Triumph Motorcycles laying off 400 workers while YTD April global sales fell 22%

Triumph Motorcycles
Triumph Motorcycles

Triumph Motorcycles has lost 22.9% of global sales in the first four months of the 2020 due to the lost in top European markets and in USA. The fall moved the Management to announce a 20% global employees cut, announced in early June. Our projection for the entire year is 47.000 sales.

Global Triumph Sales Track

Recents years have been full of success for Triumph. The British brand have an annual capacity of 60.000 bikes and in the period 2013-2017 grew uninterruptedly to achieve a record of over 62.000 units.

During 2018 and 2019 global sales slipped down a litte with 2019 score at 60.000 units.

The expansion in the ASEAN region was the base for further growth this year, but the effects of COVID19 in the two largest region for Triumph, North America and Europe, have created an hole on sales and – as for all other top brands in the World, the 2020 is projected to fall down.

Indeed, Triumph sales during the first four months of 2020 have been 16.540, down 22% with main falls in Italy (-49% while opening a new location for the local subsidiary), Greece (-82%), France (-34%) and Spain (-33%).

Data were not only negative with few countries fast growing, like Romania (+84%), Ireland (+33%), Slovenia (+160%).

However, it seems the sales lost and the projection to the end of the year determined a huge crisis in the company and a cut of 400 employees (out of 2.400) has been announced in early June. 

Our projection for the current year is for global sales at 47.000 units (-23%) while the outlook could improve id Central European market will confirm in the next months an improved trend

Triumph Motorcycles
Triumph Bonneville

Triumph Heritage

Triumph Motorcycles Ltd is the largest British motorcycle manufacturer, established in 1983 by John Bloor after the original company Triumph Engineering went into bankrupt. The new company (initially Bonneville Coventry Ltd) continued Triumph’s record of motorcycle production since 1902. 

Bloor set to work assembling the new Triumph, hiring several of the group’s former designers to begin work on new models. 

In 1988, Bloor funded the building of a new factory at a 10-acre (40,000 m2) site in Hinckley, Leicestershire. The first Hinckley Triumph’s were produced for the 1991 model year. Bloor put between £70 million and £100 million into the company between purchasing the brand and breaking even in 2000.

At the same time as production capacity increased, Bloor established a new network of export distributors. He had previously created two subsidiary companies, Triumph Deutschland GmbH and Triumph France SA. In 1994, Bloor created Triumph Motorcycles America Ltd.

On 15 March 2002, as the company was preparing to celebrate its 100th anniversary as a motorcycle maker, its main factory was destroyed by a fire which began at the rear of the facility. At the height of the blaze, over 100 firefighters were tackling the fire, which destroyed most of the manufacturing capacity. Nevertheless, the company, which by then employed more than 650 people, quickly rebuilt the facility and returned to production by September that year.

In May 2002, Triumph began construction on a new sub-assembly manufacturing facility in Chonburi, Thailand to make various components. A second factory was opened in 2006 and the ceremony was attended by Prince Andrew, Duke of York. A third factory was opened in 2007 to include high pressure die-casting and machining, and Triumph announced that they were expanding to increase capacity to over 130,000 motorcycles. Triumph Motorcycles (Thailand) Limited is a 100% UK owned company and now employs about 1000 staff.