Shares of Harley-Davidson opened more than 10% lower Thursday.
Photo:
Luke Sharrett/Bloomberg News
Harley-Davidson Inc.
HOG -9.29%
has halted assembly and shipments of most of its motorcycles following a notification from a supplier over regulatory compliance.
The company on Thursday said it was suspending production of all vehicles, aside from its electric-motorcycle unit LiveWire, for two weeks. Shares opened down more than 10% and were recently trading down 7.8% at $32.97.
The company said it received a notice from a supplier late Tuesday relating to a component part and took the action on Wednesday, saying it was out of an abundance of caution.
A Harley-Davidson spokesperson said the company was evaluating the situation but declined to comment further.
The company has been on a mission to curb costs and increase profits by focusing on leaner operations, scaling back its overseas expansions, eliminating some models of bikes and lowering inventories.
Demand for motorcycles in the U.S. rose during the pandemic as riders looked to motorcycling as a form of socially distanced recreation, and the company grew its profit as it focused on production of its classic, bigger and higher-priced model bikes.
More recently, the company has struggled to meet demand, with supply-chain challenges and the semiconductor shortage weighing on production.
The company said last month that a shortage of semiconductors left the motorcycle maker unable to fully meet demand in the recently ended quarter, leading to a drop in profit and North American sales.
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the May 20, 2022, print edition as ‘Harley-Davidson Suspends Assembly And Shipments Over Supplier Matter.’
Shares of Harley-Davidson opened more than 10% lower Thursday.
Photo:
Luke Sharrett/Bloomberg News
Harley-Davidson Inc.
HOG -9.29%
has halted assembly and shipments of most of its motorcycles following a notification from a supplier over regulatory compliance.
The company on Thursday said it was suspending production of all vehicles, aside from its electric-motorcycle unit LiveWire, for two weeks. Shares opened down more than 10% and were recently trading down 7.8% at $32.97.
The company said it received a notice from a supplier late Tuesday relating to a component part and took the action on Wednesday, saying it was out of an abundance of caution.
A Harley-Davidson spokesperson said the company was evaluating the situation but declined to comment further.
The company has been on a mission to curb costs and increase profits by focusing on leaner operations, scaling back its overseas expansions, eliminating some models of bikes and lowering inventories.
Demand for motorcycles in the U.S. rose during the pandemic as riders looked to motorcycling as a form of socially distanced recreation, and the company grew its profit as it focused on production of its classic, bigger and higher-priced model bikes.
More recently, the company has struggled to meet demand, with supply-chain challenges and the semiconductor shortage weighing on production.
The company said last month that a shortage of semiconductors left the motorcycle maker unable to fully meet demand in the recently ended quarter, leading to a drop in profit and North American sales.
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the May 20, 2022, print edition as ‘Harley-Davidson Suspends Assembly And Shipments Over Supplier Matter.’