On May 19, 2022, American motorcycle company Harley Davidson announced that it would stop assembling and exporting motorcycles for 2 weeks due to problems with the supply of components and spare parts.

This production stoppage affects factories in Wisconsin and Pennsylvania in the U.S.

Harley Davidson offered no further explanation for the problem, but the halting production at both plants indicates serious issues with the supplier.

Last month, in its first-quarter financial report, Harley Davidson highlighted the bad effects of the lack of parts across the motorcycle industry. According to the brand, this production shutdown will have negative effects on profit margins and sales. Motorcycle sales in North America fell by 5% in the first quarter of 2022, compared to the same period in 2021. The company said that dealers had low inventory, but not because of selling but because of shortages.

Harley Davidson is not the only manufacturer of motor vehicles facing such difficulties. Spare parts shortages have had a negative impact on the auto and motorcycle industry due to disruptions in international supply chains. Jochen Zeitz, Chief Executive Officer of Harley Davidson said during its April 27 financial report meeting, that supply challenges will continue to disrupt the motorcycle industry supply chain.

On May 19, 2022, the share price of Harley Davidson was only 32.6 USD/share. It had lost about 20% of its value in April.

Source: 24h.com.vn