Harley-Davidson's India dealers seek a 'fair deal' of compensation

Harley-Davidson's dealers association on Thursday said demanded a "fair deal" of compensation from the American cruiser bike major, before it exits the country.

The association represents 33 Harley-Davidson outlets in India.

"All the 33 dealer partners have been facing a problem since Harley-Davidson announced withdrawal of independent operations in India and revealed a new partnership with Hero MotoCorp.

"Given a time-bound, take it or leave it situation that offered them no other option, 10 of the 33 dealer partners have gone ahead with becoming a part of the Hero MotoCorp's dealership network."

Given the situation, the association said the dealers continue "to wait to hear" from Harley-Davidson on the issue of adequate compensation.

"With Hero MotoCorp absorbing only 33 per cent of the dealers, it leaves the rest with uncertainty about the fate of the dealer partners investments and future business outlooks. This includes the 10 who will be coerced to act without receiving any benefit," the association said.

"The company is yet to decide on the fate and plight of the 23 dealers who are not being approached by Hero MotoCorp to be a part of its dealership network. We feel that providing us with a fair deal is Harley-Davidson's undeniable responsibility towards us."

In October, Harley-Davidson Inc and Hero MotoCorp, the worlds largest maker of motorcycles and scooters in terms of unit volumes had announced that the two will ride together in India.

As per a distribution agreement, 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 and Hero's existing dealership networks in India.

As part of a licencing 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.

--IANS

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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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