Harley-Davidson explained Thursday it would quickly halt generation of all gasoline-powered bikes for two weeks “out of an abundance of caution,” thanks to an unspecified challenge with a supplier’s ingredient and a “regulatory compliance matter.” Generation of electric LiveWire bikes is not impacted by today’s selection.
Harley’s assertion, posted on Thursday to the company’s web site, is brief and sweet. This does not seem to be a offer chain concern, like what we’ve viewed impacting automakers for months now, but rather a difficulty with a piece of gear that Harley purchases from a 3rd-party provider. Harley’s statement in its entirety:
Yesterday, Harley-Davidson, Inc. (“Harley-Davidson”) (NYSE:HOG) took the decision to suspend all vehicle assembly and shipments (excluding LiveWire) for a two-week interval. This decision, taken out of an abundance of caution, is primarily based on information delivered by a 3rd-bash supplier to Harley-Davidson late on Tuesday (5/17) concerning a regulatory compliance make any difference relating to the supplier’s part element.
The observe that LiveWire electric powered versions are excluded hints at a major challenge precise to Harley’s gasoline-driven motorcycles. The point out of a “regulatory compliance matter” would feel to issue towards a dilemma with an emissions-relevant unit. When achieved by Jalopnik, Harley-Davidon did not provide any further comment on the make any difference.
Bike income shot up in the pandemic, to Harley’s reward: The company’s shipments rose 30 p.c in 2021 in comparison to the calendar year prior, although shipments ended up flat in the very first quarter of 2022 as Harley has struggled to offer with other offer-chain troubles.
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It also arrives at a quite unwelcome time: Harley-Davidson is identified to rebrand alone to develop into far more attractive to younger prospective buyers. The business appeared to last but not least be setting up momentum towards that aim, even displaying larger income previously this year.
Wall Avenue wasn’t impressed by today’s news out of H-D. Harley’s inventory was down 9 per cent for the working day as of this composing.