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Harley-Davidson to suspend motorcycle production at York facility until later this month

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Custom Harley Davidson Motorbike.

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Harley-Davidson (NYSE:HOG) on Monday said it would suspend most of its motorcycle manufacturing operations at its York facility due to a new supplier quality issue.

Shares of the company initially fell 1.5% to $32.80 after hours, then reversed course to go up 0.9%.

The company said it had been recently notified of a potential quality issue relating to brake hose assemblies provided by a second tier supplier – a Bain Capital portfolio company called Proterial Cable America (PCA).

Based upon the latest information provided by PCA, HOG said it now anticipates restarting full motorcycle manufacturing operations at the York facility on June 26, adding that it did not expect its international production to be “meaningfully impacted.”

“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,” HOG CEO Jochen Zeitz said in a statement.

Back in May last year, HOG had announced a surprise two-week suspension of all vehicle assembly and shipments (excluding LiveWire).

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