Motorcycle maker Harley-Davidson has decided to discontinue its manufacturing and sales operations in India as part of a restructuring plan necessitated due to the economic problems caused by the coronavirus pandemic, Reuters reported on Thursday. The plan, called “The Rewire”, was announced to the company’s employees on Thursday.
In a filing with the United States Securities & Exchange Commission, Harley-Davidson Inc said its withdrawal from India would lead to the retrenchment of 70 employees. The restructuring plan was approved last month.
“As a result of the actions approved from August 6, 2020, through September 23, 2020, the Company expects to incur restructuring expenses of approximately $75 million (Rs 554 crore) in 2020, of which approximately 80% are expected to be cash expenditures, including one-time termination benefits of approximately $3 million (Rs 22.1 crore), non-current asset adjustments of approximately $5 million (Rs 36.9 crore), and contract termination and other costs of approximately $67 million (Rs 495.2 crore),” Harley-Davidson said in the filing. Harley-Davidson said its total restructuring expenses will come to around $169 million (Rs 1,249.3 crore).
The company said it expects to complete the restructuring activity within 12 months. Harley-Davidson’s India arm is yet to make an official statement about the shutdown of manufacturing and sales facilities.
However, Harley-Davidson may soon announce a partnership with a local two-wheeler company, possibly Hero Motocorp, The Times of India reported.