Harley Davidson exits India and the company's Indian dealers are planning to take legal action against the company over compensation post its Indian operation shut down. Large number of dealers group together and reportedly hired the renowned law firm for carrying out legal proceedings.
HeroMotoCorp develops Harley Davidson bikes for India, Stock rise
A report says, as many as 33 dealers group together to sue the company as they say they were “kept in the dark” by the company. Recently, the Milwaukee-based iconic motorcycle company entered into a redistribution partnership with Hero MotoCorp last month to sell its bikes in India. Due to the partnership and the COVID 19 situation the dealers either have to shut shop or switch to smaller format showrooms to recover losses. Some of the dealers said the compensation given to them will not even cover a month’s rent.
Harley-Davidson sales, service in India to be carried out by Hero Motocorp
The motorcycle company announced on September 24 about its Haryana Plant shut and as a part of a restructuring operation the company is downsizing its sales operations in India due to the economic climate triggered by the COVID-19 outbreak. During the press conference held by the Federation of Auto Dealers Association of India (FADA) one of the affected, said the compensation received by some dealers was less than 20% of what General Motors paid to its dealers when it shut India operations, on Tuesday.
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