-2.1 C
New York City
Friday, July 1, 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

No Plan to cut Ties with our Nigerian Mercedes-Benz Dealers, says Weststar

Weststar Associates Limited, Nigeria’s authorized General Distributor of Mercedes-Benz has refuted any plan or possibility to sack its distributors across the...

FRSC Honours Motorist for Strict Compliance to Traffic Regulations

The Federal Road Safety Corps (FRSC) has honoured a motorist, Mr Ade Omolewa, for his strict compliance to road traffic rules...

Reps to Investigate NNPC Fuel Subsidy Claim

The House of Representatives has constituted an Ad-hoc Committee to investigate the Petroleum Products Subsidy regime between 2017 and 2021 by...

Oil falls 3% on Uncertainty over Future OPEC + Output, Recession Fears

Oil prices sank around 3% on Thursday as OPEC+ confirmed it would only increase output in August as much as previously...