NEW DELHI: The body of the FADA car dealership said Friday the closing of Harley Davidson’s operations in India would lead to job losses for up to 2,000 workers at the brand’s 35 dealerships.
Harley-Davidson said Thursday that it will discontinue sales and manufacturing operations in the country.
India’s action will include a reduction in the associated workforce of about 70 employees, it said in a filing with the SEC.
The Federation of Automobile Dealers Associations (FADA) said that in addition to job losses, the departure of the American cult bicycle manufacturer would also result in a loss of up to 130 million rupees for the brand’s dealer partners in the country.
” Harley-Davidson has not informed any of its distribution partners about its closure plans and the distributors have not yet received any official communication, “said FADA President Vinkesh Gulati.
It goes without saying that distributors who have invested their hard-earned capital in this iconic brand are left like an abandoned baby without any compensation package, he added.
With a luxury brand like Harley, set your dealership costs anywhere between Rs 3-4 crore, and with a total of 35 dealers, Rs 110-130 crore will go down the drain, Gulati said.
“The dealership of luxury two-wheelers employs an average of 50 people. With 35 Harley dealerships, around 1,800-2,000 people in dealerships will lose their jobs, “he added.
In addition, there will be customers who will not receive faultless service, as there will now be a shortage of spare parts, which will lead to harassment of distributors by customers, he said.
India’s capital is going down the drain with the closure of all the country’s brands, Gulati said.
After General Motors, MAN Trucks and UM Lohia, Harley-Davidson is the fourth car brand to close its doors in India in the past three years, he added.
“If there had been a Franchise Protection Act in India, brands like these would not have abruptly shut down their operations, leaving their channel partners and customers in a fix,” Gulati said.
In a statement issued Thursday, Harley It said that its dealer network will continue to serve customers during the term of the contract, adding that it is communicating with its customers in India and keeping them updated on future support.
However, it said it plans to close its manufacturing plant in Bawal (Haryana) and significantly reduce the size of its sales office in Gurugram.
The company’s exit from India is part of its global “Restructuring Activities 2020”.
In the second quarter of 2020, the Milwaukee, Wisconsin-based company had initiated restructuring activities, including downsizing of the workforce and terminating certain contracts that would result in the elimination of around 700 positions globally, including the termination of nearly 500 employees.
From your entrance to your exit, Harley Davidson’s trip to the country witnessed how the governments of India and the United States used the company as a bargaining chip.
In April 2007, the then Indian government relaxed emission and testing standards, paving the way for the import of Harley Davidson travels by bicycle to India in exchange for allowing the country’s mango exports to the United States.
The relaxation of imports was limited to the import of motorcycles with an engine capacity of 800 cc or higher, subject to compliance with Euro-III emission standards.
Later, in 2009, the company announced the establishment of its operations in India, followed by the start of sales of its bikes a year later.
The company then set up its completely demolished assembly plant in Haryana and began releasing assembled bikes from the drive in early 2011.
The company’s assembly plant at Bawal in Haryana was its second facility outside the US after Brazil, and it planned to use the unit to export to markets in Europe and Southeast Asia.
In the recent past, US President Donald Trump criticized India’s high import tariffs on Harley Davidson motorcycles as “unacceptable” as the two countries negotiated for an elusive trade deal.
Harley-Davidson’s portfolio in India comprised bikes such as Street 750 and Iron 883, among others, priced starting at Rs 4.69 lakh and rising above Rs 18 lakh.
Harley-Davidson said Thursday that it will discontinue sales and manufacturing operations in the country.
India’s action will include a reduction in the associated workforce of about 70 employees, it said in a filing with the SEC.
The Federation of Automobile Dealers Associations (FADA) said that in addition to job losses, the departure of the American cult bicycle manufacturer would also result in a loss of up to 130 million rupees for the brand’s dealer partners in the country.
” Harley-Davidson has not informed any of its distribution partners about its closure plans and the distributors have not yet received any official communication, “said FADA President Vinkesh Gulati.
It goes without saying that distributors who have invested their hard-earned capital in this iconic brand are left like an abandoned baby without any compensation package, he added.
With a luxury brand like Harley, set your dealership costs anywhere between Rs 3-4 crore, and with a total of 35 dealers, Rs 110-130 crore will go down the drain, Gulati said.
“The dealership of luxury two-wheelers employs an average of 50 people. With 35 Harley dealerships, around 1,800-2,000 people in dealerships will lose their jobs, “he added.
In addition, there will be customers who will not receive faultless service, as there will now be a shortage of spare parts, which will lead to harassment of distributors by customers, he said.
India’s capital is going down the drain with the closure of all the country’s brands, Gulati said.
After General Motors, MAN Trucks and UM Lohia, Harley-Davidson is the fourth car brand to close its doors in India in the past three years, he added.
“If there had been a Franchise Protection Act in India, brands like these would not have abruptly shut down their operations, leaving their channel partners and customers in a fix,” Gulati said.
In a statement issued Thursday, Harley It said that its dealer network will continue to serve customers during the term of the contract, adding that it is communicating with its customers in India and keeping them updated on future support.
However, it said it plans to close its manufacturing plant in Bawal (Haryana) and significantly reduce the size of its sales office in Gurugram.
The company’s exit from India is part of its global “Restructuring Activities 2020”.
In the second quarter of 2020, the Milwaukee, Wisconsin-based company had initiated restructuring activities, including downsizing of the workforce and terminating certain contracts that would result in the elimination of around 700 positions globally, including the termination of nearly 500 employees.
From your entrance to your exit, Harley Davidson’s trip to the country witnessed how the governments of India and the United States used the company as a bargaining chip.
In April 2007, the then Indian government relaxed emission and testing standards, paving the way for the import of Harley Davidson travels by bicycle to India in exchange for allowing the country’s mango exports to the United States.
The relaxation of imports was limited to the import of motorcycles with an engine capacity of 800 cc or higher, subject to compliance with Euro-III emission standards.
Later, in 2009, the company announced the establishment of its operations in India, followed by the start of sales of its bikes a year later.
The company then set up its completely demolished assembly plant in Haryana and began releasing assembled bikes from the drive in early 2011.
The company’s assembly plant at Bawal in Haryana was its second facility outside the US after Brazil, and it planned to use the unit to export to markets in Europe and Southeast Asia.
In the recent past, US President Donald Trump criticized India’s high import tariffs on Harley Davidson motorcycles as “unacceptable” as the two countries negotiated for an elusive trade deal.
Harley-Davidson’s portfolio in India comprised bikes such as Street 750 and Iron 883, among others, priced starting at Rs 4.69 lakh and rising above Rs 18 lakh.
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