The motorcycle brand anticipates completing the restructuring measures undertaken from August to be finalized within the one year, which will include optimizing its global dealership network, exiting certain international markets, and discontinuing its sales and manufacturing operations in India.
In India, Harley-Davidson will reduce the workforce by approximately 70 employees.
Harley-Davidson has decided to stop its sales and manufacturing operations in India, as part of restructuring actions which the company describes to as ‘The Rewire’ policy. On Thursday,
Harley-Davidson informed its workers of further restructuring costs which is equivalent to $75 million in 2020, which includes suspending the iconic American brand’s operations in India.
Total costs associated with ‘The Rewire’ strategy outlined by Jochen Zeitz, President, Chairman and CEO of Harley-Davidson amount to $169 million this year.
The motorcycle brand anticipates completing the restructuring measures undertaken from August to be finalized within the one year, which will include optimizing its global dealership network, exiting certain international markets, and discontinuing its sales and manufacturing operations in India.
In India, Harley-Davidson will reduce the workforce by approximately 70 employees.
Harley-Davidson, in a statement to the United States Securities and Exchange Commission, outlined the development, adding some details about the restructuring costs.
Harley-Davidson’s Statement
“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 in 2020, of which approximately 80% are expected to be cash expenditures, including one-time termination benefits of approximately $3 million, non-current asset adjustments of approximately $5 million, and contract termination and other costs of approximately $67 million. Full implementation of these Rewire actions may require the Company to commit additional funds for additional contract termination and other costs. Including previously disclosed restructuring charges, the Company expects total restructuring expenses associated with Rewire restructuring actions approved through September 23, 2020 of approximately $169 million in 2020. The Company expects to complete the restructuring activities approved through September 23, 2020 within the next 12 months. Announcements associated with additional actions under The Rewire are expected to occur, some of which will likely result in additional restructuring charges,”
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