Harley-Davidson is forced to stop the production of motorcycles for two weeks. It is not known yet what the downtime is related to, but it will affect only bikes with internal combustion engines. The market reacted to the news with a slight decline: the company’s shares went down from $37.78 to $32.87.
Production of Harley-Davidson motorcycles will be stopped for two weeks. The measure is being called a “reassurance” measure caused by problems on the part of the component supplier and the need to “meet regulatory requirements.” It is not clear what is meant by these streamlined phrases, but the LiveWire electric bikes will not be impacted by the downtime.
Presumably, the problem lies in specific detail, and since the ban applies only to gasoline bikes, it may have something to do with the emission control system. Anyway, it doesn’t look like Harley-Davidson suffers from a break in the supply chain and takes a break just to replenish inventory.
The market reacted to the news with a nine percent drop in the stock price. According to Jalopnik, downtime will also have a negative impact on financial results, especially amid rising pandemic motorcycle sales. Harley-Davidson sold 30 percent more motorcycles last year than it did in 2020, but new issues could reduce revenues and the company will have to abandon some of its plans.