Home / Auto News / Harley-Davidson to suspend vehicle assembly due to parts issue with supplier
Listen to this article

Due to a parts issue with a supplier, Harley-Davidson Inc announced on May 19 that it would cease vehicle assembly and shipments for two weeks, barring those from its electric-car division LiveWire. Harley-Davidson said the decision was made after a third-party supplier warned the company about a regulatory compliance issue involving one of its component parts. In response to retaliatory tariffs imposed by the EU on steel and aluminium products, the company began outsourcing bike production for shipment to the EU from the United States in 2018.

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

Shares sank 9% to $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.

In September 2021, Hero Motocorp and Harley-Davidson extended the number of touch points available to current and potential Harley-Davidson buyers.

The Indian two-wheeler company said in a statement that it had acquired an extended network of 14 full-fledged stores and seven licenced service centres across the nation, specifically for Harley-Davidson consumers.

Hero Motocorp has been handling sales and servicing activities for the American motorcycle manufacturer since it ceased operations in India in September 2020.

A decade after selling motorcycles in India under its 'Rewire' initiative, Harley-Davidson ended its business in the country and similar smaller markets. It formed a collaboration with Hero MotoCorp to market its motorcycles in India a month later. Hero MotoCorp has exclusive distribution rights in India for Harley-Davidson motorcycles, parts, and products, according to the licensing agreement.

LML Electric said in January that it had formed a strategic agreement with Saera Electric Auto, a former Harley-Davidson manufacturing partner in India, to construct its electric two-wheelers.

According to the firm, Saera's factory in Bawal, Haryana, will produce a wide range of forthcoming LML Electric vehicles as part of the cooperation. It stated that the manufacturing factory, which spans 2,17,800 square feet, can produce 18,000 units each month.

Catch all the Auto News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

Trending Stocks

Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout