There had been news in the past about Harley-Davidson shutting down its manufacturing plant in India and perhaps discontinue the country-specific Street 750. However, nothing was made official by the American motorcycle company. Well, until now. Harley-Davidson has recently announced and confirmed that it has wrapped up its sales and manufacturing operations in India.
Harley-Davidson’s exit from one of the largest motorcycle market in the world had been decided under ‘The Rewire’ strategy outlined by the company’s newly appointed Chairman and CEO, Jochen Zeitz.
Following is an official statement given by Harley-Davidson to the United States Securities and Exchange Commission outlining the development under ‘The Rewire’ strategy and adding some details about the restructuring costs.
“As a result of the actions approved from 6 August 2020 through 23 September 2020, the company expects to incur restructuring expenses of approximately USD 75 million in 2020, of which approximately 80% are expected to be cash expenditures, including one-time termination benefits of approximately USD 3 million, non-current asset adjustments of approximately USD 5 million, and contract termination and other costs of approximately USD 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 23 September 2020 of approximately USD 169 million in 2020. The company expects to complete the restructuring activities approved through 23 September 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.”
Harley-Davidson has also said that its existing customers in India will continue to get support and service by all the 33 dealerships that it has spread across the country until their contract terms end. It would be interesting to see how Harley-Davidson owners would react to the company’s departure and how the brand manages to support its customers when the contract terms of its dealerships expire.
