Harley-Davidson suspends vehicle assembly due to parts issue

The Harley-Davidson logo is seen on a motorcycle at a dealership in Queens, New York, U.S., February 7, 2022. REUTERS/Andrew Kelly

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May 19 (Reuters) – Harley-Davidson Inc said on Thursday it would suspend assembly and shipments of vehicles for a period of two weeks, excluding those of its LiveWire electric vehicle division , due to a supplier-related parts issue.

The iconic motorcycle maker said the decision was made after an unnamed third-party supplier informed Harley of a regulatory compliance issue with its component.

The company began outsourcing bicycle production to ship to the EU from the United States in 2018 in response to retaliatory EU tariffs on steel and aluminum products.

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

Shares fell 9% to $32.47 in early trading.

Milwaukee-based Harley reported lower first-quarter profits in April as margins were squeezed by higher costs and chip shortages.

Supply chain issues hurt motorcycle sales in North America as production issues led to lower dealer inventories, the company previously said.

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Reporting by Aishwarya Nair in Bengaluru; Editing by Shounak Dasgupta and Bernadette Baum

Our standards: The Thomson Reuters Trust Principles.

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