Harley Restarts Production

Late on May 17, Harley-Davidson received a message from a third-party supplier concerning a regulatory compliance problem with a part. Two days later, Harley announced a two-week suspension of production due to the compliance issue.

Wednesday, according to the Milwaukee Journal Sentinel, the motorcycle maker restarted production lines in Menomonee Falls, Wisconsin, and York, Pennsylvania. Apparently, the issue with the supplier, which remains unidentified, has been sorted out.

According to the company, the work stoppage was "taken out of an abundance of caution," but Harley stopped short of identifying the part or parts affected.

Fortunately, the supply chain problems didn't impact the company's electric bike, the LiveWire.

The company's stock dropped 9% following the announcement, but has since somewhat rebounded.

In April, the company reported strong consumer demand for Harley-Davidson products across all regions, but admitted that it continues to work through ongoing global supply chain disruptions, including the global chip shortage. Still, the company was "optimistic" for the rest of the year and retail sales rose pretty much everywhere except North America in the first quarter.

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