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Harley-Davidson Successfully Completes The Rewire

By | General Posts

Harley-Davidson Successfully Completes The Rewire and Announces Date to Reveal New 2021-2025 Strategic Plan, The Hardwire

The Company will reveal strategic plan and report 2020 Results on February 2, 2021

Milwaukee, Jan. 12, 2021 (GLOBE NEWSWIRE) — Harley-Davidson, Inc. (“Harley-Davidson”) (NYSE:HOG) today announced it has completed The Rewire, the critical overhaul of its business, setting a strong foundation for The Hardwire, the company’s 5-year strategic plan to deliver profitable and desirable long-term growth and shareholder value. The company will reveal its 2021-2025 strategic plan, along with 2020 fourth quarter and year-end earnings results, on Tuesday, February 2, 2021 via webcast.

“I am confident the substantial changes we made with The Rewire have set us up to successfully execute our strategic plan. We are now a leaner, more aligned organization, and we are making decisions faster,” said Jochen Zeitz, chairman, president and CEO, Harley-Davidson. “The right structure, leadership and principles are in place, and we are ready to execute our strategic plan, The Hardwire, and continue our H-D #1 cultural journey to become a high-performing company.”

As a result of The Rewire, the company:

  • Reduced complexity and increased speed with a new operating model and organizational structure across every function to provide simplicity, agility and efficiency
  • Reset its global business, resourcing and prioritizing the markets with the highest potential
  • Expanded its business focus beyond motorcycles, with a strong commitment to newly established business units for Parts & Accessories and General Merchandise
  • Streamlined its product portfolio and rebuilt its go-to-market efforts for maximum impact
  • Enhanced and protected the value and desirability of its products by changing the approach to supply and inventory management with a focus on a powerful and profitable dealer network
  • Executed Rewire actions expected to deliver ongoing gross cash savings of approximately $115 million starting in 2021

Harley-Davidson will now execute The Hardwire, its 2021-2025 strategic plan grounded in desirability and guided by its vision to build its legend and lead the motorcycle industry through innovation, evolution and emotion. The company is focused on reigniting the spirit of Harley-Davidson and returning to winning, delivering the timeless pursuit of adventure and freedom for the soul for riders around the world.

Webcast
The public is invited to attend an audio webcast on Tuesday, February 2, 2021 from 8-9:30 a.m. CST. Jochen Zeitz, chairman, president and chief executive officer, and Gina Goetter, chief financial officer, Harley-Davidson, Inc., will discuss the company’s financial results, strategic plan and outlook. A slide presentation supporting the discussion will be available 30 minutes prior to the audio webcast.

Webcast participants should log-on and register at least 10 minutes prior to the start time and can access the slide presentation here: http://investor.harley-davidson.com/news-and-events/events-and-presentations. A replay of the audio webcast will be available approximately two hours after the call concludes.

Additional Upcoming Key Dates

  • January 19, 2021 – Harley-Davidson will announce new 2021 motorcycles, parts and accessories, riding gear and apparel at its first virtual launch experience – H-D 21. To take part in the virtual launch, register now at www.H-D.com/21.
  • February 22, 2021 – Harley-Davidson will reveal its all-new Pan America™ 1250 adventure touring motorcycle with a global digital event. Stay informed at www.H-D.com/PanAmerica.

Royal Enfield is coming after Harley-Davidson

By | General Posts

In its last financial year before the pandemic struck, Enfield company sold about 824,000 bikes globally. Harley, by contrast, shipped about 218,000.

Last year Enfield company doubled the size of one of its three factories, bringing overall production capacity to 1.2 million motorcycles a year.

To build buzz Enfield company has tried marketing to American customizers and flat-track competitors, and in 2018 it put Cayla Rivas, a teenage motorcycle racer, on a souped-up Continental in pursuit of a speed record for its bike class—and compelling footage for YouTube. (She hit 157 mph on Utah’s Bonneville Salt Flats.)

Although it may sound counterintuitive, “the U.S. and Europe are very important” to making Enfield the aspirational bike of choice for the developing world, he says.

Lal wants to be as big a player in the West as possible, but he argues that Royal Enfield doesn’t necessarily have to sell that many bikes in developed countries for the strategy to be considered a success. What it does need to do is move enough to give them a patina of cool at home and in other emerging markets, such as Southeast Asia.

Read the full article at Bloomberg. Click Here.

Why Harley-Davidson Is The Tesla Of Motor Bikes

By | General Posts

by Jim Osman from https://www.forbes.com

Visionary CEO Keith E. Wandell should go down in history as the man who introduced the electric motorcycle to the US market and possibly the first CEO to bring it to the world.

It was in 2011 that Mr. Wandell first showcased his unbranded team-made creation to a keen San Francisco motor bike enthusiast crowd. He might be the most notorious CEO that the iconic US bike manufacturer Harley-Davidson HOG +4.1% has had (founded 117 years ago in Milwaukee, Wisconsin).

However, The Edge (the global leader for activist ideas, special situations and Spinoffs) believes new CEO Jochen Zeitz is the best thing to happen to the company since Mr. Wandell left and successor Matthew S. Levatich was fired suddenly thanks to Impala Asset Management, the $2.4 billion activist hedge fund led by Bob Bishop.

The US military purchased over 20,000 motorcycles from Harley-Davidson in World War I and the company also lent itself to supporting US and Allied troops in World War II, with 90,000 military motorcycles handed over.

Harley-Davidson’s global fan club run in the millions of members, called Harley Owners Group (HOG), and their constant support of US military and Allied troops gives to many charities around the world.

Under Mr. Wandell’s stewardship, the electric motorbike became a reality for Harley-Davidson when the LiveWire was first displayed to the media in June 2014 and released to customers by September 2019.

It even became the star of 2019 documentary “The Long Way Up” featuring Unicef Ambassadors and Hollywood actor Ewan McGregor and his longtime riding buddy Charley Boorman when they traveled from Argentina to LA on the electric LiveWire bikes.

In the 1950s Harley-Davidson dealt with reputation damage as well as economic downturns, and was on its knees by the 1960s. In 1969, American Machine and Foundry (AMF) rescued the nearly bankrupt Harley-Davidson.

AMF sold the company to a group of 13 investors led by Vaughn Beals and Willie G. Davidson for $80 million in 1981. To this day, it’s one of only two major American motorcycle manufacturers to survive beyond the Great Depression.

On July 1, 1987, executives from Harley-Davidson and the New York Stock Exchange rode from the Harley dealership in Queens to the New York Stock Exchange on Wall Street to celebrate the first day Harley-Davidson began trading under the ticker symbol HDI, according to the Harley-Davidson museum.

Mr. Wandell joined Harley-Davidson in May 2009, becoming the first external CEO since 1981. On February 7, 2012, under Wandell’s reign Harley-Davidson changed its New York Stock ticker symbol from HDI to HOG.

Mr. Wandell joined Harley-Davidson as CEO in 2009 and by 2012 he had assumed complete control as Chairman of the company’s board of directors while paying investors an increased dividend. It was Mr. Wandell who showed off his unbranded electric motorcycle to enthusiasts in downtown San Francisco in Autumn 2011.

But Mr. Wandell had an eye for talent and promoted Matthew S. Levatich, who joined Harley-Davidson in 1994, as Chief Operating Officer to President, and then CEO of the company in 2015 when Mr. Wandell retired.

Current President, CEO and Executive Chairman Jochen Zeitz (took office February 2020) made two purchases in May 2020, once on May 8 (97,850 shares at $21.26, totaling just over $2m) and again on May 13 (51,020 shares at $19.52, totaling just shy of $1m and representing a 51% increase to his holdings).

These were his first purchases of HOG stock and he has recently made another purchase on August 12 – this time buying 71,450 shares at $27.86 (again spending about $2m, representing a further 47% increase to his holdings) at a significantly higher level than his previous buys. From the May 8 purchase to date, Zeitz’s insider buying made an adjusted +23% return.

Another executive also bought on May 13, then-CFO John Olin, who bought 13,500 shares at $19.02 (spending $260k and representing a 19% increase to his holdings at the time. Since that purchase, Mr. Olin has left the company as part of the larger cost-cutting restructuring called “The Rewire,” though his purchase has yielded a significant return of +45% in just over three months.

Vice President & Treasurer Darrell Thomas has taken over interim CFO duties as of July 9 until a formal successor has been named.

In April 2020, in response to the ongoing COVID-19 pandemic, HOG announced a strategic turnaround plan called “The Rewire,” intended to overhaul the company’s global operating model and save costs.

As a result of the ongoing implementation of the Rewire, several optimization changes have been made to the global workforce and reduction of redundancies, there is an increased focus on offering customizable parts and accessories to help consumers make their motorcycles more personal.

The creation of Chief Digital Officer with Jagdish Krishnan in the role is designed create broader and more engaging digital marketing experience for consumers.

This initiative intends to bring Harley-Davidson into the modern era and appeal to generation Z consumers and beyond (as much of the counter-culture base has grown older and motorcycles have struggled to catch on with a wider young audience), and may provide another example of Mr. Zeitz’s turnaround magic.

Harley’s ride with Hero may leave its dealers in the lurch

By | General Posts

by Lijee Philip from https://auto.economictimes.indiatimes.com

Dealers point to the mid-sized bike Street, which accounted for 70-90% of sales in upcountry and metro markets and has been out of production for more than a month.

Harley-Davidson, which exited India in September, may have firmed up a manufacturing and distribution agreement with Hero MotoCorp, but the fate of its 33 dealerships spread across metros and smaller towns remains unclear.

Dealers point to the mid-sized bike Street, which accounted for 70-90% of sales in upcountry and metro markets and has been out of production for more than a month.

A section of Harley-Davidson dealers said continuing with many recently opened showrooms may not be viable, especially in smaller towns and in metros including the National Capital Region and Bengaluru, which have several such outlets.

“We would sell at least 20-25 motorcycles a month. Now, it is down to single digits. With no sight of Street coming back and the launch of a mid-size motorcycle from the Hero-Harley combine at least a couple of years away, dealerships feel they need to be compensated for the investments made or margins increased to sustain operations,” one of the oldest Harley-Davidson dealers said on condition of anonymity.

“As stated in our earlier announcement, Hero MotoCorp will sell and service Harley-Davidson motorcycles, and sell parts and accessories and general merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers network in India,” a Hero MotoCorp spokesperson said in an email. “We don’t want to comment on anything further at this stage, as all specific details with regard to the transition process will be worked out in due course of time.”

“We will get back as soon as we hear from the global team,” Harley-Davidson said.

Dealers, still awaiting clarity from Harley-Davidson or Hero MotoCorp on the next steps, estimate the network will be scaled down by more than half to 13-15 dealerships from the current 33.

“We have no idea who ceases to be a dealer or who continues,” said Rishi Aggarwal, a Harley-Davidson dealer for New Delhi, Ludhiana and Chandigarh. “In 2013, when the company was more dependent on CBUs, there were 9-10 dealerships and now we seem to be getting back to those levels.”

“With sales reduced to single digits, the viability of upcountry showrooms is an issue,” said Adarsh Tulshan, a Harley-Davidson dealer for Kolkata and Ranchi, adding a call needed to be taken for smaller markets like Ranchi.

Many dealers had expanded and refurbished their showrooms as Harley-Davidson had firmed up plans to increase volumes for the Street and newer mid-sized motorcycles.

“When we signed the letter of intent, we were given no clarity on the expiry date. We invested for the long term and many of us refurbished our dealerships earlier this year,” said another metro dealer on condition of anonymity.

An official communication from Harley-Davidson is expected this week and it will give a clearer picture on the compensation or increased margins for dealers.

Harley-Davidson announced its tie-up with Hero MotoCorp last month. Other similar partnerships include BMW-TVS and Bajaj-KTM.

Why Harley-Davidson Closed Shop in India

By | General Posts

From Ground-Zero of a Marketing Failure

Is there a market for big bikes in India? All the big names have dealerships here in India – Triumph, Indian, BMW, Yamaha, Kawasaki, Honda and now some Italian brands too. India is the world’s largest market for two-wheelers overtaking China. Motorcycles and scooters can be seen everywhere in every city, suburbs and villages. It is the most popular choice of transport for the common man. Why would one of the world’s most popular brands decide to shut shop in India after spending a decade building dealerships and relationships?

Harley-Davidson came to India before Indian and Triumph set foot here. In a way their sales figures induced other motorcycle brands to sell their larger models in India. Before Harley-Davidson the Japanese giants Honda, Yamaha, Kawasaki and Suzuki did not consider bringing their superbikes to Indian dealerships. They were content with their small commuter bikes and scooters selling in large numbers. So how does the trailblazer brand decide they don’t like what they have accomplished?

The answers are complex and the answers may be closer to home in US of A than in India.

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Motorcycles and motor scooters in high demand as car sales tank in Alberta

By | General Posts

by Helen Pike from https://www.cbc.ca

Instead of sitting at home when the pandemic shuttered Alberta’s economy, some hopped on the saddle of a motorbike and hit the streets.

According to statistics provided by the Motorcycle & Moped Industry Council (MMIC), sales across the province started to climb in April and May and peaked mid-summer. Year to date motorcycle sales are up 16 per cent and motor scooter sales are up 14 per cent over last year’s figures.

Meanwhile, new vehicle sales are down about 26 per cent compared with January to August 2019, according to Statistics Canada.

David Grummett, director of communications, said MMIC believes there was a healthy mix of new riders, returning riders and existing riders with some with vacation money burning a hole in their pockets.

“There were a lot of new riders,” Grummett said “[There were people coming] back to the sport in big numbers … there were just people that wanted a new bike and maybe they weren’t going on the cruise. So they had some extra disposable cash. That seemed to be a good place to put it.”

Jen Brown hadn’t been on a bike for a decade. She had taken a course and always intended to have a motorcycle of her own, but life got in the way. Until the pandemic hit.

Then she found herself with extra cash usually set aside for rec-sports leagues and camping trips. So, she got a second-hand beater and, on her first solo ride, met a community of people by chance, on her first ride to Bragg Creek.

‘Everybody stepped up’

“Quite honestly, it’s what kept me sane all summer long,” Brown said. “The group became more and more eclectic, And we all sort of supported each other and helped each other out.”

After that, she was able to message the group for a ride at the drop of a hat. She even went on a road trip vacation with one of the members, who is now her boyfriend.

Brown said the motorcycle community was very supportive over the summer — she described the sport as the “perfect form” of physical distancing.

Because testing wasn’t possible during the first few months of the pandemic — and to ride without a Class 6 licence, you need to be accompanied by a fully licensed driver, social media threads were full of new riders, or unlicensed riders, looking for help.

“Everybody stepped up,” Brown said. “On a lot of the [social media] pages, you could see people asking for somebody who has a Class 6 to chaperone them so that they could practise their riding and they would get seven or eight responses from different people.”

Carter Hansen said he already had a motorbike but it needed repairs before he could dust it off.

He works in the aviation industry and knew a layoff was on the horizon — so instead of wallowing, Hansen said he took himself shopping.

“I made the decision to kinda make the best of my newly found free time,” Hansen said. “I figured if I just sat around and watched my savings and severance dwindle away, it would be very depressing.… Having a new bike that I didn’t have to work on before I could go ride it, helped keep my mental health afloat by giving me something to look forward to. Something to focus on.”

Then, there’s the faction looking for a way to commute safely.

Grummett said scooter sales are up 14 per cent, year to date, over 2019.

Commuting by scooter instead of transit

“People can really easily get on a 50 cc scooter and be-bop into town and not have to worry about sitting beside somebody that is masked and hacking and coughing and stuff,” Grummett said. “So we see that as a really positive thing going forward with the motorcycle industry.”

Interestingly, mini bike sales went through the roof in June, up 319 per cent over 2019 figures. Grummett attributes this to parents trying to keep kids out of the house, especially in rural areas.

“Dealers said basically, you know, a lot of rural kids that maybe their life was playing hockey, baseball, soccer or whatever, [now they] can’t do it,” Grummett said. “And they’re driving the parents nuts.”

While sales climbed, so did fatalities

The Alberta Motorcycle Safety Society tracks crashes across the province. President Liane Langlois said this summer fatalities nearly doubled — with 21 so far, compared with 11 last year.

Over the last number of years, Langlois said fatalities were trending down, so this increase is especially disheartening.

“I always like to see growth in the motorcycle community,” Langlois said.

“People are getting into it because they really enjoy that feeling, that freedom, that being out on the open road. That’s great. Get involved. It’s awesome. Just to make sure that you’re set up for success and not going to become one of these unfortunate statistics.”

Most of the fatal crashes, 70 per cent, were single-vehicle collisions.

Hero MotoCorp to develop, sell Harley-Davidson bikes for India market

By | General Posts

from https://www.rushlane.com

from https://motorcycles.einnews.com

from https://www.business-standard.com

from https://www.thehindu.com

DELHI, India, Oct. 27, 2020 (GLOBE NEWSWIRE) — Embarking on a new journey together, Harley-Davidson, Inc. (“Harley-Davidson”), the legendary motorcycle manufacturer and Hero MotoCorp, the world’s largest maker of motorcycles and scooters in terms of unit volumes, today announced that the two will ride together in India.

Per a distribution agreement, Hero MotoCorp will sell and service Harley-Davidson motorcycles and sell Parts & Accessories and General Merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero MotorCorp’s existing dealership network in India.

As part of a Licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name.

These actions are aligned with Harley-Davidson’s business overhaul, The Rewire, and the company’s announcement in September to change its business model in India.

This arrangement is mutually beneficial for both companies and riders in India, as it brings together the iconic Harley-Davidson brand with the strong distribution network and customer service of Hero MotoCorp.

About Hero MotoCorp Ltd.
The New Delhi (India) headquartered Hero MotoCorp Ltd. is the world’s largest manufacturer of motorcycles and scooters, in terms of unit volumes sold by a single company in a year — the coveted position it has held for the past 19 consecutive years. The Company has sold over 95 million motorcycles and scooters in cumulative sales since inception. Hero MotoCorp currently sells its products in more than 40 countries across Asia, Africa, Middle East, and South and Central America. Hero MotoCorp has eight state-of-the-art manufacturing facilities, including six in India, and one each in Colombia and Bangladesh. Hero MotoCorp has two world-class, state-of-the-art R&D facilities — the Centre of Innovation and Technology (CIT) in the northern Indian state of Rajasthan, and Hero Tech Centre Germany GmBH. Hero MotoCorp is one of the largest corporate promoters of multiple disciplines of sports, including, Golf, Football, Field Hockey, Cricket and Motorsports. Fifteen-time major winner Tiger Woods is Hero’s Global Corporate Partner.

For more information, please visit:
www.heromotocorp.com | FB: /HeroMotoCorpIndia | Twitter: @HeroMotoCorp

Harley Davidson withdrew its official presence in India last month only to kickstart an all-new innings, this time in partnership with Hero Motocorp. News about the American cruiser specialist scouting for a suitable partner in India has been circulating for a while now with Hero Motocorp and Classic Legends (Jawa’s parent company) touted as front runners. Now, it is official.
Harley Davidson partners with Hero MotoCorp
Harley Davidson has announced that it has entered into distribution and licensing agreement with Hero MotoCorp as a part of its Rewire strategy. As a part of the distribution agreement, Hero MotoCorp will be responsible for selling and service Harley Davidson motorcycles through the American marque’s existing network of outlets.
Hero’s well established dealership network would also be used to expand Harley’s market coverage. In addition to motorcycles, the Indian partner will also take care of retailing HD parts, accessories, general merchandise, riding gears and apparels.
Hero to develop Harley motorcycles

The most interesting aspect of the partnership is the licensing agreement according to which Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley Davidson brand name. No further details about this arrangement have been revealed as of now.

The Harley Davidson – Hero MotoCorp partnership is a great news for the Indian motorcycle enthusiasts. Owners of existing Harley Davidson motorcycles will be able to get service as well as spares at Harley Davidson dealerships as well as at Hero dealerships.

Hero MotoCorp to develop, sell Harley-Davidson bikes for India market

The country’s largest two wheeler maker Hero MotoCorp and Harley-Davidson on Tuesday announced a wide ranging partnership for the Indian market.

The country’s largest two wheeler maker Hero MotoCorp and Harley-Davidson on Tuesday announced a wide ranging partnership for the Indian market, days after the US cult bike manufacturer announced its exit from the country.

As part of the deal, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name in the country. Besides, it will take care of service and parts requirements for the Harley bikes. Further, Hero MotoCorp would sell Harley accessories and general merchandise, riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and its existing sales network in the country, the companies said in a joint statement.

“These actions are aligned with Harley-Davidson’s business overhaul, The Rewire, and the company’s announcement in September to change its business model in India,” it added.

This arrangement is mutually beneficial for both companies and riders in India, as it brings together the iconic Harley-Davidson brand with the strong distribution network and customer service of Hero MotoCorp, it added.

In September, Harley-Davidson had announced discontinuation of sales and manufacturing operations in India, a decade after it started selling its premium bikes in the country.

As part of the development, the company had announced plans to close its manufacturing facility in Bawal (Haryana) and significantly reduce the size of its sales office in Gurugram.

The exit from India is part of the company’s global restructuring activities.

In the second quarter of 2020, Harley-Davidson had initiated restructuring activities like workforce reduction and the termination of certain contracts that would result in the elimination of approximately 700 positions globally, including the termination of approximately 500 employees.

The Milwaukee-based company refers to restructuring actions related to employees and other services as ‘The Rewire’.

From its entry to exit, Harley-Davidson’s journey in the country witnessed governments of India and the US using it as a bargaining chip.

In April 2007, the then Indian government had relaxed emission and testing norms, paving the way for import of Harley Davidson bikes to India, in return for allowing mango exports from the country to the US. The import relaxation was restricted to the shipments of motorcycles up to 800 cc engine capacity or above subject to compliance to Euro III emission norms.

Later in 2009, the company announced the establishment of its operations in India, followed by starting of sales of its bikes a year later. Then the company set up its completely knocked down assembly plant in Haryana and started rolling out assembled bikes from the unit in the early part of 2011.

The company’s assembly plant at Bawal in Haryana was its second facility outside of the US after Brazil, and it had planned to use the unit to export to Europe and South-East Asian markets.

In the recent past, US President Donald Trump criticised India’s high import tariff on the iconic Harley Davidson motorcycles as “unacceptable” as the two countries negotiated for an elusive trade deal.

Hero MotoCorp and Harley Davidson to partner for Indian market

Hero MotoCorp on Tuesday said that it has entered into a distribution and licensing agreement with American motorcycle maker Harley Davidson to develop and sell a range of premium motorcycles under the Harley Davidson brand name.

The announcement comes almost a month after Harley-Davidson Inc. announced that it will discontinue sales and manufacturing operations in India as part of a global strategic restructuring plan ‘The Rewire’.

“As per a distribution agreement, Hero MotoCorp will sell and service Harley-Davidson motorcycles, and sell parts & accessories and general merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero’s existing dealership network in India,” Hero MotoCorp said in a statement.

It added that as part of a licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name.

“This arrangement is mutually beneficial for both companies and riders in India, as it brings together the iconic Harley-Davidson brand with the strong distribution network and customer service of Hero MotoCorp,” it added.

Harley in talks with Hero for distribution deal after exiting India

By | General Posts

by Aditya Kalra & Aditi Shah from Reuters and https://www.business-standard.com

Harley, known for its heavy touring motorcycles, struggled in India mainly because of high import duties. Harley’s 33 dealerships will likely come under Hero’s management under the new arrangement, said one of the sources.

Harley-Davidson Inc is in advanced talks with India’s Hero MotoCorp for a distribution deal which will allow the U.S. firm’s iconic motorcycles to be sold in India, after it stops local manufacturing there, three sources told Reuters.

The Milwaukee-based company said on Thursday it will stop sales and shut its manufacturing plant in India, effectively abandoning the world’s biggest motorcycle market after a decade of unsuccessful efforts to gain a foothold.

Harley however is in talks with Hero MotoCorp to enter into a distribution arrangement that will allow the Indian company to import and sell Harley bikes as its sole distributor, two sources with familiar with the talks said.

“Hero will be the master distributor for Harley bikes in India … This will be a partnership, a strategic alliance,” said one of the sources, all of whom declined to be named as the discussions were private.

Discussions are also ongoing to let Hero become a contract manufacturer for at least one Harley motorcycle with 300-600 cc engine capacity, which it will launch later, the first source added.

The financial details of the deal were not immediately clear.

Asked about talks with Hero, a Harley spokeswoman said the company can’t comment on “rumours or speculation”. On Thursday, it said it was “changing its business model in India & evaluating options to continue to serve customers.”

Hero MotoCorp, which is the India’s largest two-wheeler manufacturer by sales, said it doesn’t comment on market speculation. It produced 6.4 million two-wheeler scooters and motorcycles in the fiscal year ending March 2020, a third of India’s total output.

Harley manufactured just 4,500 motorcycles during that period, largely assembled from imported knock-down kits at its plant near New Delhi, which it will shut as part of its announced restructuring.

Harley’s decision to stop direct manufacturing marks another major exit by an automotive player in India and is a setback for Prime Minister Narendra Modi who has been inviting foreign firms to ramp up local production. Ford Motor and General Motors have both pared their India operations in recent years.

Harley, known for its heavy touring motorcycles, struggled in India mainly because of high import duties – which U.S. President Donald Trump often criticized India for – and also because its locally assembled bikes faced high taxes.

Hero typically sells motorcycles with engine capacities of under 200 cc and a deal with Harley will help speed up its entry into the mid- and high-engine segments favoured by biking enthusiasts and young leisure riders, the second source said.

“In that segment, biking is moving to a fashion purchase for leisure, weekend rides and Harley bikes will do well with higher local content,” said the source, adding Harley was also likely to provide technology know-how and inputs on quality standards to Hero.

Harley’s 33 dealerships will likely come under Hero’s management under the new arrangement, said one of the sources.

Harley-Davidson to shut sales and manufacturing operations in India

By | General Posts

from https://indianexpress.com and https://www.reuters.com

The announcement comes two months after Harley unveiled a strategy to shift focus back to more profitable motorcycles and core markets such as the United States.

Harley-Davidson Inc said on Thursday it would discontinue its sales and manufacturing operations in India, effectively abandoning the world’s biggest motorcycle market after a decade of unsuccessful efforts to gain a foothold.

Harley had spent recent months moving dealerships in the country to cheaper locations, and the announcement followed speculation in Indian media a month ago that executives had played down.

The move involves $75 million in restructuring costs, some 70 redundancies and the closure of its Bawal plant, walking away from a market worth about 17 million bike and scooter sales a year. It will retain only a scaled-down sales office in Gurgaon, south of New Delhi.

The departure is also the latest setback for Prime Minister Narendra Modi’s strategy to encourage domestic manufacturing that would keep more of the fruits of a gigantic home consumer market in India.

Harley has been scrambling for years to grow sales beyond baby boomers in the United States and has not posted retail sales growth there in the past 14 quarters.

Chief Executive Officer Jochen Zeitz, who took the reins at the company in February, unveiled a major “Rewire” in July to boost profits by reducing Harley’s product portfolio by 30% and investing in 50 markets with growth potential in North America, Europe and parts of Asia Pacific.

India was one of the markets the company at that point committed to investing in more heavily. Thursday’s statement said the move to leave had been pushed through since Aug. 6.

Harley said it now expects total restructuring costs of about $169 million in 2020, but warned that the restructuring program – referred to internally as “The Rewire” – was likely to incur more charges.

India, still far cheaper and poorer than many of the developing economies with which it competes for investment, has proven an inhospitable market for other auto industry players.

Harley books $75 mln in fresh restructuring costs, discontinues India operations

Sept 24 (Reuters) – U.S. motorcycle maker Harley-Davidson said on Thursday it expects to report $75 million in additional restructuring costs for 2020 related to actions including discontinuing its sales and manufacturing operations in India.

The company said it now expects total restructuring costs of about$169 million in 2020.

(Reuters) – Harley-Davidson Inc HOG.N said on Thursday it would discontinue its sales and manufacturing operations in India, effectively abandoning the world’s biggest motorcycle market after a decade of unsuccessful efforts to gain a foothold.

Harley had spent recent months moving dealerships in the country to cheaper locations, and the announcement followed speculation in Indian media a month ago that executives had played down.

The move involves $75 million in restructuring costs, some 70 redundancies and the closure of its Bawal plant, walking away from a market worth about 17 million bike and scooter sales a year. (bit.ly/3mPHZnx) It will retain only a scaled-down sales office in Gurgaon, south of New Delhi.

The departure is also the latest setback for Prime Minister Narendra Modi’s strategy to encourage domestic manufacturing that would keep more of the fruits of a gigantic home consumer market in India.

Harley has been scrambling for years to grow sales beyond baby boomers in the United States and has not posted retail sales growth there in the past 14 quarters.

Chief Executive Officer Jochen Zeitz, who took the reins at the company in February, unveiled a major “Rewire” in July to boost profits by reducing Harley’s product portfolio by 30% and investing in 50 markets with growth potential in North America, Europe and parts of Asia Pacific.

India was one of the markets the company at that point committed to investing in more heavily. Thursday’s statement said the move to leave had been pushed through since Aug. 6.

Harley said it now expects total restructuring costs of about $169 million in 2020, but warned that the restructuring program – referred to internally as “The Rewire” – was likely to incur more charges.

India, still far cheaper and poorer than many of the developing economies with which it competes for investment, has proven an inhospitable market for other auto industry players.

Last year, Ford Motor Co F.N pared back its interests and ceased independent operations in India by entering into a joint venture with Indian automaker Mahindra & Mahindra MAHM.NS.

General Motors GM.N, which stopped domestic sales in 2017, also plans to stop manufacturing and exports from India by the end of this year.

Growth in domestic sales has slowed of late – with sales of cars and motorbikes falling 18% in the last fiscal year to March 31 from a year ago.

ALYI Expects To See Orders For ReVolt Electric Motorcycles Double Next Month

By | General Posts

from https://www.prnewswire.com

DALLAS, Aug. 27, 2020 /PRNewswire/ — Alternet Systems, Inc. (USOTC: ALYI) today announced that it expects a new fleet order for its ReVolt Electric Motorcycle to double the company’s current production outlook. Earlier this month the company announced entering into discussions regarding additional fleet orders. Management now expects to sign an order resulting from those discussions by the end of September.

ALYI currently has already entered into an initial $20 million electric motorcycle order and an additional letter of intent for a $30 million contract. Both agreements cover six-year durations resulting in an overall $300 million revenue opportunity for ALYI. The new order expected to be signed next month would edge ALYI toward a $500 million revenue opportunity.

Over two years ago, ALYI piloted an electric motorcycle that in its first rendition was a BMW R71 clone retrofitted with an electric motor. The BMW R71 is a breathtaking iconic image popularized through decades of frequent Hollywood screen appearances in addition to the real engineering breakthroughs that maintain the bike’s relevance.

Still drawing on the BMW R71 original design and look, after several design iterations, the ReVolt Electric Motorcycle today is an innovation feat. When ALYI unveils the production version of the ReVolt Electric Motorcycle, it will be an industry changing event. The ReVolt Electric Motorcycle is a connected, state of the art electric motorcycle, ergonomically optimized for its target market while still maintaining an iconic look.

ALYI expects to be in production later this year.