Harley-Davidson suspends production for 2 weeks, shares fall

Business

(AP) — Harley-Davidson announced a two-week suspension of vehicle assembly and most shipments, citing a regulatory compliance issue with one of its suppliers.

Shares tumbled almost 8% Thursday.

The decision was made Wednesday “out of an abundance of caution” after the company received information from a supplier that one of its component parts was experiencing regulatory compliance issues, Harley-Davidson said.

The company did not name the supplier or provide details on the part in question and said the assembly and shipping suspension would not affect its LiveWire electric motorcycle.

The company, like most global manufacturers, was already struggling with supply issues. It reported in April that its profit was trimmed by rising costs and chip shortages, which hurt sales in North America.

Harley-Davidson shares have lost nearly one-third of their value in the past year and Thursday, stock in the Milwaukee company fell $2.76 to $32.97.

It’s the same supply-chain factor contributing to missed Wall Street expectations by the widest margins in at least five years.

Among 145 retailers who reported fist quarter earnings so far, 127 mention inflation and 138 flag supply chain issues.

Experts predict the bottle neck won’t fully clear until last year.

Harley-Davidson reported just last month that rising prices and ship shortages hurt sales in America.

© 1998 - 2022 Nexstar Media Inc. | All Rights Reserved.

Trending on NewsNation

Elections 2022

More Elections 2022