-2.1 C
New York City
Saturday, June 25, 2022
Home Around-the-World Harley-Davidson Halts Motorcycle Production

Harley-Davidson Halts Motorcycle Production

Harley-Davidson Inc said on Thursday it will stop assembling and shipping motorcycles for two weeks except for its electric models due to a problem with parts from a supplier.

The iconic motorbike maker said a third-party supplier that it did not identify has a regulatory compliance matter with a component. Harley-Davidson had no additional comment.

So far, production at two manufacturing plants in Wisconsin and Pennsylvania have been halted.

“There’s no indication of how this impacts the business or how it impacts the units that have already been made,” said Jaime Katz, senior equity analyst at Morningstar.

In a recent 10-k filing, the company disclosed that semiconductor shortages were affecting production lines and that it was seeking alternatives. It also noted that its suppliers could potentially be adversely impacted by changes in legal or regulatory requirements.

The company began outsourcing production of motorcycles for the EU in 2018 in response to retaliatory tariffs imposed by the EU on U.S. steel and aluminum products. Over the past two years, the company expanded business dealings with foreign suppliers to mitigate rising domestic raw material costs.

Shares sank 9.3% to $32.44 in afternoon trading.

Milwaukee-based Harley reported a drop in first-quarter profit in April, as margins were squeezed by higher costs and chip shortages. (Reuters)

©Copyright MOTORING WORLD INTERNATIONAL.All rights reserved. Materials, photographs, illustrations and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior written permission from Motoring World International

Contacteditor@motoringworldng.com

Most Popular

Is MG HS a Threat to its Rivals in Nigeria?

From all indications, MG HS has been attracting curiosity and positive attention across Nigeria. According to Anurag Shah,...

Oil Prices Rise, as Nations Seek To Address Tight Global Supply

Oil prices rose slightly in early Asian trade today (Friday) as nations seek to address global crude oil and fuel supply...

Lagos Tasks Transport Unions on Co-Operation, Collaboration

The Lagos State Government has urged Unions in the transport sector to co-operate with the Government as it is mutually beneficial...

FG Rolls Out Gas-Powered Buses for Nigerian Workers

The Federal Government has unveiled 20 high-tech buses powered by compressed natural gas (CNG) for civil servants in the Federal Capital...