Harley Davidson exit from India to impact 2,000 jobs across dealerships.


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Uploaded on Sep 30, 2020

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PPT on Harley Davidson exit from India to impact 2,000 jobs across dealerships.

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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