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Harley-Davidson Exits India Due to Low Sales, Part of Global Restructuring Process

Harley Davidson logo. (Image Source: Reuters)

Harley Davidson logo. (Image Source: Reuters)

U.S. motorcycle maker Harley Davidson said it expects to report $75 million in additional restructuring costs for 2020 related to actions including discontinuing its sales and manufacturing operations in India.

U.S. motorcycle maker Harley-Davidson said on Thursday it expects to report $75 million in additional restructuring costs for 2020 related to actions including discontinuing its sales and manufacturing operations in India. The announcement comes two months after Harley unveiled a strategy to shift focus back to more profitable motorcycles and core markets such as the United States.

Harley said earlier in the year that it planned to reduce its product portfolio and exit lower volume markets, without specifying which ones.

The company said it now expects total restructuring costs of about $169 million in 2020, and this will also include a workforce reduction of about 70 employees in India, a market where its annual sales volumes account for less than 5% of the company's total.

Its Indian branch is based in Gurgaon, Haryana, where it commenced operations in August 2009 and appointed its first dealership in July 2010.

Harley-Davidson's global portal suggests that the latest set of actions are a part of an initiative called ‘The Rewire’, that will be further developed over the coming months, leading to a new strategic plan.

These actions come from a comprehensive Rewire playbook that is designed to address top-priority opportunities, drive consistent execution and reset the company’s operating model in order to minimise complexity, sharpen focus and speed up decision making. The Rewire actions will include a 5-year strategic plan that consists of

-- Streamline operations to reduce complexity and increase speed.

-- Growth through Parts & Accessories and General Merchandise

-- Reset Global Business and Focus on High-Potential Markets

-- Reset product launches and product line up for simplicity and maximum impact.

The company is working on these key elements of The Rewire playbook and plans to share more about The Rewire in its Q2 update.


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