Harley Davidson Ends Indian Operation; Announces 'The Rewire'

By siliconindia  |  Friday, 25 September 2020, 04:45:43 PM IST

Harley Davidson Ends Indian Operation; Announces 'The Rewire'
The renowned bike manufacturer, Harley Davidson is planning to terminate its current business model in India. Thus, as the process of shutting the business, the brand is closing its manufacturing unit in Bawal (Haryana) and it has also squeeze down the size of its sales in Gurgaon.
The brand's dealer network would continue to serve customers through the contact term, states Harley Davidson. 
"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," says Harley Davidson. 
The Milwaukee-based company refers to 'The Rewire' as a term to describe restructuring actions related to employees and other services. Sources close to the company say that it is planning to collaborate with a partner to operate its business in India. 
The statement says, "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." 
However, the company has stated that between August 6, 2020, and September 23, 2020, it has agreed to indulge in additional restructuring actions under 'The Rewire' that us related to optimizing its global network. This proceeds after existing certain international markets and terminating its sales and manufacturing units in India. 
Furthermore, the Indian operation closure is expected to cut down the workforce and that is expected to be around 70 employees. The brand is expecting to incur restructuring expenses of around 75 million in 2020. But, around 80 percent of it is expected to be cash expenditure that includes a one-term benefit of close to $3million, approximately $5million non-current asset adjustments, and the contract termination and other expenditures are expected to be $67 million.
Full implementation of these 'Rewire' actions may require the company to commit more funds for added contract closure and other expenses.  The restructuring activities approved through September 23, 2020, are expected to conclude within the next 12 months. Harley-Davidson's portfolio includes bikes like Iron 883, Street 750 among others.

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