New Delhi(DL): Automobile dealer body FADA on Fri. stated the closure of Harley Davidson’s activities in India(In) would result in job loss for as many as 2,000 labour around the brand’s 35 dealerships.
Harley Davidson on Thu. stated it’s suspending sales & manufacturing activities within the nation. The India(In) action going to contain an associated workforce reduction of about 70 employees, it’d stated in a SEC filing.
The Federation of Automobile Dealers Associations (FADA) stated that apart from job loss, the exit of the American cult two-wheeler maker would also result in a loss of as many as INR 130 cr for the brand’s dealer partners within the nation.
“Harley Davidson hasn’t reported any of its dealer partners regarding its closure schedules & dealers are yet to receive any officer communication,” FADA president Vinkesh Gulati stated. It goes without informing that dealers those have invested their own hard-earned capital in this iconic brand are left like an abandoned baby without any compensation package, he added further.
With a lavish brand like Harley, setting up its dealership costs anywhere between INR 3-Four cr, & with a overall of 35 dealerships, INR 110-130 cr going to go down the drain, Gulati stated. “Lavish bike dealership on an average employs 50 citizens. With 35 Harley dealers, about 1,800-2,000 citizens in dealerships going to lose their own jobs,” he added further.
Besides, there going to be clients who won’t receive glitch-free service as spares going to as of now be in shortage, therefore leading to torture of dealers from clients, he observed. India(In)’s capital goes down the drain with the closure of each single brand within the nation, Gulati stated.
After Gen. Motors, MAN Trucks & UM Lohia, Harley Davidson is the 4th automobile brand shutting shop within the last 3 yrs. in India(In), he added further. “Had there being a Franchise Protection Act in India(In), brands like these wouldn’t have abruptly closed their own activities, leaving their own channel partners & clients in a fix,” Gulati stated.
In an announcement released on Thu., Harley stated its dealer network going to continue to service clients using the contract term, adding it’s communicating with its clients in India(In) & going to keep them updated on future help. It, although, stated that it schedules to close its manufacturing ability in Bawal (Haryana(HR)) & significantly lessen the size of its sales workplace in Gurugram.
The firm’s exit from India(In) is part of its global “2020 Restructuring Operations”.
Within the 2nd quarter of 2020, the Milwaukee, Wisconsin(WI)-based firm had started restructuring operations, involving workforce reduction & termination of specific contracts that would lead to elimination of about 700 positions world-wide, involving termination of close to 500 employees.
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