final court ruling on its rightful ownership.

25 October, 2024 11:12 AM
justice-sanjiv-khanna-to-take-oath-as-chief-justice-of-india-on-nov-11-2024
Trending Legal Insiders
Justice Sanjiv Khanna to take oath as Chief Justice of India on Nov 11, 2024 [Read Notification]

Justice Sanjiv Khanna appointed as the 51st Chief Justice of India, succeeding CJI Chandrachud, with a tenure starting on November 11, 2024.

25 October, 2024 11:17 AM
sc-grants-bail-to-businessman-in-delhi-liquor-policy-scam-case
Trending Judiciary
SC grants bail to businessman in Delhi liquor policy scam case

Supreme Court grants bail to businessman Amandeep Singh Dhall in Delhi liquor policy scam case, noting the lengthy trial process with over 300 witnesses.

25 October, 2024 04:11 PM
sc-dismisses-ex-jharkhand-cms-plea-for-suspension-of-conviction-to-allow-him-contest-assembly-polls
Trending Judiciary
SC dismisses ex Jharkhand CM's plea for suspension of conviction to allow him contest Assembly polls

The Supreme Court rejects ex-Jharkhand CM Madhu Koda’s plea to stay his conviction, barring him from contesting the upcoming Assembly elections.

25 October, 2024 05:10 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email