Uploaded on Sep 30, 2020
PPT on Harley Davidson exit from India to impact 2,000 jobs across dealerships.
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
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