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Harley-Davidson India Dealers Kept In The Dark: FADA – carandbike

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FADA accuses Harley-Davidson of not intimating sellers of India plans

The Federation of Automobile Dealers Association (FADA) has mentioned that no info was supplied to Harley-Davidson dealerships in India concerning the American model’s determination to wind up gross sales and manufacturing operations in India. On Thursday, Harley-Davidson introduced that it has determined to discontinue its gross sales and manufacturing operations in India, which “will include an associated workforce reduction of approximately 70 employees.” The determination is a part of the American motorbike model’s restructuring actions that it refers to as ‘The Rewire’.

Also Read: Harley-Davidson Decides To Wind Up India Operations

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Harley-Davidson has determined to discontinue gross sales and manufacturing operations in India underneath The Rewire technique to restructure the model’s world operations

Harley-Davidson USA as a part of its United States Securities and Exchange Commission Form 8-Ok submitting introduced on Thursday that the restructuring choices underneath ‘The Rewire’ technique consists of “optimising its global dealer network, exiting certain international markets, and discontinuing its sales and manufacturing operations in India.” Apparently, the information got here as a shock, not simply to Harley-Davidson India staff, but additionally to Harley-Davidson’s 33 dealerships throughout India. FADA President Vinkesh Gulati has mentioned that no info was given to Harley-Davidson sellers in India who had invested within the model. FADA, an apex nationwide physique representing vehicle retail in India, contends {that a} Franchise Protection Act would have helped the pursuits of the Harley dealerships throughout India.

Also Read: Harley-Davidson Reports $92 Million Loss As Bike Sales Skid

“Harley Davidson, the company 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 hard earned capital in this iconic brand are left like an abandoned baby without any compensation package. Had there 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,” mentioned Gulati.

“With each model closing its store in India, India’s capital move goes down the drain. With a luxurious model like Harley, organising its dealership prices wherever between ₹ 3-four crore and with a complete of 35 dealerships, Rs 110-130 crore will go down the drain. Moreover, there will probably be clients who is not going to obtain glitch free service as spares will now be in scarcity thus resulting in instances and harassment’s to sellers from their clients.

“Each luxury two-wheeler dealership on an average employs 50 people. With 35 Harley dealers, around 1800- 2000 people at dealerships will lose their jobs. After General Motors, MAN Trucks and UM Lohia, Harley Davidson is the 4th Automobile Brand which is shutting shop in last 3 years in India,” Gulati added.

Also Read: Harley-Davidson To Rethink Product Strategy; Future Models May Be Shelved

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Harley-Davidson dealerships in India will proceed working until December 31 and a few of them have determined to proceed working, promoting current inventory and offering after-gross sales help to clients

carandbike reached out to a number of Harley-Davidson vendor principals, however none had been prepared to react to the event on the document but. A supply in a dealership instructed carandbike that the contract will expire on December 31, 2020, however that Harley-Davidson dealerships will proceed to promote current inventory and supply service and after gross sales help to clients. Dealers are placing up a courageous face; the understanding is that solely manufacturing has been closed, the story of the model is much from over.

Also Read: Harley-Davidson Looking For An Alliance With Indian Two-Wheeler Companies

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Harley-Davidson India staff had been knowledgeable after the Form 8-Ok submitting, and H-D India launched a press assertion quickly afterwards, saying that “the company is changing its business model in India”

Also Read: Harley-Davidson To Close Deal With Hero MotoCorp

Harley-Davidson India has but to reply to a question from carandbike, however Form 8-Ok submitting is a authorized process to announce main occasions that shareholders ought to learn about. And underneath the principles of submitting, Harley-Davidson couldn’t have intimidated anybody earlier than submitting. So, solely after it was filed, had been Harley-Davidson India staff and dealerships knowledgeable of the announcement.  On its half, Harley-Davidson India launched a press assertion after the announcement, saying that as a part of The Rewire, Harley-Davidson has introduced “an overhaul of its operating model and market structure” and that “the company is changing its business model in India and evaluating options to continue to serve its customers.”

Also Read: Hero MotoCorp Open To A Partnership With Harley-Davidson

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The made-in-India Harley-Davidson Street Rod and Street 750 will nearly actually be discontinued

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However, it is nonetheless not clear if discontinuing manufacturing operations and gross sales means the tip of the Harley-Davidson model in India. In reality, the model might not utterly wind up operations in India, as has been perceived. As a part of the brand new “business model”, one possibility can be to herald Harley-Davidson bikes from its manufacturing facility in Thailand and provide them in India by the identical dealership community. India and Thailand have a Free Trade Agreement (FTA) and even Ducati and Triumph comply with the identical route, with duties understanding to be way more aggressive and the value benefit then handed on to the patron. The different possibility is to alter the working mannequin with an area associate, one thing like how Benelli operates and even MV Agusta used to comply with. And from all indications, it may nicely be the second possibility that may give Harley-Davidson a second shot on the world’s largest motorbike market, that of becoming a member of arms with an area two-wheeler large.

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