Harley Davidson to halt production for two weeks over parts issue

Harley Davidson to halt production for two weeks over parts issue
Harley-Davidson Inc. announced that due to an issue with parts from a supplier it will suspend production and delivery of motorcycles for at least two weeks, except for its electric version motorcycles, Livewire.

The motorcycle manufacturing giant said it made the final decision after a third-party vendor advised them of a regulatory compliance issue with one of its parts. Production has been halted at two manufacturing factories in Wisconsin and Pennsylvania so far.

The companys share price dropped 9% to USD 32.51 in premarket trading. Harley-Davidson, located in Milwaukee, had also revealed a dip in first-quarter earnings in April due to rising prices and chip shortages. Motorcycle sales in North America were hampered by supply chain issues, which led to lower dealer stocks.

The company revealed in a 10-k filing that chip shortages were impacting manufacturing lines and that it was looking for alternatives. It also stated that alterations in legal and regulatory requirements could harm its suppliers.

In response to reactionary tariffs imposed by the EU on the U.S., the company began outsourcing motorcycle operations to the EU in 2018. To offset growing local raw material costs, the company has increased its commercial contacts with foreign suppliers during the last two years.

On the contrary, Harley-Davidson has managed to record an increase in sales as it reclaims the top rank among premium motorcycles in India. Since then, the American manufacturer has been on a path to recovery, having declared an unexpected exit from India, followed by a re-entry through a partner Hero MotoCorp in 2020.

According to external sources, Harley-Davidson sold 601 bikes in FY2022 in India, 531 of which were in the 1,000-cc and higher two-wheeler variants. The company has seen a y-o-y 37% growth in 2022 as compared to only 206 units sold during the same time last year.

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Anjali Mishra

Anjali Mishra

A postgraduate in Criminal Law, Anjali Mishra uses her analytical skills to understand and write about all things market. Anjali holds a keen interest in writing insightful articles on healthcare, business, finance, and emerging technologies for AlpenHornNews and numerous other portals. Coming from outside the economical milieu, Anjali aims to write in a way that helps readers with non-technical knowledge understand technical concepts with ease.