Shares in motorcycle maker Harley-Davidson plummeted more than 10% Thursday morning after the company announced it has suspended assembly and vehicle shipments for two weeks. The decision to suspend assembly was "made out of plenty of caution," the company said. As you can see, the title was immediately affected
Harley-Davidson has reportedly halted production over a "component regulatory compliance issue" from a specific external supplier, the company said in a Thursday morning press release . The problem that the production line of all motorcycles (except Limewire) is stopped suggests an essential component.
While it's not immediately clear whether or not the suspension has the potential to become long-term, it is yet another twist in the automotive supply chain, coming at the worst possible time, with markets fluttering for the raising interest rates.
Recall that in the meantime car sales in Europe continued to collapse, recording a decline for the tenth consecutive month. meanwhile, international logistic chains are damaged by the war in Ukraine, where many sub-components were produced, and by the lockdown in China, where Tesla had to temporarily close its plants. The auto sector therefore seems to be particularly affected by the devastating combination of high energy prices, the economic crisis and the breakdown of logistic chains.
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/harley-chiude/ on Thu, 19 May 2022 18:10:57 +0000.