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Harley-Davidson shuts down India operations: Iconic US company to lay off 70 employees, close Haryana plant

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Harley-Davidson shuts down India operations: Iconic US firm to put off 70 workers, shut Haryana plant

The American firm expects to incur restructuring bills of round $75 million in 2020 as a part of its ‘The Rewire’ course of

Harley-Davidson shuts down India operations: Iconic US company to lay off 70 employees, close Haryana plant

Representational Picture.AP

New Delhi: American cult bike producer Harley-Davidson on Thursday mentioned it’s discontinuing its present enterprise mannequin in India.

As a part of the method, the corporate is planning to shut its manufacturing facility in Bawal (Haryana) and considerably scale back the scale of its gross sales workplace in Gurgaon, the bike producer mentioned in an announcement.

The corporate is speaking with its prospects in India and can preserve them up to date on future assist, it added. The corporate’s supplier community will proceed to serve prospects by way of the contract time period, Harley Davidson mentioned.

“As a part of The Rewire, an overhaul of its working mannequin and market construction, the corporate is altering its enterprise mannequin in India and evaluating choices to proceed to serve its prospects,” it famous.

The Milwaukee-based firm refers to ‘The Rewire’ as a time period to explain restructuring actions associated to workers and different companies.
Business sources mentioned the corporate is seeking to tie up with a associate to run its enterprise within the nation.

“These actions are aligned with The Rewire which is deliberate to proceed by way of the top of 2020, resulting in The Hardwire, a brand new strategic plan for 2021-2025 aimed toward constructing desirability for the Harley-Davidson model and merchandise,” the assertion mentioned.

In a separate SEC submitting, the American agency mentioned that between 6 August, 2020, and 23 September, 2020, the corporate accepted commitments to further restructuring actions underneath ‘The Rewire’ associated to optimising its international supplier community, exiting sure worldwide markets, and discontinuing its gross sales and manufacturing operations in India.

The India motion will embody an related workforce discount of round 70 workers, it added.

Because of the actions accepted on 23 September, 2020, the corporate expects to incur restructuring bills of round $75 million in 2020, of which round 80 p.c are anticipated to be money expenditures, together with one-time termination advantages of near $3 million, non-current asset changes of roughly $5 million, and contract termination and different prices near $67 million.

Full implementation of those ‘Rewire’ actions could require the corporate to commit extra funds for added contract termination and different prices, it added.

Together with beforehand disclosed restructuring expenses, the corporate expects complete restructuring bills related to Rewire restructuring actions accepted by way of 23 September, 2020, of roughly $169 million in 2020, the submitting mentioned.

The corporate expects to finish the restructuring actions accepted by way of 23 September, 2020, throughout the subsequent 12 months, it added.

Harley-Davidson’s portfolio included bikes like Road 750, Iron 883 amongst others.

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