Harley stops assembling and shipping ICE bikes

[The Spin Doctor]

May 19 (Reuters) - Harley-Davidson Inc (HOG.N) 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.

Supply chain snarls have dented motorcycle sales in North America as production challenges resulted in lower dealer inventories, the company has previously said.

[MrLongbeard]

They've had problems all year, I've had stuff on order for 2 months that I'm not expecting to see for another 3 months

[The Spin Doctor]

They've had problems all year, I've had stuff on order for 2 months that I'm not expecting to see for another 3 months

Rather odd, then, that they were suggesting all was rosy in the garden just a few weeks back.

Frankly, Harley seem to be scatter-gunning resources again after a severe pruning back with the new administration.

[Mussels]

I wonder if 'regulatory compliance matter' is code for Chinese lockdown but they don't want to admit to buying parts from China.

[Skub]

I think all the manufacturers are experiencing a shortage of crucial parts. My local dealer is looking at September for a good portion of the Kawasaki range. There's only a handful of bikes he can order with any hope of getting them this year.

[MrLongbeard]

They've had problems all year, I've had stuff on order for 2 months that I'm not expecting to see for another 3 months

Rather odd, then, that they were suggesting all was rosy in the garden just a few weeks back.

Frankly, Harley seem to be scatter-gunning resources again after a severe pruning back with the new administration.

All rosy around model launch time........ hmm colour me cynical.
Their stuff gets made all over the planet, but they've been running away from steel tariffs for a while now, which along with the ongoing silicon problems has come home to roost, just my opinion mind

[Mr. Dazzle]

I think all the manufacturers are experiencing a shortage of crucial parts.

in a nutshell, yes! Our purchasing department are having a hell of a time. And we only do one bit of the car.

[crust]

Wot he ^ said.

We've had to re-write a load of our software as the micro we originally specc'd is on over a years lead time. The new micro + software has a bug in it, I tried to source a de-bugger - 358 days lead time.

The Chinese has been having some serious lock-downs which has screwed deliveries of the bits you can get.

[demographic]

So let me get this straight.
The company people choose when they're avoiding Chinese products is fucked without Chinese products.

Ok then.

Keep on stickin it to the maan buyers

[Count Steer]

So let me get this straight.
The company people choose when they're avoiding Chinese products is fucked without Chinese products.

Ok then.

Keep on stickin it to the maan buyers

Just adjust your all-American Ray Bans (Italian), park up your all-American Jeep (Fiat) and fire up your made-in-America HD.

(Harleys sold in the U.S. are indeed assembled in one of four plants located in Wisconsin, Missouri and Pennsylvania. But the brakes and clutch are imported from Italy, the engine pistons are made in Austria, the bike suspension comes from Japan, and other electronic components originate in Mexico and China.)

[demographic]

I'm gonna need some flags to make this right, maybe a Stars and Stripes and if I can get one a Chinese made RAF roundal. Got one with Churchills face on it?

[Bigyin]

I think all the manufacturers are experiencing a shortage of crucial parts. My local dealer is looking at September for a good portion of the Kawasaki range. There's only a handful of bikes he can order with any hope of getting them this year.

My sons mate ordered a brand new Yamaha R7 and was told delivery September ......... hopefully

This says to me maybe November