Harley-Davidson discontinues sales, manufacturing operations in India
- India will include an associated workforce reduction of approximately 70 employees
- The Company expects to incur restructuring expenses of approximately $75 million in 2020
- Harley-Davidson expects to complete the restructuring activities within the next 12 months
Harley-Davidson, US motorcycle maker, on Thursday, said that it expects to report ‘$75 million in additional restructuring costs for 2020 related to actions including discontinuing its sales and manufacturing operations in India’, reported news agency Reuters.
“On September 24, 2020, the Company announced to employees additional restructuring actions related to the set of actions that it refers to as “The Rewire.” The Company previously disclosed restructuring actions associated with The Rewire that were approved through August 5, 2020," United States Securities and Exchange Commission said in a statement.
"Between August 6, 2020, and September 23, 2020, the Company approved commitments to additional restructuring actions under The Rewire related to optimizing its global dealer network, exiting certain international markets, and discontinuing its sales and manufacturing operations in India. The India action will include an associated workforce reduction of approximately 70 employees,” the statement read.
“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,” the statement added.
“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 statement further added.
“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,” the statement continued.