Supply chain issues are forcing Harley-Davidson Inc. to suspend manufacturing and shipments of most of its vehicles for two weeks, a move that affects the company’s Menomonee Falls plant.
The Milwaukee-based company announced the move in a press release Thursday morning.
“This decision, made out of caution, is based on information provided by a third-party supplier to Harley-Davidson on Tuesday evening regarding a regulatory compliance matter regarding the supplier’s component,” the statement said.
It’s the latest in a series of issues that have plagued manufacturing and the international supply chain since the start of the COVID-19 pandemic.
In its first-quarter financial results last month, Harley-Davidson noted the impacts of “semiconductor challenges” and production shortages on its margins and sales. Motorcycle sales in North America were down 5% year-on-year, with the company saying dealers had much lower inventory due to shortages.
The company launched a strategic plan to revamp its sales early last year in the wake of declining revenue from the pandemic. Harley CEO Jochen Zeitz said at the time that the company had been “overcommitted and underdelivered” in the past.
Shares of Harley were trading around $32.60 per share as of 10:20 a.m. Shares in the company have lost nearly 20% of their value over the past month.
LiveWire, the company’s electric vehicle division, is unaffected by the production hiatus.
Editor’s Note: This story will be updated.