Harley-Davidson to suspend most vehicle assembly due to parts issue

HARLEY-DAVIDSON said on Thursday (May 19) it will suspend vehicle assembly and shipments for a 2-week period, excluding those from its electric-vehicle division LiveWire, due to a parts issue related to a supplier.

The iconic motorbike maker said the decision was made after a third-party supplier, which was not named, informed Harley about a regulatory compliance matter relating to its component part.

The company began outsourcing bike production for shipment to the EU from the United States in 2018 in response to retaliatory tariffs imposed by the EU on steel and aluminum products.

Harley-Davidson did not immediately respond to a request for comment on the suspension.

Shares sank 9 per cent to US$32.47 in early 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. REUTERS