Harley-Davidson Limits Motorcycle Production At York Facility After Supplier Quality Issue

Harley-Davidson Inc HOG said it would suspend most of its motorcycle production operations at its York Facility after a supplier quality issue.

The company said it was recently notified of a potential quality issue relating to brake hose assemblies provided by a tier-2 supplier, Proterial Cable America (PCA), a portfolio company of Bain Capital.

The company noted that this is a new supplier quality issue, separate from the matter that caused the production suspension in May 2022.

Also Read: Harley-Davidson Clocks 20% Topline Growth In Q1, Beats Consensus Harley-Davidson also clarified that the recently launched 2023 CVO Road Glide and Street Glide motorcycles do not utilize the brake hose assemblies.

The company expects to resume full motorcycle manufacturing operations at its York facility on June 26, 2023. 

"While retail sales have improved in the quarter, as we had expected, we have a strong inventory position in the network to help us navigate through this situation - our teams are working very hard to minimize the impact on the business," said Chairman, President and CEO Jochen Zeitz.

Price Action: HOG shares closed lower by 1.30% at $33.29 on Monday.