Uploaded on Sep 30, 2020
PPT on Harley Davidson exit from India to impact 2,000 jobs across dealerships.
Harley Davidson exit from India to impact 2,000 jobs across dealerships.
HARLEY DAVIDSON EXIT FROM INDIA TO IMPACT 2,000 JOBS ACROSS DEALERSHIPS INTRODUCTION • Harley-Davidson Inc.’s India exit has put at risk up to 2,000 jobs across 35 dealerships in the country • Dealers too will be at the receiving end of the move as they are likely to lose up to Rs 130 crore they invested. Source: Bloomberg COMPANY PROFILE • Harley-Davidson, Inc., H-D, or Harley, is an American motorcycle manufacturer founded in 1903 in Milwaukee, Wisconsin. • Along with Indian it was one of two major American motorcycle manufacturers to survive the Great Depression. • Founders: William S. Harley, Arthur Davidson, Walter Davidson, William A. Davidson Source: Medium CUTBACK EMPLOYEES • The manufacturer will discontinue sales and manufacturing operations in India as part of broader additional cutbacks announced to employees. • Harley-Davidson said it will dismiss another roughly 70 employees as part of its exit from the country and that its latest moves will boost restructuring expenses this year to about $169 m Source: Newsbread DEALERS AT LOSS • Harley Davidson has not informed any of its dealer partners about its closure plans, and dealers are yet to receive any official communication. • It goes without saying that dealers, who have invested their capital in this iconic brand. Source: Gadgets LOSS ESTIMATION • It takes anywhere between Rs 3-4 crore to set up a dealership for a luxury automotive brand such as Harley-Davidson, and with a total of 35 dealerships, Rs 110-130 crore will go down the drain. • A luxury two-wheeler dealership on an average employs 50 people. With 35 Harley dealers, around 1,800-2,000 people at dealerships will lose their jobs. Source: The Tribune SHORTAGE SPARE PARTS • Moreover, there will be customers who will not receive glitch-free service as spares will now be in shortage, thus leading to harassment of dealers from customers. • India's capital goes down the drain with closure of every single brand in the country. Source: Bloomberg TOYOTA MOTOR • Harley’s decision to exit India comes weeks after Japan’s Toyota Motor Corp. said it won’t expand further in India due to the country’s high tax regime. Source: Automotive News General Motors • General Motors Co. pulled out of the country in 2017 while Ford Motor Co. agreed last year to move most of its assets into a joint venture with Mahindra & Mahindra Ltd. after struggling for more than two decades to get traction in the market. Source: GM Media Franchise Protection Act • If there have been a Franchise Protection Act in India, brands like these would not have abruptly closed their operations, leaving their channel partners and customers in a fix. Source: Indiafilings Make in India • It comes as Prime Minister Narendra Modi is pushing his “Make in India” program, with the auto sector as a key part and potentially $23 billion in production incentives on the way. Source: Faber Infinite
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