The motorcycle industry is still reeling from the global pandemic that forced millions of people out of a job and sent sales numbers crashing. After almost three consecutive months of lockdowns, quarantine orders, and shutdowns, life is resuming at a slow but steady pace. Manufacturers are reopening their doors and assessing the damage and for some companies, the aftermath is more challenging than for others.
While some of the companies had to take action early on, others are dealing with a delayed hit. It’s the case for Triumph who announced to ensure the company’s long-term health, it will need to restructure and cut jobs.
Impact On The Market:
Out of the 2,500 workers the House of Hinckley employs worldwide, up to 400 of them are expected to be laid off, 240 of which are based at the Hinckley HQ in England. Triumph Chief Executive Nick Bloor explains that these are challenging times and that the pandemic has caused “significant damage to the global motorcycle market.”
During what should have been peak season for the industry, sales in the 500cc plus segment have dropped by 40 to 65 percent in key markets including the U.K., France, Italy, Germany, and the U.S. Triumph adds the forecast seems to indicate that the market will remain slow despite a gradual return to normal, a result of the fragile economic situation created by the pandemic. The manufacturer will hold a consultation period with its employees.
“(…) we have to respond and react accordingly as both a responsible employer and as a business that invests for the future,” commented Bloor. “There are not easy decisions to make, especially when individuals’ livelihoods are affected; however, regrettably the scale of impact of Covid-19 necessitates us to restructure now in order to protect the long-term health and success of the Triumph brand and business.”
The company has yet to confirm exactly what actions it will take to remain on track but we will share an update as soon as we know more.
Sources: Motorcycle News, BBC