American Harley-Davidson Inc (NYSE: HOG). shows the Indian market – the world's largest motorcycle market. The company is ending sales and manufacturing operations as part of additional restructuring measures that were announced to employees on Thursday, Harley said in a filing with the US Securities and Exchange Commission (SEC).
The motorcycle maker notes that the measures will cut another 70 employees. The costs associated with the termination of operations in India are expected to be in the order of $ 75 million, and the total restructuring costs will reach about $ 169 million this year.
Harley's departure from India seriously undermines Prime Minister Narendra Modi's efforts to attract and retain foreign manufacturers in the midst of the country's worst economic downturn in decades, Bloomberg said.
A few weeks ago, the Japanese automaker Toyota Motor Corp (T: 7203). said he had no plans for further expansion in India due to high tax charges. American automaker General Motors (NYSE: GM) Co. left the country in 2017, while Ford Motor Co. (SPB: NYSE: F), which has been trying to gain a foothold in this market for more than two decades, last year agreed to transfer most of its assets into a joint venture with Mahindra & Mahindra Ltd.
At the end of July, Harley warned of changes in the business structure that would lead to the company's withdrawal from several markets and the optimization of its product line. The company posted its first quarterly loss in more than a decade in the second quarter ended June.